Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream weekdays at 10:20 a.m. ET. A recap of Monday’s key moments. 1. Wall Street has started the week higher after the S&P 500 fell more than 2% and the Nasdaq fell more than 3% last week. Markets continue to analyze the uncertainty surrounding President-elect Donald Trump’s cabinet appointments. Jim Cramer urged investors to “stay the course” and resist the temptation to make short-term trades on political headlines. Echoing his Sunday column for club members, Jim said investors should avoid “exciting stocks that have moved parabolically” in anticipation of Trump’s return to the White House next year. 2. Nvidia fell nearly 2% on Monday after technology publication The Information reported that the company’s next-generation Blackwell AI chips encountered overheating issues when integrated into large-scale server systems. Ahead of Wednesday night’s earnings report, Jim said he didn’t have the highest confidence in Nvidia, but suggested he wasn’t concerned about the long-term impact of the heat issue. “I say own it, don’t trade it,” Jim said. To that end, Jim pointed to a post by Dell CEO Michael Dell on social media on Sunday stating that the company is currently shipping Blackwell server racks. “Why would he ship a defective rack?” Jim asked rhetorically. “That’s not the case.” When asked for comment on The Information report, an NVIDIA spokesperson emailed the following statement to Investing Club: “NVIDIA GB200 systems are the most advanced computers ever created. Integrating them into a variety of data center environments requires co-engineering with our customers.” While we compete to be first to the market, NVIDIA works with leading (cloud service providers) as an integral part of our engineering teams and processes. Engineering iterations are normal and expected. ” 3. Nvidia’s report could have implications for the entire semi-final, contributing to a more than 3% rise in the share price of Advanced Micro Devices, an AI chip rival and the club’s holding company. Some investors may think Blackwell’s problems could lead to an increase in AMD chip sales. But I don’t think that’s a good reason to rush out and buy AMD stock on Monday. Meanwhile, AMD’s new partnership with IBM provides even better reasons to like this stock. IBM said AMD’s MI300X AI chips will be available on IBM Cloud in the first half of 2025. AMD, which ranks second behind Nvidia in AI chips, also has partnerships with Microsoft and Meta. Jim stated that he would like to further strengthen his position in AMD, but acknowledged that buying on the kind of strength seen on Monday is not consistent with our investment strategy. Our preference is to take advantage of weakness and buy. Jim said the stock could rise further if AMD announces additional AI chip deals with tech giants such as Amazon. 4. The stocks featured at the end of Monday’s video were CVS Health, Netflix, Robinhood, and Warner Bros Discovery. (Jim Cramer’s Charitable Trust has long been listed as NVDA, AMD, AMZN, MSFT, and META. See here for a complete list of stocks.) Subscribe to Jim Cramer’s CNBC Investment Club As a trader, you will receive trade alerts before Jim makes a trade. trade. 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’s advice on Nvidia and AMD on Monday as AI chip stocks diverge
By NvidiaDaily
