Nvidia (NVDA) reported another set of strong quarterly results, beating Wall Street estimates on both revenue and profits and issuing upbeat guidance. Still, the stock slipped nearly 3% in extended trading as lighter data center revenue and sky-high expectations weighed on sentiment.
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Jim Cramer, the host of Mad Money on CNBC, downplayed the market reaction, saying the dip had more to do with Nvidia’s sharp run-up before earnings rather than any weakness in the company’s fundamentals. He called the quarter “kind of an anticlimax,” given how much optimism was already priced in ahead of the report, but dismissed the idea that the weakness pointed to an “AI bubble.”
Big Tech Spending Keeps AI Rally Alive
Rejecting bubble fears, Cramer argued that today’s AI build-out rests on stronger foundations than the internet boom of the 1990s. He noted that while the valuations of leading AI companies may look “seemingly sky-high,” Nvidia is delivering the hardware that others need to become “serious players in AI.”
Cramer highlighted the billions being poured into AI infrastructure by Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Oracle (ORCL), Meta Platforms (META), and Tesla (TSLA), stressing that these hyperscalers have both the balance sheets and leadership to make the investments pay off.
Cramer Compares Nvidia to Amazon’s Dotcom Comeback
Looking back at the 2000–2002 dotcom crash, Cramer said that while many companies disappeared, a few “obvious winners” came roaring back, with Amazon (AMZN) eventually growing into a $2 trillion giant. Investors who “gave up on Amazon in 2001,” he warned, missed that entire run.
In his view, Nvidia fits into today’s group of winners, an essential supplier at the center of the AI ecosystem. Though short-term volatility may rattle the stock, Cramer argued the long-term AI story is just beginning.
Is NVDA a Strong Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 36 Buys, three Holds, and one Sell assigned in the past three months. Further, the average NVDA price target of $199.94 per share implies 10.10% upside potential.
