Jim Cramer Weighs In on NVIDIA's China Prospects Amid Renewed Market Speculation
Financial markets are once again tuning into Jim Cramer's insights on tech giant NVIDIA Corp. (NASDAQ: NVDA), as the CNBC host delved into the chipmaker's performance and strategic moves during a recent segment. His comments come at a time when NVIDIA's stock has surged 48% over the past twelve months, though it remains up a modest 1.5% year-to-date.
Cramer addressed NVIDIA's controversial investment in cloud service provider CoreWeave, dismissing circulating rumors of "circular deals" as unfounded. His view finds some alignment with analysts at Needham, who expressed optimism that the partnership could help CoreWeave develop up to 5 gigawatts of data center capacity. However, Needham also noted potential headwinds related to financial backstops and the GPU lifecycle.
The discussion notably turned to NVIDIA's prospects in China—a critical and uncertain market for its AI chips. Recent media reports suggested Chinese authorities have instructed domestic tech firms to prepare for purchases of NVIDIA's AI processors, despite existing U.S. export controls. Cramer remained cautious on the matter, questioning the feasibility and scale of such sales under current trade restrictions.
Earlier this year, investment firm Stifel reiterated a Buy rating on NVIDIA with a $250 price target, partly citing potential benefits from H200 GPU sales to China. Meanwhile, asset manager Bailard Inc. struck a more measured tone in its Q3 2025 investor letter. While acknowledging NVIDIA's strengths, the firm suggested other AI equities might offer better risk-adjusted returns in the near term.
Market Voices:
"Cramer's skepticism on China sales is prudent, but underestimates how desperately Chinese tech firms need advanced AI chips. NVIDIA will find a way to serve that demand—legally or through redesigns," said Alex Chen, a semiconductor analyst at Horizon Insights.
"This is typical short-term noise. The real story is CoreWeave and the infrastructure build-out. That’s where the recurring revenue is, not in one-off geopolitical headlines," noted Priya Sharma, a portfolio manager at Cedar Oak Capital.
"Cramer and the analysts are missing the forest for the trees. NVIDIA’s valuation is already pricing in perfection. Any stumble in China or a delay in AI spending will hammer the stock. The hype has completely detached from reality," argued Marcus Thorne, an independent trader and frequent market commentator.
"Bailard’s caution is worth heeding. We’re in a multi-year AI adoption cycle, but not every player will win equally. Diversification within the sector is key," added Dr. Lena Torres, a fintech researcher at Stratton University.
Disclosure: This analysis is based on publicly available statements and financial filings. It is for informational purposes only and does not constitute investment advice.