From Yahoo Finance: 2025-05-07 12:05:00

Jim Cramer discussed the resurgence of AI, mentioning NVIDIA Corporation (NASDAQ:NVDA) on CNBC’s Squawk on the Street. He highlighted US-China tensions over AI and trade, criticizing US chip sanctions. Cramer also shared concerns about tariffs on economic growth and hinted at potential licensing issues. Hedge fund investors hold 223 shares of NVDA.

NVIDIA Corporation (NASDAQ:NVDA) faces stock struggles due to AI GPU demand concerns and US restrictions on GPU sales to China. Cramer defends NVDA, predicting significant demand. NVDA ranks 3rd on Cramer’s list of discussed stocks, with potential for growth. An AI stock report with 10000% upside is also recommended.

The US has imposed sanctions on AI chips, limiting acquisition to 18 countries under the Biden administration’s ‘Diffusion Rules.’ Cramer criticizes the rules, highlighting friendly and unfriendly nations. He warns of potential licensing offers that could negatively impact the situation.

Cramer expressed confidence in NVDA’s growth potential despite modest portfolio weighting. He praised CEO Jensen Huang’s leadership and expects the stock to perform well. While NVDA holds promise, Cramer believes other AI stocks may offer higher returns in a shorter timeframe. Consider exploring undervalued AI stocks for potential gains.

Read more: Jim Cramer Asserts that NVIDIA Corporation (NVDA) Will Experience Sizeable Demand