Latest news with #CharitableTrust
CNBC
29-05-2025
- Business
- CNBC
Jim Cramer: These are the 2 things that can send Nvidia stock up another 40%
CNBC's Jim Cramer said there is a path for Nvidia to reach $200 a share — more than 40% upside from Thursday morning's levels, even when factoring in its post-earnings surge. "The next leg in Nvidia has to be sovereign AI, or China. If they get both, then the stock goes to $200," Cramer said before the market opened on "Squawk on the Street." Shares of Nvidia opened Thursday's session at $142.25 a share, up around 5.5%. The advance extends Nvidia's robust rally off its April 4 closing low of $94.31 a share, which coincided with Wall Street's broader tariff-driven sell-off. The stock is less than 7% its all-time closing high set in January. Cramer's Charitable Trust, the portfolio used by the Investing Club, has owned a stake in Nvidia well before the current artificial intelligence boom began in late 2022. Sovereign AI path Nvidia appears to be in good shape to check Cramer's first box on sovereign AI, a term the company has coined to describe investments in AI infrastructure by countries outside the U.S. In recent weeks, Nvidia struck agreements with Saudi Arabia and the United Arab Emirates to sell large amounts of AI chips as part of large data center projects in those countries. Jensen Huang, co-founder and CEO of Nvidia, was traveling in the Middle East alongside President Donald Trump when those chip deals were announced. Trump's decision to scrap a controversial Biden-era policy — known as the "AI diffusion rule," which placed caps on AI chip exports to most countries around the world — made it possible for Nvidia to ink those deals with Saudi Arabia and the UAE. Now, Huang is set to travel to Europe in the coming days, and the executives' comments on Wednesday night's earnings call suggest that additional sovereign AI deals could soon be announced. While American tech giants such as Microsoft and Meta Platforms , also Club names, remain Nvidia's most important customers, investors have wanted to see the chipmaker's revenue streams diversify to help sustain topline growth. Sovereign AI deals help accomplish that. China hurdles One potential obstacle to checking Cramer's second box on China: It would require another change in policy from the White House, which in April tightened restrictions on the kinds of artificial intelligence chips that Nvidia can sell to customers based in the world's second-largest economy. Nvidia estimates that it will lose out on $8 billion in potential revenue from Chinese customers in its ongoing second quarter as a result of the tougher export controls. It also booked a $4.6 billion charge in its February-to-April period tied to the policy changes. On Wednesday's earnings call, Huang was pointed in his criticism of the U.S. government's restrictions, arguing the policy — first embraced by the Biden administration, then toughened under Trump — does not accomplish its stated goal of preventing China from developing advanced AI. Huang also offered a similar assessment in an interview with Cramer on "Mad Money" on Wednesday night. "Because there are so many developers there [in China] and because the world is going to adopt technology from one country or another — and we prefer it to be the American technology stack," Huang told Cramer. Cramer said Thursday morning that he's not sure how Trump will perceive Huang's comments on the Chinese export controls, given the president just did away with the AI diffusion rule. "Do you really think you can come in right now and say, 'What would be right is that you also give us China?' I don't know. That's not 'Art of the Deal," Cramer said, referring to Trump's famous 1987 book.
CNBC
27-05-2025
- Business
- CNBC
We're pocketing a 170% gain on one stock and changing our rating on another
We are selling 50 shares of Broadcom at roughly $233. Following the trade, Jim Cramer's Charitable Trust will own 600 shares of AVGO, decreasing its weighting to 4.15% from about 4.5%. Stocks are surging Tuesday after President Donald Trump announced over the holiday weekend that he agreed to delay a 50% tariff on the European Union. Stronger-than-expected consumer confidence data also lifted stocks, especially those in the consumer discretionary sector. With equities rising across the board, we're taking the other side of the trade and using this strength to lighten up on our Broadcom position. Shares of this semiconductor maker and software company have come all the way back from their post-Liberation Day (April 2) lows and are now trading in positive territory for the year. The stock has also climbed 50% since the company announced a $10 billion share repurchase program on April 7, which was a clear sign of confidence in the company's future and that the sell-off was overdone. Although we continue to like Broadcom for the long term for its fast-growing AI business and VMware, we are downgrading our rating to a 2, meaning we would buy more shares on a pullback. From this sale, we will realize a gain of about 170% on stock purchased in August 2023. We're also increasing our GE Vernova price target to $500 from $460 to account for the recent momentum in its business. The stock has already blown past our initial $460 price target thanks to confirmation of our initial thesis that GE Vernova's gas turbine and grid technology business would become a beneficiary of trade deals. Also, Trump signed an executive order last Friday to boost the U.S. nuclear energy industry. But we are downgrading our GE Vernova rating to a 2. This downgrade does not reflect a shift in our long-term thesis on this energy equipment company, as outlined during our May Monthly Meeting on Wednesday . Instead, don't want to chase this move after the stock's double-digit gain to an all-time high since we initiated the position two weeks ago. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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.
Yahoo
24-05-2025
- Business
- Yahoo
Was Jim Cramer Right About Honeywell International Inc. (HON)?
