Nvidia's Soaring Stock Boosts Other Tech Companies, Jim Cramer Explains

On Wednesday, CNBC's Jim Cramer dissected the influence of Nvidia's soaring stocks on the broader market. The artificial intelligence powerhouse has reached an unprecedented milestone, with its market capitalization soaring to $3 trillion during intraday trading, momentarily surpassing Apple to claim the position of the market's second-largest company. Over the past five years, Nvidia's shares have surged by more than 3,000%, positioning it as a significant player in the market.

According to Cramer, Nvidia's remarkable performance has had a spillover effect on other stocks, with companies aligning themselves with Nvidia witnessing significant upswings in their stock values. Corporations such as CrowdStrike and ServiceNow experienced stock surges, emphasizing the influence of Nvidia's success on its affiliated entities.

Impact on Data Center-Related Companies

Cramer highlighted that the ripple effect extended beyond individual corporations, resonating with companies involved in various aspects of building data centers. This encompassed a wide spectrum, ranging from energy firms to semiconductor manufacturers, all experiencing gains as a result of Nvidia's towering success. Hewlett Packard's positive earnings report further underscored the significance of Nvidia's impact, as the PC maker made multiple references to Nvidia during its conference call.

Cramer emphasized that Nvidia's influence on the market has been unparalleled, accounting for one-third of the S&P 500's rally this year. Drawing an analogy to his bowling experience, he likened Nvidia's performance to consistently hitting strike after strike, characterizing its influence as unprecedented and far-reaching. In light of these developments, Nvidia's ascendance has not only reshaped its own trajectory but has also reverberated throughout the market, impacting a wide array of companies and industries.