Key Takeaways
- Jim Cramer continues backing NVIDIA, emphasizing that AI infrastructure cannot scale without NVDA’s chips despite emerging competition from Amazon and peers.
- The stock has climbed 5% in 2025 and 73% over the trailing twelve months, currently hovering around $197.
- Historical data reveals NVDA surged 32% in May 2024 and 20% in May 2025, with April 2025 already delivering strong returns.
- At approximately 25x forward earnings, NVDA trades below its typical 29–40x range, indicating potential valuation expansion.
- Revenue momentum is building, with Q4 posting 73% year-over-year gains and Q1 forecast targeting 77% growth.
Nvidia (NVDA) stock is positioned near $197, marking a 5% gain year-to-date and an impressive 73% surge over the past year. Despite these gains, Jim Cramer isn’t backing away from his optimistic outlook.
The CNBC personality reinforced his position this week during discussions about big tech earnings reports. His message was direct: no matter what proprietary chips competitors develop, the major cloud providers still depend heavily on NVIDIA’s technology—and they continue purchasing in volume.
“You can’t do this without NVIDIA,” Cramer stated. “They can have all the Trainiums that they want… NVIDIA is the dominant player, still.”
He also referenced Meta’s latest bond offering, arguing that significant proceeds will likely be directed toward NVIDIA for AI data center builds.
Cramer’s central thesis remains consistent: alternative chip solutions are available, but NVIDIA’s performance edge maintains its position atop enterprise purchasing priorities.
Current Valuation Sits Below Traditional Levels
Setting aside the pundit perspective, there’s a compelling valuation narrative emerging.
NVDA is currently valued at approximately 25x forward earnings. This represents a meaningful discount to historical trading ranges. In late 2024, the forward price-to-earnings ratio hit 37x. By May’s close in 2025, it had compressed to 29x—even as revenue growth was moderating.
Now, the trajectory has reversed. Fiscal Q4 2025 delivered 73% year-over-year revenue expansion, with management projecting 77% growth for Q1. When a company demonstrates accelerating growth at this magnitude, a 25x earnings multiple appears conservative.
Should the stock return to a 32x forward earnings multiple—still beneath previous peaks—investors could see roughly 30% appreciation from present prices.
Strong May Performance History
Seasonal trends merit attention as well.
During May 2024, NVDA rallied 32%. The following May brought a 20% advance. This year, April already delivered approximately 20% gains.
If historical patterns repeat, the May setup appears promising. Artificial intelligence infrastructure investment continues expanding, with hyperscale operators including Microsoft, Amazon, and Meta all confirming substantial capital expenditure plans in their latest quarterly reports.
That capital must be deployed. Currently, NVIDIA captures a dominant share of those investment flows.
The 52-week trading range extends from $110.82 to $216.82, placing the current $197 price closer to the upper boundary than the lower.
