Stock set to win from thaw in China-U.S. relations, Amazon’s AI project
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market update : The S & P 500 is on pace for its second positive session in a row as it claws back some of its losses from the past few weeks. Technology leads the market as Alphabet jumps on the positive buzz surrounding its new AI model, Gemini 3. The news is good for Alphabet, but it’s even better for its primary custom AI chip provider, Broadcom , which makes the TPUs (Tensor Processing Units) that Gemini was trained on. Broadcom was the biggest gainer in the S & P 500 in midday trading, up more than 10%. China talks : President Donald Trump and Chinese President Xi Jinping spoke over the phone Monday , discussing the Ukraine-Russia war, fentanyl, and soybeans, among other topics. Trump also said he accepted Xi’s invitation to visit Beijing in April. A few stocks in the portfolio come to mind right away as likely winners if relations with China improve: Boeing , since China hasn’t placed a major order with the aircraft maker since 2017; and Nvidia if the chipmaker is allowed to sell AI chips to Chinese companies. Then there are the stocks that could benefit from any tariff reduction, including Apple and Nike . Amazon’s AI project : Amazon announced it is investing up to $50 billion to expand its AI and supercomputing capabilities for AWS U.S. government customers. The new project will break ground next year and will add nearly 1.3 gigawatts of AI and supercomputing capacity. Amazon said the facility will give federal agencies access to its AI services and will feature its own custom AWS Trainium AI chips as well as Nvidia infrastructure. The market is still wary of new AI investments and, more importantly, how they are funded, but we don’t think Amazon would make this commitment if demand and returns were in doubt. Up next : After the closing bell on Monday, Zoom Communications , Semtech , Keysight Technologies and Agilent will report earnings. Tuesday is a big retail day with Abercrombie & Fitch , Best Buy , Kohl’s , Burlington Stores , and DICK’s Sporting Goods scheduled to report. Alibaba and Analog Devices are also set to report. On the data side, we’ll get retail sales and the producer price index (PPI) for September and the November Conference Board Consumer Confidence Index. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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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