Jim Cramer says Nvidia’s pullback could be a good chance to buy

CNBC’s Jim Cramer extolled Nvidia‘s stock and reviewed its Tuesday action, saying the decline was unrelated to the company and its prospects. He suggested this could be a good time to buy shares and applauded CEO Jensen Huang’s remarks at CES.

“Understand one thing, the keynote dazzled, the new projects are way ahead of any other company, and this new industrial revolution belongs to Nvidia,” he said. “That doesn’t mean the stock can’t go down. It just means that you can buy happily, buy the inevitable pullbacks.”

Huang delivered a keynote speech Monday night at the annual conference in Las Vegas and revealed new chips for laptops and PCs that use Blackwell, the same technology used for Nvidia’s advanced artificial intelligence server chips. Cramer was impressed by Huang, including his discussion of more physical uses for AI like humanoid robots and autonomous vehicles. He said the presentation was reassurance that “the new industrial revolution is alive and well and coming to you in a very short time.”

Nvidia stock sank during Tuesday’s session and finished the day down 6.22%, leading a selloff in tech that saw the Nasdaq Composite close down 1.89%. Cramer attributed the pullback in Nvidia to “too much hot money in the stock” and Wall Street’s worries about interest rates and inflation.

Cramer told investors to wait for the Labor Department to release new employment data on Friday, saying sellers are likely to have regrets.

“If you don’t already own it, you can think about buying some now…nicely below its all-time high, and then wait until the labor report and buy more,” he said. “If it comes in hot, you will get a chance to buy this stock lower, maybe much lower.”

Nvidia declined to comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia.