Cramer's Morning Take: Tech & Chip Stocks 3/1/24

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. I just don't want to be full prey to the idea that you can't buy anything because it's 5%, can't buy anything because the Fed may not cut. Those have been fools' irons.

And what's made a lot of money for you is to listen to conference calls, pick the right stocks.

Jeff Marks (0:19)

Right, and you bring up Dell. Blowout quarter last night, strong demand for their AI servers, orders up 40% sequentially, the backlog nearly doubled. So you can see the big move there, but you mentioned some of the AI chips, right? That's kind of like the first derivative of the stocks that benefit, too. But it's actually so much more than that. A lot of industrial's tied to building out these AI factories that power these AI factories.

Jim Cramer (0:42)

Dell is the AI factory builder. Now, by the way, Michael Dell, I believe, and his team would tell you that the companion in the building out of the AI factories is Broadcom. Yeah. Now Broadcom stock will appear to be higher on this.

Jeff Marks (0:55)

Yeah. Well, I'm looking out even further from Broadcom, right? You pull up and eat and eat and eat and making another new high today. So I'm saying it's not just the chip stocks that are benefiting from this major investment cycle. There's industrials as well. And that's how the rally spreads out beyond the Magnets and the Seven.

Jim Cramer (1:14)

Caterpillar's data center, which we never thought, but you think Caterpillar's infrastructure is the number one market's data center. Jim Melville repeatedly told me that that's where the action is.

Now, so within these, you have to figure, okay, what does Alphabet have? Where does Apple fit in? Does Apple AI, is it going to be the 16 versus Samsung? But to not focus on these and to focus on the minutia of the PCE is to basically say to you, Investing Club members, we can't help you. We want to play politics. We want to talk about Jay Powell. Unfathomable things. We don't know what Jay... I've known Jay Powell for 25 years.

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