CNBC Investing Club: Cramer’s Morning Take on Nvidia 5/21/26

SPEAKER_1 (0:00)

Dell PCs with Intel Inside are built for the moments you plan and the ones you don't. They're for those all-night study sessions, the moment you're working from a cafe and realize every outlet's taken, the times you're deep in your flow and can't be interrupted by an auto update. That's why Dell builds tech that adapts to you, built with long-lasting battery so you're not scrambling for an outlet, and built-in intelligence that makes updates around your schedule, not in the middle of it. Find technology built for the way you work at dell.com/dellpcs, built for you.

SPEAKER_2 (0:30)

Hey Fidelity, how can I remember to invest every month?

SPEAKER_3 (0:35)

With the Fidelity app, you can choose a schedule and set up recurring investments in stocks and ETFs.

SPEAKER_2 (0:42)

Oh, that sounds easier than I thought.

SPEAKER_3 (0:44)

You got this.

SPEAKER_2 (0:45)

Yeah, I do. Now, where did I put my keys?

SPEAKER_3 (0:49)

You will find them where you left them.

SPEAKER_1 (0:53)

Investing involves risk, including risk of loss. Fidelity Brokerage Services LLC member NYSE SIPC.

Jim Cramer (1:02)

Jim Cramer here to share a short preview of my take on the market from today's members only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 10:20 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.

Everything was looking real good, and then suddenly what happens? Well, oil goes up because some statements that we got out of the Iranians that looked like there really isn't that much of a deal. And then that has been right down through interest rates to stocks, including NVIDIA, which is just down badly now after being up earlier today.

Jeff Marks (1:42)

Yeah, coming off a really nice rally yesterday, a nice broad-based rally as oil fell below 100, but now it's back above 100 Earnings-wise, NVIDIA is strong, more broadly, I would say mixed, but let's focus on NVIDIA first, because you did have a healthy revenue beat, a healthy guide, revenue beating expectations by 2.7 billion, even though no contribution from China on compute. Earnings better than expected. Some of the big takeaways, yes, obviously the GPUs, but even their ARM-based Vara CPU, they have visibility into around 20 billion in total revenue just this year, which would make them one of the largest CPU providers in the world.

Jim Cramer (2:25)

Instead people are buying our ARM.

Jeff Marks (2:27)

Yes, because it is ARM-based.

Jim Cramer (2:29)

It's their license.

Jeff Marks (2:30)

Yeah, so they'll get some nice royalty revenue there. This stock's up about 30% this week. We did trim a little bit on Monday, but it's been a huge winner.

Jim Cramer (2:41)

I have to tell you, I would take some off of it. We can't, obviously, restrict it, but I would probably sell a little. I mean, I think it's a really pretty good gain.

Jeff Marks (2:50)

Sure.

Jim Cramer (2:51)

That's a parabolic move.

Jeff Marks (2:52)

It's now up 60% since we first bought it. We won't be restricted Tuesday, so maybe then just a little bit of appeal.

Jim Cramer (2:57)

You know, Nvidia, there's nothing wrong with Nvidia. Nvidia can go dampers up at 1.2 bucks. There's nothing fundamentally wrong, except for the fact that it's very tied to the S&P. We always forget that it is in the S&P.

Jeff Marks (3:11)

Yeah, it's the largest weighting in the S&P.

They said they continue to see strong engagement from hyperscalers, even though there's this idea that AWS will choose their own in-house chips more frequently, same with Alphabet. They did break out the reporting segment, and it's really the non-hyperscalers, AI Clouds, Industrial and Enterprise. It's pretty much just as large as hyperscalers, and it's growing much faster.

Jim Cramer (3:36)

Oh, yeah.

Jeff Marks (3:36)

So that broadens out their customer base.

Jim Cramer (3:38)

Good pricing for those. They are in control of their own destiny. One of the things I think they're going to do, if you're speaking to the CFO last night, they are going to do a plan that will be similar to Apple. They'll raise the dividend every year. They'll buy back stock, kind of do what Luca did, Luca Maestri, the previous CFO, which gets to that level where they bought back in 10 years, they bought back a third, and they raised the dividend each time. So it becomes appealing to even the Warren Buffets of the world.

SPEAKER_6 (4:03)

All opinions expressed by Jim Cramer on this podcast in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. To view the full CNBC Investing Club disclaimer, please visit cnbc.com/investingclubdisclaimer.