Jim Cramer says Nvidia is a clear winner from Dell’s monster quarter
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 Friday’s key moments. 1. Club holding Costco’s stock fell 4.5% Friday as investors zeroed in on softer-than-expected membership growth in the retailer’s quarterly report . Jim said management’s commentary on the earnings call failed to reassure Wall Street that Costco can reaccelerate member growth. “When you have a stock down this much, you’d better come up with answers,” Jim said. “I would have liked more ownership of what went wrong.” While Costco remains a strong business, Jim said the stock’s premium valuation could remain a hurdle until the company offers a clearer path to improving growth. “I can’t tell people to buy it … because now I feel that the price earnings multiple might be too high,” he said. 2. Shares of Dell Technologies surged 30% Friday, putting the stock on pace for its best day ever after the company delivered another strong quarter fueled by booming demand for AI servers and data center infrastructure. Jim said Dell’s results reinforce his bullishness on Club holding Nvidia , given the two companies’ close partnership in powering AI systems for hyperscalers and enterprise customers. “This is the one to buy,” Jim said of Nvidia, arguing the chipmaker remains the best way to play the AI buildout. Jim also pointed to next week’s Computex conference , where Nvidia CEO Jensen Huang and other industry leaders are expected to provide updates on demand for next-generation AI. “I still think we’ll win bigger with Nvidia,” Jim said. 3. Two cybersecurity Club names report earnings next week: CrowdStrike and Palo Alto Networks . Both stocks are trading near highs after strong rallies during the quarter, which Jim noted can sometimes create a tougher setup heading into earnings. Jim also reiterated his view that concerns about AI disrupting cybersecurity have proven misguided as digital threats become increasingly sophisticated. He emphasized that CrowdStrike and Palo Alto remain long-term winners. “They are great companies, and you don’t need to trade them,” he said. 4. Stocks covered in Friday’s rapid fire at the end of the video were: Applied Materials , Honeywell , and FedEx . (Jim Cramer’s Charitable Trust is long Costco, CrowdStrike, Nvidia, and Palo Alto. 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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