My Top 10 Things to Watch Tuesday, May 26th 1. Stock futures are up big this morning. Hopes for a peace deal between the United States and Iran are driving the action. Will it really happen this time? Oil prices have fallen from morning lows after the US government said it had carried out a “self-defense” attack in southern Iran. 2. This week’s club name is the Salesforce and Costco report. We also get the latest readings from the Federal Reserve’s recommended inflation measure. In addition, we will be holding our May monthly meeting for investment club members tomorrow at noon (Eastern Time). There’s still time to register for special offers. You can also read my weekend column on why Nvidia needs to take a cue from Apple’s strategy to reignite its stock price. 3. I underestimated Amazon’s Trainium chip. The new one has more long-term value than I thought and is more of a threat to Nvidia than I thought. Those competition concerns could be another reason why Nvidia stock fell last week despite a better-than-expected quarter Wednesday night. 4. Melius Research analyst Ben Reitzes recommends Dell ahead of Thursday’s earnings. This is a risky decision, but I think it will work. You might have to talk about it at a club meeting. Dell is a winner because it is the preferred choice for users looking for the smoothest AI infrastructure integration. Nvidia’s CPU racks could also be a boon for Dell. 5. Leitz also claims to be buying Apple ahead of the iPhone maker’s annual Worldwide Developers Conference, which begins June 8th. The analyst said Google’s Gemini and Siri integration will be showcased. I think this partnership allows Apple to be more AI friendly, which is why the stock is so aggressively rising. 6. Intel has more than tripled in value this year at $120 per share, but I think there’s still room for upside. Given the excitement in the CPU market and the value of the company’s “foundry” business, which manufactures and packages chips for other companies, the stock could easily reach $150. 7. Evercore ISI raised its price target on Western Digital from $500 to $575, calling the data storage company and the industry as a whole an “important but still undervalued” component of the AI stack. Western Digital’s stock price has risen more than 180% since the beginning of the year, making it hard to call it undervalued. 8. The analog chip is also generating heat. As industrial and automotive end markets turn around in the economic cycle, Bank of America noted the growing importance of data centers to companies such as Texas Instruments, Analog Devices, and ONSemi. why? Huge power requirements. BofA said TXN’s data center business is the group’s largest and raised PT from $320 to $370. 9. Goldman Sachs lowered Workday’s price target from $206 to $151, citing questions about AI integration. Workday provides enterprise software for human resources, finance, and IT. There are many companies out there doing similar things. Like many software stocks, Workday has taken a nosedive this year. 10. Barclays lowered Chewy’s price target from $48 to $40, but maintained its overweight rating. This stock is a conundrum. Chewy increases profitability by adding new customers and increasing the amount spent by existing customers. But since early June last year, the stock has lost half its value. 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.
