This ancillary AI stock hits another record high. How we're playing the rally

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 Monday's key moments. 1. The S & P 500 rose on Monday, supported by strength in big tech. Club holdings Nvidia and Broadcom climbed more than 3%, building on gains from Friday's broad market rally. In fact, we upgraded Broadcom stock to a buy-equivalent 1 rating on Friday because it's a huge beneficiary of increased AI investments. The call follows earnings from fellow portfolio names Alphabet and Meta Platforms â two big Broadcom clients â both of whom plan on boosting their AI spending this year. 2. Melius Research downgraded Microsoft to a hold from a buy rating. Analysts say that CEO Satya Nadella has "lost the AI narrative," and that the company's focus on Copilot hasn't paid off as hoped. Melius also said the stock was "very expensive," given management's new free cash flow estimates. We recognize these concerns, but it doesn't change our view on shares. Microsoft is a name we're sticking with for the long run. Plus, the stock is taking the Wall Street call in stride, up more than 2.5% in Tuesday trading. 3. Corning stock jumped to record highs after a positive feature in The Wall Street Journal over the weekend that described the company as an "AI superstar." Monday's 7% gains come amid a stellar 2026 run for the specialty glassmaker, up nearly 50% year to date. It's tempting to sell now that a big publication like the Journal has taken notice of Corning's AI prowess. We're not going to do that. Corning has lucrative partnerships like its $6 billion supply deal with Meta . which can support demand for its fiber-optic cables business and send shares even higher in the long run. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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.

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This ancillary AI stock hits another record high. How we're playing the rally

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