Nvidia Stock Just Crashed 22%. Jim Cramer Says It's the Cheapest in a Decade

Key Points:

• Jim Cramer stated on CNBC’s Squawk on the Street that NVIDIA is currently undervalued, trading at a forward multiple of about 16.5, the cheapest in roughly a decade despite recent stock declines.
• NVIDIA’s stock fell 6.94% to $186.24 on November 5, 2026, down 22.04% over the past month and nearly flat for the year, while analysts project fiscal 2027 and 2028 EPS that imply forward multiples between 12x and 20x, supporting Cramer’s valuation claim.
• The company continues to outperform expectations, reporting strong revenue and earnings growth, with management forecasting 70% revenue growth in fiscal 2028, though supply constraints remain a limiting factor.
• Cramer advocates for NVIDIA to increase share buybacks, noting the company has substantial repurchase authorization and has returned a significant portion of free cash flow to shareholders in 2026.
• Investor concerns driving the low valuation include margin pressure, significant investments in AI labs, a large supply commitment backlog, extended payment collection times, and geopolitical risks related to China, with upcoming earnings expected to be a key validation point for Cramer’s bullish stance.