Jim Cramer Says Buy Nvidia for Valuation, Not China Bet. Stock Trades Cheaper Than Intel and AMD.

"“You buy NVIDIA not for China, not because of the Cerebras IPO, but because it's actually a cheap stock, cheaper than Intel, cheaper than AMD, cheaper than Broadcom.” That is a bold claim about a company worth $5.7 trillion, and the numbers back the framing better than the sticker price suggests."

"NVIDIA ( NASDAQ:NVDA | NVDA Price Prediction) closed at $225.32 Friday, up 21% year to date. The trailing P/E sits at 48 with a forward multiple of 27 and a PEG ratio of 0.68. Compare that to Intel ( NASDAQ:INTC), which carries a forward P/E of 156 on negative trailing earnings, and AMD ( NASDAQ:AMD) at a trailing P/E of 149. Even Broadcom ( NASDAQ:AVGO) trades at 81 trailing. On growth-adjusted math, NVIDIA is the value name in the room."

"The growth justifies it. Q4 FY2026 revenue hit $68.13 billion, up 73% year over year, with non-GAAP EPS of $1.62 and net income growth of 94%. Free cash flow for the full year reached $96.58 billion, and the board has $58.5 billion in buyback authorization. Cramer also noted “There would be no AI revolution without Jen-Hsun Huang and NVIDIA.”"

"NVIDIA's Q1 FY2027 guidance of roughly $78 billion explicitly excludes any Data Center compute revenue from China. The valuation works without the mainland. That is why Cramer treats geopolitics as pure optionality on top of the core thesis. On Beijing, Cramer said “It's President Xi who's been the obstacle” and that Xi is “worried about American hegemony” while fearing China falls behind in “the race for AI dominance.”"

NVIDIA is presented as a value opportunity based on valuation metrics and rapid growth. The stock is described as trading at a trailing P/E of 48, a forward multiple of 27, and a PEG ratio of 0.68, while peers show much higher forward P/E levels. Q4 FY2026 results are cited with revenue of $68.13 billion, up 73% year over year, non-GAAP EPS of $1.62, and net income growth of 94%. Free cash flow for the full year is given as $96.58 billion, with $58.5 billion authorized for buybacks. Guidance for Q1 FY2027 is said to exclude Data Center compute revenue from China, making China exposure optionality. China constraints are attributed to political factors, and selling an inferior Blackwell version is framed as a way to accelerate domestic chip development.

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