Cramer's Morning Take: AMD 7/15/24

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 think it's important to point out, this is the level where, plus five on the oscillator, where we must be concerned, which is why when we initiated AMD, we did not take a big stake in it.

Jeff Marks (0:21)

Sure, and we did trim some TJX last Friday as well, late trade, late Friday, just because it was just such a huge move in the market. We set around 115, we would trim and hit 115s, pull back a dollar since, but still like the long-term, but just some profit taking on the way up.

Jim Cramer (0:38)

Yes, and I do think people have to understand that this is one of those markets where you'll see, one of the things that President Trump never really cared about was credit cards, said fine. We think credit cards are fine, meaning that you're not gonna get that kind of regulation in credit cards, which I was most worried about.

Healthcare, anti-drug companies raising prices, but never anti the companies that do manage care. So you're seeing managed care up. You should not buy the drug stocks on this if you think that that's pro Trump. He's not pro drug company.

Jeff Marks (1:09)

Maybe let's get back to AMD. So starting a new position there, viewing if we do see more of that rotation that we saw last week. That really happened when rates fell, but rates are moving higher today as an opportunity to keep buying here. So we were in this a couple years ago for a really strong run, switched it out for Broadcom, thought it was a stronger AI play, which was true, but both have worked out very well for shareholders. Here, it's all about their AI accelerator chips, the MI300, that series, as well as the PC refresh cycle as well, which we know from recent data has been improving quarter to quarter.

And yeah, I would point out the criticism last quarter with the MI300, the reason why Lisa Sue wasn't able to raise sales expectations for the full year as much as the Street wanted to. I think a lot of it had to do with supply constraints.

Jim Cramer (2:03)

But that should be improved.

Jeff Marks (2:05)

We've seen Taiwan's semis numbers, Microns numbers.

Jim Cramer (2:08)

Now, I would point out, understand that one of the reasons why we got more bullish in AMD is AMD is always very abject, Lisa Sue very honest, that the chips that Nvidia has are great for inference, but also training. In other words, they're trained, they know how to read.

I've been waiting for AMD to have a chip that also has a lot of training because the MI300 did not. Well, they introduced it last week, and yet the stock didn't go up because of the big sell-off in tech. What an opportunity. 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 (2:55)

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