Jim Cramer drops blunt call on Nvidia stock

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AI bellwether Nvidia’s (NVDA) stock has shed nearly $200 billion in market cap (4.71% drop) in just the past week, making it a fresh target for nervous traders.

It’s just the steep reversal that has everyone questioning whether the AI boom has hit a wall, but it’s also the kind of moment when Jim Cramer argues people have it all wrong.

Instead of what seems like a broken narrative, Cramer is seeing something that’s all too familiar.

In a recent episode of CNBC’s “Mad Money,” he argues that a cyclical fear wave struck the company, whose fundamentals haven’t really changed.

Cramer’s message is blunt: If you still believe in AI and Nvidia, he argues, this is a time to own, not panic, in potentially trading away a generational winner.

Cramer says the selloff is driven by fear, urging investors to “own, don’t trade” Nvidia.Photo by Steven Ferdman on Getty Images

Cramer argues that Nvidia’s latest slide has much less to do with the company’s quarterlies and more to do with how investors feel about it.

With every competitive headline, he feels investors are taking it as the end of Nvidia’s dominance. Those include Google-parent Alphabet shifting toward its own Broadcom-built chips, along with Meta Platforms sniffing around Google silicon.

Be that as it may, it doesn’t change what Nvidia just dished out.

Nvidia delivered another bang-up quarter, with the numbers showing it’s still central to the AI trade.

Revenue jumped to $57 billion in Q3, up 22% from Q2 and 62% year over year.
Data center sales alone surged to a whopping $51.2 billion, up 25% sequentially and 66% year over year.
Net income climbed to nearly $31.9 billion, with Nvidia guiding for roughly $65 billion in sales for the next quarter.

As Cramer put it, investors appear to be falling into the old pattern where emotion overrides discipline.

In one of his more blunt lines from the show, he said:

So, in essence, he feels that investors initially dumped and rationalized later, while repeating the same behavior patterns that had them missing out on “millions upon millions of dollars” in Mag 7 gains over the years.

Meta is reportedly in talks to invest billions in Google’s Tensor Processing Units (TPU), marking its biggest break yet from Nvidia’s GPU dominance.

According to Reuters (citing earlier reporting from The Information), Meta is set to start renting TPUs through Google Cloud as early as 2026, with dedicated TPU hardware expected to land on its own data centers by 2027.

For Google, this isn’t a one-off, as it’s positioning the deal to slice away nearly 10% of Nvidia’s annual AI-chip sales, a number with major Wall Street implications.

Google’s been running hot this year, defying broader-market jitters, with its stock up 91% in the past six months alone. It’s now marching toward the eye-popping $4 trillion mark, becoming the go-to Mag 7 bet.

A lot of it also has to do with Google’s incredible financial momentum.

Alphabet’s Q2 2025 sales skyrocketed 14% to $96.4 billion, spearheaded by Google Cloud, which surged 32% to $13.6 billion (a $50 billion annual run rate).

By Q3, Cloud notched up $15 billion, up 34%, led by AI infrastructure demand, stronger TPU adoption, and an eye-watering $49 billion sequential increase in backlog.

Additionally, Google’s pitch differs from Nvidia’s.

Unlike Nvidia, which focuses on the hardware stack, Google is selling a vertically integrated AI cloud stack.

Google’s custom TPUs are tailor-made for Gemini, rented through its Cloud service, and marketed as a significantly cheaper, secure, and easier-to-scale alternative.

The “Big Short” Michael Burry (famous for calling out the 2008 financial crisis) has Nvidia firmly in his cross-hairs.

Put simply, he feels Nvidia is a great company, but its stock price is factoring in a future that’s far too perfect.

In a paid Substack newsletter, reported by Reuters, he compares it to Cisco at the peak of the dot-com boom, a bona fide business backed by real profits.

More Nvidia:

However, Cisco’s stock got so incredibly expensive that it took years for it to grow into its valuation.

Moreover, he has questioned AI’s “circular money loops,” where it remains to be proven whether it can deliver lasting profits. Additionally, he has sounded the alarm on the useful life of Nvidia’s chips and how stock-based pay and buybacks are reflected in its financials.

In response, according to a report from Barron’s, Nvidia has issued a detailed internal memo, stating that Burry miscounted its share repurchases.

According to the memo, the tech giant has bought back roughly $91 billion of stock since 2018, not the larger figure circulating online. At the same time, Nvidia argues that its cash flows ran at nearly 98% of reported net income over that period.

This story was originally published by TheStreet on Nov 26, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.