NVIDIA shares under pressure after record numbers: expert explains the price slide

• NVIDIA shares fall despite record numbers
• Jim Cramer sees no reason to worry
• Price slide due to technical trading movements?

NVIDIA’s quarterly figures caused a stir – not only because of strong results, but also because of a significant decline in share price. Despite a convincing report from an analyst perspective, the share ultimately lost a strong 5.46 percent to $184.89 on Thursday. On Friday it finally fell by another 4.16 percent to $177.19.

However, for CNBC’s Mad Money host Jim Cramer, that’s no reason to worry. In his latest episode he classifies the market’s reaction – and even sees opportunities for investors in it.

NVIDIA shines with record numbers – but investors react skeptically

NVIDIA once again presented impressive growth figures in the fourth quarter of the 2026 financial year: Earnings per share rose to $1.62, significantly exceeding analysts’ estimate of $1.54 (previous year: $0.89). Sales climbed to $68 billion after $39.33 billion in the same quarter last year and were also above the expected $66.12 billion. For the full year 2026, the group achieved a profit of $4.77 per share (previous year: $2.99) on sales of $215.93 billion after $130.49 billion in the previous year – here too, forecasts were exceeded. NVIDIA is also forecasting sales of around $78 billion for the current quarter, well above market expectations. Cramer described the numbers in “Mad Money” as a “tour de force” – a brilliant achievement.

Nevertheless, the record numbers apparently failed to convince investors. The reasons given for the sales pressure included fears that customers would use up their cash flows more quickly, that sales from China would continue to be lacking and that competitive pressure would continue.

For Cramer, however, these are fake arguments. In “Mad Money” he emphasized that NVIDIA and other AI hardware stocks appeared to have been sold across the board, while at the same time software stocks that had previously fallen sharply rose. For him, this is a clear sign of a major shift among institutional investors.

Cramer explains NVIDIA’s share price slide: Aggressive trading programs at work?

Cramer sees program-driven trading strategies of major market participants behind the movement. “Most people don’t understand how these types of [Handels-]programs work. They are not based on the specific fundamentals of individual companies. They are based on intuition, on the belief that the market is paying too much for one type of company and, let’s say, not enough for another,” he explained on the CNBC broadcast. His conclusion for retail investors is clear: “I would [Verkaufswelle] to buy the stocks you like at reduced prices.” Investors should therefore not overvalue such days.

For Jim Cramer, the price decline according to NVIDIA’s balance sheet is therefore not a warning signal. “The program I saw today was gigantic and relentless, seizing the moment to turn winners into losers,” Cramer added. The expert was alluding to a large trading program that was particularly aggressive that day: stocks that had previously risen sharply were sold, while at the same time previously weak stocks were bought. Such moves are often driven by technical factors and do not reflect the actual strength of companies.

NVIDIA’s fundamentals are strong. For Cramer, the slide in NVIDIA’s share price opens up potentially attractive entry opportunities – as long as you are convinced of the business model in the long term. As is often the case, it remains to be seen whether the expert is right.

Editorial team finanzen.net

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