NVIDIA Corp. (NASDAQ:NVDA) continues solidifying its dominance in the artificial intelligence semiconductor market, with CNBC's Jim Cramer emphatically saying that no company can successfully challenge the tech giant's technological supremacy.
What Happened: Cramer, host of "Mad Money," underscored Nvidia's unparalleled market position, stating, "I know lots of people are gunning for Nvidia and there are stories all of the time about how other companies are trying to make chips better faster and cheaper than Nvidia's. But they can't. And the so-called enemies of Nvidia aren't really enemies."
Nvidia's third-quarter earnings report reinforced Cramer's bullish stance, with the company reporting a staggering $35.1 billion in revenue — a 94% year-over-year increase. Data Center revenue alone reached $30.8 billion, highlighting the company's critical role in AI infrastructure.
The company's stock has surged more than 181% year-to-date, dramatically outperforming other "Magnificent Seven" tech stocks like Apple Inc. (25.44%) and Microsoft Corp. (12.92%).
Cramer emphasized the compelling investment thesis behind Nvidia, quoting CEO Jensen Huang's assertion that customers earn five dollars for every dollar invested in Nvidia chips. "That means they have no choice but to buy Nvidia's chips," Cramer said.
I know lots of people are gunning for Nvidia and there are stories all of the time about how other companies are trying to make chips better faster and cheaper than Nvidia's. But they can't. And the so-called enemies of Nvidia aren't really enemies
— Jim Cramer (@jimcramer) November 25, 2024
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Why It Matters: Wedbush analyst Dan Ives amplified this sentiment, predicting the Nasdaq could surge to 25,000, driven by an extraordinary multiplier effect where "one dollar spent on GPU chips translates to an $8 to $10 impact across the tech sector."
Nvidia's recent collaborations with Alphabet Inc's (NASDAQ:GOOGL) (NASDAQ:GOOG) Google Quantum AI and initiatives in robotics with companies like Tesla Inc. (NASDAQ:TSLA) demonstrate the company's commitment to technological innovation.
The company projects fourth-quarter revenue of $37.5 billion, with major clients like Oracle Corp. planning expansive AI computing clusters.
A recent Benzinga poll reveals investor confidence, with 48% of respondents believing Nvidia will continue dominating the "Magnificent Seven" stocks in 2025.
Morgan Stanley's Joseph Moore highlighted emerging growth catalysts, including AI PCs, autonomous vehicles, and per-car software licensing revenue.
Despite overwhelming optimism, analysts like Mizuho's Jordan Klein caution about potential near-term volatility, citing reported thermal challenges with the new Blackwell chip systems.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
