CNBC's Jim Cramer is bucking the bearish sentiment on Nvidia, calling Tuesday's stock slide to near three-month lows an overreaction and prime buying opportunity. While the AI chip giant's shares tumbled amid broader market jitters, Cramer argues the fundamentals remain rock-solid and investors are missing the bigger picture on AI infrastructure demand.
Nvidia just hit a wall, and Jim Cramer thinks that's exactly when you should be buying. The CNBC host came out swinging Tuesday as the AI chipmaker's stock sank to levels not seen since late August, calling the selloff misguided and the company "slighted" by nervous investors.
"I think Nvidia has been slighted here," Cramer told viewers during Tuesday's trading session, according to CNBC's coverage. The contrarian call comes as Nvidia shares touched their lowest point in nearly three months, dragged down by broader tech sector weakness and profit-taking after the stock's meteoric run earlier this year.
Cramer's timing couldn't be more provocative. While other analysts point to potential headwinds like China trade tensions and increased competition from AMD and Intel, the Mad Money host sees temporary noise masking a company that's still dominating the AI revolution. Nvidia controls roughly 80% of the AI training chip market, a position that's generated massive revenue growth and profit margins that make other semiconductor companies envious.
The stock's recent slide reflects broader investor jitters about AI spending sustainability and whether the current boom can maintain its pace. Microsoft, Google, and Amazon have poured billions into AI infrastructure, much of it flowing directly to Nvidia's coffers through massive GPU orders. But some investors are questioning whether this capital expenditure cycle has peaked.
That's where Cramer's contrarian instincts kick in. The longtime market watcher has built his reputation on spotting opportunities when sentiment turns too negative too fast. His bullish call on Nvidia suggests he sees the current weakness as temporary, driven more by portfolio rebalancing and macro concerns than fundamental deterioration in the company's business.
The timing is particularly interesting given Nvidia's recent quarterly results, which showed continued strength in data center revenue despite some moderation in growth rates. The company's guidance remained robust, with management expressing confidence in sustained AI demand across enterprise customers and cloud providers. Enterprise adoption of AI tools is still in early innings, according to industry analysts, suggesting 's addressable market continues expanding.
