Jim Cramer has recommended buying Nvidia and Meta, both of which have soared since 2023, and Wall Street analysts still see meaningful upside for both stocks. Nvidia's dominance in AI chips and full-stack computing platform, combined with strong earnings growth forecasts, underpins its valuation, while Meta's planned cloud computing business aims to monetize its heavy spending on AI infrastructure.
Summaries like this, in your inbox every morning.
Sign up free →What happened
Jim Cramer has recommended buying Nvidia and Meta Platforms, stocks that have risen 1,300% and 460% respectively since January 2023. Wall Street analysts project further gains: Nvidia's median target price of $300 per share implies 42% upside from $211, while Meta's median target of $815 per share implies 22% upside from $669.
Why it matters
Nvidia controls more than 80% of the AI accelerator market and offers a full-stack computing platform that pairs GPUs with adjacent hardware and software, giving it what analysts describe as a wide economic moat. Meta is planning to launch a cloud computing business to monetize its substantial AI infrastructure spending—$111 billion（約18兆円） in 2024–2025, with $135 billion（約22兆円） planned for 2026—which could ease investor concerns about returns on those capital investments.
What to watch
Nvidia's adjusted earnings are estimated to increase 56% annually through the fiscal year ending January 2028, while Meta's earnings are expected to grow 15% annually through 2027. Meta has beaten consensus earnings estimates by an average of 6% over the last six quarters.
Nvidia and Meta represent two very different plays on artificial intelligence infrastructure, yet both are attracting bullish views from Wall Street. Nvidia's position rests on near-monopoly control of the chips that power AI data centers—more than 80% market share in AI accelerators—combined with a full-stack approach where it designs not just processors but the broader computing ecosystem. Even as competition from hyperscalers' custom chips has raised concerns, analysts note that demand for Nvidia GPUs remains so immense the company cannot keep up, and the company's valuation of 36 times earnings looks reasonable given 56% annual earnings growth through early 2028.
Meta's story is about capital discipline and monetization. The company has committed enormous sums—$111 billion（約18兆円） spent in 2024–2025 alone, with $135 billion（約22兆円） planned for 2026—to build proprietary AI models and custom chips. Until recently, investors questioned whether Meta would earn sufficient returns on this spending. The company's plan to launch a cloud computing business to sell access to its AI models and raw computing capacity addresses that concern directly. With Meta's earnings projected to grow 15% annually through 2027 and a track record of beating consensus estimates by 6% over the last six quarters, the company trades at a more modest 24 times earnings, suggesting upside if the cloud business proves profitable as Cramer expects.
No comments yet. Be the first to share your thoughts!
Log in to join the discussion
Get curated AI news from 200+ sources delivered daily to your inbox. Free to use.
Get Started FreeFree · takes 30 seconds · unsubscribe anytime
1 minute a day. The AI essentials.
200+ sources · Email / LINE / Slack
