Jim Cramer’s big takeaway from the market reaction to Nvidia’s earnings beat

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 Thursday’s key moments. 1. Wall Street is having a mixed session Thursday. While the Dow Jones Industrial Average was slightly higher, the S & P 500 and tech-heavy Nasdaq Composite gave up earlier gains and moved into the red. Club name Nvidia is key to watch Thursday. Shares of the leading AI chipmaker and world’s most valuable company were down nearly 3% despite better-than-expected earnings . The stock had opened in positive territory — briefly hitting an all-time intraday high — before losing steam. Nvidia’s “biggest problem is allocation,” Jim Cramer said, referring to the supply crunch for its next-gen Blackwell chips. “They’re trying to make as many as they can.” 2. The market reaction to earnings both inside the Club portfolio and outside of it demonstrates the importance of expectations, Jim said. As he sees it, there’s basically two kinds of companies that recently reported: Those where no one expected anything good, such as software provider Snowflake and farm-equipment maker Deere , and those where a high bar had been set, such as Nvidia and fellow Club holding Palo Alto Networks . Snowflake is surging more than 30%, while Deere popped over 6%. “Snowflake has just been trashed and nobody wants it,” Jim said. On the other hand, investors were selling Nvidia and Palo Alto. We’re not sweating the drop in Palo Alto. 3. One Club stock being bought Thursday is Dover , which makes thermal connectors used in the liquid cooling of data-center servers that contain Nvidia chips. The technology is particularly important for Blackwell chips because they throw off a lot of heat. To that end, shares of Dover were up more than 1.5% Thursday. “There’s been no cessation of anything. Look, they, too, are trying to meet demand,” Jim said of the industrial conglomerate. Electrical equipment supplier Eaton, another Club holding we own for its data-center exposure, rose more than 3% on Thursday. 4. Stocks covered in Thursday’s rapid fire at the end of the video were: Snowflake, BJ’s Wholesale , and Deere . (Jim Cramer’s Charitable Trust is long NVDA, PANW and DOV. 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.