Jim Cramer breaks down Nvidia earnings

YOU KNOW WHAT'S NEXT. >>> MY MISSION IS SIMPLE. TO MAKE YOU MONEY. I'M HERE TO LEVEL THE PLAYING FIELD FOR ALL INVESTORS. THERE IS ALWAYS A BULL MARKET SOMEWHERE AND I PROMISE TO HELP YOU FIND IT. "MAD MONEY" STARTS NOW. >> HEY, I AM CRAMER. WELCOME TO "MAD MONEY". JUST TRYING TO MAKE A LITTLE MONEY. CALL ME, 1-800-743-CNBC. IT WAS A LOT EASIER TO OWN STOCK IN NVIDIA WHEN HARDLY ANYBODY KNEW ABOUT IT. THEN IT DID THIS THING WHERE YOU BECOME THE ENTIRE FULCRUM OF THE STOCK MARKET. YOU'RE GOING TO HAVE A TARGET ON YOUR BACK AND THAT IS WHAT I THINK HAPPENED TONIGHT TO THE STOCK AFTER IT REPORTED A FINE AND DANDY SET OF NUMBERS. BECAUSE FINE AND DANDY IS NEVER ENOUGH FOR THIS INCREDIBLE COMPANY. WE KNOW THE PRE-QUARTER JITTERS WEIGHED ON THE AVERAGE. S&P LOSING 0.6%. AND NOW WITH THE STOCK SINKING IN AFTER HOURS WE COULD BE IN FOR A HANGOVER OF WHAT THEY ARE ALREADY CALLING NVIDIA'S BUZZ KILL QUARTER, BUT THE THEY HAPPEN TO BE PEOPLE HAVING AN NVIDIA WATCH PARTY. THERE IS NOTHING TO CELEBRATE. MOVE ON. LET ME INJECT A POINT OF SANITY. NVIDIA REPORTED A STUPENDOUS QUARTER. 122% REVENUE GROWTH. EARNINGS PER SHARE INCREASED AT 152%. COMPANY ANNOUNCES A $50 BILLION BUYBACK. YET THE EXPECTATIONS GOT OUT OF HAND. WORSE, NVIDIA HAS BECOME OVERLY IMPORTANT TO THE FATE OF THE ENTIRE STOCK MARKET. AND EVEN I, WHO ONCE NAMED MY DOG AFTER THIS COMPANY, THINK IT HAS ALL GOTTEN TO BE TOO MUCH. WE KNOW THAT ARTIFICIAL INTELLIGENCE IS THE WAY OF THE FUTURE AND WE KNOW NVIDIA IS THE BEST PLAY ON ARTIFICIAL INTELLIGENCE. IN THE END IT IS BECOMING AN ALBATROSS AROUND THE MARKETS NECK BECAUSE NO ONE STOCK CAN BE A PROXY FOR THE FUTURE OF THE S&P 500. YET THAT IS WHAT HAPPENED AS NVIDIA ROCKED FROM 18 MONTHS AGO TO MORE THAN $3 TRILLION NOW. MAYBE IT WILL SHED MOST OF THAT ALBATROSS. THAT WOULD BE A GODSEND FOR ALL OF US. WHY IS IT WRONG? BECAUSE BUSINESS IS A FUNNY THING. TODAY BEFORE NVIDIA REPORTED WE KNEW THE DAY FIRM, SUPERMICRO, WILL DELAY A KEY PRODUCT BECAUSE IT NEEDS MORE TIME. THIS IS SOMETHING THAT IS ALWAYS GOING TO BE VIEWED AS NEGATIVE. ESPECIALLY BECAUSE A SHORT SELLER DROP TO DEVASTATING ALLEGATIONS THE DAY BEFORE. SUPERMICRO, NOT NVIDIA. IS IT ALSO NEGATIVE FOR NVIDIA? DO YOU THINK ANY OF THE PEOPLE WHO ARE NEW TO THE STOCK BOTHERED TO ASK WHETHER SUPERMICRO'S DELAY HAS ANYTHING TO DO WITH NVIDIA'S FUTURE? IT WAS SHOOT FIRST AND ASK QUESTIONS LATER. WHAT WAS TRULY INCREDIBLE WAS HOW THE CONTAGION RAPIDLY SPREAD. ALL OF THE SEMIS THAT I FOLLOW. ALMOST EVERY COMPANY INVOLVED IN ENTERPRISE SOFTWARE. THE QUARTER ITSELF, THE ACTUAL NVIDIA QUARTER THAT WAS REPORTED, IT FELT LIKE INSULT ADDED TO INJURY, WHEN THERE WAS NO INJURY TO NVIDIA. BLACKWELL GOES FULLBORE AND WE SEE RENEWED EXPECTATIONS. I HOPE THEY DON'T GET EXCESSIVE LIKE THEY WERE TONIGHT. AND YOU KNOW WHAT? I JUST HOPE THIS IS IT FOR NATIONAL NVIDIA DAY. CAN WE JUST CALL THAT A DAY? WHAT IS THE SOLUTION? IT IS SIMPLE. AS PLAIN AS THE NOSE ON YOUR FACE OR AT LEAST A LETTER PURLOINED AND POSTED RIGHT IN FRONT OF YOU. IT IS AN IMPORTANT PART OF INVESTING. I'M TALKING ABOUT DIVERSIFYING AWAY FROM NOTHING BUT TECHNOLOGY. THE REALITY IS DIVERSIFICATION IS A TOTAL DRAG. WHY WOULD ANYONE WANT TO OWN US TALK OF A BANK OR A PACKAGED FOOD COMPANY? THE STOCKS ARE BALANCED AND UNCONNECTED