Observed Signal · May 20, 2026 · Earnings Report · Source: CNBC Technology · Impact: 4/5 · Sentiment: Neutral
Cramer: Nvidia CEO Must Address Hyperscaler Chip Competition
Jim Cramer urged Nvidia CEO Jensen Huang to directly address competition from Amazon and Alphabet on Nvidia’s post-earnings conference call, ahead of the company’s fiscal 2027 first-quarter report. Cramer said Huang should acknowledge that hyperscalers are building in-house AI chips (while noting they remain large Nvidia customers) and adopt an offensive messaging posture. The article cites Amazon CEO Andy Jassy’s statement that Amazon’s chips business (Graviton, Trainium, Nitro) grew 40% sequentially and could represent a $50 billion annual run rate if sold externally. Alphabet CEO Sundar Pichai highlighted Google’s custom TPUs and Axion CPUs alongside Nvidia GPUs and referenced Nvidia’s upcoming Vera Rubin NVL72. The piece notes heavy capex from hyperscalers—Amazon and Alphabet—in 2026 driving large AI infrastructure investments.
The article centers on Nvidia’s earnings call and competitive pressure from hyperscalers building custom AI chips; that dynamic affects AI compute supply, pricing, vendor relationships and strategic positioning across the AI infrastructure market.
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Key Takeaways & Evidence Grounding
- Jim Cramer urged Nvidia CEO Jensen Huang to address competition from Amazon and Alphabet on Nvidia’s post-earnings conference call.
- Amazon’s chip business (Graviton, Trainium, Nitro) saw 40% sequential growth in the latest quarter.
- Amazon CEO Andy Jassy said Amazon’s chips business could have a $50 billion annual run rate if sold externally.
- Alphabet CEO Sundar Pichai said Google’s custom TPUs, Axion CPUs, and NVIDIA GPUs form its compute options and mentioned Nvidia Vera Rubin NVL72 availability.
- Amazon left its full-year spending outlook at $200 billion; Alphabet raised its 2026 capex guidance to about $180–$190 billion.
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Cramer: Nvidia 'All-Important' to the AI Trade
Jim Cramer said Nvidia has become central to the artificial intelligence boom, arguing the chipmaker's upcoming earnings will act as a referendum on the entire AI trade. Cramer remains bullish on Nvidia despite concerns about competition, political opposition to data-center construction, shortages of high-bandwidth memory that are costing sales, and U.S. export restrictions limiting advanced chip sales to China. He also pushed back on criticism of Nvidia's investments across the AI ecosystem, saying they help strengthen the broader market and maintain its leadership. Nvidia is scheduled to report earnings Wednesday after the bell; Cramer warned that broader concerns could overshadow even a strong quarter. The article notes Cramer’s Charitable Trust owns Nvidia shares.
Cramer: Nvidia Chip Demand Accelerates on Instant ROI
CNBC’s Jim Cramer said Nvidia’s AI chip demand is accelerating because customers are seeing immediate profitability from deploying the company’s hardware. The comments followed Nvidia’s better-than-expected fiscal Q2 2027 results, a fourth consecutive quarter of accelerating year-over-year revenue growth, and a strong sales outlook. CEO Jensen Huang said ROI timelines have shortened to under a year for large data-center deployments. Nvidia also expanded its partnership with Amazon Web Services, with AWS committing to buy 2 million additional Nvidia GPUs in 2027 and 2028 and to install Vera CPUs; Amazon will also use Nvidia technology for robotics. Nvidia’s finance chief said growth will be driven largely by non-hyperscaler customers, including neoclouds such as CoreWeave and Nebius, as well as enterprises.
Cramer: Nvidia Still Central to AI Despite Stock Weakness
CNBC’s Jim Cramer said on Squawk on the Street that Nvidia remains central to the artificial intelligence boom despite recent stock weakness and growing bearishness among investors. Shares fell about 2% on Tuesday and the stock is trading near its lowest forward-earnings multiple of the year (~19x). Cramer argued selling is overdone and that customers complaining about Nvidia chip costs continue to rely on its technology even as some firms develop their own AI processors. Reuters reported China’s DeepSeek is developing an AI chip, and a SemiAnalysis report flagged possible delays to Nvidia’s next-generation Kyber rack-scale server system; Nvidia disputed that report, saying its roadmap remains intact. Cramer also noted Nvidia shares have been sold to fund other trades, including purchases of newly public SpaceX ahead of its Nasdaq 100 addition.
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