Jim Cramer says it's time to trim this volatile AI chipmaker
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CNBC Finance
3 min read
Every weekday, the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Friday's key moments. 1. The three major indexes fell Friday, weighed down by weakness in technology stocks and higher Treasury yields. Semiconductor and AI-related names pulled back after a powerful rally, while investors rotated into beaten-down areas of the market, including select healthcare and software stocks. Shares of Club name Salesforce and ServiceNow jumped almost 4% and 5%, respectively. Micron , on the other hand, dropped roughly 5%. Jim Cramer said the market was experiencing "just a classic down day," with investors debating whether to buy the dip in high-flying tech names or shift toward lagging value stocks. The benchmark 10-year Treasury yield jumping to 4.58% added pressure to growth stocks. Investors were also digesting the outcome of the summit between President Donald Trump and Chinese President Xi Jinping , which failed to deliver the major breakthroughs Wall Street had hoped for. 2. Jim said the biggest disappointment of the U.S.-China meeting was the smaller-than-expected aircraft commitment for Club holding Boeing . Investors had been hoping for an order closer to 500 planes, but reports pointed to roughly 200 aircrafts instead. "This stock came in too hot," Jim said, though he added Boeing does not need China to succeed given its massive backlog and improving execution under CEO Kelly Ortberg. For Club name Nvidia , investors also hoped CEO Jensen Huang's meetings in China could help reopen chip sales into the region. Still, Jim cautioned that any progress ultimately depends on Chinese leadership. 3. Shares of Club name Arm Holdings fell 7% Friday, extending a volatile stretch following the chip designer's earnings report earlier this month. After initially selling off post-earnings, the stock had regained some ground before coming under pressure again. "You've got to be really careful with Arm," Jim said, because the market is on edge about whether it will be able to secure enough manufacturing capacity at Taiwan Semiconductor Manufacturing Company to meet all the demand for its new AGI CPU. "You have to trim Arm now," Jim said, arguing the stock's earlier rally had gotten ahead of the fundamentals. While Jim still sees long-term potential, he said reducing exposure makes sense after the company failed to capitalize on its recent momentum. Director of Portfolio Analysis Jeff Marks noted we're currently restricted from trading Arm because Jim mentioned it on CNBC TV within the past 72 hours. 4. Stocks covered in Friday's rapid fire at the end of the video were: Applied Materials , Dexcom , Texas Roadhouse , BWX Technologies . (Jim Cramer's Charitable Trust is long Arm, Boeing, and Nvidia. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
