Jim Cramer, the electrifying yet controversial host of Mad Money and former hedge fund manager, seems to have had a change of heart when it comes to Nvidia (NASDAQ: NVDA).
Cramer, who has been singing the praises of the semiconductor giant for quite a while now, disparaged Nvidia as a ‘meme stock’ in an April 16 X post.
“As I said in my painful Sunday think piece for club members, Nvidia has become a meme stock and it has to be cut back.. Don’t say thanks for telling me now cause club members got the whole call.”
Let’s take a closer look at what exactly is going on — and whether or not the popular TV host has really turned bearish on NVDA stock.
Jim Cramer believes Nvidia has been trading irrationally for weeks
On April 15, NVDA shares closed at $112.20, after a 1.35% move to the upside during regular trading. Soon after, the White House announced that the export of H20 chips to China would be restricted.
This could easily lead to a $5.5 billion writedown in the semiconductor company’s next quarterly report, due May 28. The price of Nvidia stock receded, reaching $105.45 by press time on April 16, marking a 6.01% drop from yesterday’s close.
At present, NVDA shares are down 21.48% on a year-to-date (YTD) basis.
Cramer’s long-term bullishness on the tech giant, echoed by a majority of Wall Street analysts, doesn’t seem to have subsided. However, as of late, he has repeatedly blasted both short sellers and overeager pre-market buyers.
Jim Cramer has, essentially, criticized both bulls and bears quite a lot in the past few weeks, deriding their decisions as FOMO, hype, or mistiming. Moreover, the former hedge fund manager has gone as far as to claim that the price of Nvidia stock is being manipulated through the use of zero-day options contracts.
While we will no doubt hear more regarding Nvidia from the Mad Money host, at present, it appears as if he has taken issue with the volatility surrounding the stock — not necessarily its long-term growth prospects.
Featured image via Shutterstock
