Squawk on the Street Cramer's Morning Take: Nvidia Probe 12/9/24
Dec 9, 2024
Nvidia faces scrutiny from Chinese regulators over potential anti-monopoly violations linked to its $7 billion Mellanox acquisition. The implications of this probe on the data center industry and Nvidia's strategic direction are critically examined. Additionally, the discussion shifts to market dynamics, showcasing Nvidia's stock performance against competitors like AMD and the rise of custom chips. There's a blend of optimism about Nvidia's resilience, despite challenges in production and investment strategies.
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Nvidia Investigation
- China is investigating Nvidia for potential anti-monopoly violations regarding their Mellanox acquisition.
- Jim Cramer believes Nvidia will be fine due to their limited leverage.
Nvidia Stock Performance
- Nvidia's stock has been underperforming since the election.
- Negative articles contribute to the pressure, as people see the company's vulnerability.
AMD Downgrade
- Bank of America downgraded AMD due to increased competition in AI chips.
- Hyperscalers are shifting towards custom-made chips, posing a risk to AMD.