Jim Cramer Says NVIDIA Is the Best Way to Play AI Theme

NVIDIA Corporation (NASDAQ:NVDA) was among the stocks Jim Cramer looked at as he discussed the recent bounce in software stocks. Cramer recommended buying the stock, as he commented:

Let’s talk about one of the hottest stories of the year, fiber optics. We’re putting up data centers all over the place, but the industry needs better ways to move data around, which is where the optical plays come in. As traffic between switches, racks, and servers explodes, it’s tough to keep scaling AI with more silicon, more power, and more cooling forever. At some point, you have to cope with the physics of the situation. That’s why the data center builders are increasingly turning to photonic and fiber optic solutions. Think light moving through fiber to handle their networking needs. On March 2nd, NVIDIA agreed to invest $2 billion apiece in two different fiber optic companies, Lumentum and Coherent… Both great stories, both deals included multi-billion dollar purchase commitments plus future capacity and access rights. NVIDIA’s essentially trying to lock up critical optical laser supply before the next bottleneck shows up.

Look, the message from NVIDIA CEO Jensen Huang was clear: optics are not a sidecar to the AI buildout. And oh, just so we know, NVIDIA, own it, don’t trade it… You know what? Buy some NVIDIA. That’s the best, cheapest way to play it. It is the best AI theme, photonics included. Again, Jensen was ahead of everyone here, just like he was on…