Cramer Says Semis Overtake Software as Nvidia Posts $81.62 Billion in Revenue
Updated
Updated · CNBC · May 20
Cramer Says Semis Overtake Software as Nvidia Posts $81.62 Billion in Revenue
5 articles · Updated · CNBC · May 20
Nvidia’s latest quarter reinforced the AI-driven shift in tech investing, with adjusted earnings of $1.87 a share and revenue of $81.62 billion beating Wall Street expectations.
Jim Cramer said that strength shows semiconductors have become the market’s new center of gravity, arguing chips and hardware now drive AI spending while software takes a back seat.
Market performance reflects that reversal: the iShares Semiconductor ETF is up about 72% this year, while the iShares Expanded Tech-Software Sector ETF has fallen roughly 12%.
Cramer said Nvidia, AMD, Arm, Intel and Broadcom are benefiting as businesses pair AI chips with models from OpenAI and Anthropic to build tools that can replace some costly enterprise software.
He added legacy vendors such as Salesforce and Adobe will remain in use, but AI is weakening the pricing power and software-first logic that long dominated tech investing.
Is the AI chip boom a sustainable market shift or a repeat of the dot-com bubble?
With subscriptions failing, how will software companies reinvent their business models to survive AI?
As AI automates coding, what irreplaceable skills will future software engineers truly need?
Nvidia Surpasses $5 Trillion Market Cap: Record AI Chip Revenue, Market Dominance, and Strategic Expansion Amid Rising Competition
Overview
Nvidia has achieved record-breaking financial results, with unprecedented revenues in fiscal year 2026 and strong momentum continuing into the first quarter of 2027. The company delivered outstanding numbers across all segments, surpassing its own guidance and quashing concerns about an AI bubble. In the fourth quarter of 2026, Nvidia recorded $68.1 billion in revenue, exceeding expectations by $3 billion and marking a 20% increase from the previous quarter. This exceptional performance highlights Nvidia's market leadership and its ability to sustain rapid growth in the evolving AI and semiconductor industry.