Nvidia (NVDA) stock continues to beat expectations, surging in the past year by over 85%. Multiple stock experts are bullish on the stock, including CNBC’s Jim Cramer. The “Mad Money” host recently spoke about NVDA, saying that the stock’s future is bright, and may keep rising.
On a recent Mad money episode, a caller asked Cramer for his input on NVDA stock. In response, Cramer said the following:
“NVIDIA’s a really great example. Lemme tell you why. Because when you look at Nvidia on forward earnings or the estimates, it always looks expensive and then it so far trumps those estimates that when you look backward, it turns out that the stock was selling at a remarkably low price to earnings multiple. And that’s been the secret to Nvidia literally since 2012. Incredible. It just keeps doing that.”
The US stock market got off to a little bit of a slow start in February. Indeed, rising geopolitical tensions and growing competition in the AI sector have led investors to be increasingly more selective in their approach. However Nvidia has been able to level the ship, keeping in the green for 2025 thus far.
There were few stocks that entered the year with as much potential as Nvidia. The AI chipmaker had the eyes of investors, as many projected it to be the first company to reach a $4 trillion market cap. NVDA stock recently rallied to a key level, jumping more than 2.8% Thursday and retaking the 50-day line for the first time since January. Moreover, the company’s CEO had given the highly anticipated CES 2025 Keynote that fueled a bullish perspective for the stock.
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The stock currently holds a median price target of $175, according to CNN data. Due to its recent fall, that is up more than 27% from its current position. Moreover, its high-end price project is $220, showing a 59% upside. Alternatively, its low-end projection is $135, representing just a 1.88% downside from its price Friday.
In the past year, Nvidia (NVDA) keeps breaking through stock price resistance levels. Cramer’s notorious history of getting predictions incorrect could be a bearish note for NVDA. However, Nvidia’s strength in the last few years has been its resilience. Even after DeepSeek AI’s announcement in January plunging Nvidia’s value, the stock has regained ground. Thus, it is entirely possible that Nvidia price predictions will continue to be breached in 2025 like Cramer suggests.
