Jim Cramer on Monday highlighted a sudden shift in sentiment around Nvidia Corp (NASDAQ:NVDA), noting that bearish traders appear to have vanished as selling pressure dried up, potentially signaling renewed bullish momentum for the AI chip giant's stock.
Nvidia Selling Pressure Appears To Ease
In a post on X, the market commentator said, "these sellers of Nvidia just disappeared!", pointing to a potential shift in near-term market structure and a change in supply-demand balance for the AI chip giant. The comment suggests that bearish pressure on Nvidia shares may be easing, at least in the near term, as fewer investors appear willing to sell at current levels.
Cramer’s comments came as Nvidia stock rallied 4% on Monday to $216.61. The stock was seen 0.99% higher at $218.75 in the after-hours session.
The sentiment aligns with recent market enthusiasm and the broad sector rally driven by rising AI demand. The Philadelphia Semiconductor Index notched 18 straight sessions of gains, the longest winning streak on record, amid a wave of blowout earnings and analyst upgrades.
Nvidia Tops $5 Trillion in Market Cap
Nvidia has surpassed $5 trillion in market cap amid a broader AI boom. This surge follows a strong earnings report from Intel Corporation (NASDAQ:INTC), which reported quarterly earnings of 29 cents per share, exceeding analysts’ expectations and signaling renewed investor confidence in the chip industry.
NVDA shares are up 30% since the start of this year and about 108% over the past year.
The AI chipmaker could generate more than $400 billion in free cash flow across CY26-CY27, equivalent to Apple Inc. (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT) combined. In a recent note, BofA Securities highlighted that despite Nvidia’s market cap sitting at $5.18 trillion, it is trading at 50% discount to big tech. Nvidia trades at under 20x CY27 earnings and enterprise value/free cash flow — roughly a 50% discount to Magnificent 7 peers averaging 41.5x, and a 66% discount on EV/FCF, according to the firm.
The chip giant occupies a noteworthy position in the semiconductor landscape, particularly given its debt-to-equity (D/E) ratio of 0.07. In terms of profitability, Nvidia has outperformed its peers with a Return on Equity (ROE) of 31.11%, significantly surpassing the industry average by 25.36%.
Benzinga Edge Stock Rankings indicate that the NVDA has a Momentum score in the 86th percentile with a strong price trend in the short, medium and long term. It also has a solid Growth score in the 98th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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