Jim Cramer gives Nvidia stock advice
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The gist
CNBC host Jim Cramer said Nvidia trades at about 12 times next year's earnings with 70% expected growth.
He warns the bargain holds only if data-center construction isn't slowed by regulators.
Background
Jim Cramer is the host of CNBC's "Mad Money" and heads Cramer's Charitable Trust, the portfolio run by CNBC's Investing Club, which owns shares of Nvidia and Micron. Nvidia, the AI chipmaker, has been at the center of a steep two-session sell-off in AI stocks, as growing opposition to new data centers after the midterm elections raised doubts about future AI infrastructure spending. Cramer's point is that Nvidia looks cheap on current growth projections, but those projections depend on data-center construction continuing at its recent pace.
How it unfolded
- Nov 3, 2026Cramer said tech stocks were showing signs of a comeback, naming AMD, Arista Networks and Oracle as potential new leaders while Nvidia, Microsoft, Alphabet and Meta struggled to sustain rallies.
- Nov 5, 2026Cramer said uncertainty over the data center build-out has made AI stocks hard to value, citing Nvidia trading at roughly 12 times next year's earnings with an expected growth rate of 70%.
- Nov 5, 2026Cramer predicted the AI sell-off likely has further to go but urged investors not to panic and to hold sufficient cash.
- Nov 5, 2026Micron tumbled 17%, GE Vernova dropped 7% and Sandisk plunged 22% on Thursday; the iShares Semiconductor ETF fell 3% Wednesday and another 10% Thursday.
Key terms
- data-center
- Facilities housing computer systems and related equipment for storing, managing, and distributing digital information.
- midterm elections
- US general elections held near the midpoint of a president's four-year term, when all House seats and about a third of Senate seats are contested.
- dot-com bust
- A stock market bubble of the late 1990s driven by Internet adoption and soaring valuations of dot-com startups, which collapsed after peaking in 2000.
Source: Wikipedia
Who’s saying what
- Analysts
- Cramer called Nvidia "an incredible bargain" at about 12 times next year's earnings, but said it is not a bargain if the U.S. won't permit new data centers as fast as it does now.
- Caution
- Cramer said "we don't know what to pay for any of the stocks connected to the data center," which is why he called the moment "so fraught."
- Support
- Cramer argued today's AI companies are fundamentally different from the dot-com bust, calling the drop "an orderly decline" and saying he is glad the market is "ripping the Band-Aid off."
Still unverified
Cramer said he is unsure how sturdy Micron's long-term take-or-pay contracts would be if signees hit hard times and couldn't pay; he also said smaller developers such as CoreWeave, Iren and Nebius face particular risk from borrowed money funding projects that could face regulatory delays, though "right now, no one of significance is defaulting on their debt."