Is Jim Cramer Right About NVIDIA as Stock Price Fails to React to $500B Investment Plan?
Highlights
- Jim Cramer labelled NVIDIA as meme stock as its price remains bearish.
- NVIDIA has allocated $500b to develop US AI infrastructure, but investors' optimism remains low.
- Expert supports Cramer's meme stock tag as it's moving towards a bigger downtrend, but the long-term outlook is bullish.
NVIDIA (NVDA) has allocated $500 billion for US AI investment, but Jim Cramer cites it as the meme stock. Surprisingly, the NVIDIA stock price failed to react to this bullish news, showcasing investors’ declining interest in the asset. Although the Trump tariff fear is persistent, experts fear Cramer’s take might be true for this AI company.
JIM Cramer Calls NVIDIA ‘Meme Stock’ After Price Struggles
NVIDIA has announced a $500 billion investment in the US AI sector over the next four years. The GPU manufacturing company aims to strengthen the country’s AI infrastructure and reduce reliance on international supply chains.
Interestingly, this decision comes following Donald Trump’s tariff introduction on US imports. Although this is bullish news as it will create thousands of jobs in America, the investors remained less optimistic.
The NVIDIA stock price rose barely 3% with the $500 billion investment news before losing momentum. It currently trades at $110.71 and has crashed significantly with Trump’s tariff affecting the stock market.
Considering the NVDA’s performance struggle, Jim Cramer has called it a meme stock. In the recent CNBC post, Cramer revealed his top stock picks to buy but also targeted Apple, NVIDIA, and a few other companies for poor share performance.
The post mentioned that Cramer believes NVDA had become a meme before saying that he didn’t own meme stock. Again, he commented on NVIDIA’s failure to rise with the $500 billion announcement, adding that it should have broken out, but it did not as the meme crowd controls it.
Yesterday the “Chinese” stocks did quite well. They aren’t supposed to be. Yesterday Nvidia should have broken out, but it is being so seriously controlled by the meme crowd that it couldn’t rally.
Is Jim Cramer Right About NVIDIA Stock?
NVIDIA stock had a slower start and struggled with its price performance for years before the AI industry began to boom. After that, the stock grew higher and higher, setting its prime at $149.43 at the beginning of the year.
Considering the broader picture, NVDA’s meme stock stage seems momentary, as it is struggling just like the rest of the crypto stock prices. More importantly, it has the potential to rise amid the growing demand for the artificial intelligence system.
Notably, Trump’s tariff could influence its performance negatively. Additionally, few analysts believe that the NVIDIA price crash is imminent, but the long-term bullish outlook remains persistent.
Beasides, if Jim Cramer’s Cramer index is considered, this could be a buying opportunity, where the stocks he derogate performance wells.
Frequently Asked Questions (FAQs)
1. Why is NVIDIA stock price down?
2. Is Jim Cramer's meme stock tag true for NVIDIA?
3. Will NVIDIA stock price crash next?
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