Jim Cramer says buy Nvidia, CrowdStrike after 1,400% and 875% AI rallies

Both Nvidia and CrowdStrike sit at the center of the AI trade that began in January 2023, and both have delivered the kind of returns — 1,400% and 875% — that usually make investors nervous about buying more. Cramer's recommendation lands against that backdrop, and the article leans on his track record running a hedge fund that earned 24% annually over 14 years to argue his view is worth weighing.

The two companies, however, look very different underneath the headline gains. Nvidia reported second-quarter fiscal 2027 revenue up 106% to $96.2 billion, with non-GAAP net income of $2.22 per diluted share, and Wall Street expects 72% annual adjusted earnings growth through the fiscal year ending in January 2028. CrowdStrike's second-quarter fiscal 2027 revenue rose 26% to $1.4 billion, with non-GAAP earnings of $0.31 per diluted share, and is expected to grow adjusted earnings 28% annually over the same horizon.

The market's pricing of those prospects diverges sharply. Nvidia's 36 times earnings and 0.5 PEG ratio suggest the market is worried about the durability of AI spending, while CrowdStrike's 230 times earnings, after a 115% year-to-date gain, suggests the opposite. Whether Cramer's call ages well may hinge on which of those two worries proves correct.