Quick Read
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Jim Cramer calls Nvidia the “cheapest multiple on Nvidia in about a decade,” and Wall Street estimates put the stock at 12x to 20x earnings.
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Revenue more than doubled to $96 billion last quarter, beating estimates, and management guided to $108 billion next quarter, with supply as the limit.
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Margins slipping toward 71% to 72%, nearly $50 billion in AI lab investments, and $279 billion in supply commitments explain why investors keep selling.
Jim Cramer told viewers of CNBC’s Squawk on the Street on November 5, 2026, that NVIDIA (NASDAQ:NVDA) is on sale. “This is the cheapest multiple on Nvidia in about a decade. We’re at 16.5 now,” Jim Cramer said. He followed with “I do think that, like I said, we’re all writing off Nvidia, but it is the cheapest that it’s been. We’ve got to focus on that.”
He said this as the stock fell. NVIDIA fell 6.94% in today’s session to $186.24. That leaves it down 22.04% over the past month and up only 0.09% for 2026.
Testing Cramer’s 16.5 Multiple Against Wall Street Estimates
Analysts expect average EPS of $9.3124 for the fiscal year ending January 2027. At today’s price, that works out to about 20x. For fiscal 2028, the average estimate is $15.9146, which places the stock near 12x. A next-12-months multiple falls between those two figures, so Cramer’s number holds up. On trailing diluted EPS of $8.09, the multiple is about 23x.
History backs up the decade claim. In late September, NVIDIA traded at about 17 times next-12-month earnings. That was its lowest forward multiple since January 2015 and far below a 15-year average of 30x. The share price then was $228.86. Since then, the price has dropped, while the fiscal 2028 EPS estimate has increased from $15.6826. The forward multiple has only become smaller.
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Earnings Keep Outrunning the Stock
In its fiscal second-quarter report, NVIDIA posted revenue of $96.22 billion, up 105.85%. Consensus was $92.07 billion. Non-GAAP EPS came in at $2.22 against estimates of $2.09. Data Center revenue rose 117% to $89.02 billion. For the current quarter, the company guided to $108.0 billion ±2%.
