NVIDIA Corporation (NASDAQ: NVDA) returned to the spotlight this week after prominent AI leaders called for a slowdown in development, sparking fresh debate over the chipmaker’s near-term trajectory. The company’s graphics processing units (GPUs) remain the backbone of AI data-center infrastructure, and the latest commentary from CNBC host Jim Cramer underscored the tension between short-term sentiment and long-term demand.
Cramer on Amodei’s Remarks and NVIDIA’s Stock Reaction
Reacting to Anthropic CEO Dario Amodei’s appeal for a development pause, Cramer took to social media to frame the market’s response:
“Oh, and yes, Dario’s comments send Nvidia’s stock down four and then it works its way lower and then stabilizes. Yes, it’s a buy. But let it come down. The buyback’s not big enough. This stuff now happens in what seems like slow motion for me…”
The remarks align with Cramer’s broader stance over recent months, during which he has repeatedly expressed frustration with NVIDIA’s share-price weakness while maintaining a bullish long-term outlook. He characterized any pullback triggered by Amodei’s comments as temporary.
Blackwell Demand and a $2 Trillion Order Backlog
Underpinning that optimism is unprecedented demand for NVIDIA’s next-generation Blackwell GPUs. In March, CEO Jensen Huang revealed that the company’s initial estimate of 3.6 million units significantly understated actual requirements. The scale of interest was further quantified in the second-quarter earnings release, which disclosed an order backlog exceeding $2 trillion.
Explosive Revenue Growth Driven by Data-Center Sales
The AI boom continues to fuel exceptional financial performance. Second-quarter revenue surged 106% year-over-year to $96.22 billion, with the data-center segment contributing $83.7 billion of that total. This concentration highlights NVIDIA’s dominant position in the accelerated-computing market.
Margin Pressure from a Historic Memory Shortage
Growth, however, is colliding with a severe global memory shortage. While Q2 gross margins held at 75%, the company guided for a sequential decline to 74% in Q3 and projected a further slide to between 71% and 72% in Q4. The tightening supply of high-bandwidth memory (HBM) is a primary driver of the compression.
Capacity Constraints May Limit Upside Surprises
Analysts at Seaport Global have cautioned that NVIDIA’s sold-out production capacity could restrict its ability to deliver positive revenue surprises in coming quarters. With the revenue base resetting at higher levels, the incremental upside from additional supply becomes increasingly difficult to achieve.
