Regarding “mad money,” Cramer said the decline was due to a cyclical wave of fear, not a change in Nvidia’s fundamentals. Cramer advised that if investors still believe in AI and Nvidia, now is the time to buy rather than panic. Cramer said Nvidia’s steep decline was due to investor fear, not the company’s actual performance.
Nvidia Q3 Earnings and Earnings
Investors are concerned about news about competition, including Alphabet (Google) developing its own chips and Meta exploring Google’s silicon. Despite the concerns, NVIDIA had a strong quarter. Third-quarter sales reached $57 billion, an increase of 22% from the second quarter and 62% year-over-year. As The Street reports, data center revenue alone reached $51.2 billion, up 25% quarter-over-quarter and 66% year-over-year.
Net income rose to nearly $31.9 billion, and NVIDIA expects revenue for the next quarter to be about $65 billion. Cramer said investors have been repeating the old pattern of selling emotionally first and rationalizing later, missing out on big gains over the years.
Google and Meta take on Nvidia AI chips
Reuters reports that Meta plans to invest billions of dollars in Google’s Tensor Processing Units (TPUs) to break away from Nvidia’s GPU dominance. Meta will begin renting TPUs via Google Cloud in 2026 and may have dedicated TPU hardware in its data centers by 2027.
Google aims to capture about 10% of Nvidia’s annual AI chip sales, which could have a big impact on Wall Street. According to a report from The Street, Google’s stock price has risen 91% in the past six months, pushing it closer to a market cap of $4 trillion. Alphabet’s Q2 2025 revenue increased 14% to $96.4 billion, led by Google Cloud, which increased 32% to $13.6 billion. Google Cloud’s revenue grew 34% to $15 billion through Q3, driven by AI infrastructure demand and TPU adoption. Google’s AI approach is different from Nvidia’s. The company offers a fully integrated cloud stack and rents TPUs through cloud services as a cheaper and more scalable alternative. Investor Michael Burry of “Big Short” fame criticized NVIDIA stock, saying the stock is too expensive for the company’s projected future, as reported by TheStreet. Burley compared Nvidia to Cisco during the dot-com peak, when the stock price far exceeded real profits. He questioned the “money circulation” of AI and the continued profitability of Nvidia’s chips, and expressed concerns about stock-based pay and stock buybacks.
Nvidia said in the memo that Barry made a mistake in calculating share buybacks, and that the company has repurchased about $91 billion since 2018, as described in the Barron report. The company also noted that cash flow for the period amounted to nearly 98% of reported net income.
FAQ
Q1. Why did NVIDIA’s stock price fall by $200 billion last week?
Nvidia’s stock price fell primarily due to investor anxiety, not strong third-quarter earnings.
Q2. How are Google and Meta challenging Nvidia’s AI chip dominance?
Meta will use Google’s TPUs, and Google’s AI cloud stack provides a cheap and scalable alternative to Nvidia chips.
