Jim Cramer Says NVIDIA Is the Most Proprietary Chip Company in History, and the Market Is Getting Its Valuation Wrong

1 month ago 25

David Moadel

Fri, July 10, 2026 astatine 11:54 AM CDT 4 min read

Quick Read

Cramer called NVIDIA the astir proprietary spot institution successful history, yet its 23x guardant P/E trails commodity representation shaper SanDisk's 27x multiple.
NVDA's bundle moat, built connected CUDA, NVLink Fusion, and Dynamo, locks developers into its architecture successful ways SNDK's commodity NAND representation simply cannot replicate.
The little NVDA aggregate whitethorn rationally terms successful the situation of sustaining 85% maturation disconnected a $216 cardinal gross basal amid China export restrictions.
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In his Mad Money broadcast connected July 9, Jim Cramer defended a erstwhile tech-market darling, arguing that the marketplace has the valuation mathematics backwards. His vexation centered connected wherefore sellers support unloading NVIDIA (NASDAQ:NVDA) portion assigning higher guardant multiples to representation names similar SanDisk (NASDAQ:SNDK).

Shutterstock / Piotr Swat

Cramer enactment it directly: "Some commodity spot companies similar SanDisk present person price-earnings multiples higher connected adjacent year's net than NVIDIA." He added, "I respect that arsenic insulting. Nvidia is the astir proprietary spot institution successful the past of the world." NVIDIA banal traded astatine $209.79 Friday afternoon, with a marketplace headdress of astir $5.08 trillion.

The guardant aggregate information supports the argument. NVIDIA banal carries a guardant price-to-earnings ratio of 23x and a trailing aggregate of 31x, portion SanDisk banal trades astatine a 27x guardant aggregate and a 59x trailing figure.

The Proprietary Moat Cramer Is Defending

NVIDIA's astir caller 4th puts hard numbers down the moat argument. The company's Q1 FY2027 gross reached $81.61 billion, up 85% twelvemonth implicit twelvemonth (YoY), with Data Center gross of $75.25 cardinal and Data Center Networking up 199%.

NVIDIA's non-GAAP gross borderline expanded to 75%, and absorption guided Q2 FY2027 gross to $91 billion. The proprietary furniture runs deeper than silicon: CUDA-X software, NVLink Fusion compute fabric, Spectrum-X Ethernet, and the Dynamo inference stack fastener developers into NVIDIA's architecture successful ways commodity accelerators cannot replicate.

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CEO Jensen Huang has repeatedly framed the AI infrastructure buildout arsenic the largest successful quality history, and deployment commitments from OpenAI, Anthropic, Meta Platforms (NASDAQ:META), Oracle (NYSE:ORCL), and xAI construe that into tangible bid travel for NVIDIA's Blackwell and Vera Rubin platforms.

Wall Street sentiment reflects the view. NVIDIA banal presently carries 10 Strong Buy, 48 Buy, 2 Hold, and 1 Sell rating, with an mean expert terms people of $301.62.

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