My top 10 things to watch Wednesday, Feb. 18 1. Meta commits to buying millions of Nvidia chips for its AI data centers. It’s kind of like the old days when all of the hyperscalers clamored for Nvidia’s chips. The long knives had been out for Nvidia, but shares added almost 2% this morning. Meta was flat. We own both for the Club. 2. Club name Palo Alto Networks delivered a quarterly beat, but shares fell more than 6% anyway after the company lowered its full-year earnings guidance. CEO Nikesh Arora said the EPS cut is due to the CyberArk and Chronosphere deals increasing its share count. I believe him and still think cybersecurity shouldn’t be lumped into the software sell-off. 3. Workday was downgraded to hold from buy at Citizens, after co-founder Aneel Bhusri returned as CEO. He’s replacing Carl Eschenbach, who made a series of AI-focused acquisitions but couldn’t stay ahead of what is perceived to be AI’s massive threat to the software-as-a-service (SaaS) category. 4. Activist firm Elliott Management has amassed a more than 10% stake in Norwegian Cruise Line , arguing improved profitability can help reverse a long stretch of stock underperformance. Elliott has been working with Adam Goldstein, a former top executive at Royal Caribbean, as a potential board nominee. Will they give new CEO John Chidsey, formerly of Subway, a chance? 5. Berkshire Hathaway took a stake in the New York Times during the fourth quarter, Warren Buffett’s last as CEO. Berkshire also cut its position in Club name Amazon , which ironically is paying the NYT between $20 million to $25 million annually in a licensing deal for AI content, with even larger implications. After a record close yesterday, NYT shares added over 2% this morning. 6. Shares of Cadence Design Systems jumped 7% following better-than-expected results and guidance last night. The maker of specialized software used to design semiconductors had been drifting lower. These numbers are also good news for Nvidia, a Cadence partner. 7. A number of price-target cuts for Club name Salesforce , our only SaaS stock outside of cyber. Wells Fargo went to $235 from $265 and kept its hold rating. BTIG went to $260 from $335 but maintained its buy call. Hold-rated Citi went to $197 from $257 and said that “underwhelming” Agentfoce usage may put a cap on organic growth. 8. Barclays raised its McKesson price target to $1,050 from $960 and kept its buy rating. Best story? The analysts see McKesson as one of the “pockets of safety” in health care, but noted the stock currently trades at a 15% premium to its average price over three years. 9. Citi raised its StubHub rating to a hold from sell, while cutting its price target to $9 from $13. No upside in that PT. What an unmitigated disaster this one has been since its September IPO . The analysts cited valuation for the upgrade, with shares down more than 40% in the past month. 10. Western Digital plans to sell part of its Sandisk stake for over $3 billion to reduce debt. Sandisk stock was headed for a third down day in a row. But shares have been riding the memory storage trade to a year-to-date gain of more than 140%. Have to buy Sandisk. 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.
