CNBC's Jim Cramer expressed optimism about the future of AI stocks, stating that the generative artificial intelligence (AI) craze is just beginning. Cramer believes that stocks associated with AI have significant room for growth, even after witnessing substantial gains in recent weeks.

During a conversation with Amazon CEO Andy Jassy, Jassy emphasized the potential impact of generative AI on the company's web services, predicting billions of dollars in revenue as more enterprises transition from on-premises computing to the cloud. Cramer finds this theory compelling, suggesting that any pullbacks in AI stocks will only motivate more investors to jump into the market.

Cramer pointed out that despite significant increases in AI stock prices, the potential for greater adoption of generative AI remains high. He highlighted the fact that the majority of software, approximately 90%, is still operating on-premises rather than in the cloud where generative AI technology, such as ChatGPT, thrives. Therefore, Cramer anticipates that any dips in AI stocks will be met with buying rather than selling, as the excitement and possibilities of AI continue to captivate investors.

Generative AI, according to Cramer, is far from being a gimmick. He believes that this technology will revolutionize how people perform their job duties and approach challenges. Microsoft, which owns half of OpenAI, the company behind ChatGPT, is lauded as a leader in the AI space. Cramer noted that Microsoft's AI venture, Co-pilot, is generating tangible profits, setting it apart from other players in the field.

In addition to Amazon and Microsoft, Cramer also highlighted Nvidia as a significant player in the AI sector. He commended Nvidia's CEO, Jensen Huang, for his preparedness in capitalizing on the AI craze. Well before ChatGPT gained widespread attention, Huang demonstrated the power of generative AI by creating a seascape artwork in the style of post-impressionist painter Paul Cézanne at Cramer's request.

Some skeptics argue that the AI market has already grown too large, but Cramer disagrees. Based on his conversations with industry insiders in Seattle, he believes that the AI movement is just getting started and has immense potential for further expansion.

As the generative AI trend continues to gain momentum, investors are showing increased interest in AI stocks. Cramer's optimistic outlook and endorsement of companies like Microsoft, Amazon, and Nvidia further solidify the belief that the AI revolution is far from reaching its peak.

In conclusion, Jim Cramer foresees a bright future for AI stocks and urges investors to consider the long-term potential of generative AI technology. With the rapid advancement of AI capabilities and its transformative impact across industries, the AI market is poised for significant growth in the coming years.

Disclaimer: The CNBC Investing Club Charitable Trust holds shares of Amazon, Nvidia, and Microsoft.

For any queries or investment guidance, please contact Cramer at 1-800-743-CNBC or reach out to him on social media through Mad Money Twitter, Jim Cramer Twitter, Facebook, and Instagram.