Jim Cramer Has A Message For Nvidia Non-Believers — 'Valuation Is More Of An Art Than Many Would Like'

Prominent market Commentator Jim Cramer has defended the soaring valuation of chip-maker NVIDIA Corporation NVDA saying most major companies are dependent on the chip-maker.

"I know there are people who are deriding the valuation of Nvidia. But the valuation is more of an art than many would like," Cramer said in his tweet.

Also Read: How To Buy NVIDIA (NVDA) Stock

Forecast: Nvidia's stock has been on fire since the company reported its quarterly earnings and gave an upbeat forecast. The chipmaker's first-quarter revenue came in at $7.19 billion, exceeding a Street estimate of $6.52 billion. For the second quarter, the company said it expects revenue of $11 billion, plus or minus 2%, compared to a consensus of $7.15 billion.

Moat: Cramer also highlighted the company's moat explaining why Nvidia has a huge advantage. "If Nvidia is right than (sic) every major company, save Apple, is dependent on it. Every one. What is that worth? The subject is daunting. Humbling," he said in his tweet.

The market expert, a few days ago, had lauded Nvidia CEO Jensen Huang, calling him "Andy Reid of the Kansas City Chiefs." "We trust a coach like Reid to regularly pull off miracles. Why can't we trust a visionary CEO with a great track record to do the same?" he had reportedly said.

Nvidia shares have gained over 25% in the last five days while on a year-to-date basis, the stock has risen a whopping 172.06%, according to Benzinga Pro. While the stock closed at $389.46 on Friday, traders appear to be considering a resistance at the $400 level in the near term.

Read Next: Why Larry Summers Says Debt Ceiling Deal’s IRS Provisions Are A ‘Grave Error’ — ‘Desperately Hope It Will Not Set A Precedent