Well-known television personality Jim Cramer is known for changing his opinion on certain stocks and cryptocurrencies. Investors can often find Cramer being bearish on a stock he was recently bullish on, or bullish on a stock he was recently bearish on.
Cramer recently called out one of his favorite stocks in a surprising twist.
What Happened: Cramer shared a bearish take on NVIDIA Corporation NVDA Monday during CNBC’s “Squawk on the Street.”
“I’m concerned about Nvidia,” Cramer said.
The television host highlighted the Ethereum ETH/USD Merge being an unintended negative catalyst for a company such as Nvidia.
“People who have been mining do not need them (graphics cards),” he noted.
Cramer said Nvidia was also struggling to make the transition to new sectors such as artificial intelligence, virtual reality and machine learning.
“We’re short Nvidia. It’s a loser.”
Why It’s Important: Cramer has been a bull on Nvidia shares for years, including many times throughout 2022.
In March, Cramer told investors to buy Nvidia shares on any weakness.
“I know this is a tough market for a stock like Nvidia, and I wouldn’t be surprised if it has another leg lower. But when you look at what this incredible company is coming with, I think Nvidia owns the future,” Cramer said.
Cramer also praised Nvidia’s position in the automotive sector as one of its strengths in February.
“I think that Jensen Huang is going to offer a level of technology for cars that Apple has to be thinking about, Ford has to be thinking about, General Motors, and mostly, yes, Elon Musk,” Cramer said about Nvidia's CEO and the company’s auto growth.
His current bearish comments come as Nvidia shares are down 56% year-to-date. Shares of Nvidia have been one of the best performing large cap stocks of the last five years (+190%) and 10 years (+3,828%).
In 2017, Cramer shared a picture of his dog “Everest,” who was given the second name “Nvidia.”
Mr. Everest Nvidia meet the world! pic.twitter.com/5GvTecuNyz
“I think that every dog deserves a last name,” adding that people should name their dogs after “a stock that’s been good to you.”
Cramer now finds himself on the opposite trading spectrum of Ark Invest CEO Cathie Wood, who has been massively buying shares of Nvidia in recent weeks for ETFs like ARK Innovation ETF ARKK.
Shares for a split-adjusted $40.44 that were purchased by investors at the time of the dog’s unveiling in 2017 would still be up, as they have gone up 224% since then.
NVDA Price Action: NVIDIA shares are down 1.54% to $131.76 on Tuesday at market close versus a 52-week trading range of $126.17 to $346.47.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month