Jim Cramer Explains Why NVIDIA Is the Most Proprietary Chip Company in History
Jim Cramer Explains Why NVIDIA Is the Most Proprietary Chip Company in History.
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NVIDIA Corporation (NASDAQ: NVDA ) was among Jim Cramer's stock calls on Mad Money, as he advised investors to stick with the largest tech companies in the market . Talking about an analyst raising the price on SNDK and what investors do when they see a rally in the complex, Cramer said:
Two, they put in orders for SK Hynix, the giant Korean memory chip maker seeking to raise something like $26 billion in an ADR offering on the Nasdaq. They start trading tomorrow morning… And three, well, what do they do? This is their favorite thing to do: [sell, sell, sell] NVIDIA because they think it's too big… too lumbering. Me? What do I do? Well, I look at NVIDIA as a company… itself with a management run by Jensen Huang, who seems like a smart fellow to me. I say it's at the heart of the data center with a product that's still the envy of the industry. Doesn't matter, though. All I see is people endlessly comparing chips by Amazon, by Alphabet, hey, you know, by Sandisk, by Micron, and maybe by Meta, by SpaceX.
We never stop to think that all these companies- what are they really, at least the hyperscalers? They are customers of NVIDIA, and just like the commodity semiconductor companies, NVIDIA's on allocation, too. We just don't talk about it. They can't make enough of their product either. But some of the commodity chip companies, like Sandisk, now have price-to-earnings multiples that are higher on next year's earnings than NVIDIA. I regard that as insulting, insulting to Jensen Huang, insulting to me. I'm insulted. Sandisk's a commodity chip maker; NVIDIA's the most proprietary chip company in the history of the world.
NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies.
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