Cramer says this stock tied to the AI data center trade may be up next for a trim
Every weekday, the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Monday’s key moments. 1. The S & P 500 and Nasdaq fell slightly Monday, as a decline in memory names, including Club stock Micron , overshadowed lower-moving Treasury yields. Micron tumbled more than 5.5% on social media speculation that President Donald Trump may let Apple buy memory chips from Chinese suppliers for use in China-sold devices amid the memory shortage and resulting cost surge. “This is a Coca-Cola, J & J market,” said Jim Cramer, noting how the market has largely turned against some of the hottest AI and tech stocks. 2. Jim said the AI trade “is currently broken” as the data center buildout becomes a politicized election issue — a theme in his Sunday column . So, on Monday, we have lightened up on some of our AI stocks, beginning with a big cut in Broadcom . While investors might be able to buy AI stocks after the midterm election, Jim said, “I don’t want to sit here and just take pain.” GE Vernova could be up next in our effort to lower our exposure in artificial intelligence. GEV makes natural gas turbines used to generate off-grid power for data centers. Jim said GE Vernova is at the center of it all, and an argument could be made to trim the position. 3. CrowdStrike shares fell slightly ahead of earnings Wednesday evening. Jim said he feels “very good” about CrowdStrike going into earnings, even despite the departure of its chief technology officer, which was reported by Axios last week. Jim is confident in CrowdStrike given the increased need for cybersecurity, especially in the age of AI. “Strangely, I feel very good about Salesforce [too],” said Jim as the enterprise software company is also set to report quarterly results after Wednesday’s close. Salesforce, which is having a tough year on AI disruption concerns, is up over 40% from its 52-week low in late June. 4. Stocks covered in Monday’s rapid fire at the end of the video were: Jersey Mike’s Subs , Cava , Brinker International , Dutch Bros , Chipotle , Domino ‘ s Pizza , and Starbucks . (Jim Cramer’s Charitable Trust is long CRWD, AVGO, MU, and CRM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
