CNBC’s Jim Cramer warned NVIDIA CEO Jensen Huang on Wednesday night’s post-earnings conference call that he must address the elephant in the room. There are actually two elephants: Amazon and Alphabet. And make no mistake: these two hyperscalers are encroaching on Nvidia’s turf with their own custom artificial intelligence chips. Hours before Nvidia reports its first quarter of fiscal 2027, Huang has to play offense, not defense, Cramer said on “Squawk on the Street.” As Cramer’s Investing Club reports in a preview article, the beat-and-raise is minimal. No one questions the demand for Nvidia chips. However, Huang cannot remain silent about the competition. “If he just steps in and doesn’t address the fact that people are targeting him, I think that’s a sign of weakness,” Kramer said. “He can say that people misunderstand the importance of these two hyperscalers, and he can live without them,” Cramer said, alluding to the fact that Amazon and Alphabet are also big buyers of Nvidia chips. “It doesn’t even have to be confrontational. He can say, ‘Listen, I love them, they’re great, but we have a lot of people who want our chips.'” Kramer said Huang should be available for an April conference call between Amazon and Alphabet that focused on the profitability benefits of their chips. “At what point do they become competitors rather than enemies?” Kramer asked. Amazon’s chip business, which includes Graviton, Tranium, and Nitro, posted sequential 40% growth in the latest quarter. “If our chip business were a separate business and we sold the chips produced this year to AWS and other third parties (as other major chip companies are doing), our annual run rate would be $50 billion,” CEO Andy Jassy said on a conference call. He added: “Trainium is the most popular AI chip we deploy, and we continue to have a close partnership with Nvidia.” “Our custom TPUs, Axion CPUs, and the latest NVIDIA GPUs continue to form the broadest range of compute options in the industry,” Alphabet CEO Sundar Pichai said on a Google phone call. “NVIDIA GPUs are a core part of our AI accelerator portfolio, and we are one of the first to offer NVIDIA Vera Rubin NVL72, in addition to the Blackwell- and Hopper-based instances we already offer. “There will be one.” Google’s TPU (short for tensor processing unit) was co-designed with Broadcom, which Cramer says is also a big winner in the customer chip boom. Both of these tech giants are making significant capital investments to build out their AI infrastructure. Amazon kept its full-year spending forecast at $200 billion, while Alphabet raised its 2026 capital spending forecast to $180 billion and $190 billion. The CEOs of both companies still agree with Nvidia, but they’re also turning their attention to Huang and the Nvidia team. Disclosure: Cramer’s Charitable Trust, a portfolio used by CNBC Investment Club, has positions in all stocks mentioned in this article.
