Jim Cramer cautioned investors about Nvidia Corp. (NASDAQ:NVDA) on Monday, predicting a potential market correction for the semiconductor giant that has seen its value surge 174% this year.

What Happened: "Still no crescendo moment in Nvidia. It will happen, just not yet....the reversal will be vicious though....and fast," CNBC's Cramer wrote on X, formerly Twitter, as the stock declined 1.68% to close at $132.00.

Still no crescendo moment in Nvidia. It will happen, just not yet....the reversal will be vicious though....and fast

— Jim Cramer (@jimcramer) December 16, 2024

The warning comes as Nvidia faces heightened scrutiny in China, where authorities launched an antitrust investigation last week into the company's 2020 acquisition of Mellanox Technologies.

The probe examines potential anti-competitive practices, including whether Nvidia limits competition by bundling its AI chips with Mellanox's NVLink technology.

Why It Matters: TF Securities analyst Ming-Chi Kuo expects the investigation to remain unresolved in the near term, drawing parallels to Qualcomm Inc.'s 15-month antitrust case in China.

While China represents only 5% of Nvidia's data center revenue, Kuo advised investors to prepare for increased regulatory scrutiny of Nvidia's practices, including its CUDA platform.

The investigation emerges as Nvidia maintains its dominance in the AI chip market, recently reporting third-quarter revenue of $35.1 billion, a 94% year-over-year increase. With a market capitalization of $3.21 trillion, Nvidia stands as one of the world's most valuable companies, trading at a price-to-earnings ratio of 53.

Wall Street maintains a bullish outlook, with 40 analysts setting an average price target of $170.56. Rosenblatt Securities leads with the highest target of $220, while New Street Research projects a low of $120, according to data from Benzinga Pro.