Top 10 Clubs to Watch Wednesday, May 13th 1. Is the turnaround already over for semiconductor and AI stocks?Stocks like Micron and Corning are quickly rebounding this morning after a day of selling. S&P futures fell after April wholesale inflation data came in much better than expected. 2. Nvidia’s Jensen Huang will end up heading to China to participate in President Donald Trump’s two-day summit meeting starting today in China. Bank of America raised its price target for NVIDIA from $300 to $320. Club name Nvidia will report earnings next week. 3. Qnity Electronics received a price target increase after yesterday’s strong beat and price increase. This club holding was one of the few AI stocks that didn’t fall during yesterday’s sell-off. Deutsche Bank and BMO Capital raised the price to $180, and BMO reiterated its top priority designation. RBC rose to a street high of $200 and remained a buy. 4. Johnson & Johnson, the club’s name, was upgraded to Buy at Leerink, with the price target raised from $252 to $265. Will it matter in a market that only wants AI? I think we should, but we’re alone in that camp. Leerink likes J&J’s accelerating sales growth and raised his 2032 sales forecast for psoriasis drug Icotide to $10.5 billion. This is significantly higher than the consensus of $7.4 billion. 5. NextPower stock is up about 13% this morning on the back of a strong quarter and growing backlog. The company has raised its full-year earnings forecast. NextPower makes solar trackers for utility-scale solar power plants, but their range extends further. Yesterday, the company announced a deal to enter the power conversion market. 6. Alibaba shares are down 2% premarket after the Chinese tech giant missed revenue expectations and reported its first operating loss since the coronavirus pandemic. Alibaba is investing heavily in AI and faster e-commerce delivery. 7. CVS Health price target increased to $106 from Bernstein’s $94 due to Medicare Advantage restructuring. In an interview with Jim Cramer last week, CVS CEO David Joyner acknowledged that the Aetna business had not taken off, but said it has now seen five quarters of improvement. 8. Shares of AI computing provider Nebius soar after the so-called Neocloud reported higher-than-expected revenue and a smaller-than-expected net loss. Nebius, which received a $2 billion investment from NVIDIA in March, announced it has secured 1.2 gigawatts of power and land for a new AI data center in Pennsylvania. 9. A tough but fair article in the Wall Street Journal about Nike’s struggles and loss of market share in China. A lot still needs to change to regain growth there. 10. Aramark’s price target was raised several times after yesterday’s strong quarter. This food service company is riding the AI tailwind because it needs hospitality and employee support services in a large, complex data center facility. Deutsche Bank rose from $48 to $54 and remained a buy. Sign up for free for my Top 10 Morning Thoughts on the Markets email newsletter (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you’ll 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.
