Jim Cramer's Investing Club: S&P 500 Hits Record Highs, AI Trade Enthusiasm Questioned

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 Tuesday's key moments.

1. The S & P 500 touched fresh record highs on Tuesday, driven by Nvidia and other chipmakers. However, Jim Cramer said he is unimpressed by the parabolic moves in the AI trade, pointing to Marvell Technology's 29% surge on Tuesday after Nvidia CEO Jensen Huang said it would be the next trillion-dollar company. "I don't like that level of enthusiasm," Jim said, noting that these moves draw money away from other sectors.

2. Shares of Alphabet are down over 2% after the Google parent announced plans to sell $80 billion in stock to fund its AI buildout, including a $10 billion investment by Berkshire Hathaway . Alphabet's plan to raise half of its capital using an at-the-market (ATM) strategy — in which a company incrementally sells newly issued shares into the secondary market over time to raise capital — is not a win for investors looking to buy the stock, Jim said. "You're not going to be able to get the stock really rolling because as soon as it starts rolling, they put [more] stock out. That's part of the problem with an ATM program."

3. Palo Alto Networks shares are down more than 1.5% on Tuesday, going into earnings after the close. The bar is high for the cybersecurity name, which has rallied more than 80% since the end of March. For this quarter's report, the company needs to show that AI is accelerating its business. The Street will also like to see more on the deal integrations with CyberArk and Chronosphere, and how they're supporting the consolidation of its platform. Jim is a fan of the company's performance under CEO Nikesh Arora, who will appear on "Mad Money" this evening. Jeff Marks, director of portfolio analysis, said that if we weren't restricted, we'd probably consider a trim to lock in profits.

4. Stocks covered in Tuesday's rapid fire at the end of the video were: Hewlett Packard Enterprise , Dollar General , Sherwin-Williams , and Intuit . (Jim Cramer's Charitable Trust is long PANW, NVDA, and GOOGL. See here for a full list of the stocks.)

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