Shortly after the opening bell, we will be buying 75 shares of Advanced Micro Devices at roughly $163.41. Following the trade, Jim Cramer’s Charitable Trust will own 575 shares of AMD, increasing its weighting to 2.70% from 2.35%. Now that we are no longer restricted, we are adding to our position in AMD. We’ve wanted to add to our position since Thursday, when the stock pulled back 4% in reaction to its Advancing AI presentation; shares are set to open Tuesday slightly below Thursday’s close. Some analysts thought AMD’s AI event would be a “catch-up catalyst” for the stock, but it turned out to be a “sell the news” event. Some investors were disappointed by the lack of new cloud customer partnerships and by the fact its MI300 AI chips will be dilutive to margins until they increase in scale. However, we viewed CEO Lisa Su’s presentation on her AI product roadmap as bullish. We also liked how she raised AMD’s total addressable market forecast for AI chips to over $500 billion by 2028. AMD shares are a little weaker Tuesday on a Bloomberg News report that said the Biden administration may cap AI chip sales from Nvidia and AMD to certain Persian Gulf countries. Even if this happens, it shouldn’t materially impact AMD since its main customers are Microsoft , OpenAI and Meta Platforms . As for fellow Club stock Nvidia , it’s always good to remember that demand is so strong that its chips are on allocation. (Jim Cramer’s Charitable Trust is long AMD, NVDA, MSFT and META. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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