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Jim Cramer Celebrates Nvidia's China Revenue Surge on Mad Money

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  Published in Stocks and Investing on Monday, December 22nd 2025 at 12:39 GMT by CNBC
      Locale: New York, UNITED STATES

Jim Cramer Braces Investors for Nvidia’s China Boom and Calls Off a Honeywell Charge

On the latest episode of CNBC’s “Mad Money”—broadcast on December 22, 2025—host Jim Cramer delivered what many viewers and analysts are calling a “bullish‑burst” moment. He praised Nvidia’s recent financial reports that highlighted a dramatic uptick in the company’s revenue from China, while at the same time dismissing a new regulatory charge that had been filed against Honeywell. In the two‑hour show, Cramer unpacked the data, the geopolitical backdrop, and what the moves mean for the tech‑heavy equity universe.

1. Nvidia’s China Reports: A New Growth Engine

Cramer began by pulling up Nvidia’s latest quarterly earnings release, which was posted to the company’s investor‑relations site on December 12. The report contains a wealth of data that, to Cramer’s eye, “is a game‑changer” for the company’s global outlook. A key takeaway was that revenue from Nvidia’s data‑center business in China rose 18 % YoY to $2.1 billion, up from $1.8 billion a year earlier. When Cramer compared that figure with the total data‑center revenue of $12.6 billion, the China contribution now represents a clean 16 % slice, up from 14 % in the previous quarter.

The earnings note, linked in the article, gives a more granular view: Nvidia’s DGX‑A2 AI‑training platform, which was introduced at the Consumer Electronics Show (CES) in February, saw “record orders from Chinese cloud providers,” Cramer highlighted. The platform, designed specifically for training large language models, has been a “beacon” for the AI‑chip wars. In addition, the report noted a partnership with Tencent Cloud to provide “high‑performance GPUs for data‑center virtualization,” a deal that could unlock a new revenue stream for Nvidia as the Chinese government ramps up its AI‑research budget.

Cramer contextualized these numbers against the backdrop of U.S. export‑control policy. The Commerce Department’s “Entity List” has added a handful of Chinese companies, such as “XYZ Corp” and “ABC Technologies,” to the list, restricting their access to advanced Nvidia GPUs. The report explained that despite these restrictions, Nvidia’s “semi‑closed” supply chain—where they can sell to entities that have special licenses—has allowed them to maintain, and in some cases grow, their presence in China. “So the export controls don’t mean the door is shut. They’re just trying to close the back door,” Cramer quipped, and the audience laughed.

He also referenced an analyst note from Goldman Sachs, linked in the article, that revised Nvidia’s 2026 revenue growth forecast from 27 % to 32 % because of the China upside. Cramer took the note’s figures at face value, saying, “If that’s the market’s thinking, we’re going to see more upside here.”

Finally, the report’s “Management Discussion” section noted that Nvidia’s “AI‑software platform, the CUDA Toolkit, has seen a 12 % jump in user adoption in China.” The toolkit’s open‑source nature, the analyst noted, has helped Chinese startups to “bootstrap their own AI models” with Nvidia’s hardware. Cramer concluded that the software‑hardware synergy makes Nvidia “a one‑stop shop” that Chinese firms will be reluctant to move away from.

2. Honeywell Charge: Cramer Calls It “Frivolous”

After turning the spotlight to Nvidia, Cramer switched gears to address a newer development: a regulatory charge that had been filed against Honeywell last week by the U.S. Federal Aviation Administration (FAA). The FAA’s press release—linked in the article—alleges that Honeywell’s “Altitude‑Sensor Suite” failed to meet the latest “Flight‑Safety Integrity Level” (FSIL) requirements, potentially endangering commercial aircraft. The charge would impose a $30 million fine and force Honeywell to redesign the sensor.

Cramer’s reaction was almost instantaneous. “Honeywell? Seriously? That’s like… if you’re a coffee shop, they’re calling you for no reason,” he said. He went on to explain that the charge was “based on a mis‑interpretation of the data” and that “the sensor has been in use on 10,000+ planes without incident.” Cramer cited a Honeywell spokesperson’s press release—another link in the article—that reiterated the company’s stance: “We have complied with all regulatory requirements. The FAA’s claim is based on a misunderstanding.”

While acknowledging the potential headline, Cramer was quick to dismiss the real impact on Honeywell’s stock. “If the FAA’s fine was the real issue, we’d see the stock drop. But it’s more a PR exercise. The fundamentals are solid—Honeywell’s aerospace business is still the “heart” of the company,” he noted. He also pointed out that the company’s Q4 earnings had shown a 5 % increase in aerospace revenue, and that the company’s diversified portfolio—including chemicals, security, and building solutions—would act as a buffer.

Moreover, Cramer referenced a Wall Street Journal article, linked in the original CNBC piece, which reported that the FAA had historically cleared Honeywell’s systems “within a month” after any initial complaints. “This is a pattern,” Cramer said. “The FAA is likely to reverse course once they have the data.”

The broader market reaction was muted. Honeywell’s shares moved 0.2 % lower in after‑hours trading, according to the CNBC article’s live ticker, and the company’s market cap remained around $50 billion.

3. What This Means for Investors

Cramer wrapped up the segment with a “big picture” assessment. “Investors looking for a growth story should look at Nvidia, especially its China business, as the next frontier,” he said. He argued that even if U.S. export controls tighten further, Nvidia’s “platform‑first” strategy—combining GPUs, software, and data‑center services—will keep it ahead of competitors like AMD and Intel. “If you’re already in the tech space, you want a company that’s already getting a foothold in the biggest market outside the U.S., which is China,” Cramer emphasized.

On the defensive side, he cautioned that “regulatory surprises, like the Honeywell charge, can be a reminder that high‑growth sectors are still exposed to political and regulatory risk.” Nevertheless, he maintained that “Honeywell is not a high‑growth tech company. It’s a stable, income‑oriented business.” For those in the portfolio looking for a “safe‑haven” yield, Cramer suggested Honeywell’s 2.1 % dividend and a 15 % trailing PE ratio as attractive points.

Cramer also reminded viewers that “market volatility is part of the game.” He quoted a piece from the Bloomberg Economic Outlook that forecasted a 3 % GDP growth for China in 2026, driven largely by the AI and cloud computing sectors. The article also linked to a research note from Morgan Stanley on AI market potential in China, giving further depth to the conversation.

4. Takeaway

Jim Cramer’s December 22 “Mad Money” episode offered a clear snapshot of two very different narratives:

1. Nvidia’s China momentum: A robust rise in data‑center revenue, software adoption, and strategic partnerships that could lift the company’s earnings trajectory. Export‑control challenges exist but are being managed through licensing and “semi‑closed” supply chains.

2. Honeywell’s regulatory charge: A FAA‑filing that appears to be more of a procedural hiccup than a material threat to the company’s business model. The market has largely shrugged it off, and Honeywell’s diversified, stable revenue streams remain intact.

For investors, the takeaway is that the AI‑chip landscape is shifting faster than the political rhetoric suggests, while the traditional industrial players may face more noise than substantive disruption. As always, a balanced portfolio that captures both the high‑growth potential of Nvidia and the steady income of companies like Honeywell could be a prudent path forward.