We recently published a list of . In this article, we are going to take a look at where Honeywell International Inc. (NASDAQ:HON) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 15, Mad Money's Jim Cramer discussed Honeywell International Inc. (NASDAQ:HON) with deep frustration, calling for a breakup to unlock value after ongoing underperformance. 'I'm talking about a company I used to like a lot — I own it for the Charitable Trust — it's been a disappointer and it's called Honeywell. We've been patient — my patience is being tried. It's a consistent underperformer over this period by a significant margin. […] I think they should consider breaking it up, given how well it's worked for United Technologies and GE. The modern Honeywell is just an amalgamation of completely unrelated businesses that have no theme whatsoever. […] At this point, I don't see what Honeywell gets from keeping them under the same roof. […] I've not been happy this year with companies that have not made my trust money. […] Wall Street loves smaller bite-sized companies that are easier to value. The proof is in.' His frustration proved valid, as the stock delivered just 7.87%, lagging badly despite a strong market. A shot of a commercial plane with a blur of color in the background, representing the production of auxiliary power units in the Safety and Productivity Solutions segment. Honeywell International Inc. (NASDAQ:HON) is stuck in a strategic identity crisis as its diverse industrial units fail to deliver consistent upside. During a recent CNBC program, Cramer admitted that he's now looking to buy back some of the company's stock. Here's what he said in February this year: 'But this is the quarter you have to buy because you're finally getting the three pieces. The aerospace business is fantastic. This chemicals business is of course a little bit better than the GDP. And then you have this automation business which has been a disappointment. Overall, HON ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of HON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HON and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
22-05-2025
- Business
- CNBC
We're adding to our position in this out-of-favor, high-quality drugmaker stock
We are buying 10 shares of Eli Lilly at roughly $715. Following the trade, Jim Cramer's Charitable Trust will own 125 shares of LLY, increasing its weighting to 2.65% from about 2.45%. Since the start of May, Eli Lilly shares have fallen roughly 20% on concerns about possible tariffs on overseas manufacturing, an executive order targeting lower drug prices, and worries that Novo Nordisk was starting a GLP-1 pricing war after it announced an agreement with CVS Health's Caremark to make Wegovy the preferred GLP-1 weight loss medication on its formulary. Eli Lilly, and other health-care stocks, have also fallen behind the rest of the market due to a rotation back into more economically sensitive names after the United States and China mutually agreed to reduce tariffs for 90 days. We are mindful of these risks to pharmaceutical companies. Still, we would not be surprised to see the industry work with the Trump administration to find a compromise that is suitable for all parties. And with Eli Lilly shares trading at a 52-week low and only 24 times its estimated 2026 earnings per share, a lot of these headwinds have already been priced in. As for competition, patients should continue to prefer Zepbound because of its superiority over Wegovy. At Eli Lilly's current price of about $715 per share, the stock has entirely erased a 14% move in mid-April when the company announced its daily obesity pill was successful in a late stage trial for Type 2 diabetes with no safety and tolerability concerns. The positive data had significant implications for the GLP-1 market, setting up Lilly to release a medication that offers Wegovy-like efficacy to patients who suffer from needle fear. Oral GLP-1 medications are easier to scale in manufacturing and offer greater convenience for shipping and storage compared to injectable versions. Come next year, the company will have the best injectable and oral GLP-1 medications on the market. Combined with its leading manufacturing footprint, we expect Eli Lilly will continue to gain share in the fast-growing GLP-1 market. (Jim Cramer's Charitable Trust is long LLY. 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.
CNBC
22-05-2025
- Business
- CNBC
My long-time favorite stock is now the name I am most worried about
I am worried about Apple , a stock I have owned for more than a decade for my Charitable Trust, the portfolio we use at the CNBC Investing Club. Before I explain my concerns on Apple, let me say that long term, as long as the company makes the best products in the world — and it does — we are going to stick with what we haven't sold. But there are a number of worries here, which I first ran through during our May Monthly Meeting for Investing Club subscribers. Because of the Justice Department's antitrust pursuits, we need to be concerned that Alphabet won't be allowed to send them a check for $20 billion to be the default search engine. Sure, Apple can make it up with other methods — maybe they could charge all the other search engines out there for the leads they give them. But that Alphabet deal was $1 a share in easy profits that could go away. Another worry: The battle with Fortnite maker Epic Games over the cut Apple can take from its App Store could cause a 30-cent departure in earnings per share. Again, easy money gone. Plus, despite the endless commitments to build things in the United States, it's not enough for President Donald Trump. CEO Tim Cook saw that the president didn't want such a concentration of electronics manufacturing in China because it played into China's hands to become a world tech power. So, he decided to switch as much building as possible to India to lower Apple's exposure to Trump's higher tariffs on Chinese imports. But it wasn't just a diversification away from China that Trump wants. He won't be happy until we make iPhones here in the U.S. Those can't be made for less than $3,000, at least initially, according to some projections. And selling iPhones at that price cedes what has been one of the great American triumphs to rival smartphone maker Samsung, a Korean company. I know, how could there be such an obtuse policy? But without Trump's blessing, there can be an awful lot of havoc played here against Apple, and I see no blessing being given. I know individual tariffs against individual companies doesn't seem to be legal. But has that mattered before with this administration? There are always other ways to get a company to say uncle than tariffs, as we are seeing with the Trump administration looking at Apple's relationship with Alibaba , the best source of new business in China that Apple could ever get. Again, these deals and connections were, for decades, regarded as a sign of American strength. Now, they are regarded as weakness for us and a boost for China. We do know that Cook visited the White House yesterday. He needs the president to endorse his India gambit, so more iPhones can be made there and its tariff risks moderate. OpenAI buying the startup of former Apple chief designer Jony Ive for $6.4 billion, in a bid to make AI-enabled hardware devices, has become another question mark hanging over Apple, though we'll see how long that lasts. Cook is not going to sit there and take it. The bottom is there's a lot to be worried about, but that does not mean I don't like the stock long term. I'm just not ready to buy anymore right here.
