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. All three major indexes rallied on Thursday, with the Dow regaining 50,000 after important US-China talks and a big earnings report from Cisco Systems. Semiconductor stocks had a mixed day on Thursday. Club names such as Nvidia and Broadcom are also joining forces. Micron and Qualcomm also fell. Jim Cramer thinks investor enthusiasm for the debut of AI chip company Cerebras may be taking money away from some semiconductor and other AI stocks. “Cerebras is just a money magnet,” he said. 2. Cybersecurity stocks, including Club Holdings’ Palo Alto Networks and CrowdStrike, continued their upward trend on Thursday. Palo Alto and CrowdStrike hit new all-time highs in Thursday’s session after closing at all-time highs in the previous session. The rise comes after Palo Alto announced Wednesday morning that it is leveraging advanced AI models to find and fix vulnerabilities in its products. The company also warned other companies about the escalating threat posed by adversaries using AI. Jim said fears that AI will replace cybersecurity vendors appear increasingly overblown. We have been pushing that view for several months and expanded on it again on Tuesday. “They should never have been included in the software index,” Jim said, arguing that the group should be seen more as defensive infrastructure than traditional software. He also highlighted CrowdStrike’s cloud-native platform and management team as the main reasons why the club continues to be convicted. 3. Consumer stocks have struggled recently amid growing concerns about rising gas prices and weak spending due to inflation. Now, Jim believes the recent pullback in TJX companies has created a potential buying opportunity ahead of next week’s earnings results. The stock is down about 10% from its April high. “When you see retail sales down, this is what you buy,” Jim said, noting that TJX’s value-oriented models are likely to benefit as shoppers become price-conscious. Jim and Geoff Marks, the club’s director of portfolio analysis, said they would be buyers were it not for the current trading restrictions. However, he said he would reevaluate the stock price on Friday. 4. The stocks featured at the end of Thursday’s video were Starbucks, FedEx, Solstice, and Wells Fargo. (Jim Cramer’s charitable trust includes Boeing, Crowd Strike, Palo Alto, Starbucks, TJX, and Wells Fargo. See here for a complete list of 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.
