Jim Cramer, host of Mad Money and former hedge fund manager, is known for his bold financial takes. As one of the most influential voices in the market, Cramer has both fans and critics who follow his commentary closely.
Recently, Cramer turned his attention to Nvidia (NASDAQ: NVDA), a company he’s supported in the past—going so far as to name his dog after the semiconductor giant.
In a January 28 post on X (formerly Twitter), Cramer advised caution, stating it was still “too early to buy” Nvidia stock. He warned that more sellers needed to be “cleared out” and that no significant market crescendo had occurred yet, urging investors to avoid taking long positions at higher prices.
“Nvidia, trying to make a stand here… I think it is still too early to buy. Have to clean out more sellers… no real crescendo… Let the sellers sell. Don’t take them out at higher prices,” Cramer posted.
At the time of his post, Nvidia stock was trading at $120.06. However, just two hours later, NVDA shares had already climbed by 5.14%, defying his cautious outlook.
Cramer on $NVDA: “It is still too early to buy”
*Two hours later*$NVDA 📈 +5.14% pic.twitter.com/H2XzXEt8Ob
— TrendSpider (@TrendSpider) January 28, 2025
Nvidia’s market moves
Despite Cramer’s warning, Nvidia shares surged. On Tuesday, Nvidia closed at $128.86, marking an 8.82% gain for the day. By Wednesday, January 29, in the pre-market session, Nvidia was trading at $129.47 with continued upward momentum and renewed investor confidence.
For those who invested $1,000 in Nvidia at the time of Cramer’s “too early to buy” post, the gains have been swift. At a price of $120.06, an investor would have acquired approximately 8.33 shares of Nvidia. At the current price of $129.47, those shares would now be worth $1,078.16, representing a 7.82% increase in less than 24 hours—translating to a profit of $78.16.
NVDA a tale of market volatility
The former hedge fund manager’s cautionary stance may have been influenced by Nvidia’s recent history of volatility. On January 22, just days earlier, he tweeted, “Nvidia could be breaking out,” leading some to speculate he had turned bullish.
Nvidia’s stock, which has been roughly flat since June of last year, could be breaking out IF there is so much enthusiasm for what we knew would happen in the data center world plus what we talked about last night on @MadMoneyOnCNBC
— Jim Cramer (@jimcramer) January 22, 2025
Yet, Nvidia subsequently experienced a dramatic downturn, shedding 17% in value and losing $630 billion in market capitalization on January 27—the single largest market cap loss in its history.
Given this context, Cramer’s latest warning about Nvidia’s susceptibility to further selling pressure seemed rooted in risk aversion. However, the market’s immediate rebound suggests robust demand for the stock, even amidst heightened volatility.
Featured image via Shutterstock
