TLDR
- Jim Cramer predicts Nvidia’s next 10 years will be more transformative than its last decade, driven by what he calls a “chip reasoning platform”
- The new technology could make decisions and form opinions potentially superior to human thinking, with fewer mistakes
- Cramer believes industries like law firms may see major changes, with AI potentially replacing roles like fourth-year associates
- Despite the stock’s 1,200% gain over five years, Cramer says there’s still room for growth
- Wall Street analysts maintain a Strong Buy rating with an average price target of $216.78, implying 16.8% upside potential
Jim Cramer has a prediction that might sound wild to some investors. The CNBC Mad Money host believes Nvidia’s next 10 years will be more life-changing than its last decade.
That’s saying something, considering the stock has soared more than 1,200% in the past five years. But Cramer isn’t just throwing around hype.
He’s talking about what he calls a “chip reasoning platform.” This technology would go beyond current AI capabilities.
The platform could form opinions and make decisions. Cramer suggests these decisions might be superior to human thinking, with far fewer mistakes.
Industries Could See Major Shifts
Cramer used law firms as an example of how things might change. He said firms might not need fourth-year associates anymore.
The reasoning chips could handle tasks that junior lawyers currently perform. The technology would do this work more accurately.
Cramer compared the potential breakthrough to astronomer Vera Rubin’s work. Rubin proved the existence of dark matter, changing science forever.
His conviction in Nvidia goes back years. In 2017, he was so confident in the company that he renamed his dog Nvidia.
Most people dismissed the chipmaker as just a gaming company back then. Cramer couldn’t get investors to focus on what he was seeing.
He visited CEO Jensen Huang’s office that year. What he saw changed his perspective completely.
Huang showed him demonstrations of AI creating art and theater scenarios. The technology was also generating restaurant concepts.
“I just saw it with my eyes,” Cramer said. These capabilities seemed inconceivable at the time.
Wall Street Remains Bullish
Analysts share some of Cramer’s optimism about the stock. Wall Street has a Strong Buy consensus rating on Nvidia.
The rating is based on 36 Buy recommendations, two Holds, and one Sell. These ratings were assigned in the past three months.
The average price target sits at $216.78 per share. This represents 16.8% upside potential from current levels.
Some challenges remain on the horizon. Nvidia may need to sign licensing deals with companies like The New York Times.
These deals would allow the company to use data for AI training. How this plays out could affect operations going forward.
Cramer acknowledged that people thought his views were “too crazy” back in 2017. But his early call on Nvidia proved prescient.
Now he’s making another bold prediction about the company’s future. The next phase of development could reshape multiple industries.
The chip reasoning platform represents what Cramer calls “the big breakout.” He believes this technology will allow chips to tell users what they think.
Wall Street analysts maintain their bullish stance with an average price target of $216.78, implying 16.8% upside potential from current levels.
