NVIDIA Stock Faces Turbulence Ahead of Earnings Report

Jim Cramer continues to champion NVIDIA (NVDA) amid mixed market sentiments surrounding AI stocks, particularly following a recent selloff attributed to the AI GPU firm DeepSeek. Although concerns linger about NVIDIA's upcoming earnings report, Wall Street remains optimistic about the company's potential to benefit from a global AI infrastructure buildout, with significant capital expenditure increases from major tech players like Amazon and Meta. Cramer argues that NVIDIA is undervalued compared to peers, suggesting it trades at a lower price-to-earnings ratio than many other AI stocks. Despite minor downgrades in future earnings estimates, the overall long-term demand for AI GPUs is expected to remain strong, supported by the ongoing investment in AI technologies. Additionally, Cramer emphasizes that early investors in the AI space could capitalize on unprecedented growth opportunities, reminiscent of the internet boom. The influx of talent into AI further promises rapid advancements and innovation in the sector.