"I Saw the Movie. I Don't Want the Sequel." Jim Cramer Warns Nvidia's Latest $250 Billion Deal Is How Companies Died in Dot Com Bubble - 24/7 Wall St.

What the report says

24/7 Wall St. reported that CNBC host Jim Cramer used his July 27, 2026, Mad Money opening segment to warn investors about Nvidia’s reported role in guaranteeing $250 billion of financing for OpenAI data-center projects. Cramer said the arrangement resembles vendor-financing practices from the dot-com era, when telecom equipment makers helped fund customer purchases and later suffered when those customers could not pay.

According to the report, Cramer’s concern is not Nvidia’s underlying business quality but the counterparty risk tied to financing major buyers of its chips. He argued that OpenAI and some other AI infrastructure customers may need substantial additional capital to complete buildouts, creating a vulnerability if funding becomes unavailable. 24/7 Wall St. also cited JPMorgan strategist Michael Lewis as saying the current AI cycle looks uncomfortably similar to the dot-com period, while noting market concentration concerns around the largest S&P 500 stocks.

The article said Nvidia remains highly profitable, citing Q1 FY2027 revenue of $81.615 billion, up 85.2% year over year, with $75.246 billion from data centers and non-GAAP earnings per share of $1.87. It also noted a 75.0% non-GAAP gross margin, an additional $80 billion buyback authorization, a higher quarterly dividend, $119 billion in supply-related commitments and $30 billion in multiyear cloud-service commitments.

Why it matters: Nvidia has become central to the AI infrastructure boom, and financing links between chip suppliers and customers could affect how investors assess the durability of AI demand. 24/7 Wall St. reported that Nvidia shares fell on the session despite strong company figures, reflecting investor sensitivity to the structure of AI spending.