During his keynote at Computex, Nvidia CEO Jensen Huang articulated that computing power is a crucial profit driver in the artificial intelligence landscape, a message that resonated well with investors. Following the keynote, Nvidia's stock surged by 6%, contributing to a record high for the S&P 500, despite external pressures such as rising oil prices and stalled U.S.-Iran peace talks.
Jim Cramer from CNBC noted that Huang's assertion that 'compute is revenue' effectively countered skepticism regarding the substantial investments in AI infrastructure. Stocks of companies like Oracle, Nebius, and CoreWeave, which Huang mentioned, also saw significant gains of 9.9%, 14.5%, and 14%, respectively.
Cramer highlighted that Huang's presentation reinforced the notion that AI infrastructure spending is justified, challenging the narrative of excessive investment in the sector. He advocates for investors to consider Nvidia alongside major players like Amazon and Alphabet, despite their competition with Nvidia's products, due to the vast opportunities in the AI market