Jim Cramer's Charitable Trust is exiting its position in Advanced Micro Devices (AMD) due to concerns about the company's ability to compete in the custom AI chip market. The Trust is also buying shares of Constellation Brands (STZ).
We're exiting our position in Advanced Micro Devices , selling our remaining 300 shares at roughly $122 each. We're also buying 25 shares of Constellation Brands at roughly $221. Following Tuesday's trades, Jim Cramer's Charitable Trust will own 450 shares of STZ, increasing its weighting in the portfolio to 2.8% from 2.64%. The Trust will no longer hold a position in AMD . We're making a couple of moves on this last trading day of 2024.
AMD YTD mountain Advanced Micro Devices YTD Earlier this month , we downgraded AMD to our 3 rating — meaning sell into strength — and cut our position in half on competitive concerns from custom artificial intelligence chips. While we previously thought AMD's AI graphics processing unit (GPU) roadmap would be competitive and win business from all the major hyperscalers, our view changed after listening to the recent earnings call from Broadcom CEO Hock Tan and Marvell Technology CEO Matt Murphy on 'Mad Money.' Both companies are leaders in the custom chip business. The two executives made a strong case for why hyperscalers — like Club holdings Amazon , Alphabet , and Meta Platforms — increasingly prefer custom chips as alternatives to Nvidia 's leading AI GPUs. Each company is spending billions of dollars on these custom chips because they are cheaper, are optimized for specific workloads, and are more energy efficient. Due to the rise of these specialized chips, we are less optimistic about AMD's ability to aggressively ramp up sales of its AI chip in 2025. With our thesis changed, we'll move on from the rest of this position and realize an average loss of about 15% on stock purchased from August to November. Broadcom and Nvidia are also Club names. STZ YTD mountain Constellation Brands YTD We are taking some of that cash to nibble on shares of Constellation Brands, which we called out in a Friday screen of cheap stocks to bu
AMD Constellation Brands JIM CRAMER CHARITABLE TRUST AI Chips
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jim Cramer says AMD stock is a buy on Intel's CEO shakeup — 'It's winning'Pat Gelsinger's retirement from Intel will only help Club holding and longtime rival AMD, Jim Cramer said Monday.
Read more »
Here are Jim Cramer's thoughts on risks of Broadcom's strength to Nvidia and AMDThe Investing Club holds its 'Morning Meeting' every weekday at 10:20 a.m. ET.
Read more »
Jim Cramer Sells Broadcom, Cuts AMD PositionCramer's Charitable Trust trims Broadcom stake after parabolic rally, citing disciplined profit-taking and portfolio rebalancing. Simultaneously, AMD position is reduced and downgraded to a 'sell' rating due to evolving insights into the AI chip market.
Read more »
Jim Cramer Buys CrowdStrike and Home Depot on S&P 500 Oversold SignalJim Cramer's Charitable Trust is buying more CrowdStrike and Home Depot, citing the S&P 500's oversold conditions as an opportunity. Cramer believes the market's recent pullback presents a buying opportunity, similar to the situation in October 2023.
Read more »
Jim Cramer's Charitable Trust: 2025 Outlook for 35 HoldingsCNBC's Jim Cramer provides a rapid-fire update on the 35 holdings in his Charitable Trust portfolio, focusing on their prospects for 2025. He highlights key companies like Apple, Abbott Laboratories, Advanced Micro Devices, Amazon, and Broadcom, discussing their potential for growth and outlining his investment strategy for the year ahead.
Read more »
Flawed predictions shaped recent market losses, Jim Cramer saysCNBC’s Jim Cramer reviewed recent market action, saying some of the downturn over the past several sessions was due to faulty predictions.
Read more »