Jim Cramer highlighted that Nvidia's stock fell over 4% on Monday, continuing a downward trend that has seen the company's value decrease by approximately 22% in the past month. This decline is attributed to both the investigation into Huang's alleged extramarital affair and broader weaknesses in the AI infrastructure market.
Cramer noted that while Nvidia's business remains strong, the uncertainty surrounding Huang's leadership could make the stock less attractive. He emphasized that the company has a solid management team and a robust product pipeline, suggesting that it may still thrive even without Huang.
However, he warned that potential slowdowns in data center construction could impact demand for Nvidia's chips, particularly from smaller companies reliant on external financing. Cramer also pointed out that Nvidia's future demand may increasingly depend on major players like Amazon and Microsoft.
Despite the challenges, he remains cautious about selling Nvidia shares, reflecting a long-term investment perspective