Chip giant Nvidia (NVDA) could rally another $70 or so to as high as $250 or $260 a share before consolidating, but Jim Cramer says smart investors won't chase the stock as it pushes upward.

"I'm not going to tell you to chase it here, [but] I am going to tell you that I wish it came down so we could buy more," Cramer said during a private conference call with members of his Action Alerts PLUS club for investors.

"The fact is [that Nvidia chips are] the No. 1 in self-driving autonomous vehicles, the No. 1 in voice, the No. 1 in data centers, the No. 1 in artificial intelligence and the No. 1 in machine learning," Cramer said. "Two hundred and twenty-five automakers are swearing by the Nvidia chips for autonomous driving. I don't know about you, but that's good enough for me."

Cramer's charitable trust recently initiated an NVDA position at about $160 a share, but the stockpicker said he's not adding to the stake because Nvidia has soared to about $192.50 since then. While he thinks the stock will go even higher, he's waiting for a pullback to buy at a lower price.

"I think once it goes to, say, $250 to $260, Nvidia will be so expensive that it has to cool off," Cramer said. "Remember how it cooled off and went from like $160 to $120? I'm looking for one of those again."

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