Cramer says 'everything still revolves around Nvidia' despite its lagging stock
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CNBC's Jim Cramer said Tuesday that while investors have grown increasingly bearish on Nvidia , the chipmaker remains at the center of the artificial intelligence boom. "Everything still revolves around Nvidia," Cramer said on CNBC's " Squawk on the Street ." Shares of Nvidia fell about 2% Tuesday, extending a difficult stretch for the stock and leaving it only modestly higher for the year. With the stock trading at its lowest valuation of the year — just shy of 19 times forward earnings — Cramer argued that the selling has become overdone. "Nvidia is the company that everyone hates right now," he said. "What I don't like is the belief that somehow Nvidia isn't relevant." According to Cramer, many of Nvidia's largest customers complain about the high cost of its chips while simultaneously investing in their own AI processors . The latest company said to be developing its own AI chip is China's DeepSeek, Reuters reported Tuesday morning. Even so, Jim noted, those companies continue to rely on Nvidia's technology. Skepticism has also been fueled by a recent SemiAnalysis report that raised concerns about delays involving Nvidia's next-generation Kyber rack-scale server system . Nvidia disputed the report, saying its "roadmap remains intact." Cramer also suggested Nvidia has become "a source of funds" as investors sell shares of the chipmaker to free up capital for other technology trades, including buying newly public SpaceX ahead of its addition to the Nasdaq 100 on Tuesday. Despite those headwinds, Cramer said he doesn't think that Nvidia's leadership position is under threat. "I have yet to see anything that tells me that Nvidia is going to be removed as the top," he said.