Jim Cramer holds Nvidia (NVDA)  in his charitable trust, but has cut the stock's rating because of the company's recent run-up. 

"Because of the speed of the last move from the $170s to the $200s, we downgraded [Nvidia] from a '1' to a '2,'" Cramer said during his latest conference call with members of his Action Alerts PLUS club for investors. "Our discipline is to keep you from buying high -- and post-earnings, this stock last time got pummeled. We didn't want to get you into that maelstrom again."

Cramer said Nvidia typically has a post-earnings swoon before settling in at a new higher level, a process that repeated itself following NVDA's latest release last week. Despite what Cramer called "excellent" earnings, Nvidia initially fell to about $204 in after-hours trading from a previous $209, but quickly reversed and stabilized at around $214.

"I started kicking myself that we didn't [sell half of our charitable trust's NVDA stock], but that turned out to be wrong," Cramer said. "It turns out we had it right after all, and the stock pivoted and went much higher -- 10 points higher almost instantly." 

Still, Cramer said investors who don't already own Nvidia should wait for the stock to pull back to around $195 vs. Thursday's close at $211.61. "Let's say the stocks goes below, say, $195. That's where I would initiate."

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Watch: 5 Things You Should Know About Tech Giant Nvidia

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