Jim Cramer Defends Jensen Huang and the Power of Nvidia Corporation (NVDA): “Missile-Guided, AI-Driven, and Still the Best Chips”

Amid geopolitical storms and market volatility, Jim Cramer has doubled down on his long-standing bullish stance toward Nvidia Corporation (NASDAQ:NVDA), arguing that the company’s role as a linchpin of AI infrastructure and national security technology justifies its enduring investment appeal—even as short-term headwinds loom large.

The Storm Clouds: Export Restrictions and the “Death Cross”

In early 2025, Nvidia faced a significant setback when U.S. export restrictions targeting its advanced H20 AI chips to China triggered a $5.5 billion inventory write-down. The move, aimed at curbing China’s access to semiconductors for military uses, caused NVDA’s shares to plummet 6.9% on April 16, 2025. Cramer labeled the stock a “meme” and urged investors to “trim” their positions, citing the formation of a “death cross”—a technical sell signal when the 50-day moving average slips below the 200-day average.

Yet Cramer’s warning was tempered by his broader faith in Nvidia’s long-term dominance. “Nvidia’s the linchpin of this group, and the pin is failing,” he said, acknowledging near-term turbulence while reaffirming the company’s irreplaceable role in AI’s evolution.

The Silver Lining: AI’s Infrastructure Revolution

Cramer’s defense hinges on Nvidia’s unmatched position in building the “engines of the world’s AI infrastructure.” Jensen Huang, Nvidia’s CEO, emphasized this during his March 19, 2025, interview on CNBC’s Squawk on the Street, where he detailed a $500 billion U.S. manufacturing initiative. Partnerships with firms like TSMC and Foxconn aim to solidify domestic chip production, countering geopolitical risks.

Huang framed AI as the “operating system of every industry,” projecting that global AI computing capital expenditures (CapEx) will hit $1 trillion annually by 2030. Nvidia’s Grace Blackwell chips—sold out months before launch—underscore surging demand for its AI hardware, even as competitors like Huawei and DeepSeek emerge.

Navigating the Risks: Geopolitics, Competition, and Valuation

The stakes are high. U.S. export restrictions have effectively closed China, once a 17% revenue contributor, to Nvidia’s advanced chips. Analyst Dan Ives of Wedbush called China a “zero” for the company, while Bank of America’s Vivek Arya deemed the impact “manageable.” Meanwhile, Chinese startups like DeepSeek tout cheaper AI models, but Cramer argues they cannot match Nvidia’s technical depth. “Reasoning models require 100x more computational power,” Huang noted, implying that rivals’ cost advantages are illusory.

Investors also face valuation questions. Despite its $1 trillion market cap, NVDA’s stock has underperformed in 2025, down over 20% from its January peak. Cramer acknowledges this, advising investors to “prepare for turbulence” while retaining a core position.

The Bulls’ Case: Institutional Support and Strategic Bet

With 223 hedge funds holding NVDA shares, institutional confidence remains robust. Cramer highlights the stock’s role as a “must-buy” for exposure to AI’s foundational technologies—from missile guidance systems to autonomous robots. Nvidia’s $10 billion investment in its Blackwell supercomputer exemplifies its commitment to outpacing competitors, offering efficiency gains that save “megawatts of energy” compared to legacy systems.

Conclusion: A Stock for the Decade, Despite the Headwinds

Nvidia’s journey in 2025 mirrors its history: a leader navigating disruptions while redefining markets. While geopolitical risks and technical sell signals warrant caution, Cramer’s defense rests on irrefutable data:

• Strategic Importance: Its chips power 90% of AI supercomputers, with no peer in advanced GPU architecture.
• Long-Term Vision: The $500 billion U.S. manufacturing push ensures supply chain resilience and geopolitical leverage.
• Market Demand: AI CapEx is projected to hit $1 trillion by 2030, with enterprises like Microsoft and BlackRock doubling down on Nvidia’s infrastructure.

In a volatile market, Cramer’s advice crystallizes: trim speculative bets but hold for the long term. As Huang put it, “The world is short of tens of millions of workers”—and Nvidia’s AI-driven solutions are the closest thing to a “silver bullet” in sight.

For investors willing to weather near-term storms, Nvidia’s chips remain the closest thing to a “missile-guided” path to tech dominance.