• On the day before artificial intelligence powerhouse Nvidia is scheduled to report earnings, CNBC's Jim Cramer reminded investors why he thinks the stock has intrinsic value, saying one can't assess it based on the results of one quarter.
• "When you think of all these wonders from Nvidia's technology, you don't sit there and worry about how massively they can beat the estimates in one particular quarter," he said. "We can't judge Nvidia like other companies, so we certainly can't judge its stock by one static quarterly snapshot."

On the day before artificial intelligence powerhouse Nvidia is scheduled to report earnings, CNBC's Jim Cramer reminded investors why he thinks the stock has intrinsic value, saying one can't assess it based on the results of one quarter.

"When you think of all these wonders from Nvidia's technology, you don't sit there and worry about how massively they can beat the estimates in one particular quarter," he said. "We can't judge Nvidia like other companies, so we certainly can't judge its stock by one static quarterly snapshot."

Nvidia stock has soared over the past several months, currently up a whopping 159.08% year to date. In June, it briefly topped $1 trillion in market cap, passing Microsoft as the world's most valuable company. The bar has been set high for the company this quarter. It has continually wowed Wall Street with consecutive, substantial earnings and revenue beats.

After a shaky performance in recent weeks, Nvidia stock has rallied in the lead up to the earnings report. To Cramer, the megacap can't "live up to the hype of its $3.2 trillion market cap" based solely on this quarter, and its stock may decline after Wednesday's report.

But Nvidia's technology is essential to generative AI, Cramer said, adding that he thinks the company has a leg up from its peers. He praised its new platform, Blackwell, and said it's "unduplicated by anyone else both for its speed and for its utility." Other megacaps, including Meta, Microsoft, Google and Amazon, have already spent billions on Nvidia's products.

Cramer added that he doesn't think the full potential of Nvidia technology has been reached, but he said Big Tech players will figure out how to use them effectively.

"We don't know how to use all the power, at least not yet, so we don't know how to comprehend how much of a gamechanger Nvidia's chips will be in the future," he said. "But just because we can't envision it doesn't mean we won't be able to use it."

Nvidia declined to comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia.

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