Jim Cramer Weighs In on Nvidia's Historic Market Cap Surge and Its Role in the AI Revolution

On Wednesday, CNBC's Jim Cramer mused on the significance of one of his long-time favorite stocks, Nvidia, shortly after the artificial intelligence powerhouse became the first business to reach a market capitalization of $4 trillion during trading.

"The fact is, neither Microsoft nor Apple can claim that they're currently creating a new industrial revolution, like Nvidia can," said Mr. Moore.  "In fairness, they did create the last industrial revolution, the rise of the personal computer, although that was a long time ago." 

Nvidia surpassed $4 trillion for the first time throughout the day, but the company closed up 1.8% to $3.97 trillion in market capitalization.  The chipmaker is now the world's most valuable corporation, surpassing previous leaders Microsoft and Apple.  Nvidia topped $2 trillion in February of last year and crossed $3 trillion four months later.

The tech behemoth has exploded in recent years, as Wall Street and the business world have become obsessed with generative AI.  Nvidia's products are widely regarded as best in class, and Big Tech hyperscalers have been begging for them as they engage in the AI arms race and attempt to capitalize on the most advanced AI models. 

Jim Cramer emphasized AI's revolutionary power, claiming that "every single computer with a GPU that's not as good as Nvidia's is obsolete."  He also stated that Nvidia's technology will transform the way organizations function, enabling humanoid robots and self-driving vehicles.  These robots can perform mundane or risky tasks, and they could eventually replace a percentage of white-collar humans, Jim Cramer said. 

Nvidia is a significant actor in the United States' trade relationship with China, Jim Cramer added.  The corporation often appears to be the US's "only bargaining chip" with China, he said, because the country wants Nvidia products.  Despite the fact that China is one of the United States' leading manufacturers, Cramer believes Nvidia is a stronger bargaining chip than anything China has.

"What's the bottom line?"  "Nvidia, own it, don't trade it," he stated.  "Oh, and see you at $5 trillion." 

Nvidia has declined to respond.