Jim Cramer warns against trading Nvidia after blowout quarter

• CNBC's Jim Cramer on Thursday reminded investors he thinks it's unwise to trade Nvidia.
• "Until the AI revolution runs on something else — and despite what you hear, nobody else comes close to these chips — you should just own it, do not trade it," he said.

CNBC's Jim Cramer on Thursday said he thinks it's unwise to trade Nvidia, saying investors should keep the artificial intelligence darling.

"Until the AI revolution runs on something else — and despite what you hear, nobody else comes close to these chips — you should just own it, do not trade it," he said. "Just don't sell it on a moment's notice. In fact, don't sell it at all unless you need to do some profit-taking to even out your portfolio because it's just become too large."

Nvidia's earnings report Wednesday blew past Wall Street's expectations, sending shares over $1,000 for the first time. The stock continued to perform during Thursday's session — finishing up more than 9% — and Cramer pointed out it was still able to tally substantial gains on what was a bad day for the broader market.

According to the earnings report, enterprise companies are still clamoring for Nvidia's chips. Its quarterly revenue beat estimates by about $2 billion, according to LSEG, and its data center revenue grew by 427% over the past quarter. These advanced, expensive chips are essential for developing and deploying AI applications, and the company's big-time customers include Microsoft, Meta, Amazon, Alphabet and OpenAI.

Cramer noted that Nvidia habitually exceeds earnings expectations and added that investors shouldn't be skeptical of the company's success. According to Cramer, many on Wall Street don't understand exactly what Nvidia does.

"If you're going to own this stock, you must take the time to learn," he said. "If you did, you'd know that the customers said to be deserting Nvidia aren't deserting, they're desperate for its product."

Nvidia declined to comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, Microsoft, Meta, Amazon and Alphabet.

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