Jim Cramer Notes That NVIDIA’s PE “Makes No Sense at All”

NVIDIA Corporation (NASDAQ:NVDA) is among the stocks in focus as Jim Cramer highlighted a market yearning for the status quo ante. Cramer highlighted the company’s recent deal with Marvell. The Mad Money host commented:

Today, the action in the growth stocks say, well, this is what things were going to look like. I want to start with two companies I just talked to on Squawk on the Street this morning, NVIDIA and Marvell Tech. Today, NVIDIA decided to give Marvell $2 billion… as the two agreed to work together on an AI infrastructure plan. Remember, there’s much more to NVIDIA than just chips. There’s a whole software ecosystem, and companies that use Marvell for a portion of their networking can use NVIDIA, too. It’s a smart move for NVIDIA to get companies that don’t use NVIDIA to migrate to their platform. Of course, Marvell benefits, too. NVIDIA rallied 5.6%. Marvell shot up 13%. Talk about multiple compression. At the bottom today, I think NVIDIA stock was trading at 14 times earnings. That’s the PE of a boring old bank stock with bad credits. How could NVIDIA be confused with a boring old bank stock with bad credit? It makes no sense at all.

Photo by Christian Wiediger on Unsplash

NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies.

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