Former hedge fund manager turned financial commentator, Jim Cramer, has garnered widespread attention for his bold and controversial market predictions.
While some of his forecasts have proven accurate, a significant number have taken an opposite turn. This has given rise to the ‘Inverse Cramer’ strategy, where investors consider doing the opposite of Cramer’s recommendations.
No one can compete with Nvidia, says Cramer
To back these claims, he said the Windows maker had to join forces with Oracle (NYSE: ORCL) to obtain access to Nvidia’s high-end chips.
The move serves as a “longer-term relationship because, like everyone else, Microsoft simply can’t compete with Nvidia,” the TV personality wrote.
“Can’t compete, must join.”– he added.
What is Cramer referring to?
For context, Cramer is referring to Microsoft’s recent cloud-computing agreement with Oracle, which aims to offload some of Bing Search’s machine-learning models to Oracle’s GPU supercluster.
The multi-year deal is meant to address Microsoft’s need for additional computing resources amid explosive demand for its artificial intelligence (AI) services.
As it happens, Oracle commands an extensive inventory of Nvidia’s top-notch GPUs, A100s and H100, which are particularly effective in powering AI models.
Nvidia has seen unprecedented growth in 2023, thanks to the vital role the chipmaker is playing in the ongoing AI boom. The company produces high-end GPUs that power generative AI products like ChatGPT, and controls about 80% of that market.
The former hedge fund manager suggested that in his opinion, Nvidia and Apple are more appealing as long-term investments rather than stocks that should be actively traded.
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