CNBC Investing Club: Cramer’s Morning Take on Arm Holdings 5/26/26

SPEAKER_1 (0:00)

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SPEAKER_2 (0:30)

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com/marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.

Jim Cramer (1:01)

Jim Cramer here to share a short preview of my take on the market from today's members-only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 10 20 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.

Jeff Marks (1:22)

Arm just had a massive move last week. It rallied 46 percent. A lot of that came after NVIDIA said their Verus CPU, which is Arm-based, will do about their visibility in 20 billion in sales this year.

A second Parabolic move. We thought this was the first one after we bought it, but here is round two in the stock. We did trim some again today, just taking big profits in a Parabolic.

Jim Cramer (1:51)

Now, I understand some analysts will see this and say, wait a second, I got to get on that and take the price target to 500, say, because they're looking at Arm's being able to do a lot of CPUs. Arm CPU obviously used by NVIDIA.

Jeff Marks (2:05)

Yeah, it's good for their royalty.

Jim Cramer (2:07)

My problem with that is that's not how you buy stocks. You don't come on top of that kind of move, because historically, it's not been good. Now, this is a historical, meaning it has not worked the way I expected it to do.

But I'm not going to lose my discipline, because we're not selling the whole thing.

Jeff Marks (2:27)

Right.

Jim Cramer (2:27)

We're selling a piece of it.

Jeff Marks (2:29)

Yeah.

Jim Cramer (2:29)

So we're compromising in the way, I'm sorry, we're compromising in how you can handle parabolic move. We're not avoiding Arm, we're trimming Arm, and it's still going to have the same amount of money in Arm after we've taken it over the table.

Jeff Marks (2:43)

Exactly. That's the beauty of a long only portfolio. Your winners become a larger percentage of the portfolio as they gain. Then meanwhile, across the AI trade, some other names doing well, Mike Ra and Dell, just some familiar folks. But CUNITY, Broadcom, Corning, or some of the big gainers in the portfolio.

Jim Cramer (3:03)

Let's go with that CUNITY for a second.

Now, CUNITY is another stock that could easily, if it were to switch from the commodity chemicals analysts to a tech analysts, then you're going to get a 200 to 250 price tag. The reason I say that is because they're desperate for new names.

Jeff Marks (3:22)

Not well covered by the street since the spin last year. Covered by, I think it's maybe around 10 analysts.

Jim Cramer (3:29)

Yeah, covered by materials analysts.

SPEAKER_5 (3:34)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC investing club are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC investing club are not an attempt to induce any particular trading behavior, investment or strategy. To view the full CNBC Investing Club Disclaimer, please visit cnbc.com/investingclubdisclaimer.

SPEAKER_2 (4:05)

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com/marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.