Jim Cramer: Why Investors Should Keep an Eye on Nvidia's China Exposure

Credit: The Street
Published on May 6, 2019 - Duration: 01:12s

Jim Cramer: Why Investors Should Keep an Eye on Nvidia's China Exposure

Shares of chipmaker Nvidia were getting hit Monday morning thanks, in part, to President Trump's tweets about the trade war.

The potential tamp on growth presented by escalated trade tensions with China is particularly troublesome for Nvidia as the company hoped for a trade deal and return to normality in China in order to curb its disappointing datacenter outlook globally and lift its other sectors., reported Real Money's Kevin Curran.

So, why did Jim Cramer choose Nvidia as the stock of the day?

"[Nvidia] is really linked to China.

They have a lot of business in China," Cramer said.

If the threat to trade subsides, this could be a key "buy the dip" opportunity.

If not, semiconductor stocks tied strongly to China could be problematic picks, wrote Curran.

"Markets around the world sold off on this news, but the big question now is whether this is the start of a major turning point or just a bout of volatility that will resolve itself favorably," Real Money contributor James "Rev Shark" DePorre said on Monday morning.

"I don't know the answer to that, but given the history of the trade negotiations, this sort of bad news tends to be followed by good news quite quickly." Nvidia is Real Money's stock of the day.

Want to know more about the impact of the trade war on the chipmakers and other tech giants?

Head over to Real Money to learn more.

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