Jim Cramer Still Thinks 'Nvidia Could Go Lower' But Cautions Investors Against Panic Selling After DOJ Subpoena

Benzinga Neuro

September 03, 2024

Jim Cramer cautioned against investors panic selling NVIDIA Corp (NASDAQ:NVDA) shares following news of a Justice Department subpoena over monopolistic practices.

What Happened: On Tuesday, Cramer, the host of CNBC’s “Mad Money,” emphasized that Nvidia could see further declines but cautioned against panic selling due to the DOJ’s investigation. He urged investors to revisit previous instances where the DOJ scrutinized Nvidia for similar concerns.

“OK Panickers, I am still telling people that Nvidia could go lower but if you are selling because of the Justice Department subpoena go back and read where Justice was looking into Nvidia when it came to monopolistic behavior. That’s what this is about…,” Cramer wrote.

The DOJ has reportedly issued subpoenas to Nvidia and other companies as part of an intensified probe into potential antitrust violations.

The investigation is examining whether Nvidia penalizes customers who do not exclusively use its chips and if it complicates switching to other chip suppliers. The DOJ’s San Francisco office is leading the investigation.

OK Panickers, i am still telling people that Nvidia could go lower but if you are selling because of the Justice Department subpoena go back and read where Justice was looking into Nvidia when it came to monopolistic behavior. That's what this is about…
— Jim Cramer (@jimcramer) September 3, 2024

See Also: Nvidia Stock Loses The Value Of McDonald’s, Disney, Coinbase Combined Since Q2 Earnings: AI Darling’s Decline Continues Tuesday

Why It Matters: The scrutiny from the DOJ comes at a critical time for Nvidia. Recently, Cramer highlighted that Nvidia’s second-quarter earnings were misunderstood by many investors, referring to them as “sunshine soldiers and summer patriots.”

Adding to the complexity, Nvidia’s stock has experienced a significant decline since its second-quarter earnings report, losing a combined value equivalent to that of McDonald’s, Disney, and Coinbase. This has raised concerns among investors about the company’s future performance.

While the second-quarter earnings report exceeded estimates, several concerns emerged: investors and analysts noted that the company is now achieving these beats and revenue growth at slower rates compared to previous quarters. In essence, the outperformance is becoming less significant.

Despite these challenges, some analysts remain optimistic about Nvidia’s long-term prospects. Gene Munster of Deepwater Asset Management recently stated that Nvidia, along with Apple Inc., will lead a three- to five-year tech bull run.

Moreover, Nvidia is projected to reach a $10 trillion valuation by 2025, driven by its next-generation AI chip, Blackwell, according to Beth Kindig, lead tech analyst at I/O Fund.

Price Action: Nvidia’s stock closed at $108.00 on Tuesday, down 9.53% for the day. In after-hours trading, the stock continued to decline, dropping an additional 2.42%. Despite the recent dip, NVDA’s stock is up 124.21% year to date, according to data from Benzinga Pro.

Read Next:

Nvidia Takes A Page From Apple’s Playbook: Jensen Huang Wants AI Stalwart To Go Beyond Chips And Be One-Stop Shop For Data Center Clients

Image Via Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

Recommended

5 Stocks That Could Triple in a Week - Ad

Man Who Predicted Trump Win Issues Shocking New Election Prediction - Ad

Don't Tell ANYONE About This Altcoin (Until It Pops)... - Ad

is reverting to its pre-pandemic policy and will require corporate employees to be five days a week starting next year, CEO Andy Jassy said Monday.

New Jersey internet gambling sets new record at $198M in revenue, but land casinos lag

ATLANTIC CITY, N.J. (AP) — Internet gambling in New Jersey had its best month ever in August, bringing in over $198 million in revenue even as most of Atlantic City's land-based casinos continued to win less than they did before the COVID-19 pandemic.

Why Are These Strange "Accidents" Happening All Over America?

