Jim Cramer Says Nvidia Was Never Understood By 'Sunshine Soldiers And Summer Patriots' — There's No Pleasing All

Jim Cramer, the host of CNBC’s “Mad Money,” took to X on Wednesday to express his opinion on the second-quarter earnings of Nvidia Corp. NVDA.

What Happened: Cramer reflected on the steep drop in the price of Nvidia shares on Wednesday after the company said that its revenue more than doubled in the reported period.

“I see all the sunshine soldiers and summer patriots abandoning the stock of a company they never understood anyway,” said Cramer.

He said this needed to happen so that the millstone could come off the neck of a company that can’t please everyone.

In a separate post, he observed that Nvidia is “mortal” and needs time to recharge due to high expectations and real use case issues, which weren’t understood by lots of potential customers.

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I see all the sunshine soldiers and summer patriots abandoning the stock of a company they never understood anyway. That's what needs to happen as the millstone is off the neck of the company that can't please all….

— Jim Cramer (@jimcramer) August 28, 2024

Why It Matters: Nvidia’s second-quarter earnings exceeded expectations, driven by robust data center revenue, with earnings and revenue more than doubling year-over-year.

Despite this, the company’s gross margin slightly contracted, attributed to inventory provisions and a higher mix of new products. Nvidia issued an above-consensus third-quarter revenue forecast and announced a $50 billion stock repurchase authorization.

The company remains optimistic about future growth, particularly with the ongoing demand for its Hopper GPU and anticipation for the upcoming Blackwell chip.

Ahead of Nvidia's earnings report, Cramer emphasized the company's strong long-term prospects despite recent market volatility, predicting a $2 billion upside surprise and highlighting Nvidia's undervalued software business.

Price Action: Nvidia shares fell 6.9% in the after-hours trading to $116.95 after closing 2.1% lower at $125.61 in the regular session on Wednesday, according to data from Benzinga Pro.

Photo courtesy: Shutterstock

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal