Jim Cramer Expresses Optimism on Nvidia Amid China Market Developments, Downplays Honeywell Earnings Concerns

Jim Cramer expressed cautious optimism regarding Nvidia’s performance, particularly in its China-facing operations, during the weekday Morning Meeting. He noted that internal data suggests Nvidia continues to maintain approximately 65% market share in high-performance AI chips within mainland China, despite regulatory headwinds. This figure reflects a modest decline from its peak of 72% in early 2024 but remains significantly ahead of competitors like AMD and Huawei's Ascend series. Cramer attributed Nvidia’s continued dominance to robust demand for generative AI infrastructure, with customer order backlogs rising by 18% quarter-over-quarter. He emphasized that the company’s latest A100 and H100 chip shipments to Chinese cloud providers—totaling nearly 320,000 units in Q4 2025—underpin long-term revenue visibility. These figures suggest sustained traction even amid evolving export controls. In contrast, Cramer downplayed a recent $38 million non-operating charge reported by Honeywell International related to legacy equipment restructuring. While acknowledging the impact on quarterly earnings, he argued the expense was one-time in nature and did not reflect underlying business health. Honeywell’s core industrial segment grew revenue by 5.2% year-over-year, outpacing sector averages. Market participants reacted positively: Nvidia’s stock rose 2.4% post-meeting, while Honeywell edged up 1.1%. Investors appear focused on forward-looking indicators rather than isolated charges or geopolitical risks.