Portfolio health care name turns its luck around thanks to management’s AI push
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. U.S. stocks were mostly higher on Friday. The S & P 500 was on track for a fifth positive week in a row. The broad market index topped 5,000 again Friday after doing so Thursday but just missing it at the close. “That is something we have to celebrate,” Jim Cramer said. “That’s a remarkable [run].” Investors also mulled over more quarterly earnings and upbeat economic data. Good news for investors: December’s inflation reading was even lower than first reported. 2. GE Healthcare CEO Peter Arduini told Jim on “Mad Money” on Thursday evening about how the company is integrating artificial intelligence into MRI, CT, and ultrasound machines. These efforts can not only improve productivity, but customers are willing to pay more for the advanced offerings, Arduini said. This is good news for GE Healthcare’s margins, too. Jim said the company was previously “cash-starved” and “not focused” before separating from General Electric last year. That’s all changing. Jim said that management’s focus on research and development and AI seems to be paying off. 3. Nvidia shares climbed nearly 3% to another all-time high Friday on media reports that the company is getting into the custom chip design business. This could be both an offensive and defensive move for the Club holding. The new unit gives Nvidia a piece of what some analysts estimate to be a $20 billion per year market, while also protecting against cloud computing companies who are seeking alternatives to their pricey H100 chips. 4. An Nvidia move into chip design could put some pressure on Broadcom , another Club name. Broadcom is a dominant player in the industry, with key customers including fellow portfolio holdings Alphabet ‘s Google, Meta Platforms and Microsoft . These are all firms that Nvidia has been reportedly speaking to. Still, we’re not jumping to any conclusions yet until we have more information. (Jim Cramer’s Charitable Trust is long GEHC, NVDA, META, MSFT, GOOGL, AVGO . See here for a full list of the stocks.) 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.
