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."

Want to join in on Jim's monthly conference calls? Click here for a free 14-day trial subscription to Action Alerts PLUS and hear all of the latest call, plus get e-mails before Jim makes any trade and enjoy lots of other exclusive material.

More of What's Trending on TheStreet:

If you liked this article you might like

TheStreet Podcast: Go Inside the Goldman Sachs Tech & Internet Conference

TheStreet Podcast: Go Inside the Goldman Sachs Tech & Internet Conference

Inside Goldman Tech Conference: Key Takeaways on Bitcoin, Ethereum and ICOs

Inside Goldman Tech Conference: Key Takeaways on Bitcoin, Ethereum and ICOs

How Jim Cramer Knew to Sell Just Before The Dow Jones Industrial Average Tanked

How Jim Cramer Knew to Sell Just Before The Dow Jones Industrial Average Tanked

Jim Cramer: These 4 Stocks Seem Attractive Right Here

Jim Cramer: These 4 Stocks Seem Attractive Right Here

Jim Cramer: Odd and Crazy Market Has Lost Its Mind

Jim Cramer: Odd and Crazy Market Has Lost Its Mind