Important points
CNBC’s Jim Cramer said Micron’s entry into the trillion-dollar club marks a turning point in the market. “We’re entering a new era, and I think it might be a lot easier to join the trillion-dollar club than it was in the old days when the club was excluding outlaws,” the “Mad Money” host said. “AI has changed the order of things. No, it’s not degrading AI. It’s just becoming more inclusive. That’s the way it should be.” Micron Technology shares rose 19% on Tuesday, passing the $1 trillion market cap threshold. Kramer said Micron’s rise reflects how AI is reshaping investors’ priorities. Micron “makes the best high-bandwidth memory chips that go into data centers, so it’s no wonder its market capitalization is $1 trillion today,” he said. Kramer then looked at the top nine trillion-dollar companies based in the United States. NVIDIA Cramer said he thinks AI chip giant Nvidia should take a page from Apple’s old capital return strategy and buy back more shares while consistently increasing its dividend. “King’s results are certainly starting to underperform at the time of the report, with profits trading below the past four quarters. But while it has since delivered strong quarterly results, Nvidia is up just 14% for the year in a red-hot semiconductor market. The company has the best AI technology, but that’s not enough anymore.” , remains bullish on its cloud business in particular. “There’s a lot to like here: YouTube, the world’s largest video company, Waymo, the number one self-driving car, search, including Google and Gemini, and the best horse I’d bet on is Google Cloud.” Apple Apple was once seen as a laggard in AI, but Cramer argued that investors are underestimating the improvements in the company’s AI ecosystem. “Apple has the best hardware, and now Gemini has usurped one of the best AI platforms. Nothing short of perfection comes from Apple, and it’s paid off recently.” Microsoft He acknowledged concerns about Microsoft’s AI position and exposure to enterprise software, but said he remains confident management can turn things around. That’s why his charitable trust (the portfolio used by CNBC Investing Club) still owns it. “It’s hard to believe that Microsoft won’t solve the problem. Microsoft has so much money and so many smart people that you have to believe they’ll solve it.” Amazon Cramer said he’s become increasingly bullish on Amazon, especially after reviewing his views on the durability of the company’s custom semiconductors. “Amazon has misled even me, and I’ve come to believe it…Last week, I said that Amazon’s own chips, unlike Nvidia, won’t hold their value. That was a misconception. The new chips will definitely hold their value for years, and are about the same as Nvidia’s, but at a lower price. I think that’s one of the reasons Amazon’s stock is going up while Nvidia’s stock is stalling.” Broadcom He called Broadcom a “sleeper” AI winner thanks to its custom chips and stable leadership. “CEO Hock Tan is an astute businessman who is always acquiring new customers. He is a big reason why we worked with Broadcom all the way to the end for our charitable trusts and amassed great profits.”Tesla Cramer says investors need to increasingly think of Tesla as an AI and robotics company rather than just a car maker. “When we think of Tesla, we think of cars, but we should also think about self-driving cars and robots, which are big growth engines.” Despite Meta’s strong collection of apps, Meta Cramer expressed skepticism about what’s next for Meta. “I have no idea what Meta is doing outside of Facebook, Instagram, glasses, AI, WhatsApp…I know they’ve been able to pull multiple rabbits out of multiple hats. But we’re in the business of ‘What have you done for me lately?’ and the answer here is nada.” “People are going to get tired of owning this stock now that Warren Buffett has stepped down. The only thing holding them back is they don’t want to pay capital gains taxes when the cash register rings. I like corporate mosaics, but so many people are investing in this stock because they believe in Buffett that they might want to retire with him.”CNBC Investing Club Now Subscribe to follow Jim Cramer’s every move in the market. Questions about Cramer’s disclaimer? Call Cramer: 1-800-743-CNBC Want a deeper look into Cramer’s world? Punch him! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Have questions, comments, or suggestions about the Mad Money website? madcap@cnbc.com