Why Are These Strange "Accidents" Happening All Over America? - Ad

Across America, strange "accidents" are happening in greater numbers than ever before. Jets are falling apart, chemicals are spilling, construction workers are being electrocuted -- and no one knows why. In his new exposé, American financial analyst Dan Ferris reveals the silent force behind this trend... why it's destroying this country from the inside... and where all signs suggest it's about to strike next: the U.S. stock market.

Mother Sells Taylor Swift Tickets Over Star's Endorsement Of Kamala Harris: 'I'm Gonna Shake It Off, And I'm Done With You'

A mother has chosen to sell the Taylor Swift concert tickets she had bought as a birthday present for her daughter in response to the pop star's recent endorsement of Kamala Harris.

Stanley Cup champion Panthers agree to extend arena deal with Broward County through at least 2033

FORT LAUDERDALE, Fla. (AP) — The Stanley Cup champion Florida Panthers are extending their operating agreement with Broward County for five more years, ensuring that the team remains in the market through 2033 and likely well beyond.

Top AI Stock (It's Not MSFT, GOOGL, AMZN or AAPL)

Top AI Stock (It's Not MSFT, GOOGL, AMZN or AAPL) - Ad

Ross Givens says the #1 artificial intelligence stock is NOT Microsoft, Google, Amazon or Apple, not even Nvidia. Nope -- his research is pointing to a tiny, under-the-radar stock that's trading for just a few dollars right now... And has lined up major partnerships with Honda, Netflix, Pandora, Mercedes Benz and many, many others.

Scaramucci Says Melania Trump Would Prefer Kamala Harris To Donald Trump As President

Anthony Scaramucci has claimed that Melania Trump would rather see Kamala Harris win the presidency than her own husband.

NBA Legend Shaq Shows Off His New Widebody Carbon Fiber Tesla Cybertruck: Elon Musk Has A One Word Reaction

NBA legend Shaquille O'Neal, also known as Shaq, showed off his new Tesla Cybertruck featuring a widebody carbon fiber design, which is the first of its kind in the world.

Do Not Day Trade (Do This Instead)

Do Not Day Trade (Do This Instead) - Ad

Forget day trading (especially in markets like these). Trade OVERNIGHT instead! I've uncovered a shocking way to take 100% certain events (mandated by the U.S. Government)...And target OVERNIGHT payouts like: 253%... 327%... Even 383%! Enough to potentially hand you profits of $25,300... $32,700... heck even $38,300!

Americans Split On Election Result Acceptance Between Harris And Trump, Here Is The Candidate They Think More Likely To Accept Voters' Verdict

A survey conducted by ABC News/Ipsos has shed light on the American public's confidence in the acceptance of the upcoming November presidential election results by Vice President Kamala Harris and former President Donald Trump.

Red Lobster exits Chapter 11 bankruptcy protection

Red Lobster, known for its affordable seafood and cheddary biscuits, has exited Chapter 11 bankruptcy protection.

A New Drug Set to Outgrow Zoloft and Metformin--Invest Now

A New Drug Set to Outgrow Zoloft and Metformin--Invest Now - Ad

A new breakthrough drug is predicted to hit 250 million subscriptions in the next SIX YEARS, according to Morgan Stanley. Even better, a tiny company - trading for only $7 - holds key patents on this new drug. But it won't stay under the radar for much longer.

Former Canadian fashion mogul Peter Nygard sentenced to 11 years for sexual assault

TORONTO (AP) — was sentenced Monday in a Toronto courtroom to 11 years in prison for sexually assaulting four women. The judge called the 83-year-old a “sexual predator.”

Trump Vs Harris: The Controversy Over 'No Artificial Lifts' Rule In Tuesday Debate: 'A Form of Cheating!'

Ahead of the much-anticipated debate Tuesday night between Donald Trump and Kamala Harris, Trump has voiced his opinion on the "no artificial lifts" rule.

Imminent FDA Decision Could End Obesity in America...

Imminent FDA Decision Could End Obesity in America... - Ad

...and spark a 224,000% sales surge for one tiny micro-cap stock. Channelnomics says it "Could have a greater impact on the world than artificial intelligence." BMO Capital calls it "A goldmine for investors." The Wall Street Journal says it's "A Gold rush."

