Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream weekdays at 10:20 a.m. ET. A recap of Friday’s key moments. 1. Stocks fell slightly on Friday, with the S&P 500, Nasdaq, and Dow nearly flat in early afternoon trading. Benchmark 10-year Treasury yields rose this week as traders battled with the Federal Reserve, which is expected to cut rates again at next week’s meeting. Jim Cramer said at the morning meeting that the stock market is struggling to “break the spell of negativity” seen this week. Despite the overall market weakness, individual stocks such as Broadcom Inc. stood out, surging more than 20% on Friday after a strong earnings report after Thursday’s close. The stock move brings Broadcom into the $1 trillion market cap club. 2. Broadcom’s rise, driven by better-than-expected sales of AI networking and custom chips, is welcome, but the dominance of GPUs, the bread and butter of fellow Chip Club stocks Nvidia and Advanced Micro, is weighing on custom chips. A device that is raising questions about whether demand will be a challenge. Jim acknowledged Nvidia’s recent poor stock performance and attributed it to gradual selling by big-money investors. “It’s okay. It’ll repeat over and over until the next launch,” Jim explained. He expressed concern about AMD, saying, “I thought AI chips had scarcity value, but maybe they don’t have that scarcity value.” 3. Pressure on healthcare stocks weighed on life sciences company Danaher’s stock price. But Bank of America believes this is a stock to buy on weakness. “The recent pullback has created a more attractive entry point,” analysts said in a note to clients, as the recovery in the company’s core bioprocessing business continues to take shape and the stock could be out in 2025. He added that he is poised to perform. A significant overhang in the health sector due to the possibility of broader health reform is not a reason to criticize Danaher, Jim suggested. Although the company’s bioprocessing division took time to recover, “we’re here to stay because it’s the same company,” he explained. 4. Stocks mentioned in rapid succession at the end of Friday’s video were RH, PayPal Holdings, General Mills, Centene, and Homebuilders. (Jim Cramer’s charitable trusts are long AVGO, NVDA, AMD, DHR. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, Jim trades Receive trade alerts before you make them. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
Jim Cramer Assessing the Risk of Broadcom’s Strength Against Nvidia and Advanced Micro Devices
By NvidiaDaily
