"Nvidia reported a blowout quarter last night, and you had to pounce when the stock sold off because it quickly came roaring back," he said on "Mad Money" Thursday.
Nvidia, which produces gaming and datacenter chips, saw its stock inch up 0.02% the day after reporting record revenue in the second quarter for its fiscal 2021. The company posted $3.87 billion in revenue, growth of 50% from a year ago, and non-GAAP earnings of $2.18, up 76% in that same period. Net income came in at $1.37 billion.
By comparison, Wall Street was looking for $3.65 billion on the top line and $1.97 per share on the bottom line.
Nvidia expects current quarter revenues to come in at $4.40 billion. In the analyst community, 19 firms upped their price targets on the stock Thursday, the largest number of upgrades Cramer said he has ever seen made in unison.
"If you don't own it already, be prepared for the next dip. The next time Nvidia comes down, you need to buy," he said.
The strong report did not come without any weakness, Cramer noted. Nvidia's on-premise data center sales were considered suboptimal, which caused some shareholders to unload the stock, he said.
Nivida said on-site service was a challenge due to the coronavirus pandemic, but the company is focused on transitioning enterprises to the cloud. The company is relying on the fourth industrial revolution, Cramer said, which is the digital transformation.
"There's nothing temporary about this," he said.
The pandemic has only sped up the enterprise adoption of digital as more and more people work and learn from home.
Softness in the on-site business is "why people sold at first, but if you thought about this for more than like two seconds, you would've realized the weak on-premises business is just the flip side of the company's incredible strength in regular data centers," Cramer said. "The on-premises business is the past. Look at it like this: the opposite of on-premises is the cloud."
The stock is off its about 1.6% off its closing high of $493.48 it set on Monday.
"The company's holding a … special event on Sept. 1st where there's going to be some surprise announcements related to gaming," Cramer said.
"That could be the next catalyst."
Disclosure: Cramer's charitable trust owns shares of Nvidia.