Cramer on AMD, Nvidia, Apple, and Airline Bets

Stock futures sat flat Tuesday, the last trading day of June, the second quarter, and the first half of the year. The S&P 500 and Nasdaq are on pace for their best quarters since Q2 2020. The S&P is up nearly 14%; the Nasdaq has rallied almost 20%. Jim Cramer ran through his morning list of calls and catalysts.

The chip trade keeps rolling. Susquehanna raised price targets on Applied Materials to $900 from $575 and on Lam Research to $475 from $385. Cramer pointed to the compute shortage. You cannot add chip manufacturing capacity without these equipment companies. Both stocks have been among the best in the S&P 500 this month.

Wells Fargo hiked its price target on Advanced Micro Devices to $615 from $505. AMD closed near $539 on Monday. The stock has nearly tripled in the past three months. Cramer said AMD sits in a catbird seat: a strong legacy CPU business benefiting from agentic AI growth, while emerging as the No. 2 GPU supplier behind Club name Nvidia. AMD's Alpha Score is 53, a Mixed reading, suggesting the move needs earnings confirmation. Nvidia carries an Alpha Score of 64, labeled Moderate. Both are in the Technology sector.

Morgan Stanley grew more bullish on Google Cloud's multiyear outlook, citing both its traditional compute rental business and a new initiative to sell custom chips to external customers. The firm took its Alphabet price target to $415 from $375, implying about 20% upside. Cramer noted the momentum behind Google's in-house chip business, which he explored in a weekend note for Club members.

Airlines and defense see tailwinds. Wells Fargo raised targets across the group. Delta went to $105 from $75; United to $165 from $130; American to $17 from $12; Southwest to $50 from $44. The catalyst: a steep drop in fuel prices as crude transport traffic returns to the Strait of Hormuz. Cramer said these are their top airline picks.

AeroVironment soared more than 30% after a big earnings beat. Revenue came in at $492 million versus expectations of $402 million, driven by the drone segment. The unit involved in satellites and missile warning systems was weaker. Cramer called the stock a battleground between shorts and longs.

Apple's memory cost pain. Bank of America downgraded Logitech to sell from hold, citing weakening demand as soaring memory costs push up prices across PCs, smartphones and gaming systems. Logitech fell 5%. Cramer noted that Apple took its first price increases on Mac and iPad last week to offset memory costs. The question: could the iPhone follow this fall? Apple shares were slammed after that move.

Other moves. Comcast was upgraded to buy at Deutsche Bank, which said the planned NBCUniversal spin-off will unlock value. Cramer agreed: you cannot see the progress of the media business or theme parks inside Comcast. Shares rose 4.5% Monday and added 2.5% early Tuesday.

Piper Sandler started Capital One at buy. The firm is selectively constructive on payments and consumer finance ahead of earnings. BTIG raised its target to $259 from $224, implying roughly 28% upside. Cramer said he needs more progress on the Discover integration.

Deutsche Bank placed a short-term sell call on Otis Worldwide, saying it does not think the escalator manufacturer's full-year guidance is achievable. They were more upbeat on Parker-Hannifin with a catalyst call buy ahead of earnings. Deutsche also forecasted that Eaton and GE Vernova will beat on earnings.

Cramer's takeaway. The market enters July with momentum in big tech and semiconductors, fuel tailwinds for airlines, and scattered upgrades across industrials. The key risks remain memory-cost inflation and the sustainability of AI-driven demand. For now, the compute shortage keeps the equipment makers and GPU suppliers in focus.