Cramer expects Nvidia surprise, and likes idea of AI-driven job cuts at Meta
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. U.S. oil prices dropped below $100 per barrel and sent the S & P 500 up more than 1%. Crude pulled back after Treasury Secretary Scott Bessent told CNBC that the U.S. is letting Iranian oil tankers pass through the Strait of Hormuz. “The fact that oil can go down is making people feel like we better start doing some [stock] buying,” Jim Cramer said during the Morning Meeting. It’s Day 17 of the Iran war. With the S & P Short Range Oscillator in deeply oversold territory after last week’s market decline, we bought more shares of Boeing and Goldman Sachs on Monday. Both stocks were on last week’s shopping list . 2. Nvidia shares gained more than 2% ahead of CEO Jensen Huang’s Monday afternoon keynote speech at the AI powerhouse’s annual GTC conference in San Jose, California. Jim, who is at GTC, said, “I think Jensen’s going to surprise us with an inference chip” to better compete in an increasingly crowded space for processors that can perform everyday AI tasks at lower costs. Jim added that a new inference chip would be incredible, and “make it so that the gain in Nvidia stock [on Monday is for real.” Jim is also looking for Jensen to talk about Nvidia’s newest chip platform, Vera Rubin, and the roadmap beyond that. 3. Meta Platforms ‘ stock rose more than 2% after Reuters reported that the Facebook and Instagram parent is planning to lay off about 20% or more of its staff. A possible workforce reduction would help Meta offset its massive artificial intelligence spending plans. JPMorgan analysts estimated that job cuts of the reported magnitude could save Meta about about $5 billion to $6 billion. However, they said it’s a small dent in the company’s projected expenses of $162 billion to $169 billion. “This is a nod to AI. You don’t need as many people,” said Jim, who embraces such a move. He added that investors have overreacted to AI spending plans — not taking into account that they are going to happen over many years and could ultimately produce far greater cash flow. (Jim Cramer’s Charitable Trust is long META, NVDA. 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.
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