Cramer Endorses Nvidia and CrowdStrike Despite Triple-Digit Gains Since AI Boom Began

Key Points

• Nvidia and CrowdStrike shares have surged 1,400% and 875%, respectively, since the AI boom ignited in January 2023.

• Nvidia maintains a dominant grip on AI infrastructure, with a valuation that appears inexpensive relative to forward earnings growth.

• CrowdStrike holds a commanding position across multiple cybersecurity verticals, though its current premium valuation warrants caution.

Shares of Nvidia (NASDAQ:NVDA) and CrowdStrike Holdings (NASDAQ:CRWD) have climbed 1,400% and 875% since the artificial intelligence rally took off in January 2023. Despite those massive gains, CNBC Mad Money host Jim Cramer recently advised viewers to buy both names. Cramer’s track record lends weight to the view: before his media career, he ran a hedge fund that delivered 24% annualized returns over 14 years.

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1. Nvidia

Nvidia controls the AI infrastructure landscape because its graphics processing units (GPUs) pair industry-leading performance with a software ecosystem of unmatched breadth. Those GPUs accelerate both training and inference workloads and command nearly 90% of AI accelerator sales.

Beyond silicon, Nvidia supplies adjacent hardware—networking gear and central processing units—that lets customers build integrated data-center systems at a lower total cost of ownership than piecing together components from multiple vendors. The company is already the world’s largest networking vendor and is on track to become the top CPU supplier this year.

Results for the second quarter of fiscal 2027 (ended July 2026) underscored the momentum: revenue jumped 106% to $96.2 billion, gross margin expanded 2.5 percentage points, and non-GAAP earnings per diluted share leapt 120% to $2.22. Analysts project adjusted earnings will compound at 72% annually through the fiscal year ending January 2028. At 36 times those forward estimates, the stock carries a price-to-earnings-to-growth (PEG) ratio of 0.5—well below the 1.0 threshold that typically signals undervaluation.

The Street’s median price target of $318 implies roughly 42% upside from the current $223 share price. The market’s skepticism appears rooted in concerns over the durability of AI capital spending, but those fears look overdone. A modest starter position makes sense for long-term investors.

2. CrowdStrike

CrowdStrike operates a unified cybersecurity platform spanning 34 modules that address endpoint security, identity protection, cloud security, threat intelligence, and managed detection and response. Its flagship endpoint offering remains the market leader, protecting servers, workstations, and mobile devices alike.

The platform’s differentiation stems from a lightweight sensor that installs without reboots and streams telemetry to a central AI engine, continuously sharpening threat detection. Management touts “industry-leading efficacy and low false positives.”

Fiscal second-quarter 2027 results (ended July 2026) were strong: revenue rose 26% to $1.4 billion, and non-GAAP earnings per diluted share climbed 35% to $0.31. CEO George Kurtz called it the “best quarter in CrowdStrike’s history.” As AI-fueled cyberattacks grow more sophisticated, the company is well positioned to sustain growth; Wall Street models 28% annual earnings growth through fiscal 2028.

Yet the stock trades at 230 times forward earnings—a lofty multiple that leaves little margin for error. The median analyst target of $245 suggests about 4% downside from the current $255 price. While CrowdStrike’s franchise is formidable, the valuation demands patience. Investors should monitor the name for a more attractive entry point.

The author holds positions in CrowdStrike and Nvidia. The publisher holds positions in and recommends CrowdStrike and Nvidia.

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