Cramer says Nvidia will be a record high next year, looking ‘cheap’

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

The US chipmaker has earlier launched new product launches and revealed that it will beat the profit estimates in the current fiscal quarter.

“Nvidia’s share looks expensive because the company almost always beats the revenue estimates and beats them conveniently,” the Mad Money host said. “That means the projections are borderline relevant, people. The stock ultimately turns out to be cheap in retrospect.”

The comment comes after Nvidia’s shares, valued at $ 377 billion, climbed more than 5% to close at $ 608.36. So far, the shares have risen by 16.5%.

‘Nobody in the world has a vision like this [CEO] Jensen Huang, so the Nvidia share lives on, even though it jumped $ 32 today. much more than predicted. ‘

Amid a global shortage of semiconductor supply, Nvidia said total revenue for the first quarter is now the highest $ 5.3 billion it initially predicted.

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

Some of Nvidia’s new offerings include a server chip called Grace and components used for artificial intelligence, chatbots, speech recognition and self-driving cars.

Disclosure: Cramer’s charity owns shares in Nvidia.

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