cramer's take: is nvidia still a buy despite market jitters?

2025-09-10 nvidia

new york, Wednesday, 10 September 2025.
jim cramer weighs in on nvidia’s seemingly high valuation. he argues its impressive earnings growth justifies the stock price, even amidst market volatility. cramer calls nvidia a key component for investment portfolios. he stresses the importance of trusting strong leadership and solid business strategies. for investors seeking guidance in the semiconductor sector, cramer’s insights offer a crucial perspective on nvidia’s financial stability and market dominance.

nvidia’s strategic investments in ai

Nvidia’s strategic investments are extending into superintelligence, backing ventures like Reflection, an AI startup potentially valued at $5.5 billion after its latest funding round [3]. Nvidia’s venture capital arm is expected to invest at least $250 million in Reflection, with Sequoia Capital and Lightspeed Venture also participating [3]. Reflection is focused on developing superintelligence that surpasses human cognitive capabilities, aiming to innovate new work methods, similar to how AlphaGo discovered novel strategies in the game of Go [3].

tesla’s ambitious growth targets and nvidia’s position

Tesla’s CEO Elon Musk has a compensation plan tied to achieving a market capitalization of $8.5 trillion, requiring the company to grow beyond the combined valuations of Nvidia and Microsoft within a decade [4]. This target depends heavily on the success of Optimus robots and Robotaxi services [4]. By 2029, Robotaxi could contribute an estimated $603 billion to $951 billion in annual revenue, significantly exceeding Uber’s projected $52 billion for this year [4]. Meanwhile, Musk anticipates that Optimus robots could account for 80% of Tesla’s value [4].

nvidia’s dominance in ai gpu market

The increasing global demand for artificial intelligence technology is driving the localization of AI server production in Taiwan [5]. Taiwan’s information and communication technology products, particularly servers and graphics cards, are becoming crucial export components [5]. These AI GPUs exclude those used for gaming, automotive applications, network chips and field-programmable gate arrays [5]. This surge underscores Nvidia’s pivotal role in supplying essential hardware for AI development worldwide [5].

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nvidia valuation earnings power