Key Takeaways
- Jim Cramer continues to back NVIDIA strongly, insisting that AI infrastructure rollouts cannot proceed without NVDA’s chips, despite emerging competition from Amazon and peers.
- NVDA shares have climbed 5% in 2025 so far and posted 73% gains over the trailing twelve months, currently hovering around $197.
- Historical data reveals NVDA has delivered impressive May performances: up 32% in 2024 and 20% in 2025, following a robust April this year.
- The stock’s forward price-to-earnings ratio sits around 25x—materially lower than its typical 29–40x range—pointing to potential valuation expansion.
- Top-line momentum is building, with fourth-quarter revenue jumping 73% year-over-year and first-quarter projections indicating 77% expansion.
NVIDIA (NVDA) shares are changing hands near $197, marking a 5% gain since the start of the year and a remarkable 73% climb over the past year. Yet that performance hasn’t deterred Jim Cramer from reiterating his optimistic outlook.
The CNBC personality reinforced his position this week during commentary on Big Tech earnings reports. His thesis was straightforward: no matter what proprietary silicon rivals are developing, the cloud giants continue to depend on NVIDIA’s processors—and they’re placing orders.
“You can’t do this without NVIDIA,” Cramer stated. “They can have all the Trainiums that they want… NVIDIA is the dominant player, still.”
He further highlighted Meta’s latest bond issuance, implying that a substantial portion of those proceeds will likely find their way to NVIDIA for AI data center buildouts.
Cramer’s core message echoes what he’s emphasized before: alternative chip solutions are available, but NVIDIA’s performance edge ensures it remains the first choice for AI deployments.
Forward Multiple Trades Below Historic Range
Setting aside Cramer’s endorsement, the valuation picture presents an intriguing setup.
NVDA is currently valued at approximately 25x next-twelve-months earnings. That figure sits beneath where the stock has historically commanded. In late 2024, the forward multiple touched 37x. By May 2025’s conclusion, it settled around 29x—even as revenue expansion was moderating.
Now, the growth trajectory is reversing direction. Fourth-quarter fiscal 2025 delivered 73% year-over-year revenue expansion, while management’s first-quarter outlook calls for 77% growth. When a business accelerates at this velocity, a 25x earnings multiple begins to appear conservative.
Should the stock revert to a 32x forward earnings valuation—still beneath previous peaks—that scenario would translate to roughly 30% appreciation from present levels.
Strong May Track Record for NVDA Shares
Seasonal trends deserve attention as well.
During May 2024, NVDA advanced 32%. In May 2025, the stock added 20%. This year, April already delivered approximately 20% gains.
If this recurring pattern persists, the conditions entering May appear conducive. AI infrastructure investment continues expanding, with cloud leaders including Microsoft, Amazon, and Meta all confirming substantial capital expenditure plans during their latest quarterly reports.
Those investments require hardware destinations. Presently, NVIDIA captures a significant portion of that spending.
The equity’s 52-week trading band extends from $110.82 to $216.82, with the current $197 level positioning it nearer the upper boundary of that range.
