Estimated reading time: 5 minutes · Last updated:
Jim Cramer has recommended buying Nvidia and CrowdStrike, two AI-related stocks that have already posted outsized gains: Nvidia is up 1,400% and CrowdStrike 875% since January 2023, the period Cramer cites as the start of the AI boom. Nvidia reported second-quarter fiscal 2027 revenue of $96.2 billion and non-GAAP net income of $2.22 per diluted share, while CrowdStrike posted $1.4 billion in revenue and $0.31 in non-GAAP EPS for the same quarter. As first reported by The Motley Fool, Cramer’s call rests on Nvidia’s dominant AI infrastructure position and CrowdStrike’s breadth across cybersecurity markets, but the two stocks trade at very different forward P/E multiples.
Key takeaways
- Performance: Nvidia shares have risen 1,400% since January 2023 and CrowdStrike shares have risen 875% over the same period.
- Quarterly results: Nvidia reported Q2 fiscal 2027 revenue of $96.2 billion and non-GAAP net income of $2.22 per diluted share; CrowdStrike reported Q2 fiscal 2027 revenue of $1.4 billion and non-GAAP EPS of $0.31.
- Valuation gap: Nvidia trades near 36 times forward earnings with a PEG of 0.5 and a median analyst target of $318; CrowdStrike trades near 230 times forward earnings with a median target of $245.
- Analyst coverage: Seventy-two Wall Street analysts cover Nvidia and 57 cover CrowdStrike, per the data cited.
Table of contents
Why Cramer favours Nvidia: scale in AI infrastructure
Cramer points to Nvidia’s dominant role in AI compute as the main reason to buy the stock. Nvidia’s GPUs account for nearly 90% of AI accelerator sales and the company bundles hardware with software that speeds customers’ AI deployments, a combination investors prize for enterprise adoption and operating leverage.
The company’s second-quarter fiscal 2027 results underline that position: revenue rose 106% to $96.2 billion, gross margin expanded by 2.5 percentage points, and non-GAAP net income increased 120%, reaching $2.22 per diluted share. Wall Street projects Nvidia’s adjusted earnings to grow at about 72% annually through the fiscal year ending January 2028, which is the growth figure used to justify a PEG of 0.5 with a forward P/E of 36.
Those expectations are reflected in the median analyst target of $318, a consensus that implies roughly 42% upside from the cited current share price of $223. The combination of scale, recent operating leverage and the market share numbers is Cramer’s core argument for a buy-sized starter position rather than an all-in allocation.
Why CrowdStrike made the list and why valuation matters
Cramer recommended CrowdStrike as his cybersecurity pick because a single cloud-native platform delivers wide-ranging security capabilities. The company provides 34 modules that span endpoint and identity protections, cloud-focused safeguards, threat-intelligence tools and an MDR service, all powered by a lightweight sensor that streams telemetry into its AI engine.
CrowdStrike called its latest quarter the company’s “best quarter in CrowdStrike's history,” after revenue rose 26% to $1.4 billion and non-GAAP earnings rose 35% to $0.31 per diluted share. Wall Street expects adjusted earnings growth of about 28% annually through the fiscal year ending January 2028, yet the stock trades near 230 times forward earnings according to the cited numbers.
That valuation gap is the crux of the caution: while CrowdStrike has a strong franchise, the piece notes a median analyst target of $245 implies about 4% downside from the cited share price of $255, and the stock’s 115% year-to-date gain makes fresh buying decisions dependent on believing high growth will continue to justify a 230x multiple.
Valuation, targets and what the data implies for investors
The two recommendations rest on different investor choices: Nvidia’s numbers argue the market underestimates durable AI spending, while CrowdStrike’s numbers demand that high growth continue to justify an elevated multiple. Nvidia’s forward P/E of 36 with a PEG of 0.5 is presented as a case of high growth priced cheaply relative to expectations, whereas CrowdStrike’s forward P/E of 230 flags much higher execution and growth risk.
