Jim Cramer urges trimming parabolic AI winners, buying Corning, GE Vernova and Eaton

According to CNBC, Jim Cramer and portfolio director Jeff Marks reviewed the CNBC Investing Club's July Monthly Meeting, saying stocks that make parabolic moves should be trimmed and that the recent run in several artificial intelligence winners does not reflect a deterioration in fundamentals. They said they see opportunities to buy Corning, GE Vernova and Eaton, while also considering additions to FedEx Freight and Johnson & Johnson. They discussed trimming Home Depot and Starbucks, and said they acted to reduce the Home Depot position after the meeting. The pair also said the big four hyperscalers are under pressure from heavy AI spending and higher memory prices, while Alphabet, Amazon, Microsoft, Meta Platforms and Apple each face different risks and opportunities tied to that investment. They said Nvidia remains central to the data center buildout, Broadcom is benefiting from clients seeking custom alternatives, and Intel is seeing booming demand for its CPUs. They also said Johnson & Johnson missed second-quarter revenue by $150 million at Abiomed, and noted that Eli Lilly bought a psychedelic drugmaker on Thursday.