Jim Cramer Doubles Down On Nvidia: 'Demand Is Accelerating' As AI Customers 'Have No Choice' But To Buy Its Chips

NVIDIA Corp. NVDA continues to dominate the artificial intelligence landscape, with CNBC’s Jim Cramer and Wall Street analysts reinforcing their bullish outlook following the company’s stellar third-quarter earnings report.

What Happened: “The demand is accelerating because the payoff is so great,” Cramer said on Thursday, citing CEO Jensen Huang‘s assertion that customers earn five dollars for every dollar invested in Nvidia chips.

This compelling return on investment, Cramer argues, makes Nvidia’s products essential for major tech companies. “That means they have no choice but to buy Nvidia's chips,” he said.

The sentiment is echoed by Wedbush‘s Dan Ives, who called the results a “jaw-dropper.” Ives predicts the Nasdaq could surge to 25,000, driven by an extraordinary multiplier effect where “one dollar spent on GPU chips translates to an $8 to $10 impact across the tech sector.”

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Why It Matters: Nvidia reported third-quarter revenue of $35.1 billion, up 94% year-over-year, with Data Center revenue alone reaching $30.8 billion. The company’s CFO Colette Kress projects gross margins will temporarily dip to the low 70% range as the new Blackwell systems ramp up production.

Rosenblatt analyst Hans Mosesmann maintained a Buy rating while raising the price target from $200 to $220.

This optimism is reflected in a recent Benzinga poll, where 48% of respondents believed Nvidia would continue to dominate the “Magnificent Seven” stocks in 2025, followed by Tesla Inc. TSLA at 27%.

Huang describes this period as “the beginnings of two fundamental shifts in computing,” highlighting the transition to machine learning and AI’s emergence as an industrial capability. The company projects fourth-quarter revenue of $37.5 billion, with Oracle Corp. ORCL already planning AI computing clusters scaling to over 131,000 Blackwell GPUs.

Price Action: Nvidia’s stock has surged more than 196% year-to-date, significantly outperforming the broader market and its “Magnificent Seven” peers, including Apple Inc. AAPL at 23.3% and Microsoft Corp. MSFT at 11.4%, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.