stocks that declined Tuesday ‘have everything going for them’

CNBC’s Jim Cramer reviewed Tuesday’s market action, saying stocks that posted losses — like Nvidia and Eli Lilly — remain winners but have simply run too far.

“The stocks that fell today have everything going for them, except that they have already advanced so much that they have become vulnerable,” he said.

He emphasized his belief that the bigger a stock’s gains, the more vulnerable it is to losses, adding that “the biggest stocks right now have mostly been bludgeoned” while last year’s “mediocre performance finally had their day in the sun.” “

Cramer used Nvidia, one of his favorite actions, as an example. Nvidia shares were down just over 2% as of Tuesday’s close, and Cramer said that decline was due, in part, to concerns about competition from Intel. The company revealed its new artificial intelligence chip, the Gaudi 3, and claimed it was faster and more power efficient than Nvidia’s H100 GPU. He admitted that Intel’s claim was possible “in certain categories” — but the company won’t compete with the H100, he stressed. Instead, it will face Nvidia’s new chip, Blackwell, which should be more advanced than its predecessor.

Elie Lilly also fell on Tuesday, down 2.58% at the close. Cramer said those losses are not justified and the only recent news about the pharmaceutical giant is that it has just started building a factory in Germany to make its weight-loss drug. Cramer said he would be a buyer of the stock “once the dust settles.”

He also suggested that tax season played a role in determining Tuesday’s winners and losers.

“What a great time to take some profits on winning stocks to pay for stock gains,” Cramer said. “But if you own the losers, you have no tax to pay, so no tax sales pressure to speak of relative to those winners.”

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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Nvidia and Eli Lilly.