Who is selling NVIDIA Corporation (NASDAQ:NVDA) with the stock already down more than 20% this month? That's the question Jim Cramer pondered Tuesday when he analyzed the semiconductor stock on CNBC's "Mad Dash" segment.
What Happened: Nvidia continued on its downward trajectory Tuesday morning after a Bloomberg report suggested the company is "quietly" preparing to abandon its purchase of British chipmaker Arm Ltd. from SoftBank Group.
According to the report, Nvidia told its partners it doesn’t expect the transaction to close, so SoftBank is ramping up preparations for an Arm IPO as an alternative option.
Cramer's Take: "If you're selling it down $10 because they're not going to get Arm, you're a fool," Cramer said Tuesday on CNBC.
When the deal was originally announced, many people thought the stock was "dead in the water," Cramer said. Those who are selling it now that the deal is reportedly not going to happen must not believe in any of the other products in Nvidia's pipeline, he added.
Cramer also noted some of the recent selling in Nvidia is a result of falling cryptocurrency prices, though he pointed out Nvidia is "barely" exposed to crypto.
See Also: Crypto Crash's Silver Lining? Gaming Might Get Cheaper In 2022 As GPU Street Prices Take A Beating
With crypto "under fire like I've never seen it," Cramer thinks a bottom could be nearing, which could positively impact Nvidia's stock.
NVDA Price Action: Nvidia has traded as low as $115.67 and as high as $346.47 over a 52-week period.
The stock was down 5.73% at $220.30 Tuesday at publication.
Photo: Courtesy of Nvidia
