How Cramer is approaching two AI stocks after Oracle report roils market
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 Thursday ‘s key moments. 1. The Dow Jones Industrial Average touched a fresh record high this morning, while the S & P 500 tumbled following Oracle’s disappointing earnings report on Wednesday, which revived fears of an AI bubble. Jim Cramer is focused on the stocks that are positively impacted by the Federal Reserve’s decision yesterday to cut its benchmark interest rate by a quarter percentage point. “You just got a very good chance to buy,” Jim said. “It can continue today if you isolate the ones [stocks] that do better when rates go down,” added Jim, pointing to Club holding Home Depot . 2. GE Vernova is down almost 5%, in part because of Oracle’s impact on AI-related names. The company manufactures natural gas turbines, which are in high demand for powering data centers. However, there also may be some profit-taking in the stock, which soared 14% on Wednesday to a record high of $725 after delivering positive guidance through fiscal 2028. (On Wednesday, we raised our price target for GE Vernova to $800 per share from $700.) “That’s really why we always say never chase a parabolic move,” said Jeff Marks, director of portfolio analysis for the Club. Jim said the stock is a good buy after Thursday’s pullback. 3. Broadcom shares are also lower heading into its earnings report after the bell. The Street expects a beat, driven by higher sales of its tensor processing units (custom chips) sold to Alphabet . We’re focused on comments about customer ramps and new clients. The stock, as of Wednesday’s close, has jumped more than 20% since Nov. 21, and roughly 60% over the past six months. “If you want to sell it because it’s up big, that makes sense to me,” said Jim. “But if you’re selling because of Oracle, that’s a little nonsensical.” 4. Stocks covered in Thursday’s rapid fire at the end of the video were: Adobe , Visa , Union Pacific , Coca-Cola , and Walt Disney . (Jim Cramer’s Charitable Trust is long HD, AVGO, GEV. 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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