Jim Cramer’s AI Stock Could Be A Major Winner

Many artificial intelligence stocks have rewarded long-term investors, especially over the past year. Nvidia (NASDAQ:NVDA) is the biggest AI stock, and it’s also become the most valuable publicly traded corporation. 

Even though Nvidia has taken center stage for a few years, Jim Cramer believes that the stock isn’t done yet. He even had some sharp words for short sellers.

“I remember a list of billionaires who bailed on Nvidia. Some even touted the sells. Where are these sellers? Shouldn’t we run that list??” he stated.

It’s easy to think that the gains are already priced into Nvidia stock. The stock has surged by more than 1,600% over the past five years, but the stock still has room for additional gains.

Companies And Governments Are Competing To Win The AI Race

Even though the AI race has been going on for a few years, it’s impossible to understate its significance. Many people have talked about artificial intelligence’s impact. Sundar Pichai said this technology is more significant when we discovered fire. Vladimir Putin said several years ago that the nation that leads in AI will be the ruler of the world.

With multiple government and corporate leaders holding these types of views, it’s no wonder AI budgets have gone parabolic. While many companies benefit from the AI boom, none of them have won as much as Nvidia. 

The AI chipmaker has a clear lead over the other companies. Nvidia CEO Jensen Huang knows this well, and he went as far as to say that Nvidia’s chips are “so good that even when the competitor’s chips are free, it’s not cheap enough.” 

Huang knows that the industry is still in its early innings despite all of the hype, and a CEO with that level of confidence and a superior product is a great person to have at the top.

Revenue Continues To Surge

One of the concerns some investors may have with Nvidia is that it’s approaching a $4 trillion market cap. As corporations get bigger, it’s harder for them to produce higher returns for investors. For instance, a company going from a $10 billion market cap to a $100 billion market cap produces a 10x return. However, a $100 billion gain in Nvidia’s market cap barely moves the needle in investors’ portfolios.

Nvidia is one of the few exceptions to the rule, as revenue continues to grow at a rapid rate. The chipmaker delivered 69% year-over-year revenue growth in Q1 FY26, totaling $44.1 billion. Nvidia isn’t that far removed from delivering $100 billion quarters for its investors based on the high growth rate and insatiable demand for artificial intelligence.

This high revenue growth came despite the increased export controls to China, one of Nvidia’s largest markets. If tensions with China ease or the Trump Administration alleviates AI chip export rules, Nvidia will tap into more revenue growth in subsequent quarters.

Nvidia Powers The AI Boom

Nvidia chips are at the center of the AI boom, and that gives the company a lot of pricing power and leverage. It’s the ultimate pick-and-shovel play in the AI industry.

Artificial intelligence will reach into every industry. Autonomous vehicles require AI chips, and they’re far from the only resources that require those chips. Cloud computing platforms, cybersecurity software, and social networks are some of the entities that need this technology to innovate.

You can choose from many AI stocks. Some of the smaller AI stocks may outperform Nvidia due to their lower market caps and ability to generate higher revenue growth rates. However, it’s hard to go wrong with Nvidia. 

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