Super Micro Computer saw its shares surge by nearly 25% on Monday, driven by the news that the artificial intelligence server maker had been selected to join the S&P 500 later in March. This significant gain propelled its year-to-date rise to almost 300% and its 12-month increase to nearly 1,050%, reflecting the heightened interest in stocks benefiting from AI adoption.
However, some analysts, including Jim Cramer, expressed caution about the extent of Super Micro’s stock surge. Cramer advised investors looking for AI-related investments to consider options like Dell, AMD, and Cadence Design Systems, which he favored over Super Micro.
Additionally, he suggested Arm Holdings as another potential investment idea adjacent to Nvidia, noting that his charitable trust, the portfolio used by the CNBC Investing Club, owns shares of Nvidia.
In contrast, Whirlpool faced a setback as it was removed from the S&P 500. Although its shares experienced a modest rise on Monday, they had declined by over 20% in the past 12 months. Cramer acknowledged the challenges Whirlpool faced, attributing its struggles to poor sales performance in the appliance market.
Meanwhile, Macy’s witnessed a 15% surge in its shares following an increased buyout bid from investment firms Arkhouse Management and Brigade Capital Management. The new bid valued the department store chain at around $6.6 billion, up from the previous offer of $21 per share.
Cramer commented on the situation, expressing his belief that Macy’s CEO Tony Spring had the potential to increase the stock value over the long term, but noted the pressure for immediate results in the current market environment.
JetBlue Airways and Spirit Airlines terminated their merger agreement following a federal judge’s decision to block the deal. Cramer suggested that American Airlines might be undervalued and could present a better investment opportunity.
In the cryptocurrency market, Bitcoin continued its upward trajectory, surpassing $65,000 per coin on Monday, nearing its all-time high. The recent surge in Bitcoin’s price followed the launch of U.S. exchange-traded funds tracking the cryptocurrency. Cramer noted that the demand for Bitcoin-related ETFs appeared to be driven by younger investors.
