Cramer, approaching a record high, says Nvidia will look “cheap” next year

CNBC’s Jim Cramer said Monday it was a mistake for investors to cancel Nvidia’s shares as overvalued.

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

“Nvidia shares look expensive because the company almost always exceeds earnings estimates and exceeds them very well,” the “Mad Money” host said. “That means these projections are irrelevant limit, folks. Stocks end up being cheap in retrospect.”

The comments come after shares of Nvidia, valued at $ 377 billion, rose more than 5% and closed at $ 608.36. So far, shares have risen 16.5%.

“No one in the world has a vision like this [CEO] Jensen Huang, so Nvidia shares continue even though today they have jumped $ 32, “Cramer said.” I think it will end up looking economic in a year depending on what the company will earn, which will probably be a lot more than expected.

Amid a global shortage of semiconductor supply, Nvidia said it now estimates total first-quarter revenue will exceed the $ 5.3 billion initially forecast.

Nvidia produces chips for a variety of applications in a variety of industries, including graphics, games, and vehicle components.

Some of Nvidia’s new offerings include a server chip called Grace and components that are used for artificial intelligence, chatbots, voice recognition, and autonomous cars.

Disclosure: Cramer’s charity has shares in Nvidia.

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