NVIDIA Corporation (NASDAQ:NVDA) is one of Jim Cramer’s Recession-Proof Stock Picks. Cramer expresses confidence in the next generation of chips as the company announces a partnership with OpenAI. NVIDIA Gains Cramer’s Backing with OpenAI Partnership and Next-Gen Chip Confidence On September 22, 2025, NVIDIA Corporation (NASDAQ:NVDA) announced a strategic collaboration with OpenAI. As per the agreement between the two companies, NVIDIA Corporation (NASDAQ:NVDA) will invest close to $100 billion in OpenA ...

Investment Overview - Nvidia plans to invest up to $100 billion into OpenAI while supplying millions of AI chips to the company, a move that is unprecedented in the tech industry [1] - Nvidia will take a financial stake in OpenAI without receiving any voting power in return, indicating a unique investment structure [2] Financial Commitment - Nvidia's initial investment of $10 billion will be allocated towards building a gigawatt of capacity using its next-generation Vera Rubin chips, with construction expected to start in the second half of 2026 [3] - The total cost for building AI data centers is estimated at $50 billion per gigawatt, with Nvidia's chips and equipment accounting for approximately $35 billion of that cost [3][4] - OpenAI will require an additional $40 billion in capital for each gigawatt of capacity it plans to build, raising questions about the source of these funds [4] OpenAI's Structural Changes - OpenAI, currently a non-profit corporation, is exploring a transition to a for-profit structure to facilitate fundraising and a potential public offering [5] - Discussions have been ongoing with Microsoft regarding this structural change, and a tentative agreement has been reached for OpenAI to convert to a for-profit public benefit corporation, pending approval from state officials [6] Investment Timeline - Nvidia's initial $10 billion investment will not commence until a definitive agreement is reached between OpenAI and Nvidia in the coming months [7]

Samsung Electronics Co. SSNLF has reportedly received the green light from Nvidia Corp. NVDA for its latest high-bandwidth memory (HBM3E) product, marking a significant breakthrough in the AI hardware chip supply race.Samsung Wins Nvidia Nod For HBM3E Memory ChipsSamsung’s fifth-generation 12-layer HBM3E product has passed Nvidia’s qualification tests, according to sources familiar with the matter, reported KED Global on Friday. This approval comes after a year and a half of development and several unsucces ...

Core Insights - Nvidia's inventory increased by 33% last quarter to $8.7 billion, which has raised concerns among some investors, but management views this as a strategic move rather than a warning sign [1] - The surge in inventory is a calculated bet on the rising demand for Blackwell Ultra (BWU) chips, with significant shipments already made this quarter [2] - Nvidia's VP of IR and Strategic Finance highlighted that demand continues to exceed supply even two years into the AI spending boom, indicating strong market conditions [3] Inventory Strategy - BWU now constitutes nearly half of all Blackwell shipments, with higher prices expected to enhance revenue growth [3] - The next-generation Vera Rubin chips are scheduled for a late fiscal 2026 release, dispelling rumors of delays [3] - Nvidia's supply chain partners are preparing to increase rack shipments beyond the current pace of 1,000 per week, indicating a robust second half of the year [4] Market Opportunities - The U.S. government has approved H20 GPU exports to China, potentially opening up $5 billion in sales opportunities, with Nvidia ready to leverage its inventory [5] - Networking remains a key growth area for Nvidia, with attach rates close to 80%, reinforcing its leadership in the AI sector [5] - The inventory increase reflects Nvidia's aggressive strategy to maintain its momentum in the AI market rather than signaling any weakness [5]

Core Insights - Advanced Micro Devices (AMD) has developed a significant AI accelerator business, but it remains small compared to Nvidia, which generated over $39 billion in revenue from its data center segment in the last quarter, while AMD's total AI accelerator revenue for 2024 is only $5 billion [1] - AMD's latest GPUs, the Instinct MI350X and MI355X, deliver four times the AI compute performance and 35 times the AI inferencing performance compared to previous models, but they do not surpass Nvidia's latest offerings [2] - AMD plans to release the MI400 series in 2026, claiming the MI400X will be ten times more powerful than the MI300X, featuring up to 432 GB of HBM4 memory and 19.6 TB/s memory bandwidth [4] - Nvidia is expected to release its Vera Rubin chips in late 2026, which will significantly enhance performance over its current generation [5] - AMD's MI400X is anticipated to outperform Nvidia's current products, but Nvidia's next-gen Rubin chips may ultimately prevail [6] - AMD is also set to launch a new rack-scale AI solution called Helios in 2026, which will include up to 72 MI400 GPUs and advanced server CPUs [7] - Despite AMD's advancements, Nvidia is likely to maintain its market leadership due to its powerful hardware and established CUDA software ecosystem [8] - The AI chip market is projected to reach $500 billion by 2028, and AMD's growth in AI chip revenue does not necessarily require it to surpass Nvidia [9] - With the upcoming MI400 series and Helios, AMD is positioned for substantial growth in AI-related revenue, although it is expected to remain in second place behind Nvidia [10]

Core Insights - Nvidia has surpassed Microsoft in market capitalization, becoming the most valuable publicly traded company in the world with a market cap of $3.45 trillion [2] - Nvidia's stock price increased by approximately 3% to $141.40, reflecting a nearly 24% surge over the past month despite export control and tariff concerns [2] - The competition for market cap leadership has been ongoing between Nvidia, Apple, and Microsoft since June of the previous year, with Nvidia last holding the top position on January 24 [2] Market Impact - Nvidia's performance positively influenced other semiconductor stocks, with Broadcom rising by 3% and Micron Technology gaining 4% [3] - The VanEck Semiconductor ETF, which tracks a range of chip stocks, also saw a 2% increase [3]