Cramer says he's warming back up to the AI trade, but not ready to act yet
Every weekday, the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m.
ET. Here's a recap of Friday's key moments. 1. Stocks were lower Friday after Federal Reserve Chairman Kevin Warsh's first address at the annual Jackson Hole symposium.
Warsh, who took over the central bank in May, acknowledged concerns over inflation running above the Fed's target, but he continued to emphasize a desire to move away from telegraphing future monetary moves. "He's being very tutorial, professorial as opposed to" signaling future decisions, Jim Cramer said.
Without that information, Jim said that "we're kind of stuck with the fundamentals, and I think it's a jump ball today." 2. CrowdStrike shares fell more than 4% Friday, giving back some gains from Thursday's earnings-fueled rally of 20.5% rally.
There's definitely some "profit taking" happening Friday, portfolio director Jeff Marks said, despite CrowdStrike's critical role in cybersecurity in the artificial intelligence era.
CrowdStrike CEO George Kurtz doubled down on the need for cyber defense when he joined Jim on "Mad Money" Thursday evening, arguing AI is exposing vulnerabilities in corporate security defenses that legacy technology cannot fight against. The need for more spending on security was underscored by a call to action that OpenAI published Thursday.
Co-signed by more than 100 other companies, the letter said there's a "limited window to strengthen cyber defenses" as attacks become more widespread and sophisticated. "I thought it was positive," Jim said of OpenAI's letter. 3. In some positive news for the AI trade, the Wall Street Journal r eported Friday that trade unions are threatening to withhold support for politicians that oppose data center construction.
Jim called the revelation "monumental," considering mounting backlash to data centers in recent weeks led us to be more cautious on AI infrastructure stocks. That's why we reduced our exposure in Broadcom and Corning , two companies that are heavily linked to the data center buildout through custom chips and fiber-optic cables.
Jim said the WSJ story does reshape our thinking on the group into the midterm elections this fall, though we're not "anxious to rebuild" our AI positions just yet. "There may come a time where it's worth rebuilding. I don't see it yet," Jim said. 4. Stocks covered in Friday's rapid fire at the end of the video were: Solstice Advanced Materials , Take-Two Interactive , Gap Inc , Ulta Beauty , and Affirm .
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