Jim Cramer: Nvidia still at center of AI boom despite bearish sentiment

According to CNBC, Jim Cramer said Tuesday that despite increasingly bearish investor sentiment toward Nvidia, the chipmaker remains central to the artificial intelligence boom, adding that “everything still revolves around Nvidia.” Shares of Nvidia fell about 2% Tuesday and were only modestly higher for the year; Cramer said the stock was trading at its lowest valuation of the year at just shy of 19 times forward earnings and argued the selling has become overdone. He said some of Nvidia’s biggest customers complain about chip costs while investing in their own AI processors, citing Reuters reporting that China’s DeepSeek is developing its own AI chip, but added those companies still rely on Nvidia’s technology. Cramer also pointed to skepticism tied to a SemiAnalysis report raising concerns about delays involving Nvidia’s next-generation Kyber rack-scale server system, which Nvidia disputed, saying its “roadmap remains intact.” He said Nvidia has become “a source of funds” as investors sell shares to free up capital for other tech trades, including buying newly public SpaceX ahead of its addition to the Nasdaq 100 on Tuesday, but added he does not think Nvidia’s leadership position is under threat.