Market Overview

Nvidia Chips Are The 'Engine Of Artificial Intelligence,' CEO Tells Cramer

Share:
Nvidia Chips Are The 'Engine Of Artificial Intelligence,' CEO Tells Cramer

Jim Cramer said on Tuesday's "Mad Money" that some of the pushback he gets from NVIDIA Corporation (NASDAQ: NVDA) investors is tied to the notion that the company "doesn't go anywhere" on a day-to-day basis.

What Nvidia Said

Nvidia's recent earnings reports have shown some near-term struggles in the data center and cryptocurrency businesses, Cramer said. 

Given an opportunity to respond, Nvidia CEO Jensen Huang said the company experienced a "perfect storm" in 2018 that prompted a slowdown in the business.

Any setbacks were temporary, as evidenced by Nvidia's recent "great" earnings report that showed growth in the graphics and gaming segments, the CEO said.

The data center business grew because of growing demand for artificial intelligence-related technologies, he said. 

Why AI Is Important To Nvidia

Nvidia is addressing "one of the most powerful technology forces of all time," Huang said: computers that can learn and write software codes by themselves.

In other words, the ability to "automate automation" will have a major impact across every industry, the CEO said. 

"Nvidia's processors are really the engine of artificial intelligence."  

Nvidia's pending merger with Mellanox Technologies, Ltd. (NASDAQ: MLNX) has yet to close, as regulatory discussions remain ongoing, the CEO said.

The merger is expected to close in early 2020, but if it fails to materialize, Nvidia will be "fine without Mellanox" and "Mellanox will be fine without Nvidia," Huang said. 

Nvidia shares were trading 0.9% higher at $209.86 at the time of publication Wednesday. 

Related Links:

Nvidia Posts Big Q3 Earnings Beat

Nvidia Impresses Analysts With Datacenter Resurgence, Expanding Margins

Photo courtesy of Nvidia. 

Posted-In: AI artificial intelligence CNBC Jensen HuangCryptocurrency Markets Tech Media Best of Benzinga

 

Related Articles (MLNX + NVDA)

View Comments and Join the Discussion!

TJX Beats Expectations With Third Quarter Results

Stocks That Hit 52-Week Highs On Wednesday