Jim Cramer recently shared his top 10 things to watch in the stock market on Friday, Nov. 22. He discussed Nvidia’s next-gen AI chips, noting that sellers were active in some of the company’s biggest customers.
Cramer also predicted that the government’s proposed breakup of Google won’t be presented in court this spring, and the appeals process may not begin until mid-2026. Bank of America started coverage of Kyndryl with a buy rating and a price target of $40 a share. Cramer believes this undervalued IT consulting company has been improving under CEO Martin Schroeter’s leadership.
Wells Fargo initiated coverage on Analog Devices and Texas Instruments with hold-equivalent ratings, citing challenges faced by these industrial-focused semiconductor stocks. According to Leerink, AbbVie has been punished enough on concerns about Robert F. Kennedy Jr.’s nomination as the top U.S. health official and the failure of its experimental schizophrenia drug.
Needham likes the turnaround stories at Foot Locker and Nike, initiating coverage of both stocks with buy ratings. Gap shares soared more than 20% after a better-than-expected quarter and raised its full-year outlook. CrowdStrike, a Club name, is having a notable recovery following the global IT outage this summer, with multiple analysts raising their price targets.
Off-price retailer Ross Stores reported a strong quarter, sending shares higher, but Cramer prefers TJX Companies. JPMorgan analysts expect Best Buy’s same-store sales to disappoint on Tuesday but raised their price target on the electronics retailer to $117 a share from $111 and kept their buy rating. Best Buy is at the start of a device replacement cycle, and Cramer recently trimmed his position to lock in profits.
Jim Cramer’s Friday insights
Jim Cramer also weighed in on three stocks that have seen significant gains this year, with each up more than 200% year-to-date. He is particularly optimistic about Stock A, which has shown robust earnings growth and successfully penetrated new markets.
Stock B has impressed Cramer with its strong fundamentals and strategic acquisitions, while Stock C has experienced explosive growth due to its breakthrough technology. Cramer advises investors to exercise caution despite the impressive gains and emphasizes the importance of conducting thorough research and considering potential market volatility. He notes that while these stocks have shown exceptional performance, market conditions can change, and it’s crucial to have a well-balanced investment strategy.
In his latest program on CNBC, Cramer highlighted earnings results from top consumer and retail companies, remarking on America’s evolving consumer behavior. He observed that consumers are increasingly unwilling to pay premium prices and are keen on finding better deals. Restaurants offering quality meals at lower prices are seeing a surge in their stock prices, while weight-loss drugs are impacting companies that sell alcohol products.
Cramer also discussed Meta Platforms Inc and agreed with a recent bull case thesis presented by Michael Nathanson of MoffettNathanson. Nathanson pointed out Meta’s core business benefits from AI, resulting in improved ad numbers and user engagement. Despite investor concerns about AI-related expenses, bulls believe in Mark Zuckerberg’s vision to continue investing in AI.
Meta’s strategy for monetizing generative AI, especially with Llama3, sets it against rivals like OpenAI’s ChatGPT. With a substantial user base and data and distribution advantages, Meta could capture a large share of the GenAI market. If Meta aligns its valuation with the industry average P/E of 26.6x, shares could exceed $600.
However, Cramer acknowledges that there are lesser-known AI stocks that might deliver higher returns more swiftly.
