Key Takeaways
- Jim Cramer continues backing NVIDIA, insisting AI infrastructure demands remain dependent on NVDA hardware despite emerging competition from Amazon and others.
- The stock has climbed 5% in 2025 and rallied 73% over the trailing twelve months, currently hovering around the $197 mark.
- Historical May performance shows NVDA jumped 32% in 2024 and 20% in 2025, with this year’s April already delivering approximately 20% gains.
- Forward earnings multiples sit near 25x—well beneath the company’s typical 29–40x range—potentially signaling undervaluation.
- Top-line momentum is building, with fiscal Q4 revenue soaring 73% year-over-year and Q1 projections calling for 77% expansion.
NVIDIA (NVDA) stock continues hovering near $197 after posting 5% gains year-to-date and a remarkable 73% surge over the past year. Despite that performance, CNBC’s Jim Cramer shows no signs of backing away from his optimistic outlook.
This week, the market personality reinforced his position while analyzing recent tech sector earnings reports. His message was straightforward: no matter how many proprietary chips competitors develop, the world’s largest cloud providers remain committed NVIDIA buyers.
“You can’t do this without NVIDIA,” Cramer declared. “They can have all the Trainiums that they want… NVIDIA is the dominant player, still.”
He also referenced Meta’s latest debt offering, suggesting that a significant portion of those proceeds will eventually make their way to NVIDIA for AI data center purchases.
Cramer’s recurring theme centers on a simple reality: alternative silicon options are available, but NVIDIA’s performance edge keeps hyperscalers coming back.
Trading Multiples Signal Potential Upside
Setting aside commentary from market personalities, the fundamental valuation picture deserves attention.
NVDA currently commands approximately 25 times forward earnings. That represents a meaningful discount to the company’s historical trading range. In late 2024, that metric stretched to 37x. By May’s close in 2025, it had compressed to 29x—even as revenue deceleration was underway.
Now the trajectory has reversed. Fiscal Q4 2025 delivered 73% year-over-year revenue expansion, while management’s Q1 outlook calls for acceleration to 77%. When a business achieves that kind of reacceleration, a 25x earnings multiple begins looking conservative.
Should the market reassign a 32x forward multiple—still below previous peaks—shares could appreciate roughly 30% from present levels.
Spring Trading Patterns Favor Gains
Seasonal behavior also merits consideration.
During May 2024, NVDA advanced 32%. The following May brought another 20% rally. This year, April already produced approximately 20% appreciation.
If historical patterns persist, the current setup entering May appears constructive. Capital expenditure commitments for AI infrastructure continue expanding, with Microsoft, Amazon, and Meta all confirming substantial spending plans during their latest quarterly updates.
Those investment dollars require deployment destinations. At present, NVIDIA captures a dominant share of that spending flow.
The stock’s 52-week trading band extends from $110.82 to $216.82, placing the current $197 level in the upper portion of that range.