Trump Vs Harris: Who Do Russia, Iran And China Favor In 2024 Election? Intelligence Officials Weigh In

U.S. intelligence officials believe that Russia, Iran and China have preferred candidates in this year's U.S. presidential election. Each of these foreign powers has different views on who would best serve their interests.

The 2024 Olympics were a success for Paris but a calamity for some of its businesses

PARIS (AP) — Parisian business owners and hotel managers were promised a summer like no other. Millions of tourists would flood the French capital for the and , generating huge profits for Paris and its region.

Seven Unknown AI Stocks That Could Dominate the Next Six Years

Seven Unknown AI Stocks That Could Dominate the Next Six Years - Ad

The original "Magnificent Seven" stocks generated 16,800% over the last 20 years. But now a new set of AI stocks is set to take over. Alex Green dubs them "The Next Magnificent Seven." And he's arguing that just $1,000 in each could turn into more than $1 million in less than six years.

Utility ordered to pay $100 million for its role in Ohio bribery scheme

An energy company at the center of a $60 million bribery scheme in Ohio has been ordered by the U.S. Securities and Exchange Commission to pay a $100 million civil penalty for misleading investors about its role in the scandal.

Japan Leads Asia Markets Decline, Europe Slides; Crude Oil Falls below $70 - Global Markets Today While US Slept

US stocks close lower on weak manufacturing data and Fed rate cut uncertainty. Asian markets follow with major declines. Commodities and futures down.

U.S. Loses to China in Shocking WAR GAMES

U.S. Loses to China in Shocking WAR GAMES - Ad

Pentagon says new "living missile" key to winning a future conflict. Investors stand to reap 35,960% on shares of the small defense contractor that makes powerful new weapon.

Mary Trump Shares Video 'Letter' To Uncle Donald Trump, Also Says He Pushed Her To Ketamine Therapy In New Book

Mary Trump, the niece of Donald Trump, has made a public statement to her uncle through a unique medium.

Jerome Powell-Led Investigation Finds Atlanta Fed President Raphael Bostic Breached FOMC Rules, Created 'Conflict Of Interest' Over Securities Trading Violations

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, breached Federal Open Market Committee rules and Reserve Bank policies, according to a report by the central bank's Office of Inspector General.

Why We Just Sold Half of Our Stocks

Why We Just Sold Half of Our Stocks - Ad

We've already sold all or part of 52 different stocks this year - more than any other period in our firms' history. That's because there are five cracks forming below this market that threaten us with a widespread collapse. We could see the market tumble by 50% and unemployment will triple.

'FBI Raided My Homeâ€¦:' Melania Trump Slams FBI For Invading Her Privacy While Searching For 'Top Secret' Documents At Donald Trump's Mar-A-Lago Residence

In a recent video promoting her upcoming memoir, former First Lady Melania Trump issued a stark warning to Americans about the actions of the Federal Bureau of Investigation (FBI) during a raid on her Florida residence in August 2022.

Will Nvidia Continue To Deliver? Investors Sweat Over Hyped-up Expectations And Potential Blackwell Delay Ahead Of Q2 Report

Chipmaker and artificial intelligence stalwart Nvidia Corp. is all set to announce its quarterly results Wednesday after the market close. Analysts are upbeat about the company scaling lofty goals and reigniting the market momentum, which has toned down a bit in recent sessions.

America Can't Afford a Harris Presidency

America Can't Afford a Harris Presidency - Ad

New research from Jim Rickards - former advisor to the CIA - reveals shocking predictions about an "Election Meltdown" coming this November. Jim's showing all American patriots why an "Election Meltdown" could crash stocks by 50%, lead to the final demise of the dollar, even cause violent riots in the streets.

NASA Revamps SpaceX's Crew 9 Lineup To Make Room For Astronauts Stranded At ISS Due To Boeing's Starliner Issues

Only two astronauts will launch on NASA's upcoming SpaceX Crew-9 mission instead of four so as to accommodate the two astronauts who arrived at the station aboard Boeing's Starliner spacecraft, the space agency said on Friday.

