Demand for Nvidia products isn’t letting up, Jim Cramer says

Despite the concerns of some on Wall Street, CNBC's Jim Cramer said demand for Nvidia's products isn't slowing down.
"The demand is accelerating because the payoff is so great," he said. "According to Jensen, for every dollar their customers put in, they're making five smackers. That means they have no choice but to buy Nvidia's chips."
Some of Nvidia's biggest customers, like Microsoft, Meta, Amazon and Tesla will have to keep buying the products, he said.

CNBC's Jim Cramer on Thursday reiterated his longstanding belief in Nvidia and CEO Jensen Huang, saying that despite the concerns of some on Wall Street, demand for the artificial intelligence behemoth's products isn't slowing down.

"The demand is accelerating because the payoff is so great," he said. "According to Jensen, for every dollar their customers put in, they're making five smackers. That means they have no choice but to buy Nvidia's chips."

Nvidia posted earnings Wednesday that comfortably topped estimates. Shares dipped in extended trading and traded unevenly during Thursday's session, but the stock managed to finish the day up 0.53%. Nvidia has had a meteoric rise, with shares currently up more than 196% year-to-date, and the company has posted large earnings beats quarter after quarter. But some investors worry the AI juggernaut won't be able to keep up the rapid growth.

According to Cramer, supply isn't set to outpace demand. Some of Nvidia's biggest customers, like Microsoft, Meta, Amazon and Tesla will have to keep buying the products, he said.

Cramer described why he thinks Nvidia is well-positioned, saying it has strong business in both AI and accelerated computing, saying there's "a trillion dollars worth of computing power that needs to be replaced by Nvidia." And Nvidia can help the enterprise save enormous amounts of money by easing tasks including legal work, supply chain management, engineering and coding, he added.

"What's happening at Nvidia is so positive that it defies description," Cramer said. "Our minds can't comprehend it."