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. Markets are strongly rebounding for the second session in three, as the AI trade extends its recovery from last week's dramatic sell-off. Moving past the two overhangs we discussed at last Friday's Annual Meeting is improving sentiment in the group. First, institutional demand for Anthropic's initial public offering appears strong ahead of next week's planned debut. Second was CoreWeave's earnings report, which showed demand for compute remains strong and eased investor concerns about the financing needed to support its AI infrastructure buildout. We are planning to make a semiconductor position swap as soon as our trading restrictions allow, as detailed on Wednesday's Morning Meeting. This will involve taking a steep loss on our Intel position and moving that money into Advanced Micro Devices . AMD is Intel's main rival in the market for central processing units (CPUs), but it also has a fast-growing data center graphics processing units (GPU) business that…
We're adding a chipmaker to our Bullpen watchlist and downgrading another name
In short
The Club downgraded Intel from a 1 to a 3 and placed AMD on its Bullpen watchlist, preparing to sell its Intel position at a steep loss. AMD demonstrated a key structural advantage during its third-quarter earnings call, noting that its fungible chip architecture allows it to redirect supply rapidly, unlike Intel's complex factory retooling in Oregon. Furthermore, AMD's Data Center business expanded 97% year over year, reinforcing confidence in its operational momentum. Broader technology sentiment has also found support from institutional enthusiasm surrounding Anthropic and strong infrastructure demand for CoreWeave.
Key points
- The CNBC Investing Club is preparing to exit its Intel holding at a steep loss to fund an…: The CNBC Investing Club is preparing to exit its Intel holding at a steep loss to fund an investment in AMD.
- AMD maintains an architectural edge because it can repurpose identical chiplets across bo…: AMD maintains an architectural edge because it can repurpose identical chiplets across both desktop and server hardware.
- Shifting industry dynamics include expectations that AMD will capture GPU market share fr…: Shifting industry dynamics include expectations that AMD will capture GPU market share from an embattled Nvidia.