Nvidia Corporation (NASDAQ: NVDA) seems to be in a league of its own in terms of capitalising on rapid growth in artificial intelligence, as per the famed investor Jim Cramer.
Jim Cramer is now all praise for Nvidia stock
Earlier this week, the semiconductor behemoth guided for about $11 billion in revenue for its current quarter (find out more).
In comparison, experts had called for just over $7.0 billion only. To that end, Cramer said last night on Mad Money:
Alphabet, Oracle, Microsoft, Amazon, Meta all understand if you use Nvidia chips, you can speak in the vernacular of ChatGPT. Best of all, there’s absolutely zero competition. It’s a monopoly by genius.
That’s radically different from his view on Nvidia stock last September when he dubbed it a “loser” as Invezz reported here.
JPMorgan sees upside in Nvidia stock to $500
In its recently reported quarter, Nvidia Corporation topped Street estimates for adjusted gross margin by a whopping 4.0%. According to Jim Cramer:
None of the new apps like ChatGPT can run on old hardware. Everything has to be upgraded. It’s a 10-year upgrade cycle. Hence why major players are trying to buy Nvidia’s most powerful chips.
His view is in line with the JPMorgan analyst Harlan Sur who raised his price objective on Nvidia stock to $500 this week following the chipmaker’s strong guidance.
That suggests about a 30% upside on top of 170% that NVDA has already gained since the start of the year.
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