Jim Cramer Calls China's Nvidia Restrictions 'Pathetic,' Says Jensen Huang Can Handle The Pressure

Jim Cramer has criticized potential restrictions on Nvidia Corp. NVDA in China, dismissing reports of regulatory challenges as “pathetic.”

What Happened: In a recent post on X, Cramer challenged the logic of limiting access to Nvidia’s advanced chips, asking, “Like China would ban the best of the best? Really?”

The criticism comes amid emerging tensions between the United States and China in the semiconductor technology sector. China’s National Development and Reform Commission has introduced new energy efficiency rules that could potentially block Chinese companies from purchasing Nvidia’s specialized H20 processors.

Cramer acknowledged the mounting challenges Nvidia faces but expressed confidence in CEO Jensen Huang's ability to steer the company through them successfully.

The Financial Times reported that these regulations may prevent major Chinese tech firms like Alibaba Group Holding Ltd. BABA and Tencent Holdings Ltd. TCEHY from using Nvidia’s chips. This move threatens Nvidia’s $17 billion annual business in China, currently its fourth-largest market.

Like every day, the Long Knives are out again for Nvdia. Today's bear: https://t.co/5SGVUbebYJ says that Nvidia's chips violate Chinese environmental rules. Pathetic…
— Jim Cramer (@jimcramer) March 26, 2025

The forces against Nvidia are legion. But Jensen can handle it. The world, including china, needs more compute. You can't do it without Nvidia. Like China would ban the best of the best? Really?
— Jim Cramer (@jimcramer) March 26, 2025

Yeah, and the Chinese have WHAT to replace Nvidia chips? And the new chips are the least hot. Makes me laugh how these stories come out. Sure the country that builds endless amounts of coal plants is going to cut its nose off to spite its face? Just plain dumb
— Jim Cramer (@jimcramer) March 26, 2025

Why It Matters: Cramer emphasized the critical nature of Nvidia’s technology, stating, “The world, including China, needs more compute. You can’t do it without Nvidia.” He further questioned China’s ability to replace Nvidia’s advanced chips, suggesting the restrictions would be counterproductive.

Nvidia remains resilient, with plans to meet with commission chair Zheng Shanjie and develop solutions to align with the new regulations. The company’s recent financial performance underscores its strong market position, with fourth-quarter revenue reaching $39.3 billion, a 78% increase, and projecting first-quarter revenue of $43.0 billion.

As domestic competitors like Huawei Technologies Co. advance their AI chip capabilities, the semiconductor landscape continues to evolve in this high-stakes technological chess match between global powers.

Price Action: Nvidia traded at $113.76 on Wednesday, down 5.74%, and slipped further to $112.21 in after-hours trading, down 1.36%.

While Nvidia outperforms Intel Corp INTC and Advanced Micro Devices Inc AMD in growth and momentum, it lags in valuation metrics, according to Benzinga Edge rankings. For deeper insights, sign up for Benzinga Edge.

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