Jim Cramer Says Jensen Huang Must Address Competition from Custom AI Chips and CPU Threats at NVIDIA Earnings

NVIDIA reported earnings on the 20th; shares were down 1.43% by afternoon on the 21st. Ahead of the report, TD Cowen raised its share price target to $275 from $235 and maintained a Buy rating on the 15th.

Jim Cramer stated that CEO Jensen Huang needs to explain how NVIDIA will manage competition from Amazon and Alphabet's custom chips, and address threats from Groq on the CPU side, while emphasizing that the total addressable market is twice what investors believed.

After earnings, Cramer noted that NVIDIA reported strong results but the stock did not move, and suggested the company will need to adopt an Apple-like dividend and buyback strategy to manage its cash position.