Cramer: Jensen Huang betrayed Nvidia shareholders
Jim Cramer said Jensen Huang betrayed Nvidia shareholders by putting the chipmaker at risk, and told longtime holders to consider taking some profits after Thursday's drop.
Cramer: Huang betrayed shareholders
Jim Cramer said Jensen Huang betrayed Nvidia shareholders, arguing that the former chief executive put the chipmaker's future at risk and that his departure was necessary to protect the company. Huang resigned on Thursday morning, and longtime chief financial officer Colette Kress was named interim chief executive.
The resignation followed reports of an affair with an Nvidia executive who reported to Huang. Hours later, Reuters reported that he had an 'intimate relationship' with a second employee. The reports came days after Huang admitted to an affair with an executive at a Singapore-based cloud computing company whom U.S. intelligence agencies suspect of spying for China. Cramer asked on his show: 'Did he betray you, the shareholders?' He answered: 'Yes. End of story.'
What Cramer told longtime holders
The CNBC Investing Club cut Nvidia to a hold-equivalent rating on Tuesday, as Huang's future looked more in doubt. Cramer urged longtime shareholders sitting on large gains to consider taking some profits. 'Don't ever turn a successful investment into an unsuccessful trade,' he said. 'You don't want to give up all of your gains if the stock falls further.' 'It fell further today after many of the analysts jumped ship and downgraded the stock from buy to hold.' 'There could be more ahead.'
At the same time, Cramer cautioned against giving up on Nvidia altogether, pointing to its engineering expertise and multiyear product roadmap. Shares ended Thursday down more than 4%, after falling over 14% at the morning low, bringing the year's decline to 12%. Rival Advanced Micro Devices rose almost 6% on Thursday, its fifth straight session of gains.
- Nvidia on ThursdayDown more than 4%, after a morning low of over 14%
- Nvidia in 2026Down 12% for the year
- AMD on ThursdayUp almost 6%, a fifth straight gain
- Intel stake$5 billion, bought in 2025
- CoreWeave stake$2 billion, bought in 2026
A different Nvidia
Cramer argued that Nvidia's future extends beyond its co-founder. 'There won't be a better Nvidia, just a different one,' he said, picturing a company that is better organized and more disciplined about its investments. He drew a parallel with Apple's move from Steve Jobs to Tim Cook, suggesting Nvidia could benefit from a successor with a different management style.
He also pointed to Nvidia's equity investments, including a $5 billion stake in Intel bought in 2025 and a $2 billion investment in AI cloud provider CoreWeave earlier in 2026. Cramer said he had urged Kress to reduce those stakes, only to be told Huang preferred to keep them. New leadership, he suggested, could sell some of the holdings and return the proceeds through even larger stock buybacks. He praised Kress for her deep understanding of Nvidia's operations and finances, saying she is well placed to provide stability while investigations stretch 'from the boardroom to Washington, D.C.'
Nvidia is due to report quarterly earnings on Tuesday evening, November 17. Cramer pointed to substantial cash reserves and expectations for a robust report, but cautioned that even strong results might not reassure investors. Investigations into Huang's conduct and possible violations of U.S. chip export rules could bring sanctions that hurt Nvidia's international business, CNBC reported.