TO NVIDIA OR SUPERMICRO OR EVEN MICROSOFT AND AMAZON, TO NAME KEY PARTNERS OF NVIDIA THAT ARE ALSO SINKING TONIGHT. ON DAYS LIKE TODAY THEY DON'T DO ALL THAT COULD JOB BUFFERING THE TECH WEAKNESS. THAT'S OKAY. THERE WILL BE DAYS WHEN ALL YOU WANT TO DO IS LOSE LESS THAN THE MARKET. THAT PLUS THE CASH ON THE SIDELINES IS NOT NECESSARILY MEANT TO HELP YOU MAKE MONEY REGULARLY. THEY EXIST TO KEEP YOU IN THE GAME WHEN THE HOTTEST STOCKS TURN COLD, LIKE NVIDIA HAS DONE. THEY PREVENT YOU FROM BEING SO DISILLUSIONED THAT YOU SAY I CAN'T TAKE ANYMORE. SOMETHING THAT YOU MIGHT EASILY DO IF YOU ONLY ON THE STOCK TO SHORE, WHICH SADLY FITS THE BILL OF THIS UNBELIEVABLY GOOD COMPANY IN NVIDIA. AS SOMEONE WITH A DIVERSIFIED PORTFOLIO FOR MY CHARITABLE TRUST, I SPENT COMING INTO TODAY RAISING CASH AS WE SAID THAT WE DO AFTER WE SAW THE WORK OF THE MARKET HISTORIAN RETIRING. HE SAID THIS PERIOD SHOULD BE ONE OF THE WORST FOR STOCKS. HE SAID THAT THIS WOULD BE HORRIBLE FOR NVIDIA, SO WE DID NOT ENCOURAGE PEOPLE TO BUY IT. IT WAS SO HARD TO PART WITH ANYTHING. IT WAS HARD NOT TO SAY GO BY NVIDIA EVERY DAY, BUT OUR DISCIPLINE SAYS TO SELL IN A MARKET THAT IS OVERBOUGHT LIKE THIS ONE AND SAID DO NOT TELL PEOPLE TO BUY NVIDIA AHEAD OF THE ORDER. OUR DISCIPLINE SAYS TO OWN STOCKS LIKE STANLEY BLACK AND DECKER WHICH FEATURED POSITIVELY TODAY OR WELLS FARGO, RIDING THE WAVE OF LOWER RATES. AN OUTSTANDING PERFORMANCE WHILE WE PROST ALLIES FOR ELI LILLY BECAUSE WE BELIEVE IT CAN BE THE FIRST NON-TECH STOCK TO HIT $1 TRILLION VALUATION. IN THE END THERE IS NO DENYING THAT IF YOU OWN STOCKS, ESPECIALLY TECH STOCKS THAT WERE SMACKED AROUND IN THE WAKE OF NATIONAL NVIDIA DAY -- HENCE YOU NEED TO HAVE SOME CASH ON THE SIDELINES. DAYS LIKE TODAY ARE THE PRICE YOU HAVE TO PAY TO TRY TO GET RICH IN THE STOCK MARKET AND MAKE NO MISTAKE. IF YOU OWNED NVIDIA FOR THE LAST SEVERAL YEARS YOU ARE ALREADY WELL ON YOUR WAY OR YOU SHOULD BEAT IT. THE BOTTOM LINE, I TELL YOU TO OWN NVIDIA, NOT TO TRADE IT. I'M NOT GOING BACK ON THAT, BUT I DON'T THINK THAT IS POSSIBLE UNLESS YOU HAVE A DIVERSIFIED PORTFOLIO AS WELL AS CASH ON THE SIDELINES SO YOU CAN HANDLE STOCK LIKE NVIDIA. THEY ALLOW YOU TO STICK WITH NVIDIA EVEN WHEN IT IS GETTING CLOBBERED. THEY ALLOW YOU TO STAY SANE. THEY DON'T BLOCK THE EXITS. THE KEEP THEM OPEN FOR A CORRECTION FROM A BIG RUN. SOMETIMES THAT IS ENOUGH TO HELP YOU ABSORB THE PAIN FROM DAYS LIKE TODAY AND PERHAPS TOMORROW. EVEN ON NATIONAL NVIDIA DAY, WHAT DO WE DO? WE TAKE QUESTIONS. ALEX IN NEW YORK. ALEX. >> BOOYAH, JIM. PLEASURE TO BE ON YOUR SHOW. LONGTIME FAN. I WONDER WHAT YOU THINK ON BERKSHIRE HATHAWAY. >> IT IS WHAT I CALL AN P STOCK. IT'S BEEN THAT WAY SINCE I WAS FIRST TOLD ABOUT IT IN 1983 AND IT REMAINS AN UP STOCK EVEN TODAY. LOOK, IF YOU STICK TO SOME DIVERSIFICATION AND HAVE CASH ON THE SIDE THEN IT IS EASIER TO OWN RED-HOT DOCS LIKE NVIDIA AND ABSORB THE PAIN FELT ACROSS THE TECH SECTOR. SALESFORCE IS ON THE MOVE. I'M SITTING DOWN FRESH OFF ITS REPORT. THAT IS A TECH COMPANY THAT DID WELL, BUT IT CAME IN COLD. AND WHAT ARE THE RECENT TURNING SIGNALING FOR YOU, THE CONSUMER? I'M INVESTIGATING. AND I AM CRUNCHING THE NUMBERS FOR THE RED-HOT BEACON OF A BY NOW, PAY LATER STOCK, SO STAY WITH CRAMER. >> DON'T MISS A SECOND OF "MAD MONEY". FOLLOW JIM CRAMER ON X.