CNBC’s Jim Cramer said Monday it was a mistake for investors to write off Nvidia shares as overvalued.
The US chipmaker had previously announced new product launches and announced that it will exceed earnings estimates for the company’s current fiscal quarter.
“The stock of Nvidia looks expensive, because the company almost always exceeds the profit estimates and outperforms them handily,” said the host of “Mad Money”. “That means those predictions are marginally irrelevant, folks. The stock turns out to be cheap in the end, in retrospect.”
The comments come after shares of Nvidia, valued at $ 377 billion, rose more than 5% to close 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 originally forecasted $ 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.
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