Every weekday, the CNBC Investing Club with Jim Cramer publishes Homestretch, a helpful afternoon update just in time for the final hour of trading on Wall Street. (We will no longer be recording audio, so we can get this new written feature to members as quickly as possible.) Markets Recover as Nvidia Turns Green: After a slow start to the session, Nvidia stock climbed out of its initial hole and traded higher on the day. One reason behind the positive reversal could be the realization that large cloud providers and other major tech companies are likely already lining up to get their hands on Nvidia's newest AI hardware. “Amazon CEO Andy Jassy said he would be happy to have as many chips as he could,” Jim Cramer said. But what Nvidia has accomplished to advance AI is much more important than just looking at cloud computing. It will have a positive impact on many real-world applications such as the healthcare industry. “Nvidia has exceeded the time needed to conduct a drug trial. They are going to shorten it dramatically,” Jim said. Over time, he added, these AI-driven improvements in drug discovery could translate into “more money for Danaher,” a life sciences industry club whose clients include pharmaceutical companies. In the immediate short term, remember that Danaher “is in the sweet spot whenever you see these $2 billion to $3 billion acquisitions of biotech companies,” Jim said. In fact, on Tuesday we saw another such deal in the biotech space. AstraZeneca agreed to buy Fusion Pharmaceuticals for up to $2.4 billion. Another announcement that caught our attention was that Nvidia brought its Omniverse 3D app platform to Apple's Vision Pro mixed reality headset. “Commercial uses of the Vision Pro jumped to the top because [Nvidia CEO Jensen Huang] “It showed how you would buy a car with it,” Jim said. “The simulation can be better than a test drive because you can then order the car to your specifications. “We call that synergy between two long-standing Club holdings ” Own stocks, don't trade them,” in Jim's opinion. It's only a matter of time before the market really starts to appreciate Nvidia's push into software and services, like those offered by the Omniverse. See more of the exclusive from Cramer with Huang on ” Mad Money” on Tuesday and Wednesday nights. Morning meeting follow-up: Part of Tuesday's morning meeting focused on recent struggles at Starbucks and pending litigation affecting Abbott Laboratories. Like Jim doesn't was able to attend the morning meeting, he offered his opinion on the “There are two stories. Regarding Starbucks, he said: “People don't want to sell it because maybe that's what Trough looks like.” Trough can be seen in different ways. It could be “comps” or the same. store sales, which are going through a rough patch right now due to headwinds in China, the Middle East and the afternoon in the US. It could also mean a valuation, as many analysts have cited the price ratio -Starbucks cheap profit versus history. At Abbott Labs, Jim said, “If Abbott stock goes down again, buy it. Unfortunately, this lawsuit exposure is a normal occurrence. It's the numbers; [Johnson & Johnson] He has 80,000 plaintiffs suing him. Abbott has such a small number that it could quadruple, not quintuple, before we take it into account.” As of Jan. 31, Abbott had 993 lawsuits pending in federal and state courts. GLP-1: It's hard to go a day without Los increasingly popular medications known as GLP-1 in the news. Oprah Winfrey hosted a television special Monday night, discussing the health benefits she has enjoyed since taking these revolutionary medications to help destigmatize weight loss medications. weight. exactly what changes in consumer tastes and habits these drugs will bring, but one area that is looking increasingly risky is alcoholic beverages. Jim believes that the fall of Brown-Forman shares to a low of four years can be explained by the use of LPG-1. “The company says no. But the explanation is simple: why pay for high-quality wines and spirits when they all taste the same? This is the GLP-1 dilemma,” he said. However, Cramer doesn't believe all alcoholic beverage companies will fall into this trap. “Beer doesn't suffer from the GLP-1 dilemma because it is a social beverage. And Constellation Brands' prices are reasonable,” he added. Constellation Brands stock currently trades about $5 per share, or about 2%, below the Club holding company's all-time high reached in July. A look at Wednesday: Va It's set to be a busy day with morning earnings from Chinese online retailer Pinduoduo and packaged food company General Mills, followed by Broadcom's AI Infrastructure Invest event, starting at 12 pm ET. ET, we'll have a half hour later, a policy announcement from the Federal Reserve's Federal Open Market Committee was followed by Chairman Jerome Powell's press conference. Although no cuts (or increases) are expected , actually) interest rates, the March meeting is notable because the Federal Reserve will release an update to its economic projection materials, which include projections for the gross domestic product, the unemployment rate and PCE inflation, as well as so-called “dot plots”, which assess the opinion of each FOMC participant on appropriate monetary policy. (See here for a complete list of Jim Cramer's Charitable Trust holdings.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable fund's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS OR IS CREATED BY VIRTUE OF THE RECEIPT OF ANY INFORMATION PROVIDED IN RELATION TO THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR BENEFITS ARE GUARANTEED.
Jensen Huang, co-founder and CEO of Nvidia Corp., arrives at an event in Taipei, Taiwan, Thursday, Jan. 25, 2024.
Lam Yik Fei | Bloomberg | fake images
Every weekday, the CNBC Investing Club with Jim Cramer publishes Homestretch, a helpful afternoon update just in time for the final hour of trading on Wall Street. (We will no longer be recording audio, so we can get this new written feature to members as quickly as possible.)
