The Club’s top 10 things to watch Wednesday, May 13 — Today’s newsletter was written by Jeff Marks, the Club’s director of portfolio analysis. 1. Is the reversal out of semiconductor and AI stocks already finished? Stocks like Micron and Club name Corning are coming right back this morning after one day of selling. S & P futures moved lower after April wholesale inflation data came in much hotter than expected. 2. Nvidia’s Jensen Huang will be headed to China after all, joining President Donald Trump for his two-day summit in China that kicks off today. Bank of America raised its Nvidia price target to $320 from $300. Club name Nvidia reports earnings next week. 3. Qnity Electronics landed a round of price target increases after a strong beat and raise yesterday. This Club holding was one of the few AI stocks that didn’t fall in yesterday’s sell-off. Deutsche Bank and BMO Capital raised to $180, with BMO reiterating its top-pick designation. RBC went to a Street high $200 and kept its buy. 4. Club name Johnson & Johnson was upgraded to buy at Leerink with a price target of $265, up from $252. Will it matter in a market that only wants AI? We think it should but are lonely in that camp. Leerink likes J & J for its accelerating sales growth and raised its revenue estimates for psoriasis pill Icotyde to $10.5 billion in 2032. That’s well above the $7.4 billion consensus. 5. NextPower shares are jumping almost 13% this morning after another strong quarter and backlog increase. Raised full-year revenue outlook. NextPower make solar trackers for utility scale solar farms but it’s been broadening out. Yesterday it announced a deal to get into the power conversion market. 6. Alibaba shares are down 2% premarket after the Chinese tech giant missed revenue estimates and reported an operating loss for first time since the Covid pandemic. Alibaba is investing heavily in AI and faster e-commerce delivery. 7. CVS Health’s price target was raised to $106 from $94 at Bernstein on its Medicare Advantage turnaround. In an interview with Jim Cramer last week, CVS CEO David Joyner acknowledged its Aetna business got off track but said it’s now seen five quarters of improvement. 8. Shares of AI computing provider Nebius are surging after the so-called neocloud reported better-than-expected revenue and a smaller-than-anticipated net loss. Nebius, which received a $2 billion investment from Nvidia in March, said it secured 1.2 gigawatts of power and land for a new AI data center site in Pennsylvania. 9. Tough but fair story on Club name Nike in The Wall Street Journal about its struggles and market share loss in China. A lot still needs to change to return to growth there. 10. A couple of price target increases on Aramark after a strong quarter yesterday. The food service company has started to ride AI tailwinds because large, complex data center facilities need hospitality and workforce support services. Deutsche Bank went to $54 from $48 and maintained its buy. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at 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.
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