Jim Cramer urges investors to hold off on Nvidia stock amid dip

Nvidia Corp (NASDAQ: NVDA) is trading lower today despite surpassing Wall Street expectations for its second-quarter earnings and issuing better-than-expected future guidance.

Renowned investor Jim Cramer attributes the weakness in NVDA to it being “priced to perfection.”

However, he remains optimistic about the semiconductor giant’s long-term prospects.

Cramer advises caution, recommending against rushing to buy shares this morning, as short-term sellers may not have finished offloading their positions.

In simpler terms, while Nvidia stock might experience further short-term weakness, Cramer believes it will recover and eventually climb back to $150.

He shared this insight with members of his investing club on Thursday.

Nvidia eases Blackwell supply concerns

Nvidia authorized a $50 billion stock buyback program last night that adds to the list of reasons to own its shares for the long term.

The Nasdaq-listed firm confirmed on the earnings call that demand for its Hopper architecture remains strong despite customers “gearing up to adopt Blackwell”.

NVDA also eased supply concerns related to Blackwell saying “we are going to have lots and lots of supply”.

The anticipation for that next-gen AI chip platform is incredible and “its production ramp is scheduled to begin in the fourth quarter and continue into fiscal year 2026,” the company added.

All in all, Jim Cramer advised long-term investors to stick to Nvidia shares as it’s the greatest chip company in the world and sits right at the heart of the accelerated computing megatrend.

Nvidia stock could still lose 20% moving forward

Nvidia stock is down 3.0% on Thursday perhaps because its investors are used to a bigger beat both in terms of the quarterly figures as well as the future guidance.

But shares of the multinational based out of Santa Clara, CA may be safe to own as long as the biggest cloud computing players like Google, Amazon, and of course, Microsoft continue to talk of aggressive investments into AI infrastructure as they did on their most recent earnings call.

But NVDA could lose 20% or even more “when we start to see those CAPEX guidance trail off,” as per Josh Koren – the founder of Musketeer Capital Partners.

Note that Koren does expect that to happen over the next two to three quarter even though Nvidia earnings are turning into a key economic indicator like CPI or employment data.