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Morning Bell With Jim Cramer: Trading Applied Materials, Nvidia

Jim Cramer talks stock-market news, including how to trade Applied Materials and Nvidia and about accountability on Wall Street.

Stock futures pointed higher; Bitcoin rebounded after a weekend of volatility; and the antitrust trial between Epic Games and Apple  (AAPL) - Get Apple Inc. (AAPL) Report is set to wrap up on Monday.

In the most recent "Mad Money," Founder Jim Cramer said the easy money in cryptocurrencies has been made, but stocks still have a long way to go.

TheStreet's Katherine Ross and Cramer are talking about how to trade Applied Materials and Nvidia and about accountability on Wall Street.

Applied Materials: Buy Or Sell?

Shares of Applied Materials  (AMAT) - Get Applied Materials, Inc. Report wavered Friday after the semiconductor equipment major on Thursday reported mixed fiscal-second-quarter earnings and received a number of positive reviews and price-target upgrades from Wall Street analysts.

Applied Materials gave a bullish forecast for the current quarter, boosted by orders from chipmakers, which are rushing to add capacity to meet a flood of demand for
their products.

Cramer said Applied Materials had a good enough quarter and put out a good outlook for 2022. 

"But a colleague said that the stock has run up so much already, how can there be more room?" Cramer said. 

"The answer to that is I don't know. They did give a 2022 outlook that was positive so you're going to have an up year next year. But I also understand the reluctance to buy it because it has moved up well in advance of the good news." 

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Nvidia: Buy Or Sell?

Nvidia  (NVDA) - Get NVIDIA Corporation Report shares rose after the semiconductor maker declared a 4-for-1 stock split. If shareholders approve the plan, Nvidia holders of record June 21 will receive a dividend of three common shares for every share they hold.

Cramer said you don't buy a stock because of a split. 

"Nothing fundamental has happened in the company," he said. "It's the same company even after the stock split. The fact that Nvidia's stock went up after the split just shows that there are too many individual investors involved who will eventually realize that I paid up for something that didn't really move the stock, but the stock could finish unchanged."

How to Make Wall Street Accountable

Cramer said that if regulators are willing to just speak out instead of waiting or hiding behind the rulemaking process, that would cause much better Wall Street behavior. "We need to be told that we're not doing the right thing," he added.

Nvidia and Apple are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer adds or removes stocks from his portfolio? Learn more now.