Jim Cramer’s Nvidia Stock Advice: Why He Says Buy After the November Sell-Off

On November 5, 2026, as Nvidia slid more than 9%, Jim Cramer posted on X: “If the cheapest asset is your stock, you should buy it. Nvidia can buy and reload… or they can let it go down.” His point was aimed at the company: with a large repurchase authorisation and huge cash flow, Nvidia buying its own shares at depressed prices would be a better use of money than almost anything else.

On his show he went further, saying the stock was trading at the cheapest multiple in about a decade, quoting a price-to-earnings figure of about 16.5. For individual investors, the implied message was the same one he has given on past AI sell-offs: the long-term demand for AI chips has not changed just because the stock fell.

See how other AI names fared in the same rout in our look at the AI trade and the S&P 500.

Nvidia closed at $181.60 on November 5, down 9.26% on the day and about 25% below its October 6 record of $243.37. Coverage by 24/7 Wall St. put the shares at roughly 20 times this year’s earnings and 12 times next year’s, well under a long-run average near 30 times. TipRanks showed a Strong Buy consensus with 33 Buy ratings and no Holds or Sells.

Why did it fall? Most coverage tied the sell-off to the November 3 midterm results: Democratic wins, including Texas, raised fears of data center moratoriums and fewer tax breaks, which could slow AI construction. Nvidia had no company-specific bad news that day.

Whether a low multiple is a bargain or a warning depends on whether AI data center spending keeps growing. Our AI data center stocks tracker follows the companies doing that spending.

Cramer himself said the valuation loses much of its appeal if restrictions on new US data centers stop Nvidia from keeping up its growth beyond 2027. That is the core bear case: the stock looks cheap on next year’s earnings only if those earnings arrive.

New risk arrived after his call. On November 6 and 7, reports said US intelligence believes a Megaspeed executive was recruited by China to get close to Jensen Huang, and Congress asked for a briefing. Nvidia and China deny it, but it could feed tighter export rules. Read Jensen Huang: this week’s reports and the stock.

Cramer’s record is mixed enough that a fund once tried to trade against him, the short-lived “Inverse Cramer” ETF. Treat any TV call as one opinion among many.

Nvidia reports fiscal third-quarter 2027 results on November 17, 2026. The key items: data center revenue and next-quarter guidance, the gross margin path (management has said margins should edge back up in fiscal 2028 as price increases take effect), any update on China and Southeast Asia, and whether the board takes Cramer’s advice and steps up buybacks.

For the companies that buy Nvidia chips, the story is cost. Every GPU price change flows through to the cost of an AI data center. See what an AI data center really costs, or catch up on the week’s artificial intelligence news.