We’re making a small buy as hard-hit AI buildout stocks stabilize

We’re buying 11 shares of Micron at roughly $925 each. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 53 shares of MU, increasing its weighting in the portfolio to about 1.25% from about 1%. We’re nibbling on one of the two semiconductor stock bounce-back candidates that Jim highlighted in his note on Monday’s AI selloff. We’re jumping in with a small buy — nothing too large — with the group stablizing from the morning lows. The AI trade sold off hard Monday after Anthropic CEO Dario Amodei called for a global slowdown in the development of frontier AI models, citing the growing risks posed by increasingly advanced systems. There is still a lot to figure out about what a potentially slower pace of new model development would mean for the artificial intelligence buildout — from regulatory implications to political ramifications if AI companies cede leadership to Chinese competitors. In the meantime, we do not think Amodei’s warnings outlined in his weekend essay mean the data center story is over, as Monday morning’s selling suggested. With Micron shares down roughly 5%, we’ll use the pullback to make a very small buy in a tiny position we would like to build up over time and ahead of what could be a sizeable buyback announcement after the CHIPS Act restrictions expire. (Jim Cramer’s Charitable Trust is long MU. See here for a full list of the stocks.) 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.