Cramer's Morning Take: Apple 1/18/24

Jim Cramer (0:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. Boy, do we have a lot to say. Let's just start with the market being higher. Now, one of the reasons I think we're just really taking the hand off from Europe.

We've been very correlated with Europe at the opening. Not, of course, once Europe closes, but there was a nicer tone there, and then we also had a very good tone from Taiwan Semi. So, you had Reishmalt Positive, Taiwan Semi Reishmalt, so we didn't come in with the book being negative, so to speak.

Jeff Marks (0:32)

Yeah, I think the Taiwan Semi news is key. They're talking about a return to growth in the quarter, a lot of it being fueled by demand for AI chips. You have that, and then, of course, an upgrade of the largest company in the S&P 500, Apple. I think that changes things, too. So, you're seeing a nice rebound today in technology stocks that people can't quit.

Jim Cramer (0:54)

Well, what did you think about the idea that Apple had been going down, down, down on worries about near-term, and they're taking a different view, which has really been a view that's very out of favor, which is that longer-term things will improve.

Jeff Marks (1:07)

Well, I think the near-term concerns are valid, right? We know China's economy has been weak. They did have this price discount. We'll see if that lasts longer than over the lunar holiday. But I think what Apple, what Bank of America, in their longer-term view, what they're looking at is a multi-year iPhone upgrade cycle because at some point, the new iPhones are gonna have a much more, a deeper integration with generative AI applications. You saw that yesterday with Samsung. They announced a new Galaxy phone with some AI features as well. And that could trigger more people to upgrade from the older generation phones. And maybe, you know, there's some people out there that maybe want to hold every three, four years they'll upgrade. Well, maybe that narrows it and that would lead to stronger iPhone sales.

Jim Cramer (1:51)

What I think we're going to see from Apple with generative AI is just, I don't know, if you ever put on your, you put on your, see what this cell phone's doing about your own life and relational to it. And I think that there's very possible, there's a lot of possibilities between trying to be what you call on and what they can demonstrate, a better index, a better, and there are a lot of things they can do with AI. Start your day with my out look on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_3 (2:27)

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