Nvidia CEO Jensen Huang delivered a winning message in his highly publicized Computex keynote, arguing that computing power is the profit engine of the age of artificial intelligence, CNBC’s Jim Cramer said Monday.
Cramer said Huang’s ideas seemed to resonate with Wall Street, as major stocks in the AI industry rose on Monday despite high oil prices and setbacks in U.S.-Iranian peace talks. This includes Nvidia itself, which soared 6% on the day. The S&P 500 managed to make some gains on the day, once again finishing at an all-time high.
“This was incredibly reassuring at a time when we’re so questioning data centers as a concept, let alone profit centers,” the “Mad Money” host said.
“Until this keynote, I felt like the latest bubble crowd had the upper hand,” Cramer acknowledged, referring to market participants who doubt whether the hundreds of billions of dollars poured into AI infrastructure will generate adequate returns.
In addition to announcing Nvidia’s full-scale entry into the personal computer market, Huang repeatedly asserted in his keynote that “computing is revenue,” trying to make the case that it’s worth spending.
“The never-ending narrative that computing is money and computing is big money is really game-changing,” Cramer said, noting that Huang specifically mentioned data center operators and NVIDIA chip buyers. oracle, Neviusand coreweave during his speech.
Shares of these three companies rose 9.9%, 14.5% and 14%, respectively, during Monday trading. Oracle, in particular, has faced questions over the past year about whether its massive spending on AI infrastructure was a wise bet. CoreWeave also had to protect its spending and debt burden.
Additionally, Cramer said the presentation further reinforced his view that investors should own Nvidia alongside hyperscalers. Amazon and alphabeteven though both companies are developing custom chips that compete with Nvidia products.
“The argument I made to myself was that I needed to join all three companies because the opportunities were so great,” he said.
Ultimately, Mr. Kramer said Mr. Huang successfully countered the growing narrative that spending on AI infrastructure is becoming too much.
“This time, NVIDIA really delivered when we least expected it,” says Cramer.
