Nvidia is the GOAT – the Muhammad Ali of the stock market

Despite a recent dip in its stock price, CNBC’s Jim Cramer remains bullish on Nvidia, comparing the company’s resilience to that of boxing legend Muhammad Ali. Cramer, speaking on “Squawk on the Street” Thursday, acknowledged recent losses for Nvidia investors but suggested the current situation mirrors moments in Ali’s career where he appeared defeated before ultimately triumphing.

The “GOAT” of Tech?

Cramer has been recommending Nvidia to investors since late 2009, and during that time, the stock has increased by more than 40,000%. He described Nvidia’s ability to bounce back from setbacks as a key characteristic, much like Ali’s famous “rope-a-dope” strategy of absorbing punishment to wear down opponents.

Did You Know? Nvidia’s origins lie in graphics processing units for video gamers and graphics artists, before the company shifted its focus to developing GPUs for artificial intelligence.

From Gaming to AI Dominance

Nvidia’s journey hasn’t been without volatility. The company experienced a 50% stock value loss in 2022, following a 30% drop in 2018, but a surge in demand for its chips following the launch of OpenAI’s ChatGPT in late 2022 propelled the stock to new heights in 2023, 2024, and 2025.

Currently, Nvidia shares have fallen over 6% this year, trading around $175, down from a record high of $207 in late October. Concerns about the sustainability of AI spending and an AI-induced memory shortage are contributing to the recent downturn.

Expert Insight: The comparison to Muhammad Ali highlights the importance of long-term perspective and the potential for recovery even after significant setbacks. Cramer’s analysis suggests that Nvidia’s underlying strength and strategic positioning could allow it to overcome current challenges.

Securing the Future

Cramer pointed to CEO Jensen Huang’s proactive move to secure partnerships with SK Hynix and Samsung for the supply of high-bandwidth memory as a crucial step. He emphasized that “whoever has memory wins,” and Nvidia has positioned itself favorably in this regard.

Should the stock continue to decline, Cramer suggested a price of $160 as a potential buying opportunity, reiterating his confidence in Nvidia’s long-term prospects. He concluded by stating, “What we have is the GOAT. Don’t mess with the GOAT.”

Frequently Asked Questions

What did Jim Cramer compare Nvidia to?

Jim Cramer compared Nvidia to Muhammad Ali, citing the company’s resilience and ability to bounce back from setbacks, similar to Ali’s boxing career.

When did Cramer first recommend Nvidia stock?

Cramer first recommended Nvidia stock in late 2009.

What is contributing to the recent decline in Nvidia’s stock price?

Concerns about the sustainability of AI spending and an AI-induced memory shortage are contributing to the recent decline in Nvidia’s stock price.

Given Nvidia’s history of navigating market fluctuations, how might its strategic partnerships influence its future performance in the rapidly evolving AI landscape?