CNBC’s Jim Cramer said Monday it was a mistake for investors to write Nvidia Inventory as overvalued.
The American chip maker had previously revealed new product launches and announced that it expects to exceed earnings estimates for the company’s current fiscal quarter.
“Nvidia stock looks expensive because the company almost always beats earnings estimates and handily outperforms them.”Bad money“Host said.” That means these projections are marginally irrelevant, folks. In retrospect, the stock ultimately turns out to be cheap. “
The comments come after Nvidia shares rose more than 5% to $ 377 billion and closed at $ 608.36. Since the beginning of the year, stocks are up 16.5%.
“Nobody in the world has a vision like that [CEO] Jensen Huang, or Nvidia, the stock lives on despite having $ 32 in the pole vault today, “Cramer said.” I think in a year it will look cheap based on what the company will actually earn, which will most likely be a lot more than predicted. “
Amid a global semiconductor supply shortage, Nvidia announced that total revenue for the first quarter will exceed the originally forecast $ 5.3 billion.
Nvidia manufactures chips for a number of applications in a variety of industries, including graphics, games and automotive components.
Some of Nvidia’s new offerings include a server chip called Grace and components for artificial intelligence, chatbots, voice recognition, and self-driving cars.
Disclosure: Cramer’s charitable foundation owns shares in Nvidia.