Cramer's Morning Take: AMD & Nvidia 6/5/23

SPEAKER_1 (0:00)

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Jim Cramer (0:32)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

We're digesting the big rally from Friday. I did a piece this weekend about how, while I trusted, obviously I like what the money's going into.

You know, after a big run, suddenly people start embracing a market. I don't like that. I like to go the other way because it really doesn't make a lot of sense to get in after the run. And you know, Jeff, we had some stocks that really moved quite big. Now, the oscillator's not ever bought. But we also don't want to come in on top of some of these moves.

Jeff Marks (1:07)

Yeah, I think so. And that reflects our trim of AMD today, our downgrade of Palo Alto, which will get into our downgrade, not that it was downgraded by the market. But when we think about the move that tech has had this year, and you see the NASDAQ outperforming, you have the NASDAQ best first half of the year on pace for since 91 Semi is the SMH, up 44% the first half of the year, year to date, on pace for its best half since 2000

When we saw those stats come out, you emailed me a little disconcerting that we've had such a big move, only because the gains have been had.

Jim Cramer (1:41)

Right, and I'm going to talk about this tonight, because I really feel that one of the things that I don't like to do is say, wow, we're now back to where we were. We're now, we've made up all the ground. Well, if we made up all the ground, I'm not saying the Lord got us back to even. Let's go.

I am saying that if you're thinking right now that this is the level to get in, I have to say to myself, well, it wasn't the other level, the level to get in, and that's how I feel.

Jeff Marks (2:05)

A little patience, you might get a better opportunity down the road to do some buying.

Jim Cramer (2:10)

Right.

Jeff Marks (2:11)

And AMD was the name we trimmed again, so we also trimmed a little bit last week at a slightly higher price.

Jim Cramer (2:18)

And what a great move.

Jeff Marks (2:19)

Oh my God, a huge move. It's rallied from 80, the pullback to 80 when it reported just a month and change ago, all the way up to 118 A lot of it is on more of a speculative idea about what they might have when it comes to AI, but a little bit different from Nvidia, who guided revenues 4 billion higher than expected because they have the tangible orders.

Jim Cramer (2:43)

Right, Nvidia's GPU, AMD is CPU.

Currently, the division inside a data center is 95% CPU and 5% GPU. The 5% GPU, which is faster, is Nvidia.

The 95% is made up of Intel and AMD. That market is going away from Intel rather rapidly. AMD is in it, but the new configuration in a data center is going to scrap a trillion dollars with what's been done.

It's going to be 95% GPU, that's Nvidia, 5% CPU, that's going to be AMD, maybe some Intel. So given that we've had this run, and this is a combination of people feeling, well, wait a second, maybe they'll still be in the new thing, but also that you and Packard was saying things in return.

Jeff Marks (3:26)

They'll have some GPUs, but we know Nvidia, they're still kind of working on it. We know Nvidia is far more advanced right now. They have the lead and they'll have the lead for quite some time.

Jim Cramer (3:38)

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SPEAKER_4 (3:56)

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, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by Cramer on television, radio, internet, or another medium.