Even though NVIDIA Corp. (NASDAQ:NVDA)’s shares have remained lukewarm in 2026 and are up by 13.7% year-to-date, Cramer continues to be a believer. The CNBC TV host continues to believe that the company is at the center of an industrial revolution and its products are the leading ones in the market. In his morning appearance on Monday, Cramer discussed recent trends in NVIDIA Corp. (NASDAQ:NVDA)’s industry partnerships through which it has invested in AI companies that are dependent on its products:
“NVIDIA, I know that we’re seeing them less than some companies. We didn’t think they would do as much. When they were, putting a lot of money in, we were told, what Jensen Huang was doing was lazy Susan. I give you money then you give it back. Now that he’s cut it back, it’s bad?
“I think Jensen doesn’t need to put any money to work at this moment. I think Jensen’s got, from Elon Musk, I think Elon Musk’s going to be the biggest buyer, and I think that seminal, that interest in SpaceX is real. . .but why do you need anyone if you have Musk? Musk is going to be the biggest buyer of these chips, is my prediction. I think that Musk could take down, the whole Vera Rubin, if he wanted to.”
Cramer’s comments sit right at the center of the debate surrounding NVIDIA Corp. (NASDAQ:NVDA). This debate concerns the fact about the sustainability of the spending on the firm’s products. While the bulls believe that the spending will be sustainable, NVIDIA Corp. (NASDAQ:NVDA)’s bears hold the opinion that this might not be the case. For instance, data from UBS shows that growth in hyperscaler capital expenditure growth can slow down to 25% in 2027 and 6% in 2028. Additionally, media reports have also suggested that institutional investors are becoming uneasy about the timelines of AI monetization. On the business side, NVIDIA Corp. (NASDAQ:NVDA) is also facing a tight memory chip supply market which constrains the firm’s ability to rapidly scale its chip production.
However, on the flip side, the bullish estimates suggest that NVIDIA Corp. (NASDAQ:NVDA) could earn more than $15 and $20 in EPS in 2027 and 2028, courtesy of its Rubin AI GPU lineup. Current growth also remains impressive. In NVIDIA Corp. (NASDAQ:NVDA)’s Q1 of fiscal year 2027, the firm’s data center revenue jumped by 92% annually to sit at $75 billion. Additionally, the firm has strong gross margins of 75% and Q2 revenue guidance of $91 billion indicate that the financials remain strong. The guide beat analyst estimates of $86.84 billion, with management countering claims of a growth slowdown through a $200 billion CPU opportunity for the Vera platform through agentic AI demand.
