Jim Cramer says he would take profits in our big AI winner of the week. Here’s why
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 Fridays’ key moments. The S & P 500 declined Friday, pulling back from its record high set in Thursday’s session. The usual suspects in the tech sector are holding up. Nvidia and Broadcom both climbed roughly 1.5% after the opening. Meanwhile, Apple and Microsoft have dominated the market this week, too. Although it’s great to have each of these tech winners in our portfolio, we want to see gains broaden out into other sectors. “We’re seeing this divergence in the market,” Jeff Marks, the Investing Club’s director of portfolio analysis, said. “For every Nvidia, there’s a GE Healthcare .” Shares of medical equipment maker tumbled 2.3% Friday. After a more-than-20% surge this week on the back of a strong earnings report, Jim Cramer said he would sell some Broadcom on Friday if not for our restrictions. It’s just a matter of locking in profits as we sit on a nearly 100% gain on our position. One stock we will be trimming Friday is Palo Alto Networks position after the cybersecurity stock’s strong move in recent days back to roughly $320 a share. “We want to lighten up a bit,” Jim said, adding that investors can’t just ride the boom in tech. Meanwhile, the Club bought more DuPont de Nemours on Friday. We think the conglomerate’s recently announced plan to split into three publicly-traded companies presents more upside for the materials stock. JPMorgan raised its price target on TJX Companies to $125 a share from $114, implying a 15% upside from its Thursday close. The analysts argued that TJX’s off-price category still has plenty of market share gains ahead. JPMorgan’s call was welcomed news and a reconfirmation of the Club’s thesis. (Jim Cramer’s Charitable Trust is long AAPL, MSFT, AAPL,TJX, GEHC, NVDA, AVGO, DD, PANW. 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.
Read the full article here