Jim Cramer stock picks: Intel and Boeing get support as AI names slide

Jim Cramer stock picks drew a sharper split Tuesday: CNBC’s Investing Club host said he still favored Intel and Boeing, while warning investors to be careful with some stocks tied to AI infrastructure after steep run-ups. For retail investors, the message was about price discipline as much as company quality, since fast rallies can reverse quickly when momentum fades.

During the CNBC Investing Club’s “Morning Meeting,” Cramer said he would keep buying Intel as it falls if Club trading restrictions did not limit him. He cited confidence in Intel’s foundry business, advanced packaging and central processing units, or CPUs, which are the main chips that run computers and servers.

Cramer also pointed to Boeing as attractive after the plane maker reported better-than-expected cash flow, according to CNBC. Cash flow is the money a company generates after expenses, and investors often watch it closely in turnaround stories because it shows whether operations are improving in real dollars.

What stocks did Jim Cramer say to buy?

Cramer said he would keep buying Intel “on the way down” if not restricted by the Investing Club’s rules, CNBC reported. He also said Boeing could still be bought at current levels, adding, “I think Boeing’s about to have a multi-month move.”

Those comments came as investors were again moving away from several large semiconductor stocks on Tuesday. CNBC said the Nasdaq was near unchanged, while the S&P 500 was modestly higher. More defensive parts of the market benefited, including Procter & Gamble, an Investing Club holding that was up nearly 2% ahead of its Wednesday morning earnings report.

Why did Cramer urge caution on Corning and GE Vernova?

Cramer sounded more careful on AI infrastructure winners that had already made large moves earlier in the year. He said the Investing Club had been right to trim Corning several times in June as the stock climbed, according to CNBC.

Corning shares have fallen more than 50% from their all-time high on June 29, CNBC reported. Even after what Cramer described as a strong quarter, he said the stock was too unstable to buy back on Tuesday’s 15% drop.

“Parabolic moves must be sold,” Cramer said, according to CNBC. A parabolic move means a stock price rises at an unusually fast pace, often creating a chart that looks almost vertical. Cramer said those moves can fall back faster than they climbed.

Corning’s reversal also led Cramer to question whether the Club had taken enough profit in GE Vernova, another stock that had benefited from data center demand. GE Vernova was down about 20% from its June 30 record close, CNBC reported.

What earnings are investors watching next?

CNBC said Microsoft, Meta Platforms and Starbucks, all Investing Club holdings, were scheduled to report Wednesday evening. After Alphabet sold off following its earnings last week, investors are expected to focus on capital spending plans from Microsoft and Meta, especially because AI buildouts require large investments in data centers and chips.

For Starbucks, CNBC said the Club is looking for more evidence that CEO Brian Niccol’s turnaround is working and that management is focused on margins. Margins measure how much of each dollar of revenue turns into profit after costs.

The Investing Club also covered Johnson & Johnson, Sherwin-Williams, Nucor, ExxonMobil and Nvidia during the rapid-fire portion of Tuesday’s video. CNBC disclosed that Cramer’s Charitable Trust is long Procter & Gamble, Microsoft, Meta, Starbucks, Alphabet, GE Vernova, Corning, Intel, Johnson & Johnson and Nvidia.

This story draws on original reporting from CNBC.