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

Jim Cramer went on Mad Money Friday with a counterintuitive pitch: “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.

The Valuation Argument, Decoded

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.”

The China Layer Is Pure Optionality

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.” He sides with Jensen Huang on selling a hobbled version of Blackwell into a market he sizes at $50 billion: “If you can get China hooked on an inferior version, I say have at it. You force them to build their own chips. They will catch up with seemingly unlimited electricity and then they will surpass us.” With Feynman queued up after Blackwell, the roadmap argument is that dependency beats prohibition.

What I’m Watching

I have owned NVIDIA for over 15 years and the playbook keeps repeating: the stock looks expensive on price, reasonable on earnings, and cheap on growth. The Q4 FY26 SEC filing shows Data Center Networking revenue up 263% year over year, which signals platform lock-in. One caveat: CFO Colette Kress sold 76,535 shares at $181.93 on March 18, 2026, part of broad insider selling that does not echo the bullish setup.

You buy NVIDIA if you believe agentic AI compute demand keeps compounding and the multiple compresses as earnings catch up. You pass if you think Blackwell pricing rolls over the way B200 rental rates did this month. Cramer’s wager is simpler: the math already works before the China card flips.