Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Thursday’s key moments. 1. Stocks rose on Thursday as Wall Street attempted to recover despite a flare-up in U.S.-Iranian tensions and rising oil prices. The market saw a sharp split within the technology sector, with hardware and chip stocks rising, but software stocks remaining under pressure. Micron rose 7.5%, but club name Salesforce fell 2.5% after KeyBank downgraded the stock from buy to hold. Jim said the disparity reflects where the money is going in boosting artificial intelligence. “The companies that receive checks from the hyperscalers, the Microns and SanDisks of the world, are doing well, but the hyperscalers, the companies that write the checks, are doing poorly,” he said. The club also wants to focus its semiconductor exposure around its highest-conviction ideas, such as Intel, which Jim called his “favorite stock in the portfolio.” 2. Meta, which owns the club, withdrew after investors expressed concerns about Meta’s acceleration of AI investments. The parent company of Facebook and Instagram has announced plans to start manufacturing its own AI chips as part of a broader effort to expand computing power to 14 gigawatts next year, suggesting capital spending is unlikely to slow anytime soon. Jim said the high spending reflects persistent demand rather than overcapacity. “I think they’re looking at a book where there’s a demand for this book to be really good, and we want to make sure we can meet that demand,” he said. Jim acknowledged that Meta has struggled to clearly communicate its strategy to investors, but remains bullish. “I’m sticking to it,” he said. “I think they’re doing a lot of things right, except telling the story.” 3. Shares of Honeywell Aerospace, the name of the club that recently spun off from Honeywell Technologies, fell another 2% Thursday. Jim said this weakness may simply reflect the volatility that often accompanies spin-offs, rather than a deterioration in the underlying business. He reiterated his strong belief in the newly independent aerospace company and said the share price was close to the level he wanted to further improve the club’s standing. 4. The stocks featured in rapid succession at the end of Thursday’s video were PepsiCo and Levi Strauss. (Jim Cramer’s charitable trusts are long HON, HONA, INTC, META, CRM. See here for a complete list of 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.
