CNBC’s Jim Cramer on Friday argued against a “new and negative AI narrative” some on Wall Street have adopted that suggests large-scale spending on artificial intelligence has peaked.
“I believe that AI infrastructure remains the greatest story of our time,” he said. “The data center, the hardware, and the software for it are so much stronger than the bears think.”
But Cramer said Nvidia’s gross margin was hurt because the company currently doesn’t currently have enough supply to meet the demand for its new AI chip, Blackwell. He added that spending for new AI hardware can be uneven depending on the customer and said the two companies are “unwitting casualties” of the widespread AI pessimism.
He used a Google versus Bing analogy, saying MicrosoftAlphabetMetaApple
“In the end, people will realize that there’s no AI bubble, there’s just intense demand and very little supply,” Cramer said. “The Magnificent Seven have had repeated periods of underperformance, but they tend to always come back, as they should. They’re all incredibly well-run, and they have both accelerated computing and artificial intelligence.”
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia and Broadcom.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s world? Hit him up!Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com