Cramer is approaching a record high and says Nvidia will look ‘cheap’ next year

CNBC’s Jim Cramer said Monday that it is a mistake for investors to write off Nvidia stock as overvalued.

The US chip maker previously unveiled new product launches and revealed that it expects to exceed earnings expectations in the company’s current fiscal quarter.

“Nvidia’s stock looks expensive because the company almost always exceeds and conveniently exceeds earnings expectations,” said the host of “Mad Money.” “That means those edge projections are irrelevant, folks. In retrospect, the stock turns out to be cheap in the end.”

The comments come after Nvidia’s stock, which is valued at $ 377 billion, is up more than 5% to $ 608.36. To date, shares are up 16.5%.

“No one in the world has anything like it [CEO] Jensen Huang, so Nvidia’s stock lives on, even though it polled $ 32 today, “Cramer said.” I think in a year’s time it will look cheap based on what the company is actually going to earn, which is most likely a lot more than predicted. “

Amid a global semiconductor supply shortage, Nvidia said it now thinks total sales for the first quarter will exceed the $ 5.3 billion it initially forecast.

Nvidia manufactures chips for a variety of applications in a variety of industries, including graphics, gaming and automotive parts.

Some of Nvidia’s new offerings include a server chip called Grace and components used for artificial intelligence, chatbots, speech recognition, and self-driving cars.

Disclosure: Cramer’s charity owns stock of Nvidia.

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