Cramer's Top 10 Stocks: Intel, TSMC Up; Software Down
Why it matters: Intel's expanded partnerships and price target hikes signal a potential return to greatness for the chipmaker.
- Oil prices are marginally down, and the March consumer price index rose 0.9% for the month and 3.3% annually, aligning with expectations, as Vice President JD Vance heads to Pakistan for peace talks.
- Taiwan Semiconductor Manufacturing Co. reported robust Q1 revenues, up 35% year-over-year, with March alone seeing a 45% jump, potentially boosting Nvidia shares.
- Intel received a third price target hike this year from Melius Research's Ben Reitzes to $75 from $58, following partnerships with Elon Musk's Terafab and Google, and talks with Amazon.
- UBS downgraded ServiceNow to hold from buy, citing weakened confidence in its ability to withstand AI disruption, despite shares already down 41% year-to-date.
- Citi software analysts downgraded DocuSign and Veeva to buy from hold and lowered Adobe's price target to $253 from $287, noting a lack of catalysts for the software group amidst a divergence with hardware winners.
- Nike was downgraded to hold from buy by Piper Sandler, with a price target cut to $50 from $60, due to concerns about innovation, athleisure saturation, and tough comparisons.
- Bank of America lowered Procter & Gamble's price target to $167 from $171 and Colgate-Palmolive's to $102, citing increased costs for oil-derived materials.
- Robinhood saw price target cuts from Citizens to $155 from $180 and Morgan Stanley to $95 from $147, with analysts citing a slowdown in crypto activity.
Jim Cramer highlights a stock market Friday marked by a tame open and mixed signals: strong performance from Taiwan Semiconductor Manufacturing Co. and Intel contrasts sharply with downgrades for software companies like ServiceNow, DocuSign, and Veeva, as well as consumer staples like Nike and Procter & Gamble, reflecting a notable divergence between hardware winners and software losers.
