Jim Cramer urged investors to consider NVIDIA Corp.‘s NVDA recent stock decline as a buying opportunity, despite the company’s shares falling 6.22% on Tuesday following CEO Jensen Huang‘s CES 2025 keynote presentation.
What Happened: “Understand one thing, the keynote dazzled, the new projects are way ahead of any other company, and this new industrial revolution belongs to Nvidia,” Cramer said on CNBC, attributing the stock’s decline to “too much hot money” and broader market concerns about interest rates and inflation rather than company fundamentals.
During his Las Vegas presentation, Huang unveiled next-generation GeForce RTX 5000 series graphics cards and the Grace Blackwell NVLink 72 system, positioning Nvidia at the forefront of AI computing.
The flagship RTX 5090, priced at $1,999, promises double the performance of its predecessor and features 32GB of GDDR7 memory.
Why It Matters: The presentation sparked mixed reactions from Wall Street analysts. Bank of America‘s Vivek Arya maintained a Buy rating with a $190 price target, describing Nvidia as an “end-to-end AI shop.”
However, Benchmark analyst Cody Acree, while maintaining a Buy rating, noted the keynote may have been “too technical” for investors seeking near-term guidance.
Cramer advised investors to consider purchasing shares below the all-time high and monitor the upcoming Labor Department employment data.
“If it comes in hot, you will get a chance to buy this stock lower, maybe much lower,” he said, suggesting current sellers might regret their decisions.
Nvidia’s expanding influence in AI infrastructure is evident in its partnership with Foxconn, which reported strong fourth-quarter results driven partly by AI server demand.
The company is set to release its RTX 5090 and 5080 models on Jan. 30, with more affordable variants following later.
Price Action: Nvidia’s stock closed at $140.14 on Tuesday, down 6.22% for the day. In after-hours trading, the stock rose 1.04%. Over the past year, Nvidia’s stock has surged 168.21%, according to data from Benzinga Pro.
Nvidia has a consensus price target of $170.56. The highest target is $220, and the lowest is $120. Recent analyst ratings suggest an average target of $161.67, implying a 14.17% upside.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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