Jim Cramer Advises Investors to Take Profits on AI Stocks Amidst Strong Performances from Apple and Nvidia

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ICARO Media Group
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15/06/2024 19h14

In a recent episode of CNBC's "Mad Money," host Jim Cramer has suggested that investors consider capitalizing on the gains in the AI sector. Cramer pointed out the remarkable performance of various companies, including Apple Inc., Oracle Corp., Broadcom Inc., Adobe Inc., and Nvidia Corp.

Apple's stock witnessed a significant surge after the company announced new AI programming, while Oracle experienced a surge following its earnings report and partnerships with Microsoft and Alphabet. Moreover, Broadcom beat estimates, and Adobe reported a better-than-expected quarter. Nvidia also reached a new 52-week high.

Despite expressing continued confidence in Nvidia, Cramer cautioned against greed and advised trimming AI-related investments. He referred to chartist Larry Williams' analysis, indicating that Nvidia may have peaked and could face a decline until late July. Cramer emphasized the importance of taking profits to prevent potential losses in the future.

The advancements made by Apple in AI technologies have played a vital role in its recent success. The company's shares witnessed a significant boost after unveiling several new software features during its annual WWDC event. As a result, Apple surpassed Microsoft in market capitalization, reclaiming its position as the world's largest company.

In the Reddit community's r/WallStreetBets, AI-related bets have garnered attention and celebration due to substantial wins. Apple's AI technologies and partnerships, initially underwhelming to investors, have fueled the company's stock growth.

Renowned investor Steve Eisman has also expressed confidence in the AI sector, citing it as a key driver of the U.S. economy's resilience. Eisman dismissed fears of an impending recession, pointing to investments in AI and infrastructure as contributing factors to the economy's strength.

As for the stock prices, Apple closed at $212.49, reaching a 52-week high of $220.20 earlier in the week. Nvidia shares closed at $131.88, slightly below their 52-week high of $132.84.

It is essential to note that this article was partially produced using Benzinga Neuro and was reviewed and published by Benzinga editors. Please be advised that Benzinga does not provide investment advice.

In conclusion, while the AI sector continues to witness significant advancements and gains, Jim Cramer advises investors to strike a balance between taking profits and holding onto AI stocks. With Apple and Nvidia demonstrating strong performances, it's crucial for investors to assess their investments and avoid excessive greed.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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