Nvidia To $200? Jim Cramer Thinks These 2 Catalysts Could Do It

Nvidia Corp. (NVDA) stock outperformed the broader market and the tech sector on Thursday as traders and sell-side analysts reacted positively to the company’s quarterly results.

CNBC Mad Money host Jim Cramer, a Nvidia bull, said the stock has further room to run, buoyed by two key catalysts.

While appearing on CNBC's “Squawk on the Street” segment, the stock picker said, “The next leg in Nvidia has to be sovereign AI, or China. If they get both, then the stock goes to $200.”

This would mark a 44% upside from Thursday’s closing level of $139.19.

Sovereign artificial intelligence (AI), a term coined by the company, has been one of its key focus areas in recent quarters. It refers to a nation’s capabilities to produce AI using its own infrastructure, data, workforce, and business networks.

CEO Jensen Huang said on the first-quarter earnings call, “Sovereign AI is a new growth engine for NVIDIA.” He noted that nations invested in AI infrastructure like they once did for electricity and the Internet.

Sovereign AI could boost countries' GDP growth, given the productivity gains expected from it. Countries also see the investment as one made toward national security, reducing reliance on other nations.

Huang travelled to the Middle East as part of President Donald Trump’s state visit to the region, announcing multi-billion-dollar deals.

China is a vital cog in Nvidia’s growth. The H20 export curbs dragged the company’s first-quarter performance by $4.5 billion, with the company warning of another $8 billion impact in the second quarter.

Huang called China one of the world’s largest AI markets on the earnings call, stating that half of the world’s AI researchers operate out of the country. 

“Today, however, the $50 billion China market is effectively closed to U.S. industry,” he said.

“China's AI moves on with or without U.S. chips. It has the compute to train and deploy advanced models. The question is not whether China will have AI, it already does; The question is whether one of the world's largest AI markets will run on American platforms.”

Following the earnings report, Nvidia analysts have largely raised their price targets, with the updated price targets ranging from $135 to $210.

As the company scrambles to meet surging AI demand due to its near monopoly position in the Al accelerator market, it filed a shelf registration statement with the SEC on Thursday for offerings of an assortment of securities. A shelf registration is filed in advance of a public offering.

On Stocktwits, retail sentiment toward Nvidia stock stayed ‘extremely bullish’ (75/100) and the message volume was also ‘extremely high.’

Nvidia stock has traded in a 52-week range of $86.62-$153.13. According to Koyfin, the consensus price target for the stock is $169.07.

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