CNBC’s Jim Cramer, a longtime Nvidia backer, is aware of what he wants to hear Wednesday evening when the main AI chipmaker studies earnings and holds its influential convention name. “The wrap is that Nvidia makes all the money and nobody else does. And that’s what has to be addressed tonight,” Cramer stated on “Squawk on the Street.” Cramer stated there are little question different necessary matters that can come up on the decision — chief amongst them what’s taking place with Nvidia’s enterprise in China, a key strategic market the place the corporate faces seemingly ever-evolving strain from each governments within the Washington-Beijing rivalry. But in Cramer’s eyes, what looms bigger is the talk about whether or not Nvidia’s expensive graphics processing items, or GPUs — and the server techniques and networking expertise paired with these GPUs inside knowledge facilities to allow AI computing— are price all the cash. Deep-pocketed tech giants comparable to Meta Platforms and cloud-computing suppliers like Microsoft , Alphabet and Amazon are spending tens of billions of {dollars} yearly to construct new AI-focused knowledge facilities. Nvidia is a serious recipient of these outlays. At the identical time, Advanced Micro Devices is attempting to seize a slice of the GPU market and Nvidia’s greatest prospects are growing customized AI chips for sure duties as nicely. “There are a lot of people who feel … that the total cost of ownership of Nvidia has gotten too high and you can’t make money with it,” stated Cramer, whose Charitable Trust, the portfolio utilized by the CNBC Investing Club, began constructing a stake in Nvidia lengthy earlier than the generative AI increase started in late 2022. The Club additionally owns Meta, Microsoft and Amazon. “No kidding China. What matters is that we hear from [CEO] Jensen Huang about how that whole narrative— that the spend isn’t getting them any results — is false. That’s what we have to hear.” Some people who find themselves optimistic on AI’s long-term potential contend it is nonetheless early days within the expertise’s adoption curve and measuring an organization’s actual return on its AI spending is tough. Asked about that argument, Cramer stated: “I’m not going to disagree with that, but I think Jensen might.” And as of now, Cramer stated it is laborious to beat the standard of the expertise that Nvidia offers to its prospects. “You cannot have generative AI the way you’d like to without Nvidia. So you’re going to have what some people say is overspend. But it’s table stakes. It’s the price to be in the business,” he stated.