Jim Cramer underscored NVIDIA’s pivotal role in the accelerated computing market, citing record data center revenue and AI chip demand. The stock's momentum reflects broader industry shifts toward AI infrastructure, with NVDA's market cap nearing $2 trillion.
- NVIDIA's data center revenue exceeded $20 billion in the latest quarter
- NVIDIA holds over 85% market share in the AI accelerator market
- Gross margins reached 77% in the recent quarter
- NVDA's market cap approached $2 trillion
- Enterprise spending on AI infrastructure rose over 40% year-over-year
- Analysts project $15.20 in non-GAAP EPS for the next fiscal year
Jim Cramer emphasized NVIDIA’s unmatched leadership in the accelerated computing sector during a recent market analysis, positioning the company as the cornerstone of the global AI infrastructure buildout. He pointed to the company’s data center revenue, which surpassed $20 billion in the most recent fiscal quarter, signaling sustained demand for its GPU-based AI platforms. Cramer noted that NVIDIA’s H100 and upcoming B100 chips are now deployed across major cloud providers, including Amazon Web Services, Microsoft Azure, and Google Cloud, accelerating AI model training and inference at scale. The commentary comes amid a surge in AI investment, with enterprise clients increasing spending on high-performance computing by over 40% year-over-year. Cramer highlighted that NVIDIA’s market share in the AI accelerator market now exceeds 85%, a figure he described as 'unassailable' given the technical and software ecosystem advantages of CUDA. The company’s ability to maintain high gross margins—reported at 77% in the same quarter—further underscores its pricing power and operational efficiency. Investors are reacting positively, with NVDA’s stock price up 28% in the past three months, contributing significantly to the Nasdaq Composite’s gains. The stock's market capitalization has approached $2 trillion, making it one of only a handful of companies to reach that level. Analysts are revising earnings estimates upward, with consensus projections now calling for $15.20 in non-GAAP EPS for the next fiscal year. The broader semiconductor sector is benefiting from NVIDIA’s momentum, with companies like ASML and TSMC seeing elevated orders for advanced lithography and fabrication capacity. Cramer cautioned, however, that investors should monitor supply chain constraints and geopolitical risks affecting chip manufacturing, particularly in Taiwan and South Korea.