Key Takeaways
- Jim Cramer maintains his bullish position on NVIDIA, emphasizing that AI infrastructure deployment is impossible without NVDA’s chip technology, despite emerging competition from Amazon and rivals.
- The stock has climbed 5% in 2025 and surged 73% over the trailing twelve months, currently hovering around $197 per share.
- Historical patterns reveal strong May performance: NVDA jumped 32% in May 2024 and 20% in May 2025, following robust April gains this year.
- The current forward earnings multiple stands at approximately 25x — significantly beneath historical averages of 29–40x — indicating potential valuation expansion.
- Revenue momentum is building, with fourth-quarter growth reaching 73% year-over-year and first-quarter projections suggesting 77% expansion.
Shares of NVIDIA (NVDA) are hovering around $197, posting a 5% gain year-to-date and an impressive 73% advance over the past year. Despite this strong performance, CNBC’s Jim Cramer continues to champion the stock with renewed conviction.
During his commentary on recent big tech earnings reports, the market veteran laid out a straightforward thesis: no matter what proprietary chips competitors develop, the major cloud providers still require NVIDIA’s hardware — and they’re actively purchasing it.
“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 offering, speculating that significant portions of those proceeds will eventually make their way to NVIDIA for artificial intelligence infrastructure investments.
Cramer’s core argument, which he’s articulated numerous times, centers on this reality: alternative chip solutions are available, yet NVIDIA’s performance edge keeps it first on every AI procurement list.
Current Multiples Sit Below Long-Term Averages
Setting aside Cramer’s endorsement, valuation metrics are building a compelling technical argument.
NVDA presently commands around 25x forward earnings. This marks a notable discount to its typical trading range. During late 2024, the forward price-to-earnings ratio climbed to 37x. By May 2025’s conclusion, it settled at 29x — even as revenue expansion was moderating.
The current environment tells a different story. Growth is accelerating sharply. Fiscal 2025’s fourth quarter delivered 73% year-over-year gains, while management’s first-quarter outlook projects 77% growth. When a corporation is accelerating at this velocity, a 25x valuation multiple appears increasingly attractive.
Should the stock re-rate to 32x forward earnings — still beneath previous peak valuations — investors could see roughly 30% appreciation from today’s levels.
Seasonal Patterns Favor NVDA in May
Historical seasonality deserves consideration as well.
During May 2024, NVDA surged 32%. The following May in 2025 brought a 20% rally. This year has already witnessed strong April momentum, with shares advancing approximately 20%.
If historical trends persist, the conditions entering May appear promising. Artificial intelligence infrastructure investment continues its upward trajectory, with cloud giants including Microsoft, Amazon, and Meta all confirming substantial capital expenditure plans during their latest quarterly reports.
Those investment dollars need a destination. Currently, NVIDIA captures a substantial portion of that spending.
The 52-week trading range extends from $110.82 to $216.82, positioning the current $197 level closer to the upper boundary of that spectrum.
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