Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street. Markets: Stocks were mixed Wednesday as Wall Street hoped for an end to the record government shutdown. The House is scheduled to take a final vote in the evening on a Senate-backed bill that would allow the federal government to reopen. The Dow hit a new high in early trading. The S&P 500 and Nasdaq were under some pressure as technology lagged and investors moved to sectors such as health care and financials. Eli Lilly topped $1,000 a share for the first time on Wednesday, while Goldman Sachs soared 3%. Both are club properties. Data centers: Anthropic plans to pump $50 billion into artificial intelligence infrastructure over the next few years. The investment announced Wednesday will initially go toward building data centers in New York and Texas. The first location is expected to be operational next year, with more locations likely to follow. Anthropic said the energy-intensive facility is needed to power AI tools and expand research and development for the Claude chatbot maker. Anthropic’s efforts are good news for Club Holdings’ GE Vernova, Eaton, and Dover, which are playing a role in building out the data centers. GE Vernova manufactures the natural gas turbines used to support these facilities, and Eaton manufactures power management solutions to increase facility efficiency. Dover also sells thermal connectors and heat exchangers for the field. The rise of AI data centers means an increase in demand for power solutions. It doesn’t look like data center construction will slow down anytime soon. JPMorgan estimates that the cost of global data centers, AI infrastructure, and associated power supplies will exceed $5 trillion between 2026 and 2030. Analysts said in a note to clients on Monday that computing demand is “astronomical.” To be sure, investors are concerned about the eye-watering valuations of AI stocks, which has led to off-and-on declines in the tech sector over the past week. Wall Street’s call: TD Cowen raised its price target on Broadcom from $370 to $405 ahead of next month’s earnings release. Analysts cited increased AI spending from hyperscalers, raising their outlook for capital spending. According to TD Cowen, OpenAI’s successive investment deals also influenced the PT price increase. ChatGPT maker announced partnerships with Nvidia, Amazon, Microsoft, and Oracle. This is worth billions of dollars and will further expand computing power and secure more chips. It is believed that a portion of that spending will be earmarked for Broadcom’s operations. But TD Cowen argued there will be a “high hurdle” for chipmakers like Broadcom this quarter, given the stock price premium that assumes unrelated demand for custom chips. Analysts who maintained a buy rating on the stock said, “While we believe Broadcom is likely to post strong numbers, we equally believe this is well understood.” Analysts at TD Cowen said Broadcom’s stock will now depend on earnings expectations for the second half of 2026 and beyond. TD Cowen does not expect these expectations to change significantly during print on December 11th. The company acknowledged the possibility of a “wildcard” update during its post-earnings conference call. Next up: The club that owns Cisco Systems is scheduled to report its quarterly results after the close of trading on Wednesday. Disney, which shares the same club name, is scheduled to report its quarterly report on Thursday morning. Outside of the portfolio, notable releases before the start of trading on Thursday include Brookfield , JD.com , and Aegon . Applied Materials’ quarterly results will be listed on Thursday evening. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
