Jim Cramer, the host of CNBC’s ‘Mad Money,’ took to X on Wednesday to defend Nvidia Corp. (NVDA) after its stock price took a tumble following the release of its strong second-quarter earnings report. Cramer expressed frustration with investors who sold their shares, claiming they never truly understood the company’s potential. He referred to these investors as ‘sunshine soldiers and summer patriots’ who abandoned the stock when faced with a temporary dip.
Cramer argued that this decline was necessary for Nvidia to shed the burden of trying to please everyone and refocus on its core business. He acknowledged that Nvidia is ‘mortal’ and requires time to recharge due to high expectations and the need for customers to fully grasp the company’s technology and its applications.
Despite the stock’s dip, Nvidia’s second-quarter earnings exceeded expectations, with revenue more than doubling year-over-year. This growth was driven by robust performance in the data center sector. However, the company’s gross margin experienced a slight contraction, attributed to inventory provisions and the introduction of new products.
Looking ahead, Nvidia issued an optimistic third-quarter revenue forecast and announced a $50 billion stock repurchase authorization. The company remains confident about future growth, particularly fueled by the ongoing demand for its Hopper GPU and the anticipation surrounding the upcoming Blackwell chip.
Prior to the release of Nvidia’s earnings report, Cramer had emphasized the company’s strong long-term prospects, predicting a significant upside surprise and highlighting the undervalued nature of Nvidia’s software business. Despite the recent market volatility, Cramer’s stance suggests that he remains a staunch supporter of Nvidia’s potential and sees the current dip as a temporary setback.
Nvidia’s stock fell by 6.9% in after-hours trading on Wednesday, closing at $116.95. This followed a 2.1% decline during the regular trading session, ending at $125.61.
