Jim Cramer Discusses NVIDIA Valuation and Earnings Power

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer picked for his fantasy stock portfolio. Cramer said NVDA looks expensive, but earnings growth justifies the price. He stated:

“Good growth can make your year as part of your portfolio. NVIDIA, therefore, has been the stalwart even though it’s down five of the last six days. Oh boy, I guess… Times have passed for NVIDIA, but you know what? I don’t care. I say, ain’t broke, don’t fix. Who’s the NFL equivalent for one of the greatest stocks in history? I can only mention the aforementioned Ja’Marr Chase as the NVIDIA of your fantasy team… NVIDIA seems expensive at any given time, but when you look back, I bet they’ll both be worth the price, meaning that the price to earnings multiple turns out to be not that high as the earnings continue to ramp.”

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NVIDIA Corporation (NASDAQ:NVDA) develops graphics, computing, and networking solutions, with products spanning GPUs, AI platforms, cloud services, and automotive technologies. The company’s products serve markets including gaming, data centers, professional visualization, and autonomous vehicles.

While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.