- Nvidia (NVDA) dropped 5.74% to $113.76 and 1.34% more to $112.23 in after-hours trading on Wednesday, leading CNBC’s Jim Cramer to warn of continued “turbulence” as its “death cross” signals potential further declines.
- The tech sector faltered with the Dow Jones (^DJI) down 0.31%, S&P 500 (^GSPC) off 1.12%, and Nasdaq (^IXIC) shedding 2.04%, hit by Nvidia’s slide alongside Meta, Amazon, Alphabet, and Tesla, amid tariff uncertainties and past competition from DeepSeek, which cost Nvidia $600 billion in January.
- Cramer remains bullish on Nvidia’s role in an AI industrial revolution, urging investors to hold despite volatility, predicting that clarity on Nvidia’s path will eventually stabilize it and related stocks.
Nvidia (NVDA) took a significant hit on Wednesday, closing down 5.74% at $113.76 and slipping further in after-hours trading by 1.34% to $112.23, prompting CNBC’s Jim Cramer to warn investors of potential ongoing turbulence in the artificial intelligence darling. Cramer, assessing the broader tech sector’s decline, described Nvidia as the “linchpin” of the group, noting that its faltering – evidenced by a recent “death cross” where the 50-day moving average fell below the 200-day average – could signal more trouble ahead, a pattern he called “widely seen as a terrifying development.” The market’s unease was palpable as the Dow Jones Industrial Average (^DJI) dropped 0.31%, the S&P 500 (^GSPC) fell 1.12%, and the tech-heavy Nasdaq Composite (^IXIC) shed 2.04%, with Nvidia’s losses dragging down peers like Meta (META), Amazon (AMZN), Alphabet (GOOG, GOOGL), and Tesla (TSLA) amid anticipation of new tariff orders from President Donald Trump.
Despite Nvidia’s commanding presence in the market throughout much of last year, its momentum has faltered in recent months, a shift underscored by a staggering $600 billion one-day loss in January – the largest in U.S. history – driven by investor concerns over emerging competition from Chinese AI startup DeepSeek. Cramer, a long-time believer in Nvidia’s potential, remains steadfast in his conviction, asserting that the company’s semiconductors are poised to fuel an AI-driven industrial revolution, even as Wall Street grapples with fears of an AI bust. He advised investors who still favor the stock to brace for volatility, suggesting that owning Nvidia requires resilience through what he termed the “turbulence” of its current trajectory.
The broader context of Wednesday’s declines reflects a market at a crossroads, with Nvidia’s stumbles rippling across the tech landscape after three days of gains were erased. Cramer expressed hope for eventual clarity, stating, “One day…we’re going to get some certainty on Nvidia,” which he believes will illuminate the fate of numerous related stocks. His outlook blends caution with optimism, acknowledging the stock’s critical role in AI’s future while recognizing the immediate challenges posed by competitive pressures and technical indicators like the “death cross,” leaving investors to weigh Nvidia’s long-term promise against its near-term uncertainties.
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