Jim Cramer Says NVIDIA Stock “Has a Reputation for Looking Expensive on Forward Earnings Projections” But Isn’t

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer offered insights on. Cramer praised the people who run the company and said:

“… Of course, there were people who shorted stocks, including me, that were dot-com bombs. And now the same short sellers, not me, because I can’t sell, I don’t own stocks, are trying their hand at betting against the great data center build out, including its most visible winner, NVIDIA, as well as the wild run in artificial intelligence, as exemplified by Palantir. The shorts think that because they were successful at shorting one theme, they’ll be successful at shorting another.

I say not so fast. It doesn’t work like that. NVIDIA and Palantir are run by some of the smartest people in the world, Jensen Huang and Alex Karp. Are their stocks expensive? It depends. NVIDIA’s stock has a reputation for looking expensive on forward earnings projections and then turning out to be inexpensive when we see the actual earnings and they come in better than expected. Yes, it’s still growing that fast.”

NVIDIA Corporation (NASDAQ:NVDA) designs computing infrastructure, including graphics, AI, and data center platforms, and serves gaming, enterprise, and automotive markets.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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