Cramer's Morning Take: Nvidia Probe 12/9/24

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Jim Cramer (1:01)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

Jeff Marks (1:09)

Well, we know China is also coming after Nvidia.

Jim Cramer (1:12)

Yeah.

Jeff Marks (1:13)

You know, they're opening a probe into suspected, violated their anti-monopoly laws around the Mellanox deal. That was a 2020 deal. They paid $7 billion for it. It was an amazing deal.

Jim Cramer (1:23)

The Israeli company was pretty good.

Jeff Marks (1:24)

Yeah. It's the networking side of the data center.

Jim Cramer (1:28)

Because they had been stuck in the chip side. They were not moving over.

Jeff Marks (1:31)

Yeah.

Jim Cramer (1:32)

What do you think here?

I think that Nvidia is fine. I don't think there's much the Chinese can do. I don't think they have the leverage. I do think the stock's been under pressure because so many negative articles. Let it come in. There'll be more negative articles because people see that the giant can be winged. That's what happens. People will say, wait a second, I know that Nvidia, you could say that Rubin, this morning Ben Melio said Rubin is going to be early. Well, that means maybe Blackwell is going to not make the money that you think. The money that you think is made after a company has got the yield. Yield being you've made the chip and it works. Typically, in Intel, the first run 66% are good. They throw out the rest. And then 70 and then 75 This thing, we don't know what the run rate is, which is what's really alienating a lot of people from the stock. We just don't know.

Jeff Marks (2:27)

Yeah, kind of consolidating here. An underperformer in the MAG 7 since the election, but it's obviously had such a huge move over the last two years.

Jim Cramer (2:37)

Well, we should talk about underperforming. AMD has been underperforming.

Jeff Marks (2:40)

Yeah, Bank of America, they downgraded today to a hold, lowers the price target to 155 The worry is just higher competitive risk in AI chips because we know about Nvidia and everyone wants the Nvidia chips, but there's also this idea that the hyperscalers are shifting more and more to their own custom chips. You heard Amazon last week really talk up their own custom chip that Marvell makes. Broadcom is a big supplier of custom chips to Alphabet. Broadcom is going to report later this week. And then you're just kind of stuck with Microsoft who doesn't have one. They have obviously a big partnership with AMD, Meta as well. Those are the main two.

Jim Cramer (3:17)

Overreaction?

Jeff Marks (3:19)

You know, it is a risk. They also flag some concerns about PC, but where they think they could be wrong is just the share gains AMD is having versus Intel in the server and client PC markets here. I mean, down 133, it's pretty low.

Jim Cramer (3:36)

I think if I buy some under 130, that would be a gift. Maybe we have to do that.

Jeff Marks (3:41)

Yeah, we'll have to see.

Jim Cramer (3:45)

Start your day with my outlook on the daily market every morning at 10 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

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