Top 10 Things to Watch Monday, June 1

My top 10 things to watch Monday, June 1

1. Nvidia unveiled its first-ever PC processor at Computex, working closely with fellow Club name Microsoft . The chip uses the power-efficient Arm instruction set, taking aim at the x86 kingdom dominated by Intel and AMD . Those don't cut it anymore for the agentic AI PCs that Nvidia is building. Too slow and too hot. Intel and AMD shares are lower this morning. Nvidia is up 2%.

2. One of Nvidia CEO Jensen Huang's big themes at his Computex keynote: compute is revenue in the AI era. He took a shot at custom data center chips from the likes of Google and Amazon , saying, "choosing the wrong architecture just because the chips are cheaper doesn't translate." It's all about how many profitable tokens your data center can generate per watt of power.

3. Club name Arm is a big winner from Nvidia's PC pursuit and its success in the data center because Nvidia licenses Arm's intellectual property for its CPUs. Arm collects royalties per chip. No wonder Arm's stock is flying in the premarket, up 11%. It's already tripled this year. Mizuho and Wells Fargo raised their price targets this morning to $425 and $410, respectively.

4. Goldman Sachs upped its PT on Dell to $500 from $230. Kept its buy rating on the stock after Dell's monster quarter Thursday night. Morgan Stanley upgraded Dell to hold from sell, acknowledging that its concerns about the memory shortage were wrong, as Dell is navigating the supply chain better than its peers. Dell and Nvidia are close partners on AI servers and now new PCs.

5. Berkshire Hathaway agreed to buy homebuilder Taylor Morrison Home for $6.8 billion. Small deal, but it shows that there may be value in the hated homebuilders. It would be something if Berkshire put up prefab homes from Clayton, which it also owns, on all the land Taylor Morrison has. Berkshire shares are slightly lower, while Taylor Morrison shares are up more than 22%.

6. There are three expected deals that will define 2026 and maybe even 2027: the IPOs of SpaceX, OpenAI, and Anthropic. In my Sunday column for Club members, I tried to make sense of what will happen with each, drawing on my time doing syndicate work on IPOs and what I've learned from the execs involved in the process. I also revealed the one I want to buy.

7. Baird raised its PT on Palo Alto Networks to $300 from $265, updating its model ahead of Q3 results on Tuesday; fellow cybersecurity stock CrowdStrike is on Wednesday. Both names have rebounded to new all-time highs as the market comes around to our view that AI is a major tailwind and not a threat. As we noted in our week ahead column , that strong performance presents a challenge. Broadcom is also heading into Wednesday's print hot and will need to do more than simply beat the headline estimates.

8. Big moves again in some once-dead software stocks, building on the surprise strength seen in Friday's session. Club name Salesforce is back over $200 in the premarket. Hasn't been that high since March. ServiceNow is up over 8% premarket, on top of a 14% surge Friday. Similar story for Adobe . At Computex, Jensen said AI isn't killing software, but instead, agentic AI will increase software usage.

9. Citigroup is "incrementally positive" on iPhone shipments in 2026, with analysts keeping their buy rating on Apple and $315 price target. That implies little upside for this now-$312 stock, which hasn't had a down week since March 20. Next week's WWDC developer conference will likely determine its next move . Need to see a revamped, AI-infused Siri.

10. A Couple of divestments: Yum! Brands is in exclusive talks to sell Pizza Hut to LongRange, Bloomberg reports , and Kontoor agreed to sell its Lee jeans business to Authentic Brands in a deal that could be worth $1 billion. Yum is up about 1.5%, while Kontoor is down more than 2%. Pizza has been a tough group. Yum signaled last year a sale of Pizza Hut was on the table . 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.