Key Highlights
- Jim Cramer continues his strong support for NVIDIA, emphasizing that AI infrastructure deployment requires NVDA chips despite competitive alternatives from Amazon and other players.
- Shares have gained 5% in 2025 and posted 73% returns over the trailing twelve months, with current pricing around $197.
- Seasonal patterns reveal NVDA rallied 32% in May 2024 and 20% in May 2025, following a robust April performance this year.
- The stock’s forward earnings multiple sits at approximately 25x — well under its typical range of 29–40x — indicating potential valuation expansion.
- Quarterly revenue growth is gaining momentum, with Q4 posting 73% year-over-year gains and Q1 projections indicating 77% expansion.
NVIDIA (NVDA) shares hover near $197, recording a 5% advance since January and 73% appreciation over the past year. This performance has reinforced Jim Cramer’s conviction in the semiconductor leader.
The CNBC personality reinforced his position this week during commentary on Big Tech earnings results. His thesis centered on a straightforward premise: cloud giants continue to purchase NVIDIA hardware because their AI ambitions depend on 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 referenced Meta’s recent bond offering, suggesting significant proceeds will be allocated to NVIDIA for AI compute infrastructure.
Cramer’s recurring message emphasizes that while alternative chips exist in the market, NVIDIA’s performance leadership maintains its position atop enterprise procurement lists.
Trading Multiple Suggests Room for Expansion
Beyond the commentary from market observers, quantitative metrics support a constructive outlook.
NVDA carries a forward price-to-earnings ratio near 25x. This figure sits below the company’s typical valuation band. During late 2024, the forward multiple reached 37x. By May’s close in 2025, it had compressed to 29x — even as revenue growth was moderating.
The current environment presents a different picture. Growth metrics are accelerating. Fiscal 2025’s fourth quarter delivered 73% year-over-year revenue expansion, while management’s Q1 outlook projects 77% growth. When a business demonstrates accelerating top-line momentum at these levels, a 25x earnings multiple appears attractive.
A move back to 32x forward earnings — still below prior peak levels — would translate to roughly 30% appreciation from today’s levels.
Historical Seasonal Strength in May
Calendar patterns add another dimension to the analysis.
May 2024 produced a 32% gain for NVDA shares. May 2025 delivered a 20% advance. This year’s April already contributed approximately 20% gains.
Should historical patterns repeat, the conditions entering May appear favorable. Hyperscale infrastructure spending continues its upward trajectory, with Microsoft, Amazon, and Meta all confirming substantial capital expenditure commitments during recent quarterly reports.
These investment dollars require deployment destinations. Currently, NVIDIA captures a substantial portion of this spending.
The stock’s 52-week trading range extends from $110.82 to $216.82, positioning the current $197 level in the upper portion of that spectrum.
