Nvidia's AI Dominance Faces Challenges Amid Soaring Demand and Emerging Competition

As Nvidia Maintains Chip Supremacy, Jim Cramer Says Foes Of Semiconductor Giant 'Aren't Really Enemies' - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

NVIDIA Corp. NVDA continues solidifying its dominance in the artificial intelligence semiconductor market, with CNBC's Jim Cramer emphatically saying that no company can successfully challenge the tech giant's technological supremacy. What Happened: Cramer, host of "Mad Money," underscored Nvidia's unparalleled market position, stating, "I know lots of people are gunning for Nvidia and there are stories all of the time about how other companies are trying to make chips better faster and cheaper than Nvidia's. But they can't. And the so-called enemies of Nvidia aren't really enemies." Nvidia's third-quarter earnings report reinforced Cramer's bullish stance, with the company reporting a staggering $35.1 billion in revenue -- a 94% year-over-year increase. Data Center revenue alone reached $30.8 billion, highlighting the company's critical role in AI infrastructure. The company's stock has surged more than 181% year-to-date, dramatically outperforming other "Magnificent Seven" tech stocks like Apple Inc. (25.44%) and Microsoft Corp. (12.92%). Cramer emphasized the compelling investment thesis behind Nvidia, quoting CEO Jensen Huang's assertion that customers earn five dollars for every dollar invested in Nvidia chips. "That means they have no choice but to buy Nvidia's chips," Cramer said. See Also: Warren Buffett Announces New Charitable Gifts, Updates Plans For $150B Fortune: Billionaire Wants To Help Others 'Given A Very Short Straw At Birth' Why It Matters: Wedbush analyst Dan Ives amplified this sentiment, predicting 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." Nvidia's recent collaborations with Alphabet Inc's GOOGL GOOG Google Quantum AI and initiatives in robotics with companies like Tesla Inc. TSLA demonstrate the company's commitment to technological innovation. The company projects fourth-quarter revenue of $37.5 billion, with major clients like Oracle Corp. planning expansive AI computing clusters. A recent Benzinga poll reveals investor confidence, with 48% of respondents believing Nvidia will continue dominating the "Magnificent Seven" stocks in 2025. Morgan Stanley's Joseph Moore highlighted emerging growth catalysts, including AI PCs, autonomous vehicles, and per-car software licensing revenue. Despite overwhelming optimism, analysts like Mizuho's Jordan Klein caution about potential near-term volatility, citing reported thermal challenges with the new Blackwell chip systems. Read Next: EXCLUSIVE: Small Caps Hit Records As Expert Says Russell 2000 'Still Very Discounted' Compared To S&P 500 Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Jim Cramer Doubles Down On Nvidia: 'Demand Is Accelerating' As AI Customers 'Have No Choice' But To Buy Its Chips - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

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." See Also: Bitcoin Analyst Warns Of '4-6 Flash Crashes' Before Year-End As It Inches Closer To $100K 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. Read Next: November Small-Cap Surge Could Carry Into December's Santa Rally, Historical Trends Suggest Image Via Flickr Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

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

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."

Nvidia's answers to these 3 questions will impact where the red-hot stock goes next

