Cramer Predicts NVIDIA to Nab Big Cut of Mega-Cap AI CapEx, Shares Jump 8%
Jim Cramer said major tech firms budgeting “insane” AI capital expenditures will funnel a significant portion to NVIDIA, boosting its growth catalyst. NVIDIA shares jumped nearly 8% in one session—their best performance since April—while trading at about 24 times earnings after a 55% year-over-year gain.
1. Cramer Highlights Mega-Cap AI CapEx
Jim Cramer noted that several mega-cap technology companies are allocating billions for AI infrastructure and that a large slice of this spending will flow to NVIDIA, underscoring the company’s central role in the AI ecosystem.
2. Stock Reaction
Following the comments, NVIDIA shares surged nearly 8% in a single trading session, their strongest daily rise since April of last year, reflecting heightened investor confidence in AI-driven growth.
3. Valuation and Outlook
NVIDIA now trades at approximately 24 times forward earnings and has climbed over 55% in the past 12 months, a performance described as a “coiled spring” poised for further gains as demand for AI hardware accelerates.