Cramer backs NVIDIA despite stock being 'stuck'

Jim Cramer, the CNBC television host, continues to defend NVIDIA as one of the top companies in the world, even as he expresses frustration with the stock's recent trading behavior. NVIDIA's shares have appreciated 28% over the past year and 11.7% year-to-date, yet Cramer believes they remain underperforming relative to the company's fundamentals and its peers. In recent commentary, he lamented that the stock is simply 'stuck,' noting that despite momentary rallies, it fails to sustain momentum: 'once again NVIDIA was up a dollar, people thought that it was going to trade with the Sandisks of the world, and it's going back and it's trading with its own world. Just stuck.'

Cramer's skepticism extends to the stock's valuation relative to competitors like SanDisk, which have benefited from completed major deals (the Hynix transaction). In a tweet, he questioned why NVIDIA could not achieve a similar run, suggesting that the stock may be held back by perception rather than operational reality. Financial support for the company's position comes from TD Cowen, which reiterated a Buy rating and a $275 share price target on July 2nd. The analyst firm emphasized that NVIDIA's integration of hardware and software represents a key competitive advantage as the artificial intelligence industry enters its next phase.

Baron Opportunity Fund's Q1 2026 investor letter echoes the case for NVIDIA's dominance, stating that the company 'remains the dominant platform for AI training and inference' and 'the leading merchant platform for bringing AI to the world.' The letter noted that at its GTC event, NVIDIA unveiled a diversified product roadmap, including Vera CPU-only servers for agentic workloads and an expanded inference strategy, demonstrating organizational agility. Despite this endorsement, the letter also acknowledged that 'certain AI stocks offer greater upside potential and carry less downside risk,' reflecting broader market sentiment that NVIDIA, while fundamentally strong, may have limited near-term appreciation relative to less mature competitors.

Jim Cramer's continued support for NVIDIA reflects the broader tension in AI investing: strong fundamentals versus stock market momentum. The article presents NVIDIA as the dominant platform for AI training and inference, with a long runway driven by enterprise adoption, yet the stock has stalled relative to peers. TD Cowen's reiteration of a Buy rating and $275 target on July 2nd suggests confidence in the company's strategic positioning, particularly its hardware-software integration that analysts view as a competitive moat.

However, the article hints at investor skepticism about NVIDIA's valuation and near-term performance. Cramer's complaint that the stock is 'stuck' and his tweet comparing it unfavorably to SanDisk (which has gained momentum since the conclusion of the Hynix deal) underscores a key concern: at current levels, some market participants believe other AI stocks offer better upside with less risk. Baron Opportunity Fund's Q1 2026 letter acknowledges NVIDIA's dominance while explicitly stating that 'certain AI stocks offer greater upside potential and carry less downside risk.' This suggests that while NVIDIA's competitive position remains intact, market sentiment has shifted toward seeking value elsewhere in the AI sector.

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