Jun. 8 at 11:34 PM
CNBC’s Jim Cramer said Nvidia’s rapidly growing sovereign AI business could become an important new growth driver and reduce the company’s dependence on a small group of hyperscale cloud customers. As major providers such as Amazon and Alphabet develop their own AI chips, investors have become concerned about Nvidia’s long-term reliance on those companies. Cramer argued that Nvidia is diversifying its customer base by supplying governments that are building domestic AI infrastructure and national computing capabilities.
CEO Jensen Huang has spent the past year promoting sovereign AI initiatives worldwide, with countries including Singapore, India, Japan, Germany, Switzerland, Taiwan, Israel, Qatar, the UAE, and Saudi Arabia investing in projects powered by Nvidia technology. Unlike hyperscalers, which are often judged on the near-term financial returns of their AI spending, governments are focused on strategic and technological competitiveness.
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