In this articleNVDA your favorite stocksCREATE FREE ACCOUNTwatch now2:0002:00Hype can not destroy the hope of artificial intelligence, says Jim CramerMad Money with Jim CramerAs investors digested the highly-anticipated earnings report from Nvidia, CNBC's Jim Cramer rejected the notion of a looming artificial intelligence bubble, saying the massive AI spend across Big is worthwhile."I don't care the seemingly sky-high market capitalization that these stocks have.
I'm simply trying to put a valuation on a company that makes what you need to become one of the serious players in AI," he said.
"I learned not to question Amazon or Microsoft or Google or Meta or even Tesla — the big customers — a long time ago.
They know more than I do…I'm just grateful they let me along for the ride."Nvidia beat expectations for earnings and revenue, and its guidance came in higher than expected.
Data center revenue came in light, and s slipped nearly 3% in ext trading.Cramer attributed the stock's slip to the fact that it had run up going into the quarter, and Wall Street's expectations were extremely high.
While he said the quarter was positive, it was also "kind of an anticlimax," as it was not decisive enough for Wall Street to agree on whether AI spend will pay off.Cramer remarked that many investors are comparing the current AI craze to the dotcom bubble that burst and shook the market 25 years ago.
Cramer reflected on that time, saying that while so many companies got crushed, several big names were able to survive and see enormous gains years down the line — notably Amazon.
He also said the hyperscalers spending billions on AI — Microsoft, Amazon, Google, Oracle, Meta and Tesla — have competent leadership, solid balance sheets and strong revenue growth."Even when the dotcom bubble burst, there were a handful of fairly obvious winners that eventually came roaring back," he said.
"You did have to be courageous to buy them.
If you gave up on Amazon in 2001, you missed the $2 trillion boat."watch now10:2310:23Jim Cramer looks back on the dotcom days to make sense of the current AI landscapeMad Money with Jim CramerJim Cramer's Guide to Click here to download Jim Cramer's Guide to at no cost to help you build long-term wealth and invest smarter.
now for the CNBC to Jim Cramer's every move in the market.Disclaimer The CNBC Charitable Trust owns s of Nvidia, Amazon, Microsoft, and Meta.Questions for Cramer?
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