Benzinga - by Adam Eckert, Benzinga Staff Writer.
It’s no secret Jim Cramer has been a longtime bull on NVIDIA Corp (NASDAQ:NVDA). Following the stock’s incredible run over the last year and a half, investors have been taking profits, but Cramer is not one of them.
What To Know: Cramer has taken a long-term view on his Nvidia investment since 2012. More than 10 years later, he hasn’t changed that approach. Despite the stock’s remarkable surge in recent years, Cramer still believes it’s a stock that you should be buying and holding long term.
Wednesday on CNBC’s “Squawk On The Street,” Cramer suggested the recent selling in Nvidia stock is being done by traders who don’t really know what they own.
“If you don’t know what Nvidia is … and you bought it because you liked what I said about it, then why don’t you sell some? Please sell some,” Cramer said.
“There is great durability that’s why I am saying own it, don’t trade it, but we know that there are people that don’t know what they own.”
Cramer indicated that some of the recent selling in Nvidia stock could be a result of withering expectations for rate cuts from the Federal Reserve this year.
Related Link: ‘This Puts The Fed In Quite A Tricky Position’: 7 Economists Weigh In On March Inflation Report
The Bureau of Labor Statistics reported Wednesday the Consumer Price Index (CPI) rose to 3.5% in March, above economist expectations of 3.4%. The broader market sold off on the news as investors feared that the Fed would need to keep rates higher for longer.
Cramer isn’t worried about the potential impacts of Fed policy on Nvidia stock. Cramer noted he has cash on the sidelines for his Charitable Trust that he has been waiting to put to work in Nvidia on any weakness.
“Sell it to me. Come down so I can buy it because I know what it is. I know what Nvidia does,” Cramer said.
“I’ve been waiting for a decline. We’re getting the decline. Does that mean I should now wait for a bigger decline? No, get the decline, buy some stock.”
Cramer reiterated that the key is knowing what you own. He stressed that he “knows” Nvidia’s Blackwell platform is much better than competitor products, specifically Intel Corp (NASDAQ:INTC) and that if Google is making its own chip, Nvidia will be involved.
NVDA Price Action: Nvidia shares initially fell in early trading before bouncing back and turning positive for the session. The stock was up 1.54% at $866.70 at publication Wednesday, per Benzinga Pro.
Photo: Owen Byrne from Flickr.
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