Jim Cramer Says NVIDIA Is Preparing A New Chip to Outclass Broadcom and Google

• NVIDIA (NVDA) recently purchased Groq for $20 billion. Last night, Jim Cramer said he believes the company could announce new chips based on Groq’s technology this month. That would be a major blow to rivals like Broadcom (AVGO), which has helped develop Alphabet’s (GOOGL) TPU.

• NVIDIA shares were up 3% yesterday on speculation around their new chip.

• The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.

Nvidia (NASDAQ:NVDA) may be about to remind the AI world who still runs the show. Reports circulating this week suggest the company is preparing a new chip specifically targeting the inference market, and Jim Cramer took notice on his program.

Here’s what Cramer said last night:

“Nvidia is about to announce a new chip that can compete with pesky offerings from competitors. Several companies, including long standing Nvidia customers, have been bragging about how they make a particular kind of AI semiconductor ones for inference. And Nvidia, well, it looks like they may have something against that that could be better.”

READ: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks

Nvidia shares rallied nearly 3% on the news. They’ve given up part of those gains today, but that’s amid a broad market sell-off that saw the Dow down more than 1,000 points in early trading. Let’s look at what NVIDIA’s new inference chip is and how it could change the battle between the company and rivals…