TECH - Jim Cramer Says Nvidia 'Still Undervalued' Despite 4% Jump To Record High | Benzinga
On Monday, NVIDIA Corp (NASDAQ:NVDA) shares soared over 4% to top $514 each, marking a new record for the AI chipmaker. This surge in stock price came in response to Nvidia’s presentation at the CES event and news regarding its business dealings with China.
What Happened: Since its recent low on Oct. 26, Nvidia’s stock has experienced a 27% increase, outperforming the S&P 500’s 14% growth during the same time frame. Despite Nvidia’s stock more than tripling in the last year, CNBC’s Jim Cramer said, "I think the company still is very undervalued,” according to a report by CNBC.
Currently, Nvidia trades at approximately 24 times forward earnings, compared to its five-year average of 39, as per FactSet data. Nvidia’s faith in the leading AI chipmaker, which rose 239% in 2023, remains unshaken.
Nvidia is reportedly initiating mass production of AI chips for Chinese customers that align with the U.S. government's revised export rules on AI technology. However, Chinese tech giants including Alibaba Group Holding Ltd (NYSE:BABA) and Tencent Holdings Ltd (OTC: