Top 10 Things to Watch on Thursday 1. Stock futures are down this morning. Oil prices are recovering after the Iranian strike. The PCE index, the Fed’s recommended inflation measure, rose 3.8% from a year earlier, in line with expectations. Yes, this is a high number, but at least it wasn’t hot. The number of orders for durable goods is large. Is it a good sign for the club name Boeing? At yesterday’s May meeting, I talked about all 33 Investing Club stocks, as well as some non-portfolio data center-related ideas. 2. Snowflake has spun off from the Enterprise Software Group, making it more competitive with private Databricks. The stock price has soared more than 35% this morning. AI is clearly the winner. The company is doing this by partnering with Amazon Web Services, which just signed a $6 billion spending deal. A re-evaluation of this cloud-consuming AI story is underway. 3. Salesforce showed big growth in Agentforce and strong revenue growth last night thanks to monster share buybacks. Expectations for an acceleration in the second half also doubled. But the downturn in Tableau and the commerce industry is a drawback. The stock is down more than 1.5% at around $174. It’s still a confusing name. Wells Fargo lowered its price target from $210 to $200. 4. Marvell achieved amazing numbers, but so did its stock price. Earnings from data center chips are accelerating. The optical business here is also doing incredibly well. The real trick for many of these companies is simply securing a supply of parts to meet exorbitant demand. It’s just an incredible story. On paper, the stock is up 3.5%. 5. DA Davidson raised Micron’s price target from $1,000 to $1,500, implying 60% upside. Why not make it $2,000? Analyst Gil Luria asks, “Why are CPU stocks like Advanced Micro Devices and Intel trading at such large valuation premiums to memory chip makers?” He argues that in the age of AI, memory is becoming less of a commodity. 6. HP was downgraded by the analyst community, but there was a nice upside surprise last night, and analysts are scrambling to figure out how to bounce back. TD Cowen raised its price target on the laptop maker from $20 to $26 after the company’s second-quarter results beat expectations. JP Morgan raised HP from $22 to $26, and Citi raised it from $20 to $25. 7. Dell will report earnings tonight. I think we’ll get some strong numbers from the company. Prior to the launch, Mizuho raised its price target from $300 to $350. Analysts have raised their targets for the entire semiconductor sector as demand for AI memory soars. Dell shares rose more than 4% to about $318. 8. Meta is starting to sell subscriptions to its AI chatbot to offset expenses. The basic level costs $7.99 and the premium plan costs $19.99. We also have Facebook, Instagram, and WhatsApp subscriptions available worldwide. Also, don’t sleep on this headline. CEO Mark Zuckerberg said that if there is excess capacity, a metacloud computing business is “definitely on the table.” 9. Neocloud Nebius continues to do well. The stock is up more than 9% after already doubling in the past three months. Latest catalyst: Hedge, founded by former OpenAI researcher Leopold Aschenbrenner, has been discovered and taken a 5.6% stake public. Aschenbrenner Situational Awareness has become a fund to watch thanks to a number of great calls over the past year. 10. Mr. Oppenheimer upgraded Quanta Services to buyout, noting its exposure to power generation, underground distribution network modernization, and AI development. Quanta is the best company to build the actual structure of your data center. In addition to club names like Eaton and GE Vernova, Caterpillar, Cummins, and Modine are also ancillary clubs that people are buying. 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.
