Jim Cramer and NVIDIA: What’s Up with the AI Chip Giant?

Recap: Our Previous Article

• We recently published an article titled Jim Cramer Insisted Recent AI Chip Selloff Wasn’t A Bottom & Discussed These 17 Stocks.
• NVIDIA Corp. (trading on the NASDAQ stock market under the ticker NVDA) was one of the 17 stocks Jim Cramer talked about.

Why NVIDIA Is Making Headlines

NVIDIA is a massive company that makes the "brains" (called AI chips) for artificial intelligence. Here’s the simple timeline of recent news:

1. Stories came out saying NVIDIA’s next-generation AI chips might be delayed (meaning they’d arrive later than planned).
2. NVIDIA said the rumors about its Kyber platform (a specific product/project) being delayed are not true – they denied it.
3. On July 8th, a big bank called Bank of America shared its opinion:
   • They said "Buy" (meaning they think it’s a good stock to own).
   • They set a target price of $350 per share (they guess the price could reach that).
4. Despite some boring stock movement in 2026, famous commentator Jim Cramer keeps supporting the company.

Quick stats on the stock price:

• Up 25% over the past year (if you owned a slice a year ago, it’s worth a quarter more now).
• Up 8% since the start of this year (called "year-to-date" or YTD).

Callout – Important Points:

• NVIDIA denies any Kyber delay.
• Bank of America says "Buy" with $350 target.
• Shares are up 25% in a year, 8% this year.

Jim Cramer’s Thoughts (ELI5 Style)

Jim Cramer is a TV guy who gives stock opinions. Even though NVDA’s shares have been a bit "lackluster" (flat/boring) in 2026, he still likes the company. He believes the stock’s multiple is too low.

ELI5: The "multiple" is like a popularity score – how much investors pay for each $1 the company earns. Cramer thinks people are pricing NVIDIA like a slow old tractor when it’s actually a race car.

Here is his direct quote (we kept the original meaning, including a spot he couldn’t hear clearly):

"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?"

Breaking Down the Quote for a 5-Year-Old

• He wonders why people aren’t calling NVIDIA a money-maker.
• A research group (Semi Analysis) said NVIDIA’s stuff might be late because one piece is late.
• He thinks this rumor might unfairly hurt NVIDIA’s stock, even though he can’t prove the rumor is real.
• He says many critics ("long knives") want to attack NVIDIA.
• He asks: Should we value NVIDIA like a slow chemical factory? Or does it have more room to grow?

Picture and a Fun Fact

Caption from original: NVIDIA Corporation (NVDA) Is A Top AI Stock In D. E. Shaw’s Holdings

• Fun Fact: D. E. Shaw is a big smart-money investment firm (like a hedge fund). They hold NVDA as one of their top AI stocks.

Our Opinion: Other AI Stocks Might Be Better Bets

While we agree NVIDIA has potential, we believe certain other AI stocks could:

• Offer greater upside potential (more room to grow).
• Carry less downside risk (less chance of losing money).

If you want an AI stock that is:

• Extremely cheap compared to its true value (undervalued).
• Positioned to win from Trump-era tariffs (taxes on foreign goods) and the onshoring trend (companies moving factories back home).

Then check out our free report on the best short-term AI stock.

More Articles to Read

• READ NEXT: 33 Stocks That Should Double in 3 Years
• AND: Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy

Disclosure and Follow Us

• Disclosure: None (we don’t have hidden stakes).
• Follow: Follow Insider Monkey on Google News for more updates.

Summary

Let’s wrap it up simply:

• NVIDIA (NVDA) was among 17 stocks Jim Cramer discussed in an earlier article.
• Rumors said its next-gen AI chips and Kyber platform were delayed; NVIDIA denies Kyber delay.
• Its stock is up 25% over a year and 8% this year.
• Bank of America gave a "Buy" rating and $350 target on July 8.
• Cramer defends NVDA, saying its valuation (multiple) is too low versus its growth potential.
• D. E. Shaw holds NVDA as a top AI stock.
• Insider Monkey notes other AI stocks may have better risk/reward and offers a free report.
• Extra reading lists and a disclosure of no conflict are provided.

FAQ

Q1: What is a "Buy" rating from a bank?
A: It’s like a thumbs-up from a financial expert suggesting the stock may rise in price, so it could be a good purchase.

Q2: What does "multiple" mean in kid terms?
A: It’s a number showing how much people pay for each dollar a company makes. A low multiple means the stock might be cheap; Cramer thinks NVIDIA’s multiple is too small for such an exciting company.

Q3: What is the Kyber platform?
A: It’s a specific NVIDIA product or tech initiative that some news said was delayed, but the company says that’s false.

Q4: Who is D. E. Shaw?
A: A large investment company (hedge fund) that manages lots of money; they own NVDA as one of their favorite AI stocks.

Q5: What does "onshoring" mean and why care?
A: Onshoring is when companies bring manufacturing back to their home country. Some AI stocks could benefit from this and from tariffs, making them potentially good short-term buys.