On March 14, 2024, servers equipped with NVIDIA H100 chips were seen in a data center in New Mumbai, India. This enterprise purchased NVIDIA chips in bulk to provide AI computing services in India.

Market commentator Jim Kramer stated on Tuesday that, despite growing bearish sentiment among investors towards NVIDIA, the chip giant remains the central pillar of the ongoing artificial intelligence boom.

Kramer remarked on his show "Squawk on the Street": "All the main market narratives still revolve around NVIDIA."

NVIDIA shares fell by about 2% at one point during Tuesday's session, extending a recent period of weakness and significantly narrowing its year-to-date gains. The stock's forward price-to-earnings ratio has now dropped to its lowest point this year, standing below 19 times earnings. Kramer believes the market selling has been excessive.

"Right now, no one is bullish on NVIDIA," he said. "But I cannot agree with the notion that NVIDIA has lost its central position in the industry."

Kramer analyzed that while many of NVIDIA's major customers complain about its high chip prices and are developing their own AI processors—with Reuters reporting Tuesday morning that China's DeepSeek is the latest company to enter the self-developed AI chip arena—they will still remain reliant on NVIDIA's technology ecosystem in the near term.

Adding to market concerns, industry analysis firm SemiAnalysis recently published a report suggesting potential delays in the delivery of NVIDIA's next-generation Kyber full-rack server system. NVIDIA subsequently refuted this, stating that its product roadmap and technology plans remain unchanged.

Kramer also noted that NVIDIA stock has become a "source of cash" for investors, with many selling their shares to raise funds for investments in other tech opportunities, such as buying into SpaceX ahead of its potential inclusion in the Nasdaq 100 index.

Despite these multiple headwinds, Kramer maintains that NVIDIA's industry-leading position is not under any substantive threat.

"At the moment, I see no evidence to suggest that NVIDIA will be dethroned from its number one spot," he concluded.