Squawk on the Street
CNBC Investing Club: Cramer’s Morning Take on Nvidia 8/12/26
· Summarized
Key takeaways
- Nvidia's older generation A100 chips remain valuable and extend into 2029, supporting the company's ongoing revenue strength.
- The valuation and demand for Nvidia's video chips and related software suggest a strong potential for the company's stock to break out ahead of earnings.
- South Korea's semiconductor stocks, including SK Hynix and Samsung, showed strong gains after a period of decline caused by leverage unwinding and geopolitical factors.
- Micron Technology is expected to benefit from recent market recovery in Korea and positive demand outlooks, making it an attractive stock move forward.
Summary
Market Focus and Infrastructure Investments
Jim Cramer discusses the current market focus on infrastructure and data centers, particularly highlighting how recent data indicates strong revenue and backlog growth in this sector. He mentions a significant contract extension for Nvidia's older generation A100 chips that extends into 2029, emphasizing their continued value and relevance in the AI and video processing markets. This segment underscores that these older chips still generate substantial returns, which bodes well for Nvidia's stock potential.
Nvidia and Data Center Stock Outlook
Cramer explains that Nvidia's in-video chips and software are holding their value well despite the age of the product, leading him to believe that Nvidia's stock could breakout even before their upcoming earnings report. He points out the significance of Nvidia's contract extensions and recent demand signals, suggesting that the company's stock has the potential to rise sharply soon.
Korean Market and Semiconductor Stocks
The discussion shifts to South Korea's market, where the Kospi index rose 4% overnight, driven by major stocks like SK Hynix and Samsung. Cramer notes how leverage unwinding related to hedge funds and government actions had previously depressed stocks like Micron. Now that some of that leverage unwinding has subsided, Micron is expected to attract investor interest again, especially as demand picks up following positive signals from companies at a key industry conference.
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Show notes
Cramer says this semiconductor giant’s stock has a very good chance of breaking out. Become an Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks every day as they talk candidly about the market’s biggest headlines, analyst calls and holdings in the Charitable Trust – and see up close how they decide when, and if, to take action on stocks. Sign up here: cnbc.com/morningtake
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