Wall Street appears to have given Nvidia a mulligan. Investors shouldn’t squander it, CNBC’s Jim Cramer said Friday. Shares of the leading artificial intelligence chipmaker have surged more than 15% this week, including a modest decline Friday. That’s erased a large chunk of Nvidia’s post-earnings plunge, which sent the once-hot stock tumbling 18% over a six-session stretch that ended last Friday. A number of positive headlines around AI demand have lifted Nvidia and other stocks that benefit from the adoption of the buzzy tech. “There’s kind of a do-over in terms of what happened with [CEO Jensen Huang], what happened with Nvidia,” Cramer said on “Squawk on the Street,” referring to the response to its much-ballyhooed earnings report Aug. 28 . Despite better-than-expected reported results, Nvidia’s current-quarter guidance failed to meet the loftiest of expectations. It prompted another round of questioning about whether investment in AI infrastructure has moved too far, too fast. Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owned Nvidia shares long before the launch of ChatGPT in late 2022 , which sparked that AI investment boom and made the chipmaker one of the world’s most valuable and influential companies. “Perhaps, the Street got it wrong” as of late, Cramer said. He argued that was “verified by the fact that Oracle boosted numbers” in the long term merely days after reporting strong fiscal 2025 first-quarter results that sent its stock and others in the AI complex including Nvidia higher in Tuesday’s session. NVDA YTD mountain Nvidia YTD On Thursday, cloud-computing provider Oracle — a significant buyer of Nvidia’s chips — lifted its fiscal 2026 revenue forecast to at least $66 billion, ahead of Wall Street expectations of $64.5 billion and its own prior forecast of $65 billion. Oracle also provided an even longer-term forecast, saying it sees more than $104 billion in revenue in fiscal 2029. “What’s weird is Larry Ellison boosted next year like a billion [dollars] and then he’s using numbers in the out years that are so incredible that if you’re not long these stocks, I think you might miss another move coming,” Cramer said. Ellison is Oracle’s billionaire co-founder, chairman and chief technology officer. For its part, Nvidia also offered positive updates this week that added to the rosier perception of AI demand. At a Goldman Sachs conference Wednesday , Huang said Nvidia’s next-generation Blackwell chip platform is in full production and will start to ship to customers in the fourth quarter, with volumes ramping into next year. “The demand for it is so great, and everybody wants to be first,” Huang said. Huang offered similar comments Thursday in an interview with CNBC’s Megan Cassella outside the White House. Huang, other tech CEOs and leaders in the U.S. utility industry were there to attend a meeting on AI data center power needs. “We’re in a hurry to get the Blackwell,” Huang told CNBC. “Every company in the world is chomping at the bit” to receive the chips, he said. Other standout stocks tied to the AI trade in recent days include chipmaker Broadcom , which has soared more than 20% week to date. The Investing Club also has a stake in Broadcom, which like Nvidia had been punished after its recent earnings report. Advanced Micro Devices , another AI chipmaker, and Eaton , which makes electrical equipment used in the expanding data center market, have added about 13% and 7%, respectively, this week. The Club owns AMD and Eaton, as well.
Read the full article here
