Jim Cramer Thinks Apple (AAPL) and Nvidia (NVDA) are Tougher to Own—Is He Wrong?

I was shocked by Jim Cramer’s sudden change of tune on two stocks he’s been encouraging viewers to “own, not trade” for as long as I can remember. Undoubtedly, we’re talking about Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), two names that have been through rough patches time and time again, but have stayed names to “own” for the long haul, at least in Cramer’s playbook.

After President Trump targeted China with triple-digit percentage tariffs, there was a new risk to ponder when it came to even the most magnificent of stocks with significant exposure to China.

Indeed, with so much uncertainty surrounding the future of U.S.-China trade, the China-exposed stocks have become a heck of a lot “tougher to own.” And while Cramer didn’t necessarily signal it’s time to sell (he still believes in the two names for the long run), I do think his commentary may be a bit discouraging to long-time viewers who’ve stood by their Apple or Nvidia shares through thick and thin. Of course, only time will tell if Cramer’s right in that it’s time to be just a bit more cautious when it comes to the names as they navigate an environment where tariffs could act as a lingering overhang.

While both Apple and Nvidia remain magnificent names as they seize the AI opportunity ahead, such man-made tariff headwinds may very well take a few steps out of the strides of both companies. If the fate of the two stocks lies in the hands of Donald Trump, it certainly becomes harder to buy every dip, especially if the magnitude of the tariff impact remains a huge question mark.

Key Points

• Apple and Nvidia are AI titans that seem that much riskier to keep hanging onto amid the U.S.-China trade war.

• The long-term narrative still holds up, even if the tariff impact weighs down a few quarters to come.

• Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here here.(Sponsor)

It’s “very difficult” to forecast the tariff impact, says Apple’s Tim Cook

Even CEO Tim Cook admitted that it’s “very difficult” to forecast costs tied to tariffs for the second half of 2025. Such commentary caused AAPL stock to sell off viciously (down by more than 4%) during the after-hours session despite the better-than-expected numbers. Personally, I think Cook is right to refrain from offering certainty to investors at such an uncertain time. It is really tough to know what’s in store for Apple if tariffs stick and what the impact will be on consumer demand.

Despite the after-hours selling on tariff unknowns, I continue to view Apple as a magnificent stock to own for the long haul. Of course, the second half could be quite nasty for Apple, Nvidia, and just about any other firm that’s reliant on a U.S.-China trade. But if you’re investing for the next six years, rather than just the rest of the year, I think braving the dip could prove wise.

Of course, there’s no telling how bad things can get if tariffs stay elevated and the disruptive impact takes a toll on earnings for the second half. That’s why dip-buyers should be ready to average their way into a position rather than backing up the truck on any 5% single-day dip. In any case, I think Cramer is right on the money that Apple and Nvidia are tougher to own in such an environment.

The AI race is getting close. Could tariffs put America’s lead at risk?

Undoubtedly, AI progress doesn’t seem likely to slow down due to tariffs. But it could change the dynamics and leaders in the race. For instance, a firm like Apple may take a bigger hit to the chin from tariffs than its Chinese rival, Huawei, which was never big in the U.S. to begin with. Furthermore, Nvidia CEO Jensen Huang recently warned that the AI race between China and the U.S. is actually “very, very close.”

As Apple and Nvidia, two of America’s leading AI companies, stand to feel the pain of tariffs, one has to wonder if the disruptive impact will cause America to lose its narrow lead in the race. In the meantime, investors should proceed cautiously, as no one knows how much pain corporate America can withstand before a deal is struck. For those ready to ride out a rough rest of the year, perhaps it’s time to be a cautious, incremental buyer on weakness.

The bottom line

Apple and Nvidia are truly magnificent companies that will keep leading the charge of AI. Despite their stronger long-term narrative, the next few months could get rocky, especially if tariffs significantly impact sales and earnings growth. For investors, it’s a matter of how much short- to medium-term pain one can handle for a shot at longer-term gain.

The post Jim Cramer Thinks Apple (AAPL) and Nvidia (NVDA) are Tougher to Own—Is He Wrong? appeared first on 24/7 Wall St..