Cramer's Morning Take: Fitch Downgrades U.S. Debt 8/2/23

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Jim Cramer (0:33)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting.

Jeff, 12 years ago, we had the S&P downgrade, and it turned out to be an important low for the stock market. A lot of tech sold off and people paid. Well, here we are again. This time, it's Fitch, and it's really having an impact on the stock market.

Jeff Marks (0:56)

Yeah, I do wonder if it's an excuse to sell. We have been overballed for quite some time, haven't really had a significant pullback in a while as well, especially off the strong June and July, but seeing some pressure today in stocks, some upward pressure in interest rates, maybe that's why we're seeing a big tech decline, but to your point, maybe that's the opportunity to buy as the analog. Okay, so let's look at AMD.

Jim Cramer (1:21)

All right, now, AMD was up at 1.6 last night.

They did reveal today on Squawk on the Street that they have enough of their own H100, so to speak, of what Nvidia has. The company is doing quite well, but the stock is up 71% and I think people are saying, you know what, I'm going to ring the register. That's where the opportunity comes. If you don't own AMD, I think that AMD is getting interesting.

Jeff Marks (1:47)

Yeah, I was just looking at some other tech names too. I mean, Palo Alto down around 4%.

No real news there. I actually saw, if anything, KeyBank raised their price target to 300 this morning, so maybe the wrong day to do it for that, given the set off in tech, but there could be some opportunities that present themselves.

Jim Cramer (2:06)

I mean, look, I think people have to understand that when we have Fitch, that then breeds that rates go higher because people are saying, listen, we have too much debt.

Actually, the Fitch debt rate happens to be about how we can't seem to agree to a deal for Marlin whether we have too much debt. So then what happens is that the stocks get clobbered and you get an opportunity to buy tech at a discount for no reason. This should not be down 6

Jeff Marks (2:31)

And it was up last night. It was up pre-market. They did beat on earnings. Guidance was a little bit like relative consensus, but I think there might have been a fear that it would be an even worse number.

Right. Lisa Sue was on CNBC this morning saying good things about the PC business.

Jim Cramer (2:50)

Data center too, which some people were worried about.

Jeff Marks (2:52)

Still taking a share from Intel, very important. And they do have this MI300, this AI accelerator.

Jim Cramer (2:59)

Right. That's the equivalent of what Nvidia has. Now Nvidia is so constrained in supply that there's going to be a lot of chips that she needs. She put orders in during the downturn, so she's got all she wants. I like AMD.

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