Cramer's Morning Take: AMD 10/30/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. I do want to start 30,000 feet. 30,000 feet because this day, we do not have, even though we had very strong ADP, we have not lost the bonds. The bonds' interest rates are calm, which therefore allows us to see up even though we have a number of negatives.

Jeff Marks (0:29)

Yeah, calm, and in fact, yields are going down. You had the 10-year above 4.3% yesterday. Today, it is, last I checked, 4.22 on the 10-year. So that certainly helped even as ADP is stronger than expected. GDP Q3, slightly below estimates. We have PCE tomorrow, non-farm payroll on Friday. So obviously, key reports. And a lot of earnings in between then.

Jim Cramer (0:52)

And why that's important is you take a look at a Stanley Black and Decker. It was upset by this. I mean rates. DR. Horton. There's so many. William Sonoma. So remember, we need that backdrop of rates to calm down in order for a lot of stocks, like even a caterpillar, to recover. And that's what's happening. Now, let's go to the big opportunities today. We have been trying to build a position in AMD. We have not succeeded. Why? Because it hasn't gone below our basis. I interviewed Lisa Sue today and spoke to her earlier today.

And I think there's a failure to communicate. They were supposed to do 2 billion in AI in January. They ended up going to do 5 billion. And yet the stock is down a dollar from when they made the 2 billion dollar projection. Which is really rather extraordinary. The stock is not liked on Wall Street. I get that. There are people who believe that she's so far behind in video that she'll never catch up. But I will say this. There is room for two. The PC and server were excellent. But when you're in a situation where everything has to be beaten and raised and she cut, people don't like it.

Jeff Marks (1:58)

Yeah, I don't know if cut is the right word. Maybe just in line.

Jim Cramer (2:01)

Yeah, in line.

Jeff Marks (2:02)

In line.

Jim Cramer (2:02)

She said right smack down the middle is huge.

Jeff Marks (2:05)

Q4 revenue guide was essentially in line with estimates. But as we know with Nvidia, they can beat by a couple billion and that may not be good enough. But to your point, they did raise the AIGP forecast. Market expected this. People do want to hear more about new customers. Met at Microsoft, obviously, the two major ones. Client better than expected. That's the PC business. With some optimism around 25 from AI PCs and Windows 10 no longer having technical support.

Jim Cramer (2:35)

You sound like you agree with me that this is going to be our first chance to be able to buy some at a better price.

Jeff Marks (2:40)

Yeah. I think our last buy was right around here too.

Jim Cramer (2:43)

Then we have to wait for it to go low.

Jeff Marks (2:44)

Yeah. Certainly, obviously, we want to see big blowouts, right? We want that for every single company, but I think with AMD, there's a little bit more patience needed because they just launched their AI chips this past year, and it's the fastest loss in company history. She has a good roadmap. They moved to an annual cadence of new products.

Jim Cramer (3:05)

I think if you read that, say right now Amazon doesn't use them. If you read that Amazon was in on them, I think you'd see the stock up 10 percent. It did not have new nameplates. I think that matters. I think that what's happened here is frankly a belief that maybe we're nearing the end of demand.

Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_3 (3:41)

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