My top 10 things to watch Wednesday, March 26 1. The long knives are still out for Nvidia . Today’s example is a story in the Financial Times about environmental rules in China that, if tightly enforced, could ban sales of Nvidia’s H20 chips. The rules were put in place last year, but suspiciously are just being reported on now. Certain forces want Nvidia’s stock down. 2. Dollar Tree is selling its struggling Family Dollar chain to private equity firms for $1 billion. Dollar Tree, an excellent operator, bought Family Dollar, a terrible entity, for almost $9 billion a decade ago. The integration hasn’t worked. Just a bad idea all around. 3. Melius Research likes Cisco here, which makes sense because the enterprise hardware giant has a smart partnership with Nvidia to bring the Club name’s AI chips into its network. Win-win. Melius said Cisco could be in the early innings of a stock re-rating. 4. Big call: Baird lowered its price target on ServiceNow’s stock to $1,010 a share from $1,200 and now has estimates below the Wall Street consensus. The analysts are worried about the software provider’s earnings in an environment where the federal budget is being cut. 5. Transports are lagging, and Susquehanna downgrades J.B. Hunt , the gold standard, to neutral from a buy-equivalent rating. It also lowered its price target to $165 a share from $200. If there are strict or difficult-to-comply-with tariffs, the trucking industry could be hit hard. 6. More price target cuts for RH , the luxury home furnishings company. Bank of America went to $410 a share from $510 and expressed worries on the macro situation. Wedbush went to $350 from $500. Both firms kept their buy ratings, though. We’re seeing a reset on everything tied to the home due to a lack of turnover. 7. Wells Fargo starts coverage of Wingstop with an overweight buy rating and price target of $270 a share. The stock has been hit hard in recent weeks, but analysts see easier second-half comparisons working in its favor. I still can’t understand the slowdown here so I wouldn’t touch this stock yet. 8. GameStop shares are up more than 13% this morning after the video-game retailer officially said it may start investing its cash in bitcoin, a la the company formerly known as MicroStrategy. The meme buyers will lap this up, but who really cares? 9. Barclays lowered its price targets on a bunch of industrial stocks including Club names Honeywell , Eaton and Dover . Analysts kept their hold-equivalent ratings on Dover and Eaton, while reiterating their buy call on Honeywell. 10. Citigroup said it’s “very bullish” on Gilead’s HIV franchise, arguing that the company’s new product cycle focused on long-acting orals is overlooked by investors. The firm maintained its buy rating and pirce target of $125 a share. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) 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.
Visitors check out Nvidia’s AI technology at the 2024 Apsara Conference in Hangzhou, China, on September 19, 2024.
Costfoto | Nurphoto | Getty Images
My top 10 things to watch Wednesday, March 26
1. The long knives are still out for Nvidia. Today’s example is a story in the Financial Times about environmental rules in China that, if tightly enforced, could ban sales of Nvidia’s H20 chips. The rules were put in place last year, but suspiciously are just being reported on now. Certain forces want Nvidia’s stock down.
2. Dollar Tree is selling its struggling Family Dollar chain to private equity firms for $1 billion. Dollar Tree, an excellent operator, bought Family Dollar, a terrible entity, for almost $9 billion a decade ago. The integration hasn’t worked. Just a bad idea all around.
3. Melius Research likes Cisco here, which makes sense because the enterprise hardware giant has a smart partnership with Nvidia to bring the Club name’s AI chips into its network. Win-win. Melius said Cisco could be in the early innings of a stock re-rating.
