While reacting to the latest Nvidia (NASDAQ: NVDA) turmoil, the popular TV host and former hedge fund manager, Jim Cramer, appears to have estimated that one of the factors keeping the stock price elevated is the public stance of Wall Street analysts.
Specifically, he published an X post on the morning of Wednesday, November 11, in which he claimed that NVDA shares can only ‘bottom’ after the majority of institutional experts ‘cut and run’.
Within the same post, he called the Wall Street analysts who have already downgraded their assessment of the semiconductor giant the ‘early birds’ and described their actions as getting ‘out of the cage’.
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Jim Cramer reflects on Nvidia stock getting removed from Morgan Stanley top picks
Notably, some of the other X posts Jim Cramer published around the same time imply that, rather than merely assessing the situation, he was also highly critical of the experts that have turned less optimistic toward Nvidia stock.
For example, he explicitly referenced Morgan Stanley (NYSE: MS) removing NVDA from its list of top picks on Wednesday morning, though the exact meaning of his writing is somewhat difficult to gauge:
MS jumps ship as Nvidia tries to figure out a Nvidia that will help them. I offered it last night,. It will work
While it remains to be seen if the TV host’s cynicism toward Morgan Stanley’s latest decision is merited, its choice to reinstate the blue-chip chipmaker to its top picks list was undoubtedly ill-timed.
Indeed, Nvidia stock closed at $233.95 on October 2 – the day the decision was unveiled – and has declined 25% by press time.
Jim Cramer accuses Wall Street analysts of being ‘unshine patriots’
In a different post, Cramer appears to have described analysts considering a downgrade as ‘summer soldiers’ and ‘sunshine patriots’, apparently accusing them of being fair-weather friends.
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It is unclear if the posts imply that the former hedge fund manager believes that analysts should be loyal allies in helping companies keep their share prices elevated regardless of how their business is faring or of the scandals their executives involve themselves in.
Curiously, the post appears to be a sardonic call to Wall Street analysts that are yet to slash their NVDA stock price targets to do so, lest they ‘be the ones left behind’. He emphasized his point by ending the message by saying, ‘don’t let the door hit you on the way out.’
Notably, Nvidia shares have, so far, seen only two major downgrades despite the severity of allegations levied against CEO Jensen Huang.
On Monday, November 9, Aletheia Capital downgraded the firm to ‘Hold’ and kept the price target blank and on Wednesday, Baird offered the same recommendation and slashed the forecast from $500 to $200.
With Nvidia stock opening on November 11 at $173.32, the decreased price target still estimates a 15.39% rally is in the cards.
Featured image via Shutterstock
