NVIDIA’s (NVDA) Cost of Ownership is Lower Than What People Think, Says Jim Cramer

Core Insights - NVIDIA Corporation (NASDAQ: NVDA) is recognized as the most valuable company globally due to its advanced AI chips, with shares increasing by 41% over the past year and remaining flat year to date [1] - A significant announcement was made regarding a partnership with Meta, where NVIDIA will supply AI GPUs and CPUs, including the introduction of Grace CPUs into Meta's data centers [1] - Jim Cramer highlighted that the total cost of ownership for NVIDIA's advanced chips is lower than commonly perceived, suggesting a shift in market narrative towards NVIDIA's value proposition [1] Company Summary - NVIDIA's stock has shown a notable increase of 41% over the last year, indicating strong market performance [1] - The partnership with Meta is expected to enhance NVIDIA's presence in the data center market, complementing existing technologies like Google's TPUs [1] - Goldman Sachs maintains a Buy rating on NVIDIA with a price target of $250, reflecting confidence in the company's growth potential [1] Industry Context - The discussion around the cost of ownership for NVIDIA's chips suggests a competitive edge over AMD, as the overall platform costs may be more favorable despite AMD's lower chip prices [1] - The narrative shift in the market indicates a growing recognition of companies that create intellectual property, with NVIDIA being positioned favorably compared to others like AMD [1]