Jim Cramer Comments on Nvidia Amid AI Development Slowdown Concerns

Nvidia shares experienced a decline of four points on September 14, following an essay by Anthropic CEO Dario Amodei advocating for a systematic slowdown in AI model development. Jim Cramer weighed in on this dip, suggesting that while Nvidia (NVDA) is a stock worth considering, investors should wait for a further drop before buying.

Cramer’s analysis points to Nvidia's buyback programs, which he believes are inadequate given the company's market capitalization. He argues that this lack of buyback support could exacerbate price declines triggered by external commentary, such as Amodei's recent statements.

Amodei's essay, published around September 12-13, emphasized the need for a more cautious approach to AI advancements due to safety concerns. Interestingly, despite advocating for a slowdown, Anthropic has committed to approximately $517 billion in compute spending through August 2026, benefiting companies like Nvidia that provide the necessary GPU infrastructure for AI research.

Nvidia’s demand remains robust, with a reported backlog of orders exceeding $2 trillion, equivalent to Italy's entire GDP. The company has also seen a 27% month-over-month increase in shipments of its Grace Blackwell systems, indicating strong demand for its latest-generation products.

Cramer’s concerns about Nvidia's buyback strategy come amid broader market warnings from Citigroup, which cautioned that a slowdown in AI development could lead to downward revisions in earnings, impacting stock market gains driven by AI optimism.