CNBC’s Jim Cramer on Wednesday assessed stock declines in the tech sector after Nvidia closed down 5.74%, and he advised investors that the artificial intelligence star could continue to slide.
“Nvidia’s the linchpin of this group, and the pin is failing,” he said. “I don’t know whether the stock plunges from here, but if you like it enough to keep owning it, I say prepare for the…turbulence.”
After three consecutive winning sessions, stocks closed in the red on Wednesday as traders awaited another round of tariff orders from President Donald Trump. The Dow Jones Industrial Average declined 0.31%, the S&P 500 fell 1.12% and the tech-heavy Nasdaq Composite shed 2.04% as Nvidia and peers including Meta, Amazon, Alphabet and Tesla suffered losses.
Nvidia spent much of last year leading the market, but the stock’s performance has wavered in the past few months as Wall Street weighs the possibility of a looming AI bust. In January, Nvidia clocked the biggest one-day loss in U.S. history, shedding nearly $600 billion as investors acknowledged competition in the AI space from Chinese startup DeepSeek. Cramer noted that Nvidia recently formed the “death cross,” a price chart pattern seen when a stock’s 50-day moving average drops below its 200-day moving average. The “death cross,” he explained is “widely seen as a terrifying development.”
Cramer asserted his long-held faith in Nvidia and his general AI thesis. He said he still thinks the stock should be owned, and that the company and its semiconductors will play a key role in an AI-powered industrial revolution.
“One day…we’re going to get some certainty on Nvidia,” Cramer said. “And if we can get that certainty, we’ll also know what’s happening with a whole host of other stocks.”
An Nvidia spokesperson declined to comment.
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, Meta, Amazon and Alphabet .
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com