Nvidia stock (NVDA) has been rattled by a wave of fear-driven selling, but CNBC’s Jim Cramer says investors are misreading both the moment and the company. On Tuesday’s Mad Money, Cramer pushed back against the rush to dump Nvidia and other AI names, telling viewers that the current slump says more about investor psychology than it does about the chip maker’s long-term prospects.
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“You either believe in artificial intelligence or you should just stay away,” Cramer said. This line set the tone for the segment, which called the recent volatility a stress test for conviction, and not a sign that Nvidia’s leadership in AI hardware is fading. Shares have been under pressure as investors digest reports that Alphabet (GOOGL) and Meta (META) are exploring alternative AI chips, including designs built with Broadcom. These headlines followed a strong Nvidia earnings report that nevertheless sent the stock tumbling into the mid-$180s.
Cramer Challenges Investors to Stop Treating Selloffs like Fire Alarms
Cramer argued that too many investors approach markets like a “zero-sum fear game,” buying only after rallies and selling on any weakness. In his view, that behavior has cost people some of the biggest gains of the past decade. He pointed to the Magnificent Seven as proof that patience, not panic, is the trait that separates winners from spectators.
He added a personal admission meant to reinforce the point. Selling Alphabet too early, he said, remains one of his regrets, because the stock doubled after he exited. His warning for Nvidia’s doubters is to not repeat that mistake by bailing on a company that continues to dominate its core market.
“If you don’t like Nvidia, you don’t have to own it. Nobody’s putting a gun to your head,” Cramer said. “Don’t let the door hit you on the way out.”
Cramer Frames Nvidia’s Setback as a Familiar Turning Point
Cramer compared Nvidia’s moment of doubt to Tesla’s (TSLA) past struggles. When competition in electric vehicles intensified, Tesla did not fundamentally change, yet the narrative did. As attention shifted toward self-driving and robotics, the stock recovered sharply. For Cramer, Nvidia is entering a similar phase, where headlines obscure underlying strength.
He acknowledged that Alphabet (GOOGL) and Meta (META) are exploring alternatives is a real development, but not one that rewrites Nvidia’s long-term trajectory. Demand across AI infrastructure remains immense, and Nvidia’s position at the center of that spending has not meaningfully weakened.
Cramer’s final message was that AI stocks require belief. Investors who lack it should not be surprised when they get shaken out.
Is Nvidia a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, one Hold, and one Sell assigned in the past three months. Further, the average 12-month NVDA price target of $257.72 per share implies 42.54% upside potential.
