Jim Cramer Highlights NVIDIA Shareholder Panic Over China Inquiry

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer weighed in on. Cramer talked about the Chinese antitrust investigation against the company, as he commented:

“Take NVIDIA… I read that there’s a Chinese entity that says NVIDIA violated an antitrust law. The stock’s down three, then four, then five. I get fed up and I take to the X, ‘Usual Nvidia shareholder freak out on suboptimal China news. Join the club and stop panicking, will you?’ That was a reference to my own, own it, don’t trade it policy on the stock of NVIDIA. It doesn’t stop, though.

The stock just keeps going lower, even as we discovered this inquiry’s about something from NVIDIA’s acquisition of Mellanox Technologies, a division that gave NVIDIA exposure to high-performance network equipment and not core semiconductor business. That was five years ago, and the Chinese okayed it, and yet it caused pandemonium. But what happens with stocks like this? You know, by 11:50, the stock’s in the black.

You would’ve caught six points at the, if you bought at the low. More important, though, is that NVIDIA could bounce right back, even if the stock only closed slightly in the red. That’s a sign once again that so many are skittish. NVIDIA’s shareholder base is full of people who probably shouldn’t own the stock in the first place because the moment they hear about a Chinese antitrust investigation, they think they’ve overstayed their welcome and they [sell, sell, sell, sell]. That’s always how it has been with NVIDIA. Always.”

Photo by Javier Esteban on Unsplash

NVIDIA Corporation (NASDAQ:NVDA) provides GPUs for gaming, professional visualization, and enterprise graphics, along with cloud and AI-powered software solutions. Additionally, it delivers data center, automotive, robotics, and networking platforms supporting advanced computing and industrial applications.

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Disclosure: None. This article is originally published at Insider Monkey.