Nvidia And Apple 'Caught In The Crosshairs' Of Trump's Trade War With China, Says Jim Cramer: 'Until Trump Became President...'
CNBC commentator Jim Cramer has voiced concerns that the stringent China policy of the Trump administration is adversely affecting tech behemoths Nvidia Corporation (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL).
What Happened: On Monday, Cramer pointed out that the Trump administration appears to prioritize cutting off China over advancing U.S. interests. He stated that the government seems to be biased against these companies, particularly due to their connections with China, as reported by CNBC.
The Mad Money host suggested that the White House believes Nvidia isn’t doing enough to prevent China from acquiring its products. Apple, which has substantial business operations in China, is also ‘caught in the crosshairs’ of the trade war.
"Until Trump became president, our policy was peaceful co-existence and commerce with China, even if they didn't play by the rules on trade," stated Cramer.
Jim Cramer says the White House wants Apple to manufacture its products in the U.S. or not at all. However, he disagrees with that stance, arguing it's unwise to restrict a company that consistently produces popular and innovative products.
Despite the current challenges, Cramer indicated that he just ‘trimmed’ positions in Nvidia and Apple for the CNBC Investing Club’s Charitable Trust, expressing hope that the Trump administration might ease some of its harsher policies if conditions worsen.
Why It Matters: Earlier this month, Cramer criticized the Trump administration’s tariff policies as a “manmade disaster” leading to a stock market downturn. He had also warned that heavily shorted stocks like Nvidia and Apple could face further downward pressure from short sellers.
Moreover, Cramer had expressed concerns about Nvidia’s transformation into a “meme stock” due to U.S. export restrictions. This concern was further amplified when Nvidia’s stock fell nearly 5% following reports of Huawei ramping up AI chip production in China, despite a Bernstein analyst’s dismissal of its significance.
Interestingly, Apple and Nvidia, each, announced $500 billion investment, in the U.S. over the next four years to boost domestic manufacturing, a move which President Donald Trump hailed. While Apple’s investment includes a massive factory in Texas for artificial intelligence servers, Nvidia plans to use the investment towards making an AI supercomputer in the U.S.
Benzinga Edge Stock Rankings highlight momentum and growth rankings for Apple in the 69th and 45th percentiles, respectively. Curious how other stocks stack up? Click here to uncover growth and momentum scores for top stocks.
Over the past month, the shares of Apple lost nearly 12.5%, while Nvidia declined more than 20% during the same period.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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