Shortly after the opening, we will be selling 250 shares of Nvidia at roughly $136.02. Following the trade, Jim Cramer’s Charitable Trust will own 1,050 shares of NVDA, decreasing its weighting to about 4% from about 5%. We’re kicking off the new year by rightsizing our position in Nvidia, locking in a huge gain of about 975% on stock purchased in March 2021. As with our Apple trim last week , this sale doesn’t reflect any change in our longstanding view about Nvidia and the artificial intelligence giant’s status as an “own it, don’t trade it” stock. However, discipline always trumps conviction. Just because we want to own a stock for the long term doesn’t mean we can forgo discipline. We still must take profits from time to time after a big run. We let the stock run for essentially all of 2024, a year in which it delivered a 171% return. Ironically, the last time we sold Nvidia shares was on Jan. 2, 2024, on the heels of its monster 2023 performance. In addition to Thursday’s sale, we are downgrading our rating to 2, meaning wait for a pullback before buying shares . Previously, we had upgraded Nvidia to our buy-equivalent 1 rating on Aug. 2 when the stock fell to roughly $109 a share. The stock is up about 23% since the upgrade, exceeding the S & P 500’s return of about 10%. Nvidia is still in strong position for a 2025 , but we must acknowledge there could be some speed bumps along the way. Some of those bumps could be from increased competition from custom AI chips, a rationalization in capital expenditures from the megacap tech companies, and a dependence on Taiwan Semiconductor Manufacturing in an era where we have to be a little more careful about China with President-elect Donald Trump soon returning to the White House. (Jim Cramer’s Charitable Trust is long NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
We’re selling this stock for the first time in a year, locking in a nearly 1,000% gain