Stop us if you've heard this before: Nvidia's earnings report Wednesday night is big deal on Wall Street. Results from the world's most valuable chipmaker will give investors the clearest look into the state of the AI boom since ... the last time the company reported its financials in late August. Enthusiasm about AI has been a major driver of stock market gains over the past two years -- ever since the launch of ChatGPT kicked off an investment surge that has lifted far more than just technology companies. The winner's circle has grown to include industrials, such as those making electrical components and energy-generation equipment, and even stodgy utilities that are expected to benefit from increased data center power consumption. Still, no company is more synonymous with AI than Nvidia, which holds a dominant position in the market for cutting-edge processors that underpin applications like ChatGPT. Its sales, profits and market capitalization have soared as a result. It has also created a dynamic where the company's quarterly earnings reports are treated like make-or-break events , with seemingly boundless anticipation pushing the stock up into the release. That is how Nvidia's better-than-expected results and solid outlook in August can still be followed by a nearly 20% decline in a little over a week. Then the buyers, deeming the swoon excessive, stepped back in and a new rally commenced. It is still underway as of Tuesday. Nvidia shares are up almost 40% since their most recent bottom, on Sept. 6. Along the way, Nvidia dethroned Apple as the world's most valuable company , and it has not looked back . Now it's earnings time again. The curse of sky-high expectations threatens to strike once more. "I say own it, don't trade it," Jim Cramer said Tuesday, as he tried to peer through the thicket of hype and stay focused on Nvidia's bright multiyear outlook. He bestowed that "own it" designation on just two stocks, Nvidia and Apple. "There's two things you need to know about Nvidia," Jim continued. "One is that they have incredible demand, far more than they can handle. ... And secondly, there's no competition because no one is even remotely near them, including [fellow Club holding] AMD , which is a company I like very, very much." Here's a closer look at a few key questions surrounding Nvidia's fiscal 2025 third-quarter report and the subsequent conference call at 5 p.m. ET. Overheated or overdone? Investors want to know whether the rollout of Nvidia's next-generation AI chip platform Blackwell has hit any snags -- specifically, whether a recent media report about Blackwell overheating in a certain configuration could result in a slower-than-expected ramp in revenue as the company and its customers work out a solution. Nvidia shares were lower Monday on the news. Few are doubting CEO Jensen Huang's description of Blackwell demand as "insane." The uncertainty, at this point, is about the timing. Nvidia has said it expects to ship "several billion dollars" in Blackwell sales in the current quarter, which stretches from November to January. Analysts currently project companywide revenue of $37.04 billion in the January quarter, according to FactSet. Nvidia's guidance is critical in shaping Wall Street's reaction to quarterly results, and it will be no different this time around. "If there was another company that was about to sneak up and was nibbling at them, then [Blackwell pushouts] would be a problem," Jim said. "But there isn't, so I don't see anything to fret about, other than the fact I'm going to be ready for when they say, 'Listen, we're not going to ramp it in January. We're going to ramp it in April.' If there are people who are unhappy with that and want to sell it, then we've got to be ready." In a note to clients Tuesday, analysts at Truist Securities acknowledged there could be technical and supply chain challenges facing Blackwell. Still, analysts said everything they're hearing from Nvidia, its partners and industry contacts feels "overwhelmingly positive." "While we expect to hear Blackwell called out as a revenue generator in both CQ3 and ramping in CQ4, we believe any slippage in Blackwell will likely be replaced with Hopper, offering downside protection on revenue," analysts wrote. Hopper is the name of Nvidia's current-generation AI chips, the H100 and H200. Margin health? Nvidia's triple-digit revenue growth in recent quarters is widely expected to moderate due to the law of large numbers. As a result, gross margins are an increasingly important part of the investment story. Indeed, Nvidia's third-quarter guidance for gross margin -- and its implications for the fourth-quarter figure -- was considered one of the very few blemishes in the August quarterly report . "Keep an eye on GM [gross margin]," analysts at Bank of America told clients in a note Sunday. Analysts said Nvidia needs to report something in the 73% to 74% range to keep its earnings per share for fiscal 2026 on track to reach the bull case of $5 or more. Here's how to calculate gross margin: Start with a company's revenue then subtract the costs of that revenue. That number is known as gross profit, or gross income. Gross profit divided by sales multiplied by 100 establishes the gross margin percentage. In Nvidia's most-recent quarter, its gross margin was 75.7%. The rollout of Blackwell, even before chatter emerged about potential heat challenges, was understood as one factor pressuring margins in the near term. "Looking ahead to FY26, we see margins declining to the low 70s as Blackwell ramps with initially lower [production] yields," Susquehanna analysts wrote in a Nov. 14 note. "In short, we expect another strong report but note elevated expectations into the print, with the narrative around the Blackwell ramp and GMs important to driving further upside in the stock." Sovereign and software strength? What do Japan , Indonesia , India and Denmark all have in common? For our purposes, at least, they're places that Nvidia's Huang has visited in recent weeks to tout AI and discuss country-specific initiatives that the company is involved in. The trips and announcements are all part of Nvidia's broader strategy on sovereign AI -- a concept that refers to a country having control over its computing infrastructure and data in order to develop AI solutions that incorporate their own solutions. Nvidia said in August that it expected sovereign AI to generate low double-digit billions worth of revenue this fiscal year. Any updates to that projection would be welcome and help investors understand the demand coming from this burgeoning group of customers. U.S. tech giants like Microsoft , Meta Platforms and Amazon indicated in their recent earnings reports that they're continuing to spend billions of dollars on AI computing infrastructure -- no doubt, that's great news for Nvidia. Sovereign AI represents a different kind of avenue for growth in the years ahead. Similarly, software is another longer-term bet that can help Nvidia offset some of the inherent cyclicality in hardware sales. In a note to clients Monday, analysts at Evercore ISI said that in addition to overall guidance, investors will likely be interested in Nvidia's software growth -- and specifically, its offering called AI Enterprise, which provides a range of tools to companies. In August, CFO Colette Kress said Nvidia was on track to finish the year at a roughly $2 billion annual run rate for software and support revenue. AI Enterprise "notably" contributed to the software expansion, according to Kress. (Jim Cramer's Charitable Trust is long NVDA and AMD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Has Nvidia Stock Topped? A Single Metric Offers a Very Clear Answer. | The Motley Fool

