Jim Cramer Backs NVIDIA: NVIDIA Stock Boosted by News of H200 Chip Exports to China

Jim Cramer, host of CNBC’s “Mad Money,” once again advised investors to “hold” NVIDIA stock instead of trading it frequently. On Monday, NVIDIA’s stock price rose slightly from $183 to $185 following news that the U.S. government had approved NVIDIA to export its H200 AI chips to China.

Cramer emphasized that during periods of market volatility, investors should focus on holding shares of well-performing tech giants for the long term, including NVIDIA. He pointed out that such companies, thanks to their strong technology and market position, are resilient against short-term market fluctuations, so frequent trading is not conducive to long-term gains.

NVIDIA is a global leader in graphics processors (GPUs) and artificial intelligence chip manufacturing, with its products widely used in data centers, cloud computing, and high-performance computing infrastructure. Recently, there have been reports that some tech companies are exploring alternative chips, putting some pressure on NVIDIA’s stock price. However, the export license for the H200 chip will enhance the company’s business opportunities in the Chinese market and support future growth.

Cramer has repeatedly urged investors to focus on the long-term potential of NVIDIA and the other “Magnificent Seven” tech giants, rather than being swayed by short-term market fluctuations. His view suggests that investors should pay attention to company fundamentals and industry trends, rather than frequent short-term trading.

Analysts believe that the U.S. approval for NVIDIA to export advanced AI chips to China is not only positive for the company’s revenue but may also boost the development of the global AI ecosystem. As demand for artificial intelligence continues to grow, NVIDIA’s leading edge in chip design and computing power means its long-term growth prospects remain optimistic.

Overall, NVIDIA’s stock price has seen a modest rebound recently, and market sentiment has improved. A hold strategy that leverages policy tailwinds and industry demand will help investors navigate future volatility and realize potential long-term gains.