Nvidia's Stock Dip After CES Keynote: Jim Cramer Sees Buying Opportunity Amid AI Revolution

Jim Cramer says Nvidia's pullback could be a good chance to buy

"Understand one thing, the keynote dazzled, the new projects are way ahead of any other company and this new industrial revolution belongs to Nvidia," he said. "That doesn't mean the stock can't go down. It just means that you can buy happily, buy the inevitable pullbacks." CNBC's Jim Cramer extolled Nvidia's stock and reviewed its Tuesday action, saying the decline was unrelated to the company and its prospects. He suggested this could be a good time to buy shares and applauded CEO Jensen Huang's remarks at CES. "Understand one thing, the keynote dazzled, the new projects are way ahead of any other company, and this new industrial revolution belongs to Nvidia," he said. "That doesn't mean the stock can't go down. It just means that you can buy happily, buy the inevitable pullbacks." Huang delivered a keynote speech Monday night at the annual conference in Las Vegas and revealed new chips for laptops and PCs that use Blackwell, the same technology used for Nvidia's advanced artificial intelligence server chips. Cramer was impressed by Huang, including his discussion of more physical uses for AI like humanoid robots and autonomous vehicles. He said the presentation was reassurance that "the new industrial revolution is alive and well and coming to you in a very short time." Nvidia stock sank during Tuesday's session and finished the day down 6.22%, leading a selloff in tech that saw the Nasdaq Composite close down 1.89%. Cramer attributed the pullback in Nvidia to "too much hot money in the stock" and Wall Street's worries about interest rates and inflation. Cramer told investors to wait for the Labor Department to release new employment data on Friday, saying sellers are likely to have regrets. "If you don't already own it, you can think about buying some now...nicely below its all-time high, and then wait until the labor report and buy more," he said. "If it comes in hot, you will get a chance to buy this stock lower, maybe much lower."

Jim Cramer Sees Buying Opportunity In Nvidia But Attributes 6% Fall To 'Too Much Hot Money' After Jensen Huang's CES Keynote - NVIDIA (NASDAQ:NVDA)

Jim Cramer urged investors to consider NVIDIA Corp.'s NVDA recent stock decline as a buying opportunity, despite the company's shares falling 6.22% on Tuesday following CEO Jensen Huang's CES 2025 keynote presentation. What Happened: "Understand one thing, the keynote dazzled, the new projects are way ahead of any other company, and this new industrial revolution belongs to Nvidia," Cramer said on CNBC, attributing the stock's decline to "too much hot money" and broader market concerns about interest rates and inflation rather than company fundamentals. During his Las Vegas presentation, Huang unveiled next-generation GeForce RTX 5000 series graphics cards and the Grace Blackwell NVLink 72 system, positioning Nvidia at the forefront of AI computing. The flagship RTX 5090, priced at $1,999, promises double the performance of its predecessor and features 32GB of GDDR7 memory. See Also: Amazon Set To Benefit From Mexico's Import Tariffs Affecting Temu, Shein -- Analysts See Window Of Opportunity For Established Players Why It Matters: The presentation sparked mixed reactions from Wall Street analysts. Bank of America's Vivek Arya maintained a Buy rating with a $190 price target, describing Nvidia as an "end-to-end AI shop." However, Benchmark analyst Cody Acree, while maintaining a Buy rating, noted the keynote may have been "too technical" for investors seeking near-term guidance. Cramer advised investors to consider purchasing shares below the all-time high and monitor the upcoming Labor Department employment data. "If it comes in hot, you will get a chance to buy this stock lower, maybe much lower," he said, suggesting current sellers might regret their decisions. Nvidia's expanding influence in AI infrastructure is evident in its partnership with Foxconn, which reported strong fourth-quarter results driven partly by AI server demand. The company is set to release its RTX 5090 and 5080 models on Jan. 30, with more affordable variants following later. Price Action: Nvidia's stock closed at $140.14 on Tuesday, down 6.22% for the day. In after-hours trading, the stock rose 1.04%. Over the past year, Nvidia's stock has surged 168.21%, according to data from Benzinga Pro. Nvidia has a consensus price target of $170.56. The highest target is $220, and the lowest is $120. Recent analyst ratings suggest an average target of $161.67, implying a 14.17% upside. Read Next: Tesla Supplier CATL, Riot Games Owner Tencent Plan Legal Action Over Pentagon Blacklist, Deny Military Ties Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs