CNBC's Jim Cramer and Nvidia's Server Overheating Woes

Nov 18, 2024 at 11:58 PM
CNBC's renowned host Jim Cramer delved into the stock of Nvidia on Monday and Tuesday evenings from 6:00 to 7:00 PM ET. The Information had reported that the artificial intelligence darling, Nvidia, was facing overheating problems with its servers for the newest graphics chips. These chips enable advanced artificial intelligence functions and are highly anticipated by the market.

Jim Cramer's Perspective on Nvidia's Stock

Cramer wasn't overly concerned about the reported overheating issues. He saw the stock decline as an investing opportunity rather than a cause for alarm. He mentioned, "Maybe this time really is the top, and it’s all because of server meltdowns. I’zasx1m more inclined to think you’re getting a buying opportunity in Nvidia thanks to The Information publishing a story that may, may simply not be that."The Information had reported that Nvidia's highly-anticipated Blackwell chips overheat when connected to custom servers. As a result, Nvidia had asked suppliers to change server rack designs several times, causing some customers to worry about shipping delays. However, a spokesperson for Nvidia declined to comment on whether the company had finalized its server design but stated that "GB200 systems are the most advanced computers ever created" and "the engineering iterations are normal and expected." CEO Jensen Huang had previously said on CNBC that the demand for the chips is "insane."Nvidia stock was down 1.29% by Monday's close, and investors were waiting to see what the $3.4 trillion-dollar company would say in its earnings report on Wednesday. Cramer reiterated his faith in the company and the stock. He noted its meteoric rise over the past year and suggested that customers have "nowhere else to go for this kind of chip." He also pointed out that Dell CEO Michael Dell, whose company is a major Nvidia customer, posted on Monday that Nvidia's servers had started shipping. Cramer conceded that he's not sure how Nvidia's quarter will shake out if The Information's report is true, but he also said that oftentimes investors sell stocks based on information that isn't actually meaningful. "Minutiae can shake you out of tremendous investments every time," he said.Nvidia declined to comment on Cramer's commentary but reiterated its previous statement to The Information about the alleged server issues.Jim Cramer's Guide to InvestingSign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.Disclaimer: The CNBC Investing Club Charitable Trust holds shares of Nvidia.Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up!Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com