Jim Cramer on NVIDIA (NASDAQ:NVDA), OpenAI’s $400B Valuation, and the AI Revolution
Wall Street’s favorite AI stock, NVIDIA Corporation (NASDAQ:NVDA), remains at the center of market discussions as Jim Cramer weighs in on its role in the unfolding AI revolution. During his latest appearance on CNBC’s Squawk on the Street, Cramer provided insights into NVIDIA’s AI dominance, OpenAI’s massive valuation, and the broader implications of artificial intelligence on the global economy.
Cramer on NVIDIA’s AI Potential: Beyond GPUs to Humanoid Robots
NVIDIA has become synonymous with AI acceleration, primarily due to its high-performance Blackwell GPUs—the gold standard for artificial intelligence training and inference. While many investors associate the company with AI computing, Cramer suggests that NVIDIA’s true potential extends beyond GPUs into robotics, particularly humanoid robots powered by advanced AI models.
Despite a significant market cap decline of nearly $600 billion during the recent selloff, Cramer remains bullish on NVIDIA’s future. He emphasized that many traders fail to grasp the company’s full potential, sharing a personal anecdote about two investors who bought the stock simply because he recommended it—without actually understanding what NVIDIA does.
OpenAI’s $400 Billion Valuation: The Future of AI Investments
Another major topic Cramer tackled was OpenAI’s reported $400 billion valuation, following a Reuters report that the company is looking to raise $40 billion in capital. The valuation has raised eyebrows, especially given the volatility in AI stocks after recent market fluctuations.
When questioned about how such a valuation could be justified, Cramer didn’t hold back. He likened AI to past industrial revolutions, saying, “It is, without a doubt, a time not of inflation, but of a recognition.” He went on to compare the AI boom to historical innovations like the cotton gin, steam engine, and the wheel, arguing that companies driving AI development are inherently more valuable than those on the sidelines.
Market Resilience and the Return of Industrials & Healthcare
Despite recent market turbulence, Cramer noted an unexpected resurgence in non-tech sectors, particularly industrials and healthcare. He highlighted a major industrial firm that specializes in motion control products, pointing out that its recent performance was “fabulous.” This indicates that while AI stocks like NVIDIA and OpenAI remain in the spotlight, investors are starting to recognize opportunities in other sectors that stand to benefit from technological advancements.
As AI reshapes industries across the board, Cramer’s insights suggest that NVIDIA, OpenAI, and select industrial and healthcare firms could be at the forefront of a new economic transformation—one that investors can’t afford to ignore.
