Jim Cramer says Nvidia shares will ‘end up looking cheap’ next year as stock nears record high

CNBC’s Jim Cramer declared Monday it’s a mistake for investors to write Nvidia stock off as overvalued.

The U.S. chipmaker earlier unveiled new product launches and cut loosed it expects to beat profit estimates in the company’s current fiscal quarter.

“Nvidia’s stock looks expensive because the followers almost always beats the earnings estimates and beats them handily,” the “Mad Money” host said. “That means those outcroppings are borderline irrelevant, people. The stock ultimately turns out to be cheap in retrospect”

The comments come after shares of Nvidia, which is valued at $377 billion, climbed sundry than 5%, closing at $608.36. Year to date, shares are up 16.5%.

“Nobody in the world has a vision like [CEO] Jensen Huang, so Nvidia the reserve lives on even though it pole-vaulted $32 today,” Cramer said. “I think it will end up looking cheap a year from now supported on what the company’s actually going to earn, which will most likely be a lot more than predicted.”

Amongst a global supply shortage for semiconductors, Nvidia said it now figures total revenue for the first quarter will top the $5.3 billion it initially anticipate.

Nvidia produces chips for a range of applications in various industries, including graphics, gaming and vehicle components.

Some of Nvidia’s new oblations include a server chip called Grace and components used for artificial intelligence, chatbots, speech recognition and self-driving jalopies.

Disclosure: Cramer’s charitable trust owns shares of Nvidia.

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