CNBC analyst Jim Cramer recently gave his two cents on Nvidia (NVDA), advising viewers of his “Mad Money” show to buy NVDA stock. In a post to X on Monday, Cramer discussed Nvidia’s latest guidance, saying, “Nvidia says its roadmap is intact. That, to me, means buy.” Presently, NVDA stock trades at $196, up 1% in the last 24 hours.
Cramer highlighted Nvidia’s strong market position and growth potential as key reasons for his recommendation. This endorsement comes amid Nvidia’s continued success in the semiconductor industry, particularly in areas like AI and gaming. Additionally, he explains that Nvidia’s current price slump (down 5% in 30 days) presents a solid buy opportunity. “The stock sells at an incredibly cheap 22 times earnings. NVIDIA’s got [alot] of business.”
The consensus 12-month Nvidia target price sits at roughly $305, which works out to about 54% upside from current levels. Over 90% of covering firms carry a Buy or Strong Buy rating, with targets ranging from $180 all the way up to $500, set by Robert W. Baird. With a market cap of $4.78 trillion and a P/E of 30.26, the case for Nvidia stock as a bargain is there, as Cramer states.
“In the end, I’m sticking with my view that you need to own NVIDIA, not trade it,” Jensen added on his show. “But that would be a lot easier if Jensen Huang and his fabulous team declared a much, much bigger buyback than they have. They got the cash. I repeat, though, the issue is the narrative.”
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Nvidia stock is up just 4.4% so far this year, which is a strange result for a company printing record revenue every quarter. AMD has surged over 150% and Intel has rallied 256% in the same stretch. Fortunately, Nvidia has some positive updates ahead. The company expects its new Vera CPU platform to generate close to $20 billion this year, a figure that shows how far the company has pushed its footprint as an AI semiconductor stock well beyond GPUs, and feeds directly into the NVDA stock prediction that earnings could grow 90.2% in fiscal 2027.
