One of the most recognizable voices and notorious voices in finance today, known for his numerous high-profile blunders, Jim Cramer took to social media platform X and dubbed Nvidia pre-market buyers ‘a bunch of clowns’ in a March 5 post.
While this might seem like a sudden reversal of Cramer’s noted bullishness on Nvidia stock, first impressions can be deceiving. The eccentric voice of Mad Money was seemingly frustrated with traders who were bullish on NVDA shares before the market opened but then lost confidence and started selling as he claimed they were ‘giving up the ghost,’ during pre-market trading.
Jim Cramer believes Nvidia’s correction isn’t over yet
Has Cramer finally turned bearish on the semiconductor giant? No, but the retired fund manager does believe that Nvidia stock will see further drops in price. Cramer has been quite vocal about his opinion that the chipmaker’s shareholder base is weak.
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To put it in simple terms, the Mad Money host believes that too many investors have piled in on Nvidia stock without a solid understanding of what the company does or how it operates. Per Cramer, such investors only know that NVDA is a hot stock — and at the first sign of trouble, they sell, causing a drop in share price that isn’t necessarily based on…well, anything but panic.
Ultimately, Jim Cramer’s point is rather simple — investors should wait for panic selling to reach a conclusion, and initiate long positions at prices more favorable than current ones.
Nvidia stock analysis
At press time, Nvidia stock (NASDAQ: NVDA) was trading at a price of $116.86, after closing at $115.99 on the previous day. This latest move has brought NVDA shares back into the green on the monthly chart, where it currently marks a modest 0.17% gain. On a year-to-date (YTD) basis, the stock is still down 12.92%.
As covered by Finbold, technical analysis points to a potential drop to levels between $95 and $70. Although the drop might come to a halt before such a significant pullback, there’s still a strong case to be made for exercising patience.
Finally, readers should note that both Jim Cramer, the authors of the technical analysis we mentioned, and Wall Street researchers in general, remain bullish on NVDA — all of the aforementioned expect that the drop will be temporary.
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