Jim Cramer's Top 10 Things To Watch Wednesday — The Special Market Froth Edition

My top 10 things to watch Wednesday, Jan. 8 1. Did Club stock Nvidia deserve to fall so much? While stable early Wednesday, Nvidia shares closed down more than 6%. The AI chipmaker did not guide up much as some were hoping but that really wasn’t the point of CEO Jensen Huang’s address at CES Monday night. It was to introduce robots and self-driving to the masses. 2. In a special market froth watch edition of the Top 10, Jensen, in an analyst Q & A on Tuesday afternoon, exploded the quantum computing bubble with three lines: “If you said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30 is probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.” 3. Maybe just as important, Jensen says quantum isn’t all that valuable as it works with small data and the big issues are with large data. It isn’t even that valuable. Those comments crushed quantum stocks, especially Rigetti Computing , which closed Tuesday down 5.7% and fell another 25%-plus early Wednesday. 4. The reason for the quantum stock run was last month’s announcement from Club name Alphabet about a new Willow chip that performed significantly better than its predecessor. At the time, we thought it was too theoretical and trimmed Alphabet on the stock pop it got on Dec. 10, the day after the announcement. 5. There is no sign of Palantir bottom yet. Where did the buyers go? Cathie Wood’s ARK Investment Management put out a trade alert Monday night. I think she ended the Palantir rally with her selling. In my Sunday column , I warned that Palantir’s recent strength was not built on anything but speculation that the stock only could go higher. 6. Nothing yet nuclear. Watch Constellation Energy and Vistra , which have already in 2025 built on their incredible rallies last year on the promise of data center demand for big energy sources to power AI. Constellation Energy, in September, announced plans to restart the Three Mile Island plant and sell energy to Microsoft , also a Club holding. 7. Can bitcoin hold $95,000? Michael Saylor’s Microstrategy , which own tons of bitcoin, is in charge of the direction of this one. Last month, bitcoin broke above $100,000 per unit for the first time ever but has since cooled off a bit. 8. Following Tuesday’s stronger-than-expected economic data, which spiked bond yields and sank stocks, the ADP’s December private sector jobs report on Wednesday morning showed slower hiring . Bond yields were still moving higher and stocks were headed for a slightly weaker open. 9. Due to the market closure Thursday for the Jimmy Carter national day of mourning, jobless claims were released a day earlier than usual and the numbers were light. Friday’s government jobs report could hold the key to whether Wall Street sees the Federal Reserve’s interest rate cuts last year and its path forward as appropriate or heavy handed. 10. Constellation Brands , a weak Club name, reports quarterly results Friday. Ahead of earnings, TD Cowen analysts lowered their price target to $260 per share from $270. A reset for the group is coming. Bernstein cut its PT, too. I would argue the reset is already upon us. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at 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.

Nvidia CEO Jensen Huang holds a Blackwell GeForce RTX 50 Series GPU (L) and a RTX 5000 laptop as he delivers a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 6, 2025.

Patrick T. Fallon | Afp | Getty Images

My top 10 things to watch Wednesday, Jan. 8

1. Did Club stock Nvidia deserve to fall so much? While stable early Wednesday, Nvidia shares closed down more than 6%. The AI chipmaker did not guide up much as some were hoping but that really wasn’t the point of CEO Jensen Huang’s address at CES Monday night. It was to introduce robots and self-driving to the masses.

2. In a special market froth watch edition of the Top 10, Jensen, in an analyst Q&A on Tuesday afternoon, exploded the quantum computing bubble with three lines: “If you said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30 is probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.”

3. Maybe just as important, Jensen says quantum isn’t all that valuable as it works with small data and the big issues are with large data. It isn’t even that valuable. Those comments crushed quantum stocks, especially Rigetti Computing, which closed Tuesday down 5.7% and fell another 25%-plus early Wednesday.

4. The reason for the quantum stock run was last month’s announcement from Club name Alphabet about a new Willow chip that performed significantly better than its predecessor. At the time, we thought it was too theoretical and trimmed Alphabet on the stock pop it got on Dec. 10, the day after the announcement.

5. There is no sign of Palantir bottom yet. Where did the buyers go? Cathie Wood’s ARK Investment Management put out a trade alert Monday night. I think she ended the Palantir rally with her selling. In my Sunday column, I warned that Palantir’s recent strength was not built on anything but speculation that the stock only could go higher.

6. Nothing yet nuclear. Watch Constellation Energy and Vistra, which have already in 2025 built on their incredible rallies last year on the promise of data center demand for big energy sources to power AI. Constellation Energy, in September, announced plans to restart the Three Mile Island plant and sell energy to Microsoft, also a Club holding.

7. Can bitcoin hold $95,000? Michael Saylor’s Microstrategy, which own tons of bitcoin, is in charge of the direction of this one. Last month, bitcoin broke above $100,000 per unit for the first time ever but has since cooled off a bit.

8. Following Tuesday’s stronger-than-expected economic data, which spiked bond yields and sank stocks, the ADP’s December private sector jobs report on Wednesday morning showed slower hiring. Bond yields were still moving higher and stocks were headed for a slightly weaker open.

9. Due to the market closure Thursday for the Jimmy Carter national day of mourning, jobless claims were released a day earlier than usual and the numbers were light. Friday’s government jobs report could hold the key to whether Wall Street sees the Federal Reserve’s interest rate cuts last year and its path forward as appropriate or heavy handed.

10. Constellation Brands, a weak Club name, reports quarterly results Friday. Ahead of earnings, TD Cowen analysts lowered their price target to $260 per share from $270. A reset for the group is coming. Bernstein cut its PT, too. I would argue the reset is already upon us.

Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free

(See here for a full list of the stocks at 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.

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