Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market update: The S & P 500 is nicely higher on Thursday, overcoming the market’s soft open. Stocks are shrugging off concerns about tariffs on copper imports and President Donald Trump’s plan to impose a 50% tariff on Brazil beginning Aug. 1. The Nasdaq is underperforming in the session, dragged down by weakness in technology — especially software and cybersecurity stocks — as well as communication services, with Netflix and Meta Platforms among the notable decliners. The pullback may signal a continued, modest rotation out of higher-multiple names and into value-oriented stocks that have lagged. AWS liquid cooling ambitions: We’re keeping an eye on the data center industrial build-out plays. The group’s mostly lower Thursday, getting swept up in the rotation out of some leaders and into underperformers. However, there is also news that may be affecting some stocks. Amazon said Wednesday that its cloud computing division, Amazon Web Services, has developed its own in-house solution to solve the cooling needs of Nvidia’s next-generation AI chips. When Nvidia chips are performing AI tasks, they run hot. The older generation of chips could get by on traditional air cooling, but everything from Nvidia’s Blackwell chips and up will require liquid cooling to avoid overheating. This created a problem for Amazon. The company wanted its current infrastructure to be ready for the Blackwell rollout, and building new data centers would have taken too much time. Existing third-party solutions, meanwhile, can’t be scaled and would have caused other problems. What AWS did — in traditional Amazon fashion — was create its own hardware. Through what the company is calling In-Row Heat Exchangers or IHRX, Amazon can install this new hardware into data centers and make them ready to go for Blackwell. This is a positive development for both Nvidia and Amazon, as it enables Amazon to deploy more Blackwell chips without being limited by its existing air-cooled infrastructure. This in-house development shouldn’t have a material impact on our data-center-centric industrials. Eaton specializes in electrical equipment that is found all throughout data centers — things like transformers, switchgears, and battery systems. Eaton also makes uninterruptible power systems for chip liquid cooling pumps, so the shift toward more liquid cooled data centers could be positive for those sales. As for Dover, it makes thermal connectors so think of it as the “plumbing” in liquid cooling systems. Up next: Levi Strauss reports earnings after the closing bell. No major earnings reports or economic data releases before the opening bell on Friday. But we have our third annual meeting for the Investing Club tomorrow, where we’ll discuss our latest strategies for this volatile market as well as updates on portfolio names. The livestream starts at 10:30 am. ET. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
What Amazon’s new hardware to cool Nvidia chips means for our AI stocks
