NVIDIA Corporation (NVDA) Stock: Jim Cramer Defends GPU Maker as Essential AI Player

TLDR:

Table of Contents

NVIDIA shares briefly dropped below $90 but have rebounded to around $100
NVIDIA secured exemptions from Taiwan-related tariffs due to Arizona chip production plans
Jim Cramer continues to defend NVIDIA as a key AI player despite recent volatility
The stock is down 31.8% year-to-date despite its critical role in AI technology
First-quarter GB200 NV system shipments may be lower than projected, but analysts remain positive

NVIDIA Corporation (NVDA) stock has entered a period of significant volatility, with shares testing the $100 level after briefly dipping below $90. This comes amidst broader market concerns about trade tensions and tariff policies, though many Wall Street analysts remain optimistic about the company’s long-term prospects.

The chip giant’s stock has struggled in 2025, down 31.8% year-to-date according to recent reports. The stock lost 14.6% during a sharp market selloff on Thursday and Friday, before recovering some ground in Monday trading with a 3.5% gain.

Despite the recent turbulence, NVIDIA has secured a critical advantage over some competitors. CNBC’s Jim Cramer highlighted that NVIDIA has received exemptions from certain tariffs due to its plans to manufacture chips in Arizona.

“NVIDIA got exempted because they’re making chips in Arizona. That’s their plan. And because the President said they’re too important for AI,” Cramer explained during a recent broadcast.

Tariff Tensions

While semiconductors have generally been excluded from President Trump’s tariff plans, investors remain concerned about potential escalation in US-China trade tensions. Beijing has threatened further retaliation if Trump proceeds with his Monday threat to raise tariffs on Chinese goods by an additional 50%.

For NVIDIA, the primary concern is becoming entangled in these intensifying trade disputes. However, according to Bernstein analyst Stacy Rasgon, AI servers made in Mexico that incorporate NVIDIA’s chips appear to be exempt from Trump’s tariffs.

This partial insulation from trade friction may help explain why some Wall Street analysts maintain bullish outlooks. Rasgon reiterated an “outperform” rating on NVIDIA stock with a price target of $185.

Production Challenges

Beyond tariff concerns, NVIDIA faces near-term production challenges. KeyBanc analyst John Vinh noted that first-quarter shipments of the company’s multimillion-dollar GB200 NV liquid-cooled rack systems might have fallen short of expectations.

According to Vinh’s research note, based on checks of the Asian supply chain, NVIDIA may have shipped fewer than 1,000 of these systems against projections of around 2,000.

“While disappointing, we feel comfortable with our near-term estimates…and we ultimately believe these near-term issues are transient in nature. We’d recommend investors continue to own Nvidia,” Vinh wrote, maintaining an “Overweight” rating and $190 target price.

Analyst Optimism

Despite the production hiccups and market volatility, Wall Street’s stance on NVIDIA remains largely positive. The company continues to be viewed as a central player in the artificial intelligence ecosystem.

Jim Cramer has attributed some of NVIDIA’s stock price decline to zero-day options activity rather than fundamental business concerns. He continues to express confidence in the company’s position in technologies such as AI and robotics.

Investors’ current hesitation appears partly linked to uncertainty about whether the company’s GPU demand will materialize as expected. However, NVIDIA’s critical role in AI infrastructure development continues to underpin analyst optimism.

The company currently has the attention of 186 hedge fund holders as of Q4 2024, reflecting strong institutional interest despite recent price volatility.

Market observers note that NVIDIA shares rose 2.3% to $99.86 in Tuesday premarket trading, suggesting some stabilization after the recent turbulence.

Other chip makers have also shown signs of recovery, with Advanced Micro Devices rising 0.7% and Broadcom gaining 3.1% in after-hours trading Monday.

For investors watching NVIDIA, the key factors to monitor include the resolution of production challenges with the GB200 NV systems, developments in US-China trade relations, and the company’s ability to maintain its leadership position in the AI chip market.

While short-term volatility may persist, many analysts view current price levels as an opportunity given NVIDIA’s central position in the rapidly expanding AI computing market.

The stock’s performance in coming weeks will likely depend on broader market sentiment toward technology stocks, progress in resolving supply chain issues, and clarity on the international trade environment.

NVIDIA shares were trading at approximately $100 as of Tuesday morning, having recovered from their sub-$90 lows but still well below their 52-week highs.

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