Jim Cramer’s 5 Stock Calls Including Cerebras and Cisco, and Caution About Overhyped AI Stocks

2. NVIDIA Corporation (NASDAQ:NVDA)

NVIDIA Corporation (NASDAQ:NVDA) was among Jim Cramer’s Mad Money stock calls as he urged investors to exercise caution when it comes to red-hot AI stocks. Cramer commented on the company’s valuation, as he said:

How about NVIDIA? Look, it’s finally moving, up… 4.4% today. Good reason. There’s a very good chance that, based on forward earnings estimates, NVIDIA’s stock is now cheaper than the average stock in the S&P 500… Now that’s absurd. The company’s growing at a much faster pace than almost any large-cap enterprise, and it sells below… S&P market multiple. Now that’s crazy… There would be no AI revolution without Jensen Huang and NVIDIA. The company practically invented artificial intelligence as we know it and married it with accelerated computing to give us trillions of dollars’ worth of gains. Now, we’re faced with the real test, which is whether the biggest market outside the United States, China, will be reopened to them.

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.