Jul 10, 2025

Jim Kramer on Nvidia's Bottom Line

Jim Kramer named his dog Nvidia in an effort to get people to buy the stock.

Bottom line on Nvidia? Own it: don’t trade it. Oh, and see you at $5 trillion.
— Jim Kramer

Is Nvidia (NASDAQ: NVDA) the best company on the market today?

So many investors think so that the company's market cap touched $4 trillion on Wednesday, 9 July 2025. It closed at the end of the day worth $3.974 trillion, which is still the highest for any company, ever.

Nvidia's stock price has ballooned by 1,350% since October 2022.

Ben Reitzes is an analyst at Melius Research who has been a long-time Nvidia fan. Even after $4 trillion, he still thinks the company is about 25% undervalued.

What share will Nvidia get of a $2T+ annual total addressable market for AI-enabled data centers? Why is 40% not possible as it becomes an infrastructure company?
– Ben Reitzes

What Reitzes is pointing to is the huge expected expansion of data centres and the fact that, as things stand today, Nvidia is the company most likely to benefit from that growth.

Doubters will emerge whenever a stock goes up as quickly as Nvidia. They believe that, at about 51 times earnings, Nvidia could be overvalued.

The era of Nvidia's 80-100% growth must eventually come to an end. When this period of rapid expansion concludes, Nvidia's valuation will likely drop significantly.
— Trefis Team

Nvidia may be the best AI company today. Yet, it is very expensive compared to its earnings. That leaves investors with no margin of safety if any of the expansive expectations propping up the share price prove unfounded.

There are two excellent books about Nvidia that I highly recommend:

The Thinking Machine: Jensen Huang, Nvidia, and the World's Most Coveted Microchip by Stephen Witt
The Nvidia Way: Jensen Huang and the Making of a Tech Giant by Tae Kim

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And let me know what you decide about Nvidia. Is it a buy, hold, or sell in your book?

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