Key Takeaways
- Jim Cramer continues his strong support for NVIDIA, emphasizing that AI infrastructure expansion cannot proceed without NVDA’s chip technology, despite emerging competition from Amazon and rivals.
- The stock has gained 5% in 2025 and jumped 73% over the trailing twelve months, with shares currently hovering around $197.
- Historical performance reveals impressive May rallies: the stock climbed 32% in May 2024 and 20% in May 2025, following a robust April performance this year.
- The current forward P/E multiple of approximately 25x sits well beneath NVDA’s typical valuation range of 29x to 40x, indicating potential upside.
- Top-line expansion is gaining momentum, with fourth-quarter revenue up 73% annually and first-quarter projections targeting 77% year-over-year growth.
Trading near the $197 mark, NVIDIA (NVDA) stock has delivered a 5% gain year-to-date and an impressive 73% advance over the past year. Despite this performance, Jim Cramer hasn’t wavered from his optimistic position.
The Mad Money host reinforced his thesis this week during commentary on quarterly results from other technology giants. His message was direct: no matter what rival chip solutions emerge, the cloud hyperscalers remain dependent on NVIDIA’s technology—and purchase orders reflect that reality.
“You can’t do this without NVIDIA,” Cramer emphasized. “They can have all the Trainiums that they want… NVIDIA is the dominant player, still.”
He additionally referenced Meta’s latest bond issuance, noting that significant portions of that raised capital will likely end up allocated toward NVIDIA hardware for artificial intelligence buildouts.
Cramer’s underlying thesis, which he has articulated consistently, centers on this: alternative processors are available, but NVIDIA’s performance edge ensures its position atop every AI procurement list.
Multiple Trading Below Historical Benchmarks
Setting aside the Cramer narrative, a compelling valuation argument is taking shape.
NVDA shares currently command approximately 25 times forward earnings. That figure falls short of the company’s customary valuation levels. During late 2024, the forward price-to-earnings ratio touched 37x. By May 2025’s conclusion, it stood at 29x—even as revenue expansion was moderating.
Presently, the growth trajectory has reversed direction. Fiscal 2025’s fourth quarter delivered 73% year-over-year gains, while management’s Q1 outlook projects 77% growth. When a business accelerates revenue at this velocity, a 25x earnings multiple begins appearing remarkably conservative.
Should the stock re-rate toward 32x forward earnings—still beneath previous peaks—investors could witness roughly 30% appreciation from present levels.
Strong Seasonal Patterns in May
Historical seasonality deserves attention as well.
During May 2024, NVDA shares surged 32%. Throughout May 2025, the advance reached 20%. This year’s April already delivered solid returns, with approximately 20% gains.
Should this recurring pattern persist, the current positioning entering May appears favorable. Artificial intelligence infrastructure investment continues accelerating, with cloud titans including Microsoft, Amazon, and Meta each confirming substantial capital expenditure plans during their latest earnings presentations.
Those investment dollars require deployment. Currently, a substantial portion continues flowing toward NVIDIA.
The stock’s 52-week trading range spans from $110.82 to $216.82, positioning today’s $197 level closer to the upper boundary of that spectrum.
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