Cramer's Morning Take: Super Micro Computer 4/22/24

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.

Jeff Marks (0:08)

Well, you talked about working furiously on the call Wednesday, but I know you were also working furiously over the weekend on the story you put out yesterday, which kind of examines Supermicro.

Jim Cramer (0:18)

Right.

Jeff Marks (0:19)

Felt 23% last Friday.

Jim Cramer (0:22)

I think that Supermicro, oh, wow, was the market. Now, look, this is nowhere near as proprietary as Blackwell or Grace Hopper. In video products. Yeah, and it is an integrator. I mean, if you look at Dell, look at Broadcom, Broadcom has been down badly, but Dell has not been down that much. I just think that this is a company that should never have been here, okay?

But it continued to pre-announce over and over again. People got very excited about the pre-announcement process.

Jeff Marks (0:51)

Right, and so when they announced their earnings date without a pre-announcement ahead of that, people got scared, they sold it. But also back to the bonds for a minute. You keep pointing out March 8th as the key date. That was the February payroll number.

And wage growth didn't moderate, but unemployment still arguably too low where the Fed has to worry.

Jim Cramer (1:13)

I mean, to me that that number said there's no need for cuts because we are growing this economy like mad.

And I mean, there's way too much emphasis on even what the Fed says is a chosen number, which is Friday, because you can't get a weak Friday number until you have unemployment. Unemployment is everything to this market. And unemployment in this country is so low. And it's also understated because over 10 million immigrants have come in that no one wants to talk about. Remember, I asked the labor secretary directly how many permits have been given. She would not answer.

Jeff Marks (1:47)

She wouldn't answer. And when you get a big sell off in tech, you're always gonna get someone who says it's time to go neutral on them, equal weight, UBS, they downgrade the big six, Apple, Amazon, Alphabet, Meta, Microsoft, NVIDIA to neutral from overweight. But they maintain an overweight rating on Tech Plus, which is tech but also includes internet retail with indiscretionary media and services as well.

The call here isn't necessarily about valuation or about AI. It's earnings momentum, slowing, reversing, basically this kind of end of positive revisions in earnings coming to an end. Arguably, it's already happened in Tesla.

Jim Cramer (2:27)

That's some micro, the end of that. By the way, remember NVIDIA, the reason why I've liked it all the way up has to do with the fact that when you look at it in retrospect, you sold it at a level that turned out to be between 14 to 16 times 30

Jeff Marks (2:40)

So this is interesting, NVIDIA. Obviously, horrible day Friday, down 10% was up maybe two, 3% earlier.

Now 1%, we did have an up opening. We're always talking about being cautious during these big, you know, sell off, you know, market corrections that we're going through. Be wary of up opens.

Jim Cramer (2:57)

Yeah, this stuff has to go down. Don't buy it unless it's down. 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 (3:16)

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 and 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.