The tide has decisively turned for one of Nvidia's strongest operating metrics. Roughly 30 years ago, the advent of the internet changed the growth trajectory for businesses across the globe. Although it took a few years for the internet to mature as a technology and for businesses to fully understand how to harness its potential, it's had a notably positive impact on long-term growth trends. Since the mid-1990s, Wall Street has been waiting patiently for the next leap forward for corporate America. Over the last two years, artificial intelligence (AI) appears to have answered the call. AI-driven software and systems have the ability to become more proficient at their assigned tasks, as well as learn new skill sets without human intervention. This capacity to learn and evolve over time is what gives this technology seemingly limitless potential and utility in most industries around the globe. While the AI ecosystem is vast, which should allow numerous businesses to thrive, no company been a more direct beneficiary of the rise of AI than cutting-edge semiconductor stock Nvidia (NVDA -3.22%). Since 2023 began, Nvidia's market value skyrocketed from $360 billion to north of $3.6 trillion, which makes it the largest publicly traded company, as of this writing. Less than two years ago, when Nvidia lifted the hood on fiscal 2023 (Nvidia's fiscal year ends in late January), the company reported $27 billion in full-year sales. In the current fiscal year (2025), it's pacing closer to $129 billion in full-year revenue, with Wall Street calling for almost $192 billion in sales next year. This otherworldly growth is a function Nvidia's AI-graphics processing units (GPUs) being the preferred choice for businesses running high-compute data centers. The analysts at TechInsights pegged Nvidia's share of GPU shipments to data centers at 98% in 2022 and 2023. Based on the company's two-year sales ramp, it'd be a fair assumption that Nvidia's H100 GPU (commonly known as the "Hopper") and successor Blackwell GPU architecture aren't having any issues finding buyers. Nvidia has also been able to take advantage of the law of supply and demand. With orders for the Hopper and next-generation Blackwell chip backlogged, it's been able to meaningfully increase the price for its hardware. The roughly $30,000 to $40,000 price tag for the Hopper represents a 100% to 300% premium to what Advanced Micro Devices (AMD 0.63%) is netting for its MI300X chips for AI-accelerated data centers. Credit also needs to be given to Nvidia's CUDA software platform for its virtually textbook operating expansion. CUDA is the toolkit developers use to maximize the potential of their Nvidia GPUs, including building large language models. This platform has helped keep clients loyal to Nvidia's umbrella of products and services. Although everything seems to be going perfect for Nvidia, as its stock performance would suggest, one metric in the company's recently released third-quarter operating results (for the quarter ended Oct. 27) tells a different story. As expected, Nvidia's headline figures look as good as advertised. Quarterly sales jumped 94% from the year-ago quarter to $35.08 billion, while net income surged 109% to $19.3 billion. Both were well ahead of Wall Street's consensus forecast. But there is one exceptionally important figure that's showing signs of weakness, and it foreshadows the very real possibility of the top being in for Nvidia stock. When Nvidia lifted the hood on its first-quarter operating results in May, it reported a scorching-hot gross margin of 78.4%. The dramatic increase the company has enjoyed in its gross margin is a function of AI-GPU scarcity and its aforementioned exceptional pricing power. However, the tide is turning. After delivering a 78.4% gross margin in Q1 2025, Nvidia reported a gross margin of 75.1% in Q2 2025 and 74.6% in the latest quarter. For the fiscal fourth quarter, it's forecasting a gross margin of 73% to 73.5%, +/- 50 basis points. Although Nvidia's gross margin is notably higher now than it was prior to the AI revolution taking shape, this steady decline we're witnessing is evidence that AI-GPU scarcity is waning and competition is picking up. Most of Wall Street is focused on the external competition Nvidia is going to have to contend with. AMD has been steadily ramping up production of its MI300X AI-GPUs and recently unveiled its next-gen MI325X chip, which it intends to put into production before the end of the year. AMD is a brand-name company with a rich history and a considerably cheaper AI-GPU than Nvidia's Hopper and Blackwell chips. Businesses wanting to gain first-mover advantages may be compelled to skip the potentially long wait for Nvidia's hardware and choose AMD. But the bigger issue for Nvidia may very well be the competition it's facing from within. Many of the company's top customers by net sales are members of the "Magnificent Seven," and they're all internally developing AI-GPUs to deploy in their data centers. Even if these chips come up short to Nvidia's hardware in terms of computing capabilities, they're still markedly cheaper and more easily accessible. Anything that reduces AI-GPU scarcity is going to adversely impact Nvidia's pricing power and its gross margin. Based on the trend we're seeing from Nvidia's gross margin, its shares have likely topped. But history would like a word, as well. Even though the internet transformed the business world three decades ago, it took time for the technology to mature and for businesses to properly utilize it to generate a positive return on their investment. Every next-big-thing innovation for 30 years, including the internet, has worked its way through an early innings bubble-bursting event. What this tells us is that investors consistently overestimate how quickly a new technology will be adopted by consumers and/or businesses on a broad basis. It also suggests investors are overly optimistic about the utility of cutting-edge technologies. Though artificial intelligence can be every bit the gamechanger that Wall Street expects it to be, it's going to take time for businesses to figure out how best to utilize AI. This is what leads to lofty expectations eventually falling short. Investors are seeing this dynamic play out right in front of their eyes. Even with sizable investments in AI data centers from some of Wall Street's most-prominent companies, most of these businesses lack a clear game plan to generate a positive return on their AI investments any time soon. The utility aspect of AI isn't well understood at the moment -- and that's a scary thing for a company whose gross margin is in a decisive decline.

