Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.)
Markets slide: Stocks initially popped Friday after the goldilocks-ish February jobs report, but the fever finally broke in the red-hot semiconductor group, causing technology and other related stocks that looked overextended and a little “toppy” to give up gains.
“I sense that tech is taking a breather because of the reversals. Once the market took down Broadcom, Marvell, and MongoDB it decided to take down the rest of tech,” Jim Cramer said.
Shares of Club holding Broadcom fell more than 6% Friday following its fiscal first-quarter earnings report a night earlier. The reasons behind the pullback: A sky-high bar into earnings due to the stock’s doubling in the past year, lack of full-year outlook raise despite the quarterly beat, and a general breather in the frenzied chip-stock trade. But don’t let the stock action lead you to think otherwise about the quarter – the results were strong.
“Broadcom is the real deal, but the quarter only had 10 weeks of VMWare and the $10 billion in AI is not enough to keep it up. I don’t like to buy the first dip in this stock. Please wait for the second,” Jim said.
Nvidia falls: Even with Nvidia down more than 5% Friday, shares of the leading artificial intelligence chipmaker are still on track for weekly gains of more than 6%. The move comes ahead of its Nvidia’s annual GTC conference, which kicks off March 18 and is often viewed as a catalyst for the stock. However, could danger been lurking in the market?
“In 10 days, we get [Nvidia CEO Jensen Huang’s] keynote, which happens to coincide with the cycle downturn that Larry Williams has been calling for,” Jim said, referencing a technical analysis segment on “Mad Money” on Tuesday night.
As…
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