NVIDIA Corp. (NASDAQ:NVDA) was mentioned during the August 12 episode of Mad Money, as host Jim Cramer detailed the expansion across artificial intelligence infrastructure, as he said: Then today, aided by a benign consumer price index number, the data center stocks couldn't be contained. Lumentum, which makes fiber optics, told a terrific tale... And finally, CoreWeave reported a monster quarter, demonstrating that their strategy of building data centers embedding NVIDIA chips… a longer shelf life than 3 to 5 years, was more than paying off.
CoreWeave CEO Michael Intrator told us an insanely good story when he appeared on Squawk on the Street. He gave us genuine proof that older NVIDIA GPUs are as valuable or even more valuable than when they were built, even ones that came out of the foundry 9 years ago. Yes, of course, they are.
NVIDIA's chips are the most sought-after of all semiconductors, and they hold their value. Anyone who was worried about compute-backed bonds being dragged down by depreciation now looks like a dope. These chips aren't like cars that lose half their value the moment they drive off the lot.
They're more like fine jewelry. Plus, people keep forgetting that NVIDIA also has a software component with its CUDA product and the mass developer ecosystem that can be upgraded through all cycles, allowing 9-year-old chips to keep their value, even appreciating. Auto loans can't make that claim, can they?
In the end, CoreWeave finished up $17. Remember, that's the world's largest company. NVIDIA Corp. (NASDAQ:NVDA) reported record financial results for its fiscal first quarter, which provide provide further financial context for Cramer's bullish view of the broader AI infrastructure buildout.
The company delivered total revenue of $81.6 billion, an 85% increase compared to the prior year. Under its reporting framework, data center revenue achieved massive gains, with compute revenue reaching $60.4 billion, up 77% year-over-year, and networking revenue surging to $14.8 billion, a 199% jump from the previous year. CEO Jensen Huang noted that the worldwide construction of artificial intelligence factories represents an unprecedented infrastructure buildout.
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