For most of the year Nvidia (NVDA) -) has been the market leader as head of the Magnificent 7 stocks that have single handedly accounted for most of the market gains in 2023.
In fact, the Magnificent 7 — which consists of Nvidia, Apple (AAPL) -), Tesla (TSLA) -), Microsoft (MSFT) -), Alphabet (GOOGL) -), Amazon (AMZN) -), and Meta Platforms (META) -) — have collectively jumped 50% this year while the remaining 493 equities in the S&P 500 have stayed "basically flat," according to a recent note from Apollo economist Torsten Slok.
Related: Here's the dark horse tech giant that's going to come out ahead of Nvidia and Microsoft
But on Wednesday, Nvidia's stock was the one left behind while the wider markets experienced strong gains after its latest quarterly earnings results failed to impress Wall Street, despite impressive revenue growth and strong bottom-line results.
Nvidia shares were down more than 3% at last check Wednesday afternoon despite reporting earnings of $4.02 per share, well ahead of analysts' $3.39 per share estimates.
But the news from October that the U.S. Commerce Department was closing the loopholes that had allowed Nvidia to sell throttled-down AI chips to Chinese companies is weighing on the stock, and CNBC's Jim Cramer isn't happy about it.
"Nvidia can and will prosper without China. It's just easier with (the ability to sell to China) than without," Cramer tweeted. "If you are shocked by the China problems with Nvidia join the club or sell the stock," he said in another tweet.
But despite the negative sentiment coming out of the earnings call Cramer was still optimistic the stock would have a change to rise before the market's opened Wednesday.
"Crazy Nasdaq jailbreak... If Nvidia breaks out here there will be sentiment that it will challenge the largest companies we have in size – the top of the Magnificent Seven," Cramer said.
Crazy Nasdaq jailbreak.. If Nvidia breaks out here there will be sentiment that it will challenge the largest companies we have in size--The Top of the Magnificent Seven
— Jim Cramer (@jimcramer) November 22, 2023
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