Analyst coverage differs as well: the cited median target for Nvidia is $318 across 72 analysts, and for CrowdStrike $245 across 57 analysts. Those targets are the market’s consensus view and they produce the implied upside and downside figures—42% upside for Nvidia from a $223 price and about 4% downside for CrowdStrike from a $255 price—used in the piece.
For investors, the practical takeaway is trade sizing and timing: the recommendation described is to consider a small position in Nvidia today given its scale and recent results, while keeping CrowdStrike on a watchlist because its valuation is markedly higher despite the company’s revenue and earnings growth.
| Company | Gain since Jan 2023 | Q2 FY2027 revenue | Q2 FY2027 non-GAAP EPS | Forward earnings growth | Forward P/E |
|---|---|---|---|---|---|
| Nvidia | 1,400% | $96.2 billion | $2.22 | 72% annually (to Jan 2028) | 36 |
| CrowdStrike | 875% | $1.4 billion | $0.31 | 28% annually (to Jan 2028) | 230 |
Cases for and against following Cramer’s calls
The case for
- Nvidia’s market share in AI accelerators (nearly 90%) and recent operating leverage—106% revenue growth and 120% rise in non-GAAP net income in Q2 FY2027—support continued upside if enterprise AI spending keeps rising.
- CrowdStrike’s broad product set (34 modules) and 26% revenue growth in Q2 FY2027 position it to capture AI-driven security spending and expand wallet share across customers.
The case against
- CrowdStrike trades near 230 times forward earnings, so any slowdown in growth below the 28% annual projection to January 2028 would risk a sharp multiple contraction.
- Nvidia’s valuation, while presented as cheap on a PEG basis, depends on sustaining the 72% annual adjusted earnings growth the analysts project; a disappointing enterprise AI cycle could compress the 36x multiple quickly.
What to be careful about
- CrowdStrike’s 230x forward P/E exposes holders to high execution risk if the company’s projected 28% adjusted earnings growth to January 2028 slows.
- Nvidia’s prospective gains depend on continued enterprise and cloud AI spending; the stock’s implied 42% upside assumes the cited 72% annual adjusted earnings growth.
- Analyst targets and implied upside/downside figures depend on consensus estimates that can change quickly; 72 analysts for Nvidia and 57 for CrowdStrike can revise projections with new data.
The bottom line
Jim Cramer’s buy recommendation highlights two different investment cases inside the AI theme. Nvidia’s recommendation rests on dominant AI-infrastructure share, rapid revenue and earnings growth—106% revenue growth to $96.2 billion in Q2 FY2027 and projections of ~72% annual adjusted earnings growth—which the cited numbers present as a basis for a 36x forward P/E and a PEG of 0.5. CrowdStrike’s business shows robust top-line momentum—26% Q2 revenue growth to $1.4 billion—but trades at about 230 times forward earnings, leaving less margin for error. Investors should weigh position size, time horizon and the specific growth assumptions behind the analyst targets before acting.
What to watch
- Watch for Nvidia’s next quarterly update and any guidance changes; no date has been set in the cited coverage.
- Watch for CrowdStrike’s next quarterly results or guidance revisions; no date has been set in the cited coverage.
Frequently asked questions
How much have Nvidia and CrowdStrike risen since January 2023?
According to the cited figures, Nvidia has risen 1,400% since January 2023 and CrowdStrike has risen 875% over the same period.
What growth and multiples underpin the recommendations?
The piece cites Wall Street projections of about 72% annual adjusted earnings growth for Nvidia through January 2028 (forward P/E 36, PEG 0.5) and about 28% for CrowdStrike through January 2028 (forward P/E 230).
What did CrowdStrike report for Q2 fiscal 2027?
CrowdStrike reported Q2 fiscal 2027 revenue of $1.4 billion and non-GAAP earnings of $0.31 per diluted share, and CEO George Kurtz called it the “best quarter in CrowdStrike's history.”
Related reading
This article is information, not financial advice. Anyone acting on it should do their own checks.
