Cramer Calls Era of Profits at Nvidia

Nvidia's recent quarterly results have triggered a dramatic shift in investor sentiment, with prominent financial analyst Jim Cramer now firmly in the camp of bullish enthusiasts. Two days after Nvidia reported its fiscal Q2 2027 earnings, Cramer initially expressed concerns about the company's $30 billion OpenAI investment and whether it was financing OpenAI's competing chip.

However, following a closer examination of the numbers, Cramer has reversed course, proclaiming that 'the era of profitless chip buying is over. The era of humongous profits has begun.'

A key factor contributing to this change in sentiment is Nvidia's diversification of its customer mix. According to Cramer, hyperscalers now account for only 50% of the company's business, while sovereign buyers and neo cloud infrastructure builders comprise the remaining 50%. This shift towards a more diversified customer base has been driven by the increasing demand for AI infrastructure.

Nvidia's ACI&E segment, which includes neoclouds, sovereigns, and enterprises, generated $40 billion in revenue with 138% year-over-year growth. Furthermore, CFO Colette Kress stated that non-hyperscaler demand is expected to represent roughly half of Nvidia's data center business.