Nvidia Sometimes Feels Like America's Only Bargaining Chip In Trade Standoff With China, Says Jim Cramer: 'Own It, Don't Trade It'

On Wednesday, Nvidia Corporation (NASDAQ:NVDA) briefly became the world's most valuable company. Following this, Jim Cramer hailed the AI chipmaker as a national strategic asset and a powerful tool in America's trade tensions with China.

What Happened: Nvidia crossed a $4 trillion market cap during trading before closing at $3.97 trillion. The surge reaffirmed its place atop the global market, surpassing Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL).

"The fact is, neither Microsoft nor Apple can claim that they're currently creating a new industrial revolution, like Nvidia can," said Cramer, reported CNBC.

"In fairness, they did create the last industrial revolution, the rise of the personal computer, although that was a long time ago," he added.

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Reflecting on Nvidia's geopolitical significance, Cramer noted that Nvidia sometimes seems to be the U.S.’s "only bargaining chip" with China, citing Beijing's demand for Nvidia’s advanced AI hardware amid ongoing U.S. export controls.

Even though China remains one of the U.S.'s largest manufacturing partners, Cramer believes Nvidia represents a more powerful bargaining chip than anything China can leverage.

Cramer also praised Nvidia's role in shaping the future of technology, saying its chips are essential for generative AI, self-driving cars and humanoid robotics. "Every single computer with a GPU that's not as good as Nvidia's is obsolete," he said.

He concluded with a familiar refrain to investors: "Bottom line? Nvidia, own it, don't trade it," adding, "See you at $5 trillion."

Cramer also posted a signed photo from Nvidia CEO Jensen Huang on X, formerly Twitter, captioned, "Thank you Jensen!!! Thank you Nvidia!!"

Why It's Important: Nvidia joined the exclusive club of trillion-dollar companies in May 2023, becoming the ninth firm ever to reach a $1 trillion market value.

Since then, it has rapidly cleared additional valuation milestones, repeatedly struggling with Microsoft and Apple for the top spot as the world's most valuable company.

By reaching a $4 trillion market cap before both Microsoft and Apple, Nvidia not only cements its place in corporate history but also breaks Apple's run as the first U.S. company to hit the $1 trillion, $2 trillion and $3 trillion marks.

NVDA currently holds a consensus price target of $179.17, based on evaluations from 37 analysts. The three latest analyst updates by Citigroup, Mizuho, and Loop Capital set an average price target of $208.33, suggesting a potential upside of 27.53%.

Benzinga's Edge Stock Rankings indicate that NVDA continues to demonstrate a solid upward trend in the short, medium and long term. While the stock's growth score remains strong, its value rating is relatively lower. Additional performance details are available here.

Photo courtesy: katz / Shutterstock.com

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.