Nvidia Drops 2% as Cramer Says AI Still Revolves Around the Chipmaker
Updated
Updated · CNBC · Jul 7
Nvidia Drops 2% as Cramer Says AI Still Revolves Around the Chipmaker
2 articles · Updated · CNBC · Jul 7
Summary
Nvidia fell about 2% Tuesday, yet Jim Cramer argued the selloff has gone too far and said the company remains central to the AI boom.
At just under 19 times forward earnings—its lowest valuation this year—the stock has been hit by rising bearishness even though major customers still depend on Nvidia technology.
DeepSeek was the latest company reported to be developing its own AI chip, adding to worries that big buyers want alternatives to Nvidia’s expensive processors.
A recent SemiAnalysis report also raised concerns about delays to Nvidia’s next-generation Kyber rack-scale server system, though Nvidia said its roadmap remains intact.
Cramer said Nvidia has also become a funding source for other tech trades, but he sees no evidence its leadership position in AI is being displaced.