Squawk on the Street
CNBC Investing Club: Cramer's Morning Take on Nvidia 11/10/26
· Summarized
Key takeaways
- Cramer is not recommending a purchase of Nvidia while the company’s narrative remains unclear and the stock faces multiple unresolved overhangs.
- He believes Nvidia needs a transparent, independent investigation, potentially involving a CEO leave of absence and referrals to the Justice Department or SEC if wrongdoing is found.
- Nvidia’s portfolio rating changes from one to two because Cramer is unwilling to buy the stock under the current uncertainty, despite its substantial decline.
Summary
Why Cramer moved Nvidia from a buy rating to a hold
Cramer says Nvidia’s stock is in free fall because the story around Jensen Huang and an alleged Chinese connection remains unclear, with conflicting side reports creating disarray. Although the stock is already 70–80 points below its high and Dan Ives has shifted from being very bullish to predicting a 25–30% decline, Cramer says he is not willing to buy now, so the portfolio rating must move from one to two.
Cramer’s proposed process for resolving Nvidia’s uncertainty
Cramer says the normal path would be to place the CEO on leave, hire a respected law firm for a thorough investigation, refer wrongdoing to the Justice Department or SEC, and return the CEO if nothing improper is found. He says Nvidia’s Governance Committee should take control if necessary, but criticizes the company for not naming the investigating law firm or outside investigators; the committee must open all the books and put everything on the table.
Sponsors
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- CNBC Investing Club · Jim Cramer invites listeners to join the CNBC Investing Club for full access to the members-only morning meeting each day at 10:20 a.m.
Show notes
Cramer explains the real reason why this tech stock is in free fall. Become an Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks every day as they talk candidly about the market’s biggest headlines, analyst calls and holdings in the Charitable Trust – and see up close how they decide when, and if, to take action on stocks. Sign up here: cnbc.com/morningtake
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