After screaming higher by 224% in 2016, shares of Nvidia (NVDA - Get Report) have cooled off in 2017, down 2.8% on the year. Investors are waiting to see if Nvidia's earnings report rallies the stock or weighs more heavily on it.
This is an important time for Nvidia, TheStreet's Jim Cramer, manager of the Action Alerts PLUS portfolio, said from the floor of the New York Stock Exchange Monday. The company reports on Tuesday after the close.
Unfortunately, the stock has not been acting well. Shares have had trouble gaining momentum and investors have been selling into the rallies.
Investors have also been rotating into other stocks and sectors, particularly in data centers, Intel (INTC - Get Report) , Xilinx (XLNX - Get Report) , Skyworks (SWKS - Get Report) and Broadcom (AVGO - Get Report) . This rotation has been "very, very significant," he reasoned.
Nvidia is a great company, but the stock is still elevated, Cramer concluded.
Analysts expect Nvidia to earn 67 cents per share on $1.91 billion in revenue for the most recent quarter.
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