Cramer says this chipmaker is a buy despite its post-earnings drawdown. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
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Terms and conditions apply. LinkedIn, the place to be to be. Hey, it's Kramer and this is my morning take on the market from today's CMC investing club morning meeting. We have a market that should have been defined by just interest rates because we had an employment number that was pretty much perfect. Rates go down, but we don't have a lot of inflation. We like that. But what's happened immediately is we go and say that the economy is slower, so we have to sell the semiconductors. That was hastened by the fact that people think that Broadcom had a week and quarter. So I'm going to go right to these and say the yield reaction is positive. The stock reaction is not, which is highly useful. Yeah, I mean, look, I think that there's a debate right now, 25 versus 50 at the meeting when the number first came out. It looked like 50 might have been the market leaning that way. But it's kind of reverted back to 25. You have seen yields move up. The first move was wrong. I mean, market was initially higher around the over again. We've given up the gains. Well, I mean, look, when you have a big futures decline in the morning, those people are going to try to make themselves right. They look so stupid. They can come back and knock the futures. But when you get Europe closed, you get a kind of a sense that maybe things have gotten too negative. But geez, we're in September, Jeff. It's just a tough day. It's just a tough tape. I mean, we've seen it this week so far. We're down every single day. It's just been a rough tape, but that's fine. It won't last forever. We get oversold, but we have to get we have plus 1.6. As you mentioned this morning before, we want to see minus four. We get the minus four. Then we're going to start using some of that cash work. Yeah. And maybe some could argue the market needs to kind of retest the yet and carry trade blow up loads from the beginning of August and video 98 at the end of the day. Yeah. So I look, I think some patience is warranted. That's all. But what did you do? Down 15. Buy. Yeah, it's small. So broad com. I would love to buy today right now. Well, we can't we're restricted. We are restricted and we'll be restricted on Monday. That's the nature of the product. But let's talk about the quarter. So they did beat on the top and bottom line. AI sales were strong, but they didn't miss some lofty expectations, although they did raise the full year guide to 12 billion. Remember, they do both networking equipment and also custom silicon that's the cycle we're going to get here. That's so important. Yeah. So outside of the AI chip business, the legacy chip business, if you will, weak but bottomed, I think cock made that call last night, pointing out when asked if it could it even return to some of the higher levels in previous cycles? He's pretty confident for it because you're going to need more storage, more servers, where really terrific. VMware is awesome. I mean, they're pretty much a year ahead of the adjusted even target. They are revenues are growing, and they are dropping, operating expenses. So that's just a big uplift to probably go on. The AI being not as... No, it didn't go away. You know, it did not. Just like even though NVIDIA did beat and guide up, it wasn't enough for the market. And that's been the story of this earnings period tag end, which is that it's real good, but not good enough. Start your day with my outlook on the market every morning. Visit cvc.com/morningtake to become a CBC investing club member at a special rate today. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC investing club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, internet, or another medium. 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Cramer says this chipmaker is a buy despite its post-earnings drawdown. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
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