Jim Cramer has publicly backed NVIDIA despite recent reports of delays to the company's next-generation Kyber platform chips—which NVIDIA itself has denied. Cramer contends that the market has been overly skeptical of NVIDIA and that its valuation multiple does not reflect its true growth prospects, questioning whether it deserves the same discount applied to slower industries.
Summaries like this, in your inbox every morning.
Sign up free →What happened
NVIDIA has faced reports of delays to its next-generation Kyber platform AI chips, though the company has denied the claims. Jim Cramer, a notable market commentator, has continued to support the firm despite its shares remaining lackluster in 2026, up 8% year-to-date.
Why it matters
Cramer argues that NVIDIA's valuation multiple may be too conservative relative to its growth potential and competitive moat. He suggests market skepticism about the company—what he calls "so many long knives out for NVIDIA"—may be overblown, since he believes the alleged delays do not merit the same valuation discount applied to slower-growth sectors like chemicals.
What to watch
Bank of America reiterated a Buy rating and a $350 share price target on July 8th. The near-term focus remains whether any chip-delay claims materialize and how they might affect investor sentiment.
NVIDIA has become the subject of intense market scrutiny, with reports of delays to its next-generation Kyber platform threatening to undermine investor confidence. Cramer's public backing of the company underscores a broader debate: whether the market's skepticism about potential execution risks is warranted or whether it has overcorrected. According to Cramer, the issue stems partly from uncertainty about what the delays actually mean for NVIDIA's broader business—Semi Analysis, a research firm, has suggested that delays in one part of NVIDIA's business could cascade across the company, yet Cramer contends this narrative lacks sufficient proof.
Cramer's core argument hinges on valuation relativism: he questions why NVIDIA should trade at a lower multiple than it commands when its growth trajectory and strategic importance in AI infrastructure arguably justify a premium. His framing—"does it really deserve the same multiple as a chemical company"—reflects his belief that market participants have lost sight of NVIDIA's fundamental competitive advantages. The company's shares have risen 25% over the past year but remain relatively flat year-to-date in 2026, suggesting investor hesitation. Bank of America's continued Buy rating and $350 price target provide some institutional counterweight to the negative sentiment, though the gap between current levels and that target is not specified in available reporting.
No comments yet. Be the first to share your thoughts!
Log in to join the discussion
Get curated AI news from 200+ sources delivered daily to your inbox. Free to use.
Get Started FreeFree · takes 30 seconds · unsubscribe anytime
1 minute a day. The AI essentials.
200+ sources · Email / LINE / Slack
