NVIDIA Stock Drops Amid Competitive Pressures from Alphabet and Meta

NEW YORK, NY — NVIDIA Corporation‘s stock took a significant hit following news that Alphabet plans to adopt its own chips, moving away from NVIDIA products. This change comes as Meta has signaled it will purchase chips from Google at a lower cost.

Jim Cramer, the well-known financial commentator, remarked on the situation, stating that NVIDIA stock has suffered greatly. “NVIDIA was at $186 before the quarter, but it fell to $180 after its report, then further down to $177 today,” he said, highlighting a drop from $212 at the end of October.

Despite the recent challenges, Cramer urged investors to “own, don’t trade” NVIDIA stock, citing the company’s strong business foundation and a history of overcoming difficulties. “I think their problems are not insurmountable,” he added.

NVIDIA, listed on NASDAQ under NVDA, is a leader in accelerated computing and AI platforms, specializing in GPUs for gaming, cloud services, and automotive technologies. Cramer emphasized that historically, selling stocks out of fear is a mistake, especially with a company that has proven resilient over the years.

As the landscape of artificial intelligence continues to evolve, companies like NVIDIA will face scrutiny and competition. Yet, Cramer and others believe that NVIDIA’s diverse portfolio positions it well for the future.