11Why Was Jim Cramer Baffled by NVIDIA (NVDA) Shares?
Jim Cramer and NVIDIA: Why the AI Chip Giant Still Shines (Explained Simply)
What We Already Talked About
We recently published an article called "Jim Cramer Insisted Recent AI Chip Selloff Wasn’t A Bottom & Discussed These 17 Stocks".
In that piece, a well-known market commentator (Jim Cramer) said that the recent drop in prices of AI computer-chip stocks was not the lowest point (the "bottom"), and he talked about 17 different company stocks.
One of those companies is NVIDIA Corp. (stock symbol: NVDA, listed on NASDAQ), a famous maker of the tiny "brains" that power AI.
NVIDIA Is in the Headlines Again
NVIDIA is a huge AI company. Right now, people are chatting about it because some news said its next-generation AI chips (the newer, smarter computer parts) might be late.
Here are the simple facts from the article:
- NVIDIA says the reports about its "Kyber" platform being delayed are not true (they denied it).
- The price of one share (a tiny ownership slip of the company) has:
- Gone up 25% over the last year.
- Gone up 8% since the start of this year (year-to-date).
- On July 8th, a big bank called Bank of America said:
- They still think NVDA is a Buy (a good deal to purchase).
- They guess the share price could reach $350.
Important: Even though there are rumors about delays, NVIDIA itself says its Kyber platform is not delayed. A major bank still gives it a thumbs-up with a $350 price target.
Why Jim Cramer Still Likes NVIDIA
Cramer has kept supporting NVIDIA even though its stock has been a bit "lackluster" (not exciting) in 2026. He believes the company’s multiple is too low.
What is a "multiple" (ELI5)?
Imagine a lemonade stand earns $1 per cup. If someone pays $20 to buy the whole stand, that’s a 20× multiple. In stocks, it’s the price investors pay compared to what the company earns per share. Cramer thinks people are pricing NVIDIA too cheaply, like they would price a boring old factory.
He said this (we keep his exact words):
"I haven’t heard you say that NVIDIA is the great source of funds. . .this Kyber delay, what’s changed, what it means, what happened. You know Semi Analysis does pretty good work, saying that everything could be late for NVIDIA because one particular part of their business is late. And, this is I think, eventually [inaudible] filters out, going to, I think, incorrectly hit NVIDIA because I can’t even prove the story. But Carl, there are so many long knives out for NVIDIA that at a certain point we have to say does it really deserve the same multiple as a chemical company. Doesn’t it have more upside value?"
In kid-friendly language:
- Cramer is puzzled why people treat NVIDIA as just a cash machine to pull money from.
- He mentions a research group (Semi Analysis) that said things could be late because one piece of NVIDIA’s business is late, but Cramer says he can’t even prove that story is true.
- He feels many people ("long knives") want to hurt NVIDIA’s stock price.
- He asks: should NVIDIA be valued like a plain chemical company? No, it should have more room to grow!
A Quick Note on the Picture
The original article included an image with this description: "NVIDIA Corporation (NVDA) Is A Top AI Stock In D. E. Shaw’s Holdings".
(D. E. Shaw is a big investing company that owns a lot of NVDA.) The image alt-text also hinted that Cramer was left scratching his head about NVDA’s shares.
But Maybe Other AI Stocks Are Better?
While Insider Monkey agrees NVIDIA has potential, they believe certain other AI stocks might offer:
- Greater upside potential (more room to grow)
- Less downside risk (less chance to lose money)
If you are hunting for an extremely undervalued AI stock that could also win from:
- Trump-era tariffs (taxes on things brought from other countries)
- The onshoring trend (companies moving manufacturing back to the U.S.)
You can check out their free report on the best short-term AI stock.
Want to Read More?
Here are the next articles suggested by the original piece (numbered for easy clicking):
Disclosure and Keeping Up
- Disclosure: None. (That means the writers have no hidden money interests in the stocks they talked about.)
- You can Follow Insider Monkey on Google News to get more updates: Follow Insider Monkey on Google News
Summary
To wrap it up in a nutshell:
- NVIDIA (NVDA) was discussed by Jim Cramer in a previous article about AI chip stocks.
- There are rumors of delays for its next chips, but NVIDIA says the Kyber platform is not delayed.
- Its stock is up 25% over the past year and 8% this year; Bank of America says Buy with $350 target.
- Cramer thinks the stock is priced too cheaply and many people unfairly want it to fail.
- Some experts suggest looking at other AI stocks with even better potential and less risk.
- Extra reading links and a disclaimer are provided.
FAQ (Simple Questions & Answers)
Q1: What is NVIDIA (NVDA)?
A: It’s a company that makes special computer chips (tiny brains) that help run AI (smart computer programs). You can buy a small ownership piece called a share on the stock market under the ticker NVDA.
Q2: What does “Kyber delay” mean?
A: Kyber is a platform (a set of tech products) from NVIDIA. Some news said it would be late, but NVIDIA says that’s not true.
Q3: Why does Jim Cramer think NVIDIA is a good buy?
A: He thinks its “multiple” (price compared to earnings) is too low—meaning the stock is cheaper than it should be for a growing tech company, and he sees many people wrongly betting against it.
Q4: What is a “Buy” rating from Bank of America?
A: It’s like a big bank saying: “We think this stock is a good deal and you should consider purchasing it.” They also gave a guess of $350 per share as a future price.
Q5: Are there other AI stocks to consider?
A: Yes, Insider Monkey mentions some AI stocks might have more upside and less risk than NVDA, and they offer a free report on a short-term AI stock that benefits from tariffs and onshoring.
