Artificial intelligence is the talk of Wall Street and chipmaker Nvidia (NVDA) -) is almost universally seen as the hardware leader in the space.
On Wednesday, it was reported China's biggest tech companies -- Baidu, TikTok-owner ByteDance, Tencent and Alibaba -- have collectively made orders worth $1 billion to acquire about 100,000 A800 processors from Nvidia to be delivered this year.
DON'T MISS: Here's what companies Nvidia is joining in the $1 trillion market cap club
The Chinese group also purchased another $4 billion worth of graphics processing units to be delivered in 2024, the FT reported.
But despite the good news coming out of China, Nvidia's stock tanked nearly 5% June 9 and was down slightly in premarket trading the morning of June 10.
Investors on social media were quick to point out what they believe to be the issue with the stock.
JUST IN:📉JIM CRAMER HAS JUST THE PUT THE CURSE ON NVIDIA!!!! $NVDA
— Crypto Macro (@cryptomacro14) August 10, 2023
TIME TO SELL??#crypto #bitcoin pic.twitter.com/0hKiWNKbse
Cramer touted Nvidia on CNBC after the company offered details on its second-generation AI-powering Grace Hopper Superchip. And despite the fact that the company's stock has tripled in 2023, Cramer thinks the stock has more room to run.
More Artificial Intelligence:
- Here's the steep, invisible cost of using AI models like ChatGPT
- Artificial Intelligence isn't going to kill everyone (at least not right away)
- Google agrees on a huge step to handle AI risks
This of course is the cardinal sin for the "Inverse Cramer" crowd, which believes that any stock the famed investor chooses is bound to decrease just because Cramer picked it.
This week, Nvidia CEO Jensen Huang said that AI tech powered by Nvidia chips will "reinvent the computer itself."
"Large language model is a new computing platform because now the programming language is human. For the very first time, after 15 years or so, a new computing platform has emerged," Huang said. "The computer itself will of course process information in a very different way."
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