Renowned investor Jim Cramer has expressed a positive outlook on Nvidia’s future, citing Google’s plans to significantly increase its investments in artificial intelligence (AI) infrastructure next year.
Cramer, known for his insights on CNBC’s Mad Money, shared his thoughts on X (formerly Twitter), noting the potential implications of Google’s commitment. He stated, “It’s important to highlight that Google will be investing even more next year in AI infrastructure. This should be fabulous for Nvidia.”
This optimistic prediction follows Alphabet’s impressive third-quarter earnings report, which showed a 15% revenue increase, exceeding analyst expectations. This strong financial performance underscores Alphabet’s dedication to technology investments, particularly in the rapidly evolving AI sector.
During the earnings call, Google CEO Sundar Pichai emphasized that the company’s AI investments are “paying off and driving success,” positioning Google as a leader in the AI era.
The strategic relationship between Google and Nvidia has been evident for a while. In March, Google Cloud and Nvidia expanded their partnership, integrating Nvidia’s advanced Grace Blackwell GPU technology into Google’s offerings for cloud customers.
Additionally, in August, the two companies collaborated on AI initiatives, enhancing their competition with Microsoft and OpenAI. This collaboration is part of Google’s broader strategy to enhance its AI technology offerings for enterprises.
Cramer’s observations underscore the interconnectedness of the tech industry, especially within the burgeoning AI sector. Nvidia’s specialization in graphics processing units (GPUs), essential for powering AI workloads, positions the company to significantly benefit from Google’s increased AI infrastructure investments.
The ongoing collaboration between these tech giants is set to drive innovation and accelerate the development of cutting-edge AI technologies.
