Nvidia Shares Fall 2% on Tuesday; Cramer Says Chipmaker Still Central to AI Boom

According to CNBC's Jim Cramer on Tuesday (July 6), Nvidia shares fell about 2 percent, reaching their lowest valuation of the year at around 19 times forward earnings, despite the chipmaker remaining central to the artificial intelligence boom. Cramer argued that recent selling of Nvidia stock has become overdone, noting that while some major customers are developing their own AI processors, they continue to rely on Nvidia's technology.

Skepticism about Nvidia has been fueled by a SemiAnalysis report raising concerns about potential delays in the company's next-generation Kyber server system, Reuters reported. Nvidia disputed the report, stating its roadmap remains intact. Cramer maintained that Nvidia's leadership position in AI infrastructure remains under no threat.