Following what can only be described as a blockbuster 2024, Nvidia Corp (NASDAQ: NVDA) has been rather dull as an investment since the start of the new year.
And things are unlikely to get any better for Nvidia investors in the near term, according to famed investor Jim Cramer.
“Nvidia is the linchpin of this group, and the pin is failing,” he told last night on “Mad Money”. At writing, NVDA is down nearly 25% versus its year-to-date high.
Did Cramer recommend bailing on Nvidia stock?
Investors should note that Cramer hasn’t thrown in the towel on Nvidia stock, though.
For the longer term, he continues to believe in NVDA and remains convinced that its chips will play a central role in the AI-driven industrial revolution.
“One day, we’re going to get some certainty on Nvidia,” he argued, adding it’s a name that will likely prove lucrative in the long run.
In the near term, however, the former hedge fund manager agreed that NVDA could sink further. So, “if you like it enough to keep owning it, I say prepare for the … turbulence.”
An Nvidia representative has not so far commented on Cramer’s view.
Nvidia shares recently made a death cross
Jim Cramer is cautious on Nvidia shares for the near term because the AI stock has recently made the “death cross” that is “widely seen as a terrifying development.”
A death cross is when the short-term moving average (50-day SMA) crosses below the long-term moving average (200-day SMA). It’s a technical indicator that typically signals bearish momentum ahead.
Part of the recent weakness in NVDA has been related to a slowdown in its topline growth.
For its current financial quarter, the artificial intelligence behemoth guided for about 65% year-over-year increase in revenue – a massive decline from 262% growth recorded in the same quarter of 2024.
Nvidia shares, however, pay a dividend yield of 0.035% at writing, which makes it more exciting to own at current levels.
Why is NVDA struggling in 2025
Nvidia stock is seeing weakness under the Trump administration as the new US government plans on tightening restrictions further on export of sophisticated AI chips to China.
Additionally, higher tariffs are a significant headwind for NVDA since it relies rather heavily on global supply chains.
Note that the tariffs-driven trade tensions are hurting the US tech stocks across the board.
Despite ongoing struggles, Wall Street, much like Jim Cramer, is keeping bullish on Nvidia shares for the long term as well.
The consensus rating on the AI stock currently sits at “buy”. Analysts currently see upside in NVDA to $174 on average that indicates potential for a more than 45% gain from current levels.
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