Jim Cramer Slams Chinese Media For Claiming Huawei 'Bypasses' Nvidia: 'If Their Chips Were So Great...'
Jim Cramer criticized Chinese media claims that Huawei's AI chips can bypass Nvidia, questioning their quality. He noted that if these chips were superior, they would be widely adopted. Cramer also highlighted Nvidia's challenges in China, including a ban on its custom AI chips amid an antitrust probe. Despite Huawei's advancements, Cramer and others believe that China cannot compete effectively without Nvidia. Nvidia remains strong in momentum and growth rankings, despite geopolitical tensions affecting its market position.
Jim Cramer, the host of CNBC’s “Mad Money,” criticized China’s ongoing AI chip war, questioning the quality of the chips following a significant computing breakthrough by Huawei.
Cramer Reacts To Report Of Huawei's AI Chip Breakthrough
Cramer’s post on X on Thursday was in response to a South China Morning Post headline about Huawei’s AI chips bypassing NVIDIA Corporation NVDA in a computing breakthrough for China ahead of the potential Trump-Xi Jinping meeting.
Check out the current price of NVDA stock here.
“Lead story in South China Morning Post: Huawei bypasses Nvidia AI chips in computing breakthrough for China. The Chinese have been waging this war of words since January. If their chips were so great everyone would use them,” Cramer posted.
Cramer called out the article suggested that if the Chinese chips were truly superior, they would be more widely adopted.
Notably, on Wednesday, Cramer suggested in his post that the "last of the scared and hot money" was about to exit Nvidia, noting that speculative capital often pulls out during geopolitical restrictions. He indicated that this could potentially reset Nvidia's valuation from its current market capitalization of over $4 trillion.
Nvidia’s Chinese Woes Intensify Amid Huawei Competition
Nvidia’s China strategy faced a setback when Beijing blocked its custom AI chips amid an antitrust probe on Wednesday. CEO Jensen Huang expressed disappointment over the Chinese ban.
Reports also suggested that Cyberspace Administration of China ordered companies including ByteDance and Alibaba BABA to halt purchase of Nvidia's RTX Pro 6000D, chip tailored specifically for the Chinese market.
However, echoing Cramer’s viewpoint, in August, Daniel Newman, CEO of Futurum Group, dismissed the idea that China can move on without Nvidia, calling it “next level nonsense.”
Interestingly, CEO Jensen Huang once praised Huawei as China’s “most formidable technology company,” but Huawei’s CEO Ren Zhengfei stated that their chip technology still lags behind that of the U.S.
Benzinga's Edge Rankings place Nvidia in the 87th percentile for momentum and the 98th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
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