Nvidia Set To Reach $10 Trillion Valuation As Blackwell Expected To Propel Chip Maker With 'Fireworks Again' In 2025, Analyst Predicts

NVIDIA Corp is projected to surge to a $10 trillion valuation, according to Beth Kindig, lead tech analyst at I/O Fund. Kindig highlighted the potential of Nvidia's next-generation artificial intelligence chip, Blackwell.

Oil Surge Predicted...But Are You Ready?

Oil Surge Predicted...But Are You Ready? - Ad

Do you own oil and gas stocks? Or are you thinking about buying some? If so, you need to see my #1 oil play for 2024. But it's NOT oil stocks, futures, or anything you've likely heard about. Rather, it's an unusual way to potentially bank monthly income from the oil and gas markets.

Stellantis Fires Back At US Dealer Council's Allegation Of 'Short-Term Decision-Making:' Carmaker Says 'Public Personal Attacks' Not The Way To Solve Problems

Carmaker Stellantis NV said on Wednesday that it takes "absolute exception" to the open letter sent by the President of U.S. Stellantis National Dealer Council (NDC) Kevin Farrish to company CEO Carlos Tavares, terming it a "public personal attack."

FDA Sets September Meeting To Discuss Psychedelic And Other Treatments For PTSD

FDA schedules public meeting to discuss potential psychedelic treatments for PTSD, inviting input from veterans, advocates and researchers

4 Cryptos Set to Outperform Bitcoin in 2024

4 Cryptos Set to Outperform Bitcoin in 2024 - Ad

Chris Rowe, the man who spotted 44 different coins that have returned over 100%, is now making the biggest crypto call of his ENTIRE career.... Because a powerful crypto event will trigger on June 24th... Sending hundreds of tiny cryptos soaring 5X, 50X, even 100X -- in just days.

Court revives Sarah Palin's libel lawsuit against The New York Times

NEW YORK (AP) — A federal appeals court revived Sarah Palin’s libel case against The New York Times on Wednesday, citing errors by a lower court judge, particularly his decision to dismiss the lawsuit while a jury was deliberating.

Nvidia And Bitcoin: Overpriced Or Underpriced - Do Fundamentals Justify Their Trillions Of Dollars Worth Of Market Caps?

Cryptocurrencies and stocks are considered risky investments, and traders frequently employ metrics to determine how justified their market value could be. Assessing Nvidia’s Valuation One very popular valuation metric is the price-to-earnings ratio, or simply the P/E ratio.

America's Slow Decline into Hell

America's Slow Decline into Hell - Ad

As Kamala Harris rises to power, her 3-word agenda threatens every American's freedom and financial security. Get the inside scoop and

Stalled In Bureaucratic Limbo, This German City Struggles With Illegal Cannabis As Demand Surges

The slow response is largely due to complex bureaucratic requirements. Applicants must provide extensive documentation.

Behind the nonprofit helping a diverse new generation of culinary professionals heat up New York

NEW YORK (AP) — A side of beef bigger than a classroom desktop sat before high school students huddled around a kitchen on New York's Lower East Side. “Anyone wanna jump in?” asked the butcher teaching the Tuesday afternoon class. One student dared, grabbing a sawblade about as long as his arm and sweating to successfully separate the short rib from the rib eye.

My TOP Altcoin for Right Now Is...

My TOP Altcoin for Right Now Is... - Ad

Searching for the top investment opportunity in crypto? Look no further. Our $3 report gives you the full scoop. You'll get this exciting token's name, our recommended investment strategy, and growth projections. Time is of the essence with this one...

Nvidia CEO Jensen Huang Identifies $1 Trillion Opportunity Amid Generative AI Shift: 'Data Centers Will Be All Accelerated Computing'

NVIDIA Corp. is gearing up to seize a $1 trillion opportunity as data centers transition to accelerated computing and generative artificial intelligence.

Trending Now