Jim Cramer’s five stocks to buy include Nvidia, Micron and Intel
CNBC Investing Club named Nvidia, Micron, Intel, Amazon and FedEx as its five current buys, with Intel’s equity raise in focus.
By Maya Okafor · Markets Writer
· 3 min read
Jim Cramer’s five stocks to buy are Nvidia, Micron, Intel, Amazon and FedEx, according to CNBC’s recap of the Investing Club’s August monthly meeting. The list matters for investors following the club’s portfolio, but its rationales are the club’s views and forecasts, not confirmed outcomes or a recommendation tailored to any individual investor.
Cramer and portfolio director Jeff Marks reviewed the club’s 32 holdings and put particular emphasis on those five names as artificial-intelligence-related stocks regained attention, CNBC reported. The club had recently exited Nike and Honeywell Aerospace, according to the recap.
What are Jim Cramer’s five stocks to buy?
Nvidia: The club’s case rests on its view that Nvidia remains central to AI-related computing. CNBC said Nvidia was due to report earnings on Aug. 26, and the club expected both profit and the valuation investors place on those profits to rise.
Micron: The club added the memory-chip maker to its portfolio the Tuesday before the meeting. Its thesis points to AI-related memory demand and long-term supply agreements, while acknowledging that memory has historically been a cyclical boom-and-bust business.
Intel: Cramer said the club was confident that Chief Executive Lip-Bu Tan could build Intel’s third-party foundry business with major customers. He characterized the company’s stock offering as an unwelcome but necessary way to fund that effort and support its balance sheet, CNBC reported.
Amazon: The club said Amazon already earns revenue from AI and cited Chief Executive Andy Jassy’s comments on the company’s latest earnings call about competing in AI computing. That is the club’s assessment of Amazon’s opportunity.
FedEx: The club expects FedEx to take parcel-delivery share from UPS during the holiday season. It also pointed to CEO Raj Subramaniam’s focus on higher-margin business-to-business shipping, including healthcare, automotive, aerospace and data-center customers.
The club’s thesis linked Nvidia, Micron, Intel and Amazon to demand for AI-related computing and memory. It also said it preferred Nvidia, Intel and Micron to Broadcom among its chip holdings, despite calling Broadcom well run.
What is confirmed about Intel’s stock offering?
Intel said on Aug. 11 that it priced 210.5 million common shares at $95 each, expanding its previously announced offering to $20 billion from $15 billion. The company estimated net proceeds of about $19.7 billion, excluding any exercise of the underwriters’ option, and said the money was intended for general corporate purposes, including capital spending and working capital.
Issuing new common stock raises cash but increases the number of shares outstanding. Whether that financing strengthens Intel’s plans enough to outweigh any effect on existing shareholders is an investment judgment, rather than a settled result.
Elsewhere in the portfolio, the club said CrowdStrike and Palo Alto Networks could be considered after pullbacks, while saying it did not endorse adding to Salesforce. It also said Johnson & Johnson had risen too far for it to recommend buying at that point.
CNBC’s Investing Club says receiving its information creates no fiduciary duty and that no specific result or profit is guaranteed. Investors should treat the five-stock list as one portfolio manager’s stated view, not as a substitute for their own research.
This story draws on original reporting from CNBC.
