Cramer's Morning Take: Nvidia, Tech Weakness & Solar 8/26/24

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. We are in the wake of the J-Pal Jackson Hole speech, where it was very clear that the next move is to cut rates, as he said, it is time. And Jeff, what we're seeing, going up, are companies that are cyclical, companies that have leverage to housing, not just the housing companies themselves. And also, when it comes to what I would guard as the overall, this is a really strange thing, group of people like, they're buying the J&Js and the General Mills, they're buying the PepsiCo's. I'm not so sure that's right.

Jeff Marks (0:40)

Is that because of the dividend yields?

Jim Cramer (0:42)

Yes. That's what I want to get into.

Jeff Marks (0:44)

With the 10-year yield falling?

Jim Cramer (0:45)

Precisely, because what I would be telling you, and what I'm working on for our next meeting, are really sustainable higher yields where the quarters are good. I don't think the companies I mentioned where the quarters are necessarily good. And by the way, I also don't believe that the companies are as oblivious to the GOP-1s as they claim. I think GOP-1 is going to influence a lot of the food stocks. J&J, I'm worried about the lawsuit. We have enough. We have Abbott. We're fine. I don't think you can buy Kimberly. We have Procter. We're fine.

Jeff Marks (1:16)

So there is a split happening in the market today. We are seeing some tech weakness, interesting because it is Nvidia. More on that in a minute. But then there's also the other basket of stocks that look a little bit more attractive because of their yields when rates are down, housing-related stocks as well as Stanley Black and Decker. And even the solar stocks are catching a bit today.

Jim Cramer (1:35)

Well, let's talk about solar. Remember, we have said from the beginning that solar is a play on lower rates, not a play on lower gas. Lean prices, therefore, mean you sell them. And what I'm seeing is that you know that if you think that Harris is going to win, this may be, I think, one of the single greatest Harris stocks there is. Because you need to be able to get more out of each panel. And that is, that's the next part.

Jeff Marks (1:59)

Yep, absolutely. So I know last night put out the story on Nvidia, kind of setting the scene ahead of earnings, expectations, $2 billion.

Jim Cramer (2:08)

And we have all the expectations, you have your cheat sheet there of what Nvidia has to do.

Jeff Marks (2:12)

Yeah, $2 billion upside to the Rev Guide is kind of the case.

Jim Cramer (2:15)

Yes, I see cadence down and synopsis down. Those are proxies for Nvidia. I see all the semis down. They are basically erasing Friday's move.

Jeff Marks (2:25)

Yeah, I know last Friday, really bullish note from Evercore on Nvidia, Morgan Stanley follows up today saying, it's largely shrugged off concerns about a Blackwell delay. And rightfully so just because of how robust demand is for the H200 and also the specialized chip in China. So a lot of the hyperscalers this earnings season raised their capex figure. So another good sign of demand.

Jim Cramer (2:48)

I'm talking about raising. Remember, the Apple, Apple is the winner when you hear that because it shows you what Apple is able to avoid. But you can have 50, 60, $70 billion in spending and then give your product right to Apple because they have 1.5 billion users. That's important. That's also in the article. Now I want to be clear. I want this stock down here before they report, just because I don't want people to think, well, you know what, even if they do 2 billion, it doesn't matter. So I am concerned, but I also describe why I'm concerned in this weekend's piece. And concern does not mean sell. 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 (3:34)

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