Jim Cramer is backing Nvidia and Meta Platforms as his top AI stock picks right now, citing their dominance in artificial intelligence infrastructure and their potential for significant upside, according to recommendations made in the past month. Both stocks have surged dramatically since 2023—Nvidia up 1,300% and Meta up 460%—yet Wall Street analysts still see substantial room to run, with median price targets implying 42% upside for Nvidia and 22% upside for Meta, according to The Motley Fool.
Cramer’s bullish stance on Nvidia centers on the chipmaker’s unmatched position in AI accelerators, where it controls more than 80% market share. The company offers a full-stack computing platform pairing graphics processing units with adjacent hardware and software required for AI deployment. “It’s one of the cheapest stocks in the entire S&P 500 when gauged against its growth rate,” Cramer said last week, noting that demand for Nvidia GPUs is so immense the company cannot keep up with orders. Wall Street estimates Nvidia’s adjusted earnings will increase by 56% annually through the fiscal year ending in January 2028, making its current valuation of 36 times earnings look reasonable by growth standards, according to The Motley Fool analysis.
Meta Platforms stock has gained 12% since Cramer first recommended buying shares on June 16, and he has continued pressing the case since then. His enthusiasm intensified after Meta announced plans to launch a cloud computing business that will compete against Amazon, Microsoft, and Alphabet by selling access to AI computing power and models. Meta has committed to spending $135 billion on AI infrastructure in 2026, and the new cloud business strategy addresses a key investor concern: whether the company can earn sufficient returns on its massive capital expenditures. According to The Motley Fool, Cramer believes Meta’s “cloud business will be instantly profitable.” Wall Street expects Meta’s earnings to increase at 15% annually through 2027, making its current valuation of 24 times earnings very reasonable given the company has beaten consensus earnings estimates by an average of 6% over the last six quarters.
Meta’s AI infrastructure push extends beyond cloud services. The company announced on July 9 that it plans to begin manufacturing its own AI chip in September 2026 and will expand computing capacity to 14 gigawatts next year, according to Reuters reporting covered by TheStreet. Cramer views Meta’s capital spending decisions as strategic, not reckless. “I think that they’re looking at a book of demand, saying it’s really good, and we’re going to be able to make it so that we can meet that demand,” he said on Mad Money on July 9. On Meta CEO Mark Zuckerberg specifically, Cramer added: “Maybe we should lean in and recognize that he knows more about his company’s prospects than we do. He’s demonstrated that time and again.”
The broader context for both recommendations is Cramer’s view that investors have misread the AI spending cycle. While the Magnificent Seven stocks shed roughly $2.3 trillion in market value and fell more than 13% since mid-May, Cramer argues this represents a sentiment problem, not a business problem. The companies continue generating enormous cash flows, and the AI infrastructure buildout they are funding is not going away. Cramer expects a powerful rally across the group once any major hyperscaler announces on an earnings call that AI products are now driving revenue growth and raising guidance—an event he sees as likely during Q2 earnings season later this month and into August.
Sources
- The Motley Fool — Jim Cramer’s recent buy recommendations on Nvidia and Meta, analyst consensus targets, earnings growth estimates, and valuation multiples (July 12, 2026)
- TheStreet — Jim Cramer’s July 9 commentary on Meta’s AI chip manufacturing plans, computing capacity expansion, and his broader view on Magnificent Seven valuations (July 11, 2026)
- Reuters — Meta’s announcement of AI chip manufacturing in September 2026 and computing capacity expansion to 14 gigawatts (cited in TheStreet, July 11, 2026)
