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Getting a Clearer Picture of NVIDIA

What’s wrong with graphics chipmaker NVIDIA?

Cramer had recommended the stock back on Sept. 30, 2009, when it traded at about $15, but now it’s at $11.77. The company offered disappointing guidance for the coming quarter when it reported earnings last month, and there are some concerns its new line of graphics chips for gaming enthusiasts. Apparently, they may be more expensive and consumer more power than the competition.

But at the same time, Cramer said NVIDIA has scored 70 design wins in the laptop space, its chips are in IBM’s new server line and Microsoft’s new smartphone, and there’s the potential to expand into tablets as well.

So are the company’s problems a one-time thing, making the stock cheap at 11 times earnings with a 14% long-term growth rate? Or even cheaper when you back out the $3 a share in cash? To find out, Cramer brought CEO Jen-Hsun Huang onto Mad Money. Watch the video for the full interview.




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