Cramer on AI: 'This is the replacement of us. We don't need us with Nvidia'

Cramer: Nvidia's earnings were 'frighteningly positive'

Tech company Nvidia's fourth-quarter earnings were a "frighteningly positive" story, CNBC's Jim Cramer said on Friday.

"This is it, guys. This is the replacement of us. We don't need us with Nvidia. We just don't," Cramer said on "Squawk on the Street."

On Thursday, the artificial intelligence company reported quarterly revenue that surged more than 50 percent for the second straight quarter, helped by rising demand for its graphic chips and strength in self-driving systems and A.I.

Founder and CEO of Nvidia, Jen-Hsun Huang, said on Thursday that deep learning on the company's graphic processing unit, used in A.I., is helping to tackle challenges such as self-driving cars, early cancer detection and weather prediction.

"We can now see that ‎GPU-based deep learning will revolutionize major industries, from consumer internet and transportation to health care and manufacturing. The era of [A.I.] is upon us," he said in an earnings release.

Nvidia's shares was the best performer on the in 2016.

Cramer said tech giants Tesla, Amazon, Facebook and Google were all mentioned in the quarter, as well as virtual reality.

"You need their chips to detect lanes, signs, buildings, curves, neuronetworks," he said.

—Reuters contributed to this report.