The outspoken host of CNBC’s Mad Money, Jim Cramer, has issued a warning to investors about the persistent pessimism surrounding Nvidia (NASDAQ: NVDA).
Following a strong rally on Wednesday, January 22, where NVDA stock climbed 4.43% to close at $147.07, Cramer took to X to caution investors about the tactics of Nvidia skeptics.
The uptick further solidified Nvidia’s position as the world’s most valuable company, with a valuation surpassing $3.6 trillion, dethroning Apple once again. However, pre-market trading on Thursday, January 23, revealed renewed selling pressure, with the stock down 1.89% at $144.29, hinting at continued volatility.
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Cramer called out Nvidia critics who, in his words, are “legion,” highlighting an emerging bearish narrative tied to SK Hynix, a South Korean chipmaker known for its high-bandwidth memory products.
“Be prepared, the Nvidia bears–and they are legion–will use the decline of the stock of SK Hynix, the Korean high bandwidth chip maker, as an analogue to take down Nvidia. But the analogy is faulty. Other parts of Hynix were weak—just like when Micron reported and hurt Nvidia,” Cramer tweeted.
Cramer’s take on Nvidia bears
The broader implication of his comments is clear: Cramer believes Nvidia’s detractors are drawing unfair comparisons to other semiconductor companies facing challenges unrelated to Nvidia’s core business. Both Micron and SK Hynix have recently reported weaker performance in areas like DRAM and NAND flash, segments that do not directly correlate with Nvidia’s dominance in AI and GPU technology.
By conflating these struggles with Nvidia’s prospects, bears could fuel unwarranted pessimism around the stock.
Finally, in a separate tweet today, Cramer commented on reports that China aims to “properly manage differences” with the U.S. on trade, suggesting this is good news for Nvidia. He emphasized China’s dependence on Nvidia’s cutting-edge chips, remarking:
“They want Nvidia’s chips. They need them….”
This geopolitical backdrop could serve as a tailwind for Nvidia, as its chips play a critical role in powering AI and advanced technologies, a sector in high demand globally.
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