Jim Cramer says ‘don’t buy Nvidia yet’ — is it time to load up?

Nvidia (NASDAQ: NVDA) has been facing a wave of selling pressure, closing at $132.00 on Monday, down 1.68%.

In pre-market trading on December 18, the stock slipped further to $129.99, marking a 1.52% drop and breaching the crucial psychological support level of $130. 

This downturn has caught the attention of former hedge fund manager and Mad Money host, Jim Cramer, who recently issued a cautionary note.

On December 17, Cramer tweeted:

“Market getting very oversold. Collapse of Nvidia continues… Not yet… don’t buy yet… Wait until all clear sign.” 

This warning came just a day after he remarked:

“Still no crescendo moment in Nvidia. It will happen, just not yet… the reversal will be vicious though… and fast.”

Is Cramer’s track record a contrarian signal?

Cramer’s calls on Nvidia have a notorious history. On September 19, 2022, he advised investors to short Nvidia, branding it a “loser” when the stock was trading at $21.90 (split-adjusted). 

Since then, Nvidia has soared to $132, representing a staggering 502% gain. A pattern of missed predictions has led some investors to interpret Cramer’s warnings as contrarian signals, prompting them to do the opposite of his advice.

In fact, Wall Street analyst and Tesla bear Gordon Johnson questioned Cramer’s latest takes on Nvidia asking if there were ‘any metrics on market leverage’ or whether the host was just ‘spitballing.’

NVDA stock technical picture

From a technical perspective, Nvidia has been trading in a wide range of $130.42 to $152.89 over the last month. Currently, the stock is hovering near the lower boundary of this range, and if it opens below $130, it would mark a two-month low — the lowest price since early October.

A key support zone lies between $122.25 and $123.61, formed by multiple trend lines across different time frames. If Nvidia breaks below this level, further downside could be in play. On the resistance side, the $130 to $135 range will likely pose challenges for a rebound.

Nvidia’s decline is not occurring in isolation. Broadcom (NASDAQ: AVGO), one of Nvidia’s main competitors, has seen its shares surge by around 20% in a single day, driven by a strong 2025 forecast. 

Since early December, AVGO has climbed 54%, attracting investors who may be reallocating funds away from Nvidia.

Wait or buy the dip?

While Cramer’s advice to hold off may resonate with some, others are eyeing Nvidia’s current dip as a potential buying opportunity. The stock’s volatility suggests that waiting for signs of consolidation could be wise before entering new positions.

If Nvidia stabilizes above the $130 level or finds support near $122, traders might look for an entry point.

Despite the near-term uncertainty, Nvidia’s fundamentals remain strong, particularly given its dominance in AI and data center markets. For long-term investors, the current pullback might be a chance to accumulate shares at a relative discount.