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Nvidia's 'Remarkable' Quarter Justifies Stock's High Multiple, Jim Cramer Says

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Jim Cramer's favorite dog exceeded earnings estimates and issued an upbeat guidance for the the upcoming quarter. 

Nvidia reported adjusted earnings per share of 94 cents on revenue of $6.51 billion.

Nvidia said it expects third quarter revenue of $6.66 billion to $6.94 billion, higher than analysts' forecasts of $6.57 billion.

Despite scrutiny in several countries, Nvidia also expressed confidence in its acquisition of Arm Holdings. "Regulators should recognize the benefits of the acquisition to Arm, its licensees, and the industry," Nvidia said in the earnings release.

Among numerous highlights, Jim Cramer told Action Alerts PLUS senior analyst Jeff Marks that the gaming cycle in addition to developments in the metaverse present major tailwinds to the company going forward.

"The more and more games that are created, the more you want to own this thing [stock]. It was a remarkable quarter in a series of remarkable quarters..If people listen they will recognize why you pay such a high multiple for such a great company," Cramer said. 

As Nvidia rose over 3% higher to $205.36 Friday, Cramer tweeted that it is hard to see how the stock can be stopped. 

Nvidia is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio. 

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