CNBC’s Jim Cramer said Tuesday that investors are becoming increasingly bearish on Nvidia, but the chipmaker remains at the center of the artificial intelligence boom. “Everything still revolves around NVIDIA,” Kramer said on CNBC’s “Squawk on the Street.” Nvidia’s stock price fell about 2% on Tuesday, marking a modest gain for the year despite continued tough conditions for the stock. With the stock trading at its lowest valuation this year (19 times below forward P/E), Cramer argued that the selling has become excessive. “NVIDIA is the company that everyone hates right now,” he said. “What I don’t like is that somehow Nvidia doesn’t seem relevant.” Cramer said many of Nvidia’s large customers are investing in their own AI processors while also complaining about the high cost of the chips. The latest company said to be developing its own AI chips is China’s DeepSeek, Reuters reported Tuesday morning. Still, Jim noted, these companies continue to rely on Nvidia’s technology. Skepticism is also fueled by a recent SemiAnalysis report that raised concerns about latency associated with Nvidia’s next-generation Kyber rack-scale server systems. Nvidia disputed the report and said “the roadmap remains the same.” Cramer also suggested that Nvidia is becoming a “source of capital” as investors sell stakes in chip makers to raise money for other technology deals. This includes the acquisition of SpaceX, which was newly listed ahead of its addition to the Nasdaq 100 on Tuesday. Despite these headwinds, Kramer said he doesn’t believe Nvidia’s leadership position is threatened. “I haven’t seen anything yet to suggest that Nvidia will be removed from the top spot,” he said.
