TheStreet’s Jim Cramer takes a hard look at Nvidia, oil prices and Didi Global.
Stocks traded higher Wednesday and bond yields stumbled as traders awaited minutes from the latest Federal Reserve meeting for clues on the central bank’s next policy moves.
Nvidia: ‘Major Breakthrough’
Cramer told Action Alerts PLUS senior analyst Jeff Marks that he felt more confident that Nvidia’s proposed acquisition of Arm Ltd. was going to go through.
Arm CEO Simon Segars recently said that the $40 billion deal is the best past forward.
British authorities were looking at the Santa Clara, Calif., company’s proposed purchase of the British chip designer from Softbank Group because of national security concerns.
“And this is a major breakthrough,” Cramer said, “because the British authorities have been holding it up and what Segars said is there’s going to be more tech done in the U.K. if Nvidia gets the deal. I think that should cinch it. I really do.
Nvidia has been on a good run with analysts. On Tuesday, Keybanc analyst John Vinh lifted his one-year price target on Nvidia to $950 from $775.
This followed BMO Capital Markets analyst Ambrish Srivastava, who just last Thursday lifted his own price target on the chip titan to a Wall Street high of $1,000 from $975 and affirmed an outperform rating.
Didi Global: ‘A Rushed Deal’
The China Securities Regulatory Commission said Wednesday that it was planning rule changes that would allow them to block a Chinese company from listing on U.S. and other overseas exchanges, even if the unit selling shares is incorporated outside China.
“Didi–thought it was bigger than the government, It was a rushed deal which people –including me — read as a sign of giant demand,” Cramer said in a tweet on Wednesday. “Now we wonder if they jammed it because they didn’t care about screwing us.”
Oil Prices: ‘Demand Overwhelming Supply’
Cramer also expressed his concerns about the rising price of oil, which hit a six-year high on Tuesday after OPEC leaders failed to reach a pact on production limit. Prices later retreated.
“I think with oil, it’s just demand overwhelming supply,” he said, adding that “we don’t have the refining capacity we need. We have a bag mix of both supply and demand and that’s something to watch.”
Cramer noted a potential impact of high gasoline prices on electric vehicles.
“If you’re paying $5 a gallon, it certainly makes an electric car or truck much more valuable,” he said.