Jim Cramer Says NVIDIA Is the Most Proprietary Chip Company in History, and the Market Is Getting Its Valuation Wrong - 24/7 Wall St.

In his 'Mad Money' broadcast on July 9, Jim Cramer defended NVIDIA against what he sees as a mispricing by the market. He argued that while NVIDIA is the most proprietary chip company in history, its ... Read original →

Cramer’s defense of NVIDIA exposes a fundamental mispricing in how AI chip valuations are modeled. Technically, CUDA-X and NVLink Fusion have created a developer lock-in effect that exponentially amplifies the advantage of its 3nm EUV hardware, forcing upstream EDA tools and downstream LLM frameworks to realign around its stack. Geopolitically, U.S. export controls—while temporarily shielding its tech premium—are accelerating capital flows into domestic alternatives in Taiwan, China and mainland China, eroding long-term supply chain resilience. Facing custom silicon pushes from Meta, Oracle, and xAI, NVIDIA is escalating competition from individual chips to full-stack AI infrastructure via Spectrum-X. Within 18 months, valuation will shift from traditional P/E ratios to metrics like customer retention per watt of AI compute—precisely why current models fail to capture its true moat.