Nvidia's Growth May Be Cooling, but Here's Why I'm Still Buying | The Motley Fool

Nvidia Corporation's (NVDA -3.35%) shares dipped 3.4% in response to its fiscal 2025 third-quarter results last week, but I see this modest move lower as an opportunity to add to my position. While analysts project the company's revenue growth to slow from 111.9% in fiscal 2025 to 49.2% in fiscal 2026, I remain convinced of this technology giant's fundamental story. I'm particularly excited about the opportunity that lies ahead in artificial intelligence (AI). Major cloud providers plan to invest $267 billion in AI infrastructure next year alone, a 33.5% increase from current levels. This unprecedented buildout positions Nvidia, with its 80% market share in AI chips, at the center of what Amazon CEO Andy Jassy calls a "once-in-a-lifetime" opportunity. Here's a full breakdown of why I plan to continue to buy shares of this AI titan despite its slowing growth trajectory. Nvidia's latest results demonstrate its dominance in AI computing. The company reported record data center revenue of $30.8 billion for its fiscal 2025 third quarter, up 112% year-over-year. This staggering growth reflects insatiable demand from major cloud providers who are racing to build AI capabilities. Microsoft is expected to spend $80 billion on total infrastructure in 2024, while Alphabet and Amazon have earmarked $51 billion and $75 billion respectively for their capital investments, with AI infrastructure being a major focus. CEO Jensen Huang describes current AI demand as "insane," with the total addressable market for AI accelerators projected to grow over 60% annually to reach $500 billion by 2028, according to Advanced Micro Devices (AMD) CEO Lisa Su. This rapid market expansion isn't just about current applications; the entire industry is preparing for the next wave of AI breakthroughs. At 33.6 times forward earnings, Nvidia trades at a premium to the S&P 500's 23.8 multiple but remains reasonably valued given its growth trajectory. After all, a company growing revenue more than 100% year over year with industry-leading profitability deserves to trade at a premium multiple. What's more, the company's pricing power tells a compelling story. Gross margins reached a sizzling 74.6% in the most recent quarter on a generally accepted accounting principles (GAAP) basis, demonstrating exceptional operational efficiency even as production scales to meet surging demand. This pricing power stems from continuous technological innovation. Evidence of this innovation appears throughout Nvidia's product line. The H200 chip, which delivers up to 2 times faster inference performance and up to 50% improved total cost of ownership according to management, has seen significant sales growth and is now being deployed by major cloud providers including AWS, CoreWeave, and Microsoft Azure. Meanwhile, its next-generation Blackwell platform has entered full production, promising even greater performance gains in the years ahead. While Nvidia's growth rates may be cooling from their torrid pace, I remain convinced of the company's long-term potential. After all, major cloud providers plan to accelerate AI investments in the years ahead, and enterprise adoption is just beginning. According to CEO Jensen Huang, "$1 trillion worth of computing systems and data centers around the world is now being modernized for machine learning." Moreover, the entire space is approaching a potential "Gutenberg moment" with the possible advent of artificial general intelligence (AGI) -- AI systems capable of performing any intellectual task that humans can -- within the next two to three years. Such a breakthrough would require massive computing power, likely driving even greater demand for Nvidia's specialized chips. A normalizing growth rate might spook some investors, but I see a much bigger picture emerging. With its dominant market position, expanding technological lead, and the massive AI infrastructure buildout still in the early stages, I'm using this latest dip to aggressively add to my position in this AI juggernaut.

