Cramer's Morning Take: Chipmakers 6/24/24

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.

Today, it looks like this is the bear's worst nightmare. We've got money coming out of the Mag 7, so to speak, although of course, there is no 7 anymore, there's really just Nvidia Company. And going to all sorts of industrials, but also the food group and the oils, this is what-

Jeff Marks (0:24)

Banks.

Jim Cramer (0:25)

Yeah, banks. This is what the bears should be most worried about, which is the broadening out.

I've always felt that you shouldn't consider that a concentrated group of stocks that go up, a bad market, because if the money broadens out, well then, what do you have? A good market? And what did you do? Sell before a good market?

Jeff Marks (0:43)

Yeah, I think that's a good point. And just focusing on Nvidia, the stock Tuesday became the largest market cap in the world, it passed Microsoft. And then Wednesday, you had some stories come out saying, well, could it be the next Cisco and the.com? And it's been down ever since, some other semiconductor names are kind of following along it.

But could it continue to go down? I mean, it's just had such a big run.

Jim Cramer (1:09)

And this is when people realize, holy cow, look, I do have more stock than I thought I did. Let's let some go. I had an interesting conversation with my daughters. I was indeed in the Teton area and also in Montana.

And one of the things I said was, wow, they're really gonna come after Nvidia and they shouldn't.

And my eldest said, dad, you know Nvidia. You spend a lot of time there. You understand what they do. The people who have just been fellow travelers who have no idea what they do, they're gonna sell the moment this thing starts rolling over. And that's, look, my kids have been schooled by a mom who is a great trader and by a dad who tries to have some sort of relevance. And boom, you get in a situation where you realize, well, wait a second, maybe a lot of people don't know what Nvidia does.

Jeff Marks (1:52)

Fair enough. I mean, we could pull up the chart of Broadcom, too. We were finally able to trim that Tuesday right before the big decline. And that was really just out of fear of parabolic moves, which what you see here, we always say we don't like parabolic moves because they're unsustainable. So we took some 10 shares off of Broadcom, funneled that into Dover, which is rallying with the industrial.

Jim Cramer (2:13)

And that's the industrial rally along with Eaton. I would point out that last summer, this broke down and we thought that it was broke down incorrectly off the quarter. And then you remember that buyer stepped up on the board.

Jeff Marks (2:27)

Yeah, absolutely.

Jim Cramer (2:28)

It bought a million.

Jeff Marks (2:29)

They bought it hand over fist, Hot 10 was buying it back.

Jim Cramer (2:32)

I want to tell people, look, when you see a real insider buy a lot, not a little bit, like $100,000, but a lot, that's a very good summer. 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 (2:58)

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.

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. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club disclaimer, please visit cnbc.com forward slash investing club disclaimer.