Cramer's Club Backs Nvidia Buy Before Earnings After 7% Drop

5 articles · Updated · CNBC · May 18

Wednesday’s earnings are the immediate catalyst, and Jim Cramer’s Investing Club said investors without a position can start buying Nvidia now rather than trying to trade the print.
Nvidia’s 7% pullback from last week’s record high helped cool the stock, while the club argues a "beat and raise" remains the minimum bar and near-term volatility is still likely.
At 24 times forward earnings, Nvidia trades below Broadcom at 28, Marvell at 39, AMD at 44 and Intel at 86, which the club cites as evidence the AI leader is undervalued.
The longer-term case rests on AI spending staying strong: Alphabet, Amazon, Microsoft and Meta have outlined $695 billion in 2026 capex, up from a prior $608 billion estimate.
The club frames the setup as roughly 2% downside to technical support near $217 versus about 82% upside if Nvidia eventually reaches a $10 trillion market value.

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