Why Apple's focus on AI privacy could help fuel the next iPhone upgrade cycle

Published Wed, Jun 26 202412:11 PM EDT

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key moments. The S & P 500 edged lower Wednesday, on track for its fourth negative session in the past five. Meanwhile, the Nasdaq Composite rose for the second straight day on gains in Big Tech names like Club holdings Apple, Meta Platforms and Amazon . Nvidia shares fell 0.7% after surging 6.8% during Tuesday's session. Cantor Fitzgerald raised the company's price target to $175 a share from $140 apiece, arguing that Nvidia will continue to dominate the artificial intelligence chip market, "forcing competitors into playing an ongoing game of catch-up." Jim Cramer agreed with the call. "They are fantastic," Jim said of Nvidia. The chipmaker's annual meeting for shareholders kicks off at noon ET Wednesday. Apple shares jumped 2% Wednesday after Rosenblatt Securities upgraded the iPhone maker to a buy rating from hold. Analysts argued that Apple's privacy-focused AI strategy will help the company grab more market share in AI, saying its recent consumer survey showed it was a much-desired feature among respondents. Jim said Apple CEO Tim Cook was well-aware that many people were concerned about privacy with new AI features on iPhones that lean on their personal data. "We remain 'own it, don't trade it' on Apple," Jim said. We continue to believe an AI-fueled upgrade cycle looms for Apple's flagship device. The results of the Federal Reserve's annual bank stress tests are due out after Wednesday's close. The event is usually a near-term positive for the financial names, including Club holdings Morgan Stanley and Wells Fargo . Since 2021, shares of Wells Fargo have led the pack in the first session after stress-test results are released, Jefferies said in a note dated Monday. We expect both Morgan Stanley and Wells to pass and show that they can weather severe economic downturns with plenty of capital to spare, and look forward to hearing more about how much of that could be returned to shareholders. Over the past month, Wells Fargo and Morgan Stanley have dropped about 4.5% and 2.3%, respectively. (Jim Cramer's Charitable Trust is long NVDA, AAPL, META, AMZN, WFC, MS. 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.