Jim Cramer: Don't dump this AI leader after its stock slipped from a new high

An important development from the financial markets: Every weekday, the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a. Here's a recap of Tuesday's key moments. The S & P 500 on Tuesday fell from record highs in the prior session.

A hotter-than-expected April consumer price index and a spike in oil and bond yields pressured stocks. Jim Cramer said the current reversal driving artificial intelligence related stocks lower and laggards higher is necessary. "At the same time, I want to caution people, this is Day 1 of a decline of the hottest stocks I've ever seen," Jim added, drawing attention to Tuesday's 8% decline in Corning .

Economic Details

The Club stock, however, is still up roughly 115% year to date. Home Depot has been a tough stock to own in the midst of an elevated interest rate environment. But, Jim is still championing Home Depot over Lowe's , which was upgraded to a buy at Citi, ahead of earnings next week (May 20, Wednesday morning).

Citi also has a buy on Home Depot, which reports earnings a day earlier than its rival. Jim touts Home Depot as one of the "fine American companies" being held back by rates. He has long said that lower rates are needed to boost the kind of housing market activity that drives home improvement stocks.

Nvidia shares slipped from a fresh intraday high ahead of earnings next week (May 20, Wednesday evening). Wells Fargo analysts raised its Nvidia price target to $325 a piece from $265, citing Nvidia's $1 trillion Blackwell and Rubin pipeline through 2027. Jim expressed disappointment that Nvidia CEO Jensen Huang won't be on President Donald Trump's visit to China this week, as he thinks the company's chips are the most important thing the president could offer.

Analyst Views

Nonetheless, Jim recommends investors stick with Nvidia: "I would not dump the stock just because it's turning around and going down after being up earlier. Stocks covered in Tuesday's rapid fire at the end of the video were: FedEx , On Holding , Under Armour , Lowe's , and eBay . (Jim Cramer's Charitable Trust is long HD, GLW, and NVDA.

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Financial markets are tracking the development closely as investors assess the likely impact.