By Matthew J. Belvedere
Publication Date: 2026-05-20 14:54:00
CNBC’s Jim Cramer warned Nvidia CEO Jensen Huang that he must address the elephant in the room on Wednesday night’s post-earnings conference call. Actually, two elephants: Amazon and Alphabet . And, make no mistake about it, these two hyperscalers are encroaching on Nvidia’s turf with their in-house custom artificial intelligence chips. Huang must play offense, not defense, Cramer said on “Squawk on the Street,” just hours before Nvidia reports its fiscal 2027 first quarter. As Cramer’s Investing Club has reported in its preview stories, a beat and raise is the bare minimum. Nobody is questioning the demand for Nvidia chips. But Huang cannot stay quiet on the competition. “If he just goes in and doesn’t address the fact these people are gunning for him, then I think it’s a show of weakness,” Cramer said. “He could say people are misunderstanding the importance of these two hyperscalers. And that he can live without them,” Cramer said, alluding to the fact Amazon and Alphabet are also big buyers of Nvidia chips. “It doesn’t even have to be confrontational. He can say, ‘Listen, I love them, they’re great, but we have so many people that want our chips.” Cramer said Huang must respond to Amazon and Alphabet’s April conference calls, which focused on the profitability benefits of their in-house chips. “At what point are they competitors, and not frenemies?” Cramer asked. Amazon’s chip business, which includes Graviton, Tranium, and Nitro, saw 40% sequential growth in the…
