NVIDIA Corporation (NASDAQ:NVDA) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds.
Cramer highlighted the company CEO’s strategy, as he commented: … Neoclouds, these are outfits with only one priority: Get the AI factory online and make the GPUs usable
They exist to deliver reliable compute faster than the competition. Honestly, this whole edifice exists because of NVIDIA, one of the major reasons why I stick with the stock. They’ve been major backers of the big neoclouds because they want to stave off a long-term competitive threat from the hyperscalers themselves.
Google, Amazon, Microsoft- those have all developed their own chips to compete with NVIDIA. They all want to reduce their dependence on Jensen Huang’s chips. And Jensen naturally doesn’t want a world where all AI compute is controlled by three cloud giants that are actively trying to build their own custom chips.