Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments. Stocks moved higher Wednesday as Wall Street awaits the highly anticipated interest rate decision from the Federal Reserve at 2 p.m. ET. Policymakers are widely expected to hold rates steady at the end of their two-day July meeting while hinting at a September cut. Jim Cramer is “still in favor of owning the tech titans” even though “they don’t benefit” when the Fed eventually decides to cut rates. At least in the interim, we’re seeing a relief rally within tech on the notion that AI revenue is still strong and mega-cap tech companies are still spending on their AI buildouts. Big tech names are taking the lead Wednesday after investors honed in on positive read-throughs from Microsoft ‘s elevated capex spending on artificial intelligence when it reported Tuesday after the bell. That took shares of chip names Nvidia and Advanced Micro Devices up 11% and 5%, respectively. High demand for their AI chips was reflected in AMD’s upbeat quarterly results Tuesday evening. Even though AMD shares were having a strong rally Wednesday, Cramer believes the stock should be “much, much higher” after the company raised its full-year outlook for sales of its in-demand MI300 artificial intelligence chips. AMD CEO Lisa Su told Cramer in a CNBC interview that there’s a shortage of computing power. This means customers want to do more business with AMD but the chipmaker doesn’t have the bandwidth to make more of its advanced chips given unrelenting customer demand. AMD is supply-constrained because its MI300 chips are the fastest ramping product in the company’s history. Jim also noted another reason for AMD stock not rallying even further — investors still want to be in “companies that benefit from lower rates.” Rate cuts won’t impact big tech stocks that much. Shares of DuPont rose more than 5% on Wednesday after the company reported a solid second-quarter before the open. We’re surprised the stock isn’t up even more after management guided better-than-expected results for Q3 while raising full-year estimates. DuPont is still on track to split into three separate companies within the next year or two. We believe the water business will be worth more when the company splits. But another option we favor is DuPont’s water business being acquired. “The water company will be purchased for a much bigger price than it’s currently selling,” Cramer predicts. “A $35 billion company could be worth $50 billion frankly when this is finished.” We also like DuPont for its exposure to materials needed for semiconductor production. (Jim Cramer’s Charitable Trust is long MSFT, NVDA, AMD, DD. See here for a full list of the stocks.) 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 trust’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 INVESTING 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 YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Cramer looks at what’s holding back AMD stock from rallying even further
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