Nvidia (NVDA) stock has once again become the focal point of market discussions following a notable comment from Jim Cramer on X (formerly Twitter). The popular Bitcoin critic hinted at a breakout for the NVDA stock. However, netizens began speculating on the possibility of the “Inverse Cramer Effect” hitting NVDA. Jim Cramer’s Comment On Nvidia

The post Nvidia Stock Grabs Spotlight As Jim Cramer Makes Epic Prediction appeared first on CoinGape.

Nvidia Stock Grabs Spotlight As Jim Cramer Makes Epic Prediction

Nvidia (NVDA) stock has once again become the focal point of market discussions following a notable comment from Jim Cramer on X (formerly Twitter). The popular Bitcoin critic hinted at a breakout for the NVDA stock. However, netizens began speculating on the possibility of the “Inverse Cramer Effect” hitting NVDA.

Jim Cramer’s Comment On Nvidia Stock

In a post on X, Cramer wrote, “Nvidia about to break out from the churn post stock split?” This remark has sparked renewed interest and concern over the so-called “Inverse Cramer Effect,” a phenomenon where the opposite of Cramer’s predictions often seems to materialize.

Nvidia, a leading semiconductor company, had a dramatic rise earlier this year. Moreover, Nvidia stock peaked with a market capitalization of $3.5 trillion in June, surpassing tech giant Microsoft. However, the stock’s trajectory took a sharp turn, plunging below $118, marking a 16% decline from its recent peak.

Despite this downturn, Nvidia has recently regained momentum, posting nearly 9% gains over the last five trading sessions. In the latest trading session on Tuesday, July 9, Nvidia’s stock climbed by 3.09% to reach $132.16 at press time. Hence, this surge pushed its market cap to $3.26 trillion.

Furthermore, this resurgence in Nvidia stock has not gone unnoticed. KeyBanc has raised its target price for Nvidia to $180 from $130, signaling strong confidence in the company’s future performance. The firm’s positive outlook is affected by several factors. Firstly, despite the impending launch of Nvidia’s Blackwell series in the second half of 2024, there are no signs of a demand pause.

The demand for Nvidia’s H100 chips remains strong, with rush orders continuing to flow in. Secondly, the interest and demand for the GB200 series are greater than initially anticipated, with a significant portion of the mix expected to be NVL72 versus NVL36. As a result, KeyBanc believes the current demand for the GB200 should support data center revenues exceeding $200 billion by 2025.

Will Inverse Cramer Effect Hit NVDA?

Amid this backdrop, broader market concerns persist. Morgan Stanley’s Mike Wilson has warned traders to brace for a significant pullback. He recently predicted a 10% stock market correction. Moreover, he cited the uncertainty surrounding the US presidential campaign, company earnings, and Federal Reserve’s monetary policy as contributing factors.

Meanwhile, the mention of Jim Cramer’s prediction on Nvidia has rekindled discussions about the “Inverse Cramer Effect.” This phenomenon, often cited by market watchers, suggests that the opposite of Cramer’s public predictions frequently occurs. One notable example of this effect was observed with Bitcoin. In 2021, Cramer famously declared he had sold most of his Bitcoin holdings, advising others to do the same.

Shortly after his announcement, Bitcoin experienced a significant rally, contradicting his bearish outlook. This pattern has been observed in various instances, where Cramer’s bullish predictions are followed by downturns and vice versa. However, currently Nvidia stock is aligning with Cramer’s forecast with significant gains.

On the flip side, if Morgan Stanley analyst’s prediction comes true, it could even affect Nvidia stock adversely. This could hold the Inverse Cramer Effect true. Nevertheless, as of now, the situation for NVDA seems stable.

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