Jim Cramer of CNBC said Monday it was a mistake for investors to cancel Nvidia’s shares as overvalued.
The US chip maker earlier revealed new product launches and revealed that it expects to exceed profit estimates in the company’s current fiscal quarter.
“Nvidia shares look expensive, because the company almost always beats earnings estimates and beats them easily,” said the “Crazy Money” host. “That means these projections are irrelevant to the limit, people. The stock is proving to be cheap in retrospect.”
The comments come after shares of Nvidia, which is valued at $ 377 billion, rose by more than 5%, closing at $ 608.36. So far, shares have increased by 16.5%.
“No one in the world has a vision like that [CEO] Jensen Huang, so Nvidia’s shares continue, even though today they threw $ 32, “Cramer said.” I think it will look cheap over a year from now, based on what the company will earn, which will most likely be much more than it predicted. “
Against the background of the global supply shortage for semiconductors, Nvidia said that now the total figures for the first quarter will exceed the $ 5.3 billion it initially forecast.
Nvidia manufactures chips for a wide range of applications in various industries, including graphics, games and vehicle components.
Some of Nvidia’s new offerings include a server chip called Grace and components used for artificial intelligence, chatbots, speech recognition and cars.
Disclosure: The Cramer charity holds shares in Nvidia.
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