Jim Cramer stock picks favor Intel and Boeing as AI infrastructure slides

Jim Cramer stock picks on Tuesday centered on Intel and Boeing, even as CNBC's Investing Club said investors were again moving away from several large semiconductor and artificial intelligence infrastructure trades. Cramer said he would keep buying Intel on weakness if Club trading restrictions allowed, and said Boeing remained attractive after stronger-than-expected cash flow reinforced its turnaround case.

The comments came during the CNBC Investing Club's weekday Morning Meeting, where Cramer and the Club reviewed a mixed equity session. According to CNBC, the Nasdaq was close to unchanged while the S&P 500 was modestly higher, with defensive shares gaining as investors rotated out of parts of the technology trade.

Procter & Gamble, a Club holding, rose nearly 2% ahead of earnings scheduled for Wednesday morning, CNBC said. Microsoft, Meta Platforms and Starbucks, also Club holdings, are due to report Wednesday evening. The Club said Microsoft and Meta's capital spending plans will receive close scrutiny after Alphabet's post-earnings sell-off last week, while Starbucks investors will be looking for evidence that Chief Executive Brian Niccol's turnaround effort is progressing and that margins remain a management priority.

What are Jim Cramer's stock picks?

Cramer identified Intel and Boeing as names he would still buy, according to CNBC's Investing Club. He said he remained confident in Intel's foundry, advanced packaging and central processing unit businesses, and would continue buying the stock as it falls if Club rules did not restrict trading.

On Boeing, Cramer pointed to the aircraft maker's stronger-than-expected cash flow as support for the turnaround case. CNBC quoted him as saying, “I think that you can still buy Boeing here,” and adding that he believed the shares were poised for a multi-month move.

Cramer was more cautious on AI infrastructure winners that had rallied sharply earlier in the year. He said the Club had been correct to trim Corning several times in June as the stock advanced. CNBC reported that Corning shares have fallen more than 50% from their all-time high on June 29, including a 15% drop on Tuesday despite what Cramer described as a strong quarter.

“Parabolic moves must be sold,” CNBC quoted Cramer as saying. He added that such moves can fall faster after climbing sharply and do not necessarily stop at their starting point. In market usage, a parabolic move refers to a very rapid price increase that can leave a stock vulnerable to abrupt reversals when buyers retreat.

Cramer said Corning's volatility made him unwilling to buy back shares on Tuesday's decline, according to CNBC. He also said Corning's trading raised the question of whether the Club had taken enough profits in GE Vernova, another beneficiary of data center demand. CNBC reported that GE Vernova was down roughly 20% from its record close on June 30.

The Club also said Johnson & Johnson, Sherwin-Williams, Nucor, ExxonMobil and Nvidia were discussed in a rapid-fire segment at the end of the video. CNBC disclosed that Cramer's Charitable Trust is long Procter & Gamble, Microsoft, Meta Platforms, Starbucks, Alphabet, GE Vernova, Corning, Intel, Johnson & Johnson and Nvidia.

CNBC's Investing Club said subscribers receive a trade alert before Cramer makes a trade, and that Cramer waits 45 minutes after sending an alert before buying or selling a stock in the charitable trust. If he has discussed a stock on CNBC television, the Club said he waits 72 hours after issuing the alert before executing the trade.

This story draws on original reporting from CNBC.