Jim Cramer weighs Nvidia stock after report of Blackwell AI chip overheating

CNBC's Jim Cramer on Monday considered the stock of Nvidia in light of a report that the company is having overheating issues with servers for its newest graphics chips that enable advanced artificial intelligence functions. But Cramer wasn't overly concerned, saying he views the stock decline as an investing opportunity. "Maybe this time really is the top, and it's all because of server meltdowns," he said. "I'zasx1m more inclined to think you're getting a buying opportunity in Nvidia thanks to The Information publishing a story that may, may simply not be that." The Information reported that Nvidia's highly-anticipated Blackwell chips overheat when connected to custom servers, and it had asked suppliers to change server rack designs several times, causing some customers to worry about shipping delays. According to the outlet, a spokesperson for Nvidia declined to comment on whether the company finalized its server design, but said "GB200 systems are the most advanced computers ever created" and "the engineering iterations are normal and expected." CEO Jensen Huang has previously said on CNBC that demand for the chips is "insane." Nvidia stock was down 1.29% by Monday's close, and investors are waiting to see what the $3.4 trillion-dollar company will say in its earnings report on Wednesday. Cramer reiterated his faith in the company and the stock. He noted its meteoric rise over the past year and suggested that customers have "nowhere else to go for this kind of chip." Cramer also pointed out that Dell CEO Michael Dell, whose company is a major Nvidia customer, posted Monday that Nvidia's servers had started shipping. Cramer conceded that he's not sure how Nvidia's quarter will shake out if The Information's report is true, but he also said that oftentimes investors sell stocks based on information that isn't actually meaningful. "Minutiae can shake you out of tremendous investments every time," he said. Nvidia did not immediately respond to a request for comment.

Shares of Nvidia and AMD go different ways -- here's Jim Cramer's advice on both AI chip stocks

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Monday's key moments. 1. Wall Street is moving higher to start the week after the S & P 500 shed more than 2% and Nasdaq lost more than 3% last week. The market is continuing to parse through some uncertainty surrounding President-elect Donald Trump's cabinet appointments. Jim Cramer urged investors to "stay the course" and resist the temptation to make short-term trades around political headlines. Echoing his Sunday column for Club members , Jim said investors should avoid the "excitement stocks that have had parabolic moves" in anticipation of Trump's return to the White House next year. 2. Nvidia dipped nearly 2% Monday following a report by tech publication The Information , which said its next-generation Blackwell AI chips experienced overheating issues when integrated into large server systems. While Jim said he doesn't have the highest conviction on Nvidia ahead of its earnings report Wednesday night, he indicated he's not concerned about the long-term implications from any heat challenges. "I say own it, don't trade it," Jim said. To that end, Jim pointed to a social-media post Sunday from Dell CEO Michael Dell, who said the company is now shipping Blackwell server racks. "Why is he shipping defective racks?" Jim asked rhetorically. "He's not." When asked for comment on The Information report, an Nvidia spokesperson emailed a statement to the Investing Club: "NVIDIA GB200 systems are the most advanced computers ever created. Integrating them into a diverse range of data center environments requires co-engineering with our customers. While our customers race to be first to market, NVIDIA is working with leading [cloud service providers] as an integral part of our engineering team and process. The engineering iterations are normal and expected." 3. The Nvidia report may be reverberating across semis and contributing to the more-than-3% pop in shares of Advanced Micro Devices , an AI chip rival and fellow Club holding. Some investors may think any issues with Blackwell could lead to more AMD chip sales. That doesn't seem like the right reason to race out and buy AMD stock Monday, though. AMD's new partnership with IBM , on the other hand, is a much better reason to like the stock. IBM said AMD's MI300X AI chip will be available on IBM Cloud in the first half of 2025. AMD, a distant second in AI chips to Nvidia, also is partnered with Microsoft and Meta . Jim said he'd like to add to our AMD position, but acknowledged that buying into strength like we're seeing Monday isn't consistent with our investing playbook; our preference is to buy on weakness. Jim said AMD announcing additional AI chip deals with tech giants, such as an Amazon , could fuel more gains for the stock. 4. Stocks covered in Monday's rapid fire at the end of the video were: CVS Health , Netflix , Robinhood , and Warner Bros Discovery . (Jim Cramer's Charitable Trust is long NVDA, AMD, AMZN, MSFT and META. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.