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Jim Cramer says Nvidia shares are the cheapest they have been in about a decade, after a sharp fall in the stock. The valuation argument comes with an important asterisk: it depends on earnings estimates that assume the AI-chip growth story keeps delivering.

Yahoo Finance reports that Nvidia shares were down 22% over the past month, while analysts’ estimates put the shares at roughly 12 times next year’s earnings and 20 times this year’s. The same report notes that Nvidia’s latest quarter brought in $96.22 billion in revenue, including $89.02 billion from data centres. That makes this more than a price-chart squabble: investors are weighing the scale of Nvidia’s AI business against concerns including falling margins and hefty supply commitments. Cramer’s “cheap” is an investment opinion, not a promise that the shares have found a floor.

Discuss: Does Nvidia’s AI growth make today’s lower valuation look like an opportunity, or are investors right to worry that the growth expectations are too high?

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