<p>CNBC's Mad Money host<strong> Jim Cramer </strong>cautioned that while opting for <strong>Amazon.com Inc. </strong>(NASDAQ:AMZN) and <strong>Alphabet Inc.</strong>‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) proprietary AI chips looks convenient, rival tech hardware fails to maintain long-term asset worth compared to market leader <strong>Nvidia Corp. </strong>(NASDAQ:NVDA).</p>



<h2><strong>The Depreciation Trap</strong></h2>



<p>In a social media post on Thursday morning, the financial commentator broke down the hidden long-term risks of shifting away from Nvidia's dominant ecosystem. While tech buyers might be tempted by alternative hardware options, Cramer highlighted a steep financial downside to proprietary hyperscaler silicon.</p>



<p>“It seems ‘so easy’ to just go buy the Amazon or Alphabet GPU version,” Cramer noted, pointing out the illusion of convenience in opting for internal cloud chips like Google’s TPUs or Amazon’s Trainium and Inferentia.</p>



<p>However, he quickly warned that these alternatives are “hard to get credit against and do not hold their ‘value’ over the years like Nvidia’s do.”</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div>
<blockquote><p lang="en" dir="ltr">It seems so easy to just go buy the Amazon or Alphabet GPU version but they are hard to get credit against and do not hold their value  over the years like Nvidia's do. Doesn't matter tomorrow or the next day, does matter over the long haul. And i like AMZN &amp; GOOGL</p>— Jim Cramer (@jimcramer) May 20, 2026</blockquote>
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Read Also:

NVIDIA Started The AI Rally — Now Memory And Power Chip Stocks Are Stealing The Spotlight
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<h2><strong>Playing The Long Game</strong></h2>



<p>According to Cramer, the true test of these AI infrastructure investments won’t be settled in the immediate future, but rather over years of hardware lifecycle depreciation. Because</p>



<p>Nvidia chips act as a universal industry standard; they retain a robust resale and financing value that custom, single-ecosystem chips simply cannot replicate.</p>



<p>“Doesn’t matter tomorrow or the next day, does matter over the long haul,” Cramer emphasized, underscoring that the compounding costs of rapidly depreciating hardware could impact enterprise balance sheets down the line.</p>



<h2><strong>A Tale Of Two Stocks</strong></h2>



<p>Despite his stark warning regarding their proprietary AI hardware, Cramer was quick to clarify that his critique of their chips is not a green light to short the tech giants.</p>



<p>He concluded his thoughts by reassuring investors that he remains fundamentally bullish on both companies as overall investments, stating plainly, “And i like AMZN &amp; GOOGL.”</p>



<h2><strong>Nvidia Earnings Top Estimates As AI Demand Surges</strong></h2>



<p>Nvidia outperformed Wall Street estimates across the board for the first quarter, driven by an 85% year-over-year revenue surge to $81.6 billion—easily beating the $78.8 billion projected by analysts. The chipmaking giant also reported an adjusted profit of $1.87 per share, topping the $1.76 per share anticipated by the market.</p>



<p>Looking ahead, the company issued strong guidance for the second quarter, forecasting revenue between $89.18 billion and $92.82 billion, which sits well ahead of the consensus Wall Street estimate of $86.62 billion.</p>



<p>Despite the stellar numbers, Cramer cautioned investors against overreacting too early after-hours stock volatility, noting that the initial post-market reaction can be deceptive.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div>
<blockquote><p lang="en" dir="ltr">The Nvidia pattern we are all now used to: an initial fly-up, lasting 10-12 minutes, then a relentless hammering that takes the stock to where it breaks the chart. Do not be fooled by the first move… It would be terrific if nothing happened on the print, we heard the cc, got…</p>— Jim Cramer (@jimcramer) May 20, 2026</blockquote>
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<h2><strong>How Has NVDA Performed In 2026?</strong></h2>



<p>In comparison with the Nasdaq 100’s 16.23% year-to-date advance, shares of NVDA have risen by 19.82% over the same period. It closed 1.30% higher on Wednesday at $223.47 per share after its first-quarter earnings report. </p>



<p>Over the last month, NVDA stock was up 1.60%, and it advanced 23.71% and 66.30% over the last six months and the year, respectively. It was 0.08% higher in premarket on Thursday. <strong>Benzinga’s Edge Stock Rankings</strong> indicate that NVDA maintains a strong price trend in the medium, short, and long terms, with a poor value ranking.</p>



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<strong>
Read Also:

Nvidia Earnings Impact Tracker: Historical Data Shows Hidden Bull Trap
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<p><strong><em>Disclaimer:</em></strong><em> This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.</em></p>



<p><em>Photo courtesy: bluestork / Shutterstock</em></p>

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<p>Jim Cramer warns that while Amazon and Alphabet's AI chips may seem easy to buy, they do not hold long-term value like Nvidia's chips. He emphasizes the risks of proprietary hardware, which depreciates faster and lacks resale value. Despite this, Cramer remains bullish on AMZN and GOOGL as investments. He advises caution regarding Nvidia's stock volatility post-earnings, highlighting its strong performance and guidance amidst market fluctuations.</p>

- Jim Cramer advised caution regarding the use of Amazon and Alphabet's proprietary AI chips, highlighting their depreciation compared to Nvidia's products.  
- He pointed out that while these alternatives appear convenient, they lack long-term asset value and are harder to finance.  
- Cramer remains bullish on Amazon and Alphabet as investments despite his critique of their AI hardware, emphasizing the importance of considering long-term depreciation in tech infrastructure decisions.

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Jim Cramer Warns Amazon And Alphabet Chips Seem 'So Easy' To Buy, But They Don't Hold 'Value'