This AI play just hit another record high. What we’re making of the stock’s gains
Every weekday, CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Monday’s highlights. 1. The S&P 500 rose on Monday, boosted by the power of big tech. The club’s holdings, Nvidia and Broadcom, rose more than 3%, building on gains from Friday’s broad market rally. In fact, we upgraded Broadcom shares to the equivalent of 1 buy on Friday because it is a major beneficiary of growing AI investments. The call follows gains from other portfolio names Alphabet and Meta Platforms, two major Broadcom customers that both plan to increase AI spending this year. 2. Melius Research downgraded Microsoft’s rating from buy to hold. Analysts say CEO Satya Nadella has “lost the AI narrative” and the company’s focus on Copilot is not paying off as hoped. Melius also said the stock is “too expensive” given management’s new free cash flow forecasts. We’re aware of these concerns, but that doesn’t change our view on the shares. Microsoft is a name we will remain loyal to in the long run. Additionally, the stock is responding positively to Wall Street’s call, rising more than 2.5% in Tuesday trading. 3. Corning shares jumped to record highs over the weekend following a positive report in The Wall Street Journal that described the company as an “AI superstar.” Monday’s 7% gains suggest the specialty glass maker is on a stellar run, up almost 50% so far in 2026. It’s tempting to sell now that a major publication like the Journal has recognized Corning’s AI prowess. We will not do this. Corning has lucrative partnerships, such as its $6 billion supply deal with Meta, that could support demand in its fiber-optic cable business and send its shares higher in the long run. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
