Wall Street is waking up to how wrong it got this cybersecurity stock
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 Wednesday’s key moments. 1. Stocks are sharply higher, looking to snap a three-day losing streak. A decline in soaring bond yields and elevated oil prices were helping. Investors on Wednesday rotated back into AI hardware and semiconductor names following a brief software-led rally . “The AI hardware cycle is where the action is again,” Jim said. Club holding Salesforce and software vendor ServiceNow gave back gains after rallying earlier this week. While he said software stocks “can make a comeback” if companies prove AI is helping rather than hurting growth, Jim remains more bullish on AI infrastructure and hardware . 2. CrowdStrike jumped 4% to another all-time high, reinforcing our view that concerns about AI disrupting cybersecurity companies were misplaced. We recently trimmed shares following the stock’s snapback rally — that’s our discipline when we see parabolic moves. However, we still love the business, which remains well positioned as companies spend more to protect against growing digital threats. Jim said AI is creating more demand for cybersecurity rather than replacing it. He also feels CrowdStrike should be viewed as “defense software,” not traditional enterprise software. 3. Nvidia shares rose 2% ahead of its earnings Wednesday evening. But the Club stock is still about 5% lower than last week’s record high. We like it when our stocks cool a bit ahead of the print. Analysts expect fiscal 2027 first quarter revenue of roughly $79 billion at Nvidia and earnings per share of $1.76. Jim said that CEO Jensen Huang must address concerns that Amazon and Alphabet are building their own chips. Jim said that Jensen must say something like: “Look, I’m not concerned about what they’re doing.” 4. Stocks covered in Wednesday’s rapid fire at the end of the video were: Target , Lowe’s , Toll Brothers , and Cava . (Jim Cramer’s Charitable Trust is long Alphabet, Amazon, CrowdStrike, Nvidia, and Salesforce. 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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