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▲ Jim Cramer/Source: Twitter ©CoinReaders
Jim Cramer, the host of CNBC's popular financial show Mad Money, has declared Nvidia's (NVDA) recent stock price correction a buying opportunity, drawing significant attention from investors. He cited the company's technology development roadmap remaining on track as a basis, strongly recommending the current stock price level as a powerful buy signal.
According to cryptocurrency media Watcher.Guru on July 7 (local time), Nvidia's (NVDA) stock price rose 1% over the past 24 hours, reaching $196. Experts cited Nvidia's overwhelming market dominance and future growth potential in the semiconductor industry, including AI and gaming sectors, as reasons for their recommendation. In particular, the short-term correction, which saw the stock price fall by 5% over the past 30 days, is evaluated as providing an attractive entry point. The company is currently trading at a price-to-earnings (P/E) ratio of 30.26x. Jim Cramer emphasized its appeal from a value investment perspective, stating that the stock is surprisingly cheap at a P/E ratio of 22x compared to the company's solid business scale.
Market analysis agencies' forecasts are also very optimistic. Nvidia's average target price for the next 12 months is estimated at $305, indicating an upside potential of approximately 54% from the current price. More than 90% of financial firms analyzing the company maintain a Buy or Strong Buy rating, with the highest target price reaching $500 set by Robert W. Baird and the lowest target price around $180. Despite being a mega-cap stock with a current market value of $4.78 trillion, many experts still consider it an undervalued and attractive asset.
The media pointed out that despite Nvidia consistently achieving record-breaking performance every quarter, its stock price only rose by 4.4% this year. This analysis suggests a somewhat unusual outcome compared to competitors AMD, which surged over 150%, and Intel, which rallied 256% during the same period. In response, experts suggested a strategy of holding (Own) rather than short-term trading from a long-term perspective. They also added a critical comment that if CEO Jensen Huang and the management utilize their substantial cash reserves to announce much larger share buybacks than currently, the stock price rally would be smoother.
Upcoming positive business updates are also brightening the future stock outlook. Nvidia expects its proprietary new Vera CPU platform to generate approximately $20 billion in revenue this year alone. This figure represents the company's solid position, having expanded its territory beyond Graphics Processing Units (GPUs) to the broader AI semiconductor sector. Bolstered by this strong business expansion, specific stock prediction indicators suggest that earnings could grow by an impressive 90.2% in fiscal year 2027.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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