Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves: Stocks were higher to start the new week, with the Dow , the S & P 500 , and the Nasdaq shrugging off the trade and tariff headlines that caused weakness on Wall Street last week. Energy was the top-performing sector Monday, thanks to gains in oil and natural gas prices. Our lone oil and nat gas name, Coterra Energy , was jumping roughly 3.8%. Tech, however, was the main driver of the overall market gains due to the strength in the Magnificent Seven stocks. The Club owns six of them: Apple , Alphabet , Amazon , Meta Platforms , Microsoft , and Nvidia . The seventh Mag 7 stock is Tesla . The only two sectors sitting out Monday’s rally were health care and financials. Both sectors are among the top gainers so far this year but have come under pressure in February. All three of our financial positions — Wells Fargo , Goldman Sachs , and BlackRock — are presenting at conferences on Tuesday. So, we’ll hear the latest from each of them. Broadcom: One of Broadcom ‘s new custom AI chip partnerships is coming into focus. Reuters reported Monday that ChatGPT creator OpenAI is finalizing the design for its first in-house chip. The story suggests the chip is in the later stages and could begin to be mass-produced later this year. Taiwan Semiconductor is the fab that will manufacture this new custom chip, but the story says the chip was designed by OpenAI’s in-house team in collaboration with Broadcom. The Hock Tan-led Broadcom currently has three custom AI chip customers, and those clients are widely believed to be Alphabet and Meta — and most recently, ByteDance, the Chinese owner of TikTok. When Broadcom last reported earnings in December, one of the reasons why the stock soared almost 25% was Tan’s reveal that the company was in advanced AI chip development with two additional hyperscalers. Based on previous media reports, OpenAI and Apple are believed to be those two customers. Microsoft is a financial backer and partner of OpenAI. On Broadcom’s December earnings call, Tan estimated the company’s service addressable market (SAM) for its AI business, which includes sales of both custom and networking chips, was $60 billion to $90 billion. That bullish target did not include custom silicon sales from these two new customers. If all the reporting is true, having a fourth AI chip customer in production is great news for Broadcom’s ability to capture this large SAM. Broadcom shares jumped 4.5% on Monday. But they were still below their Jan. 24 close before Chinese startup DeepSeek went viral with claims of a cheaper AI model that slammed chip stocks. Up next: It’s a quieter week of earnings. Some companies reporting after the closing bell Monday are Vertex Pharmaceutical , Lattice Semiconductor , and Astera Labs . Before the opening bell on Tuesday, Coca-Cola , Marriott , Humana , and Club name DuPont report quarterly resuts. (See here for a full list of the stocks in 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.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
