Cramer says 'cooling market' presents a chance to buy knocked-down AI stocks

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 Friday's key moments. 1. Stocks fell on Friday as investors digested the May jobs report and volatility in the tech sector. The tech-heavy Nasdaq retreated 1.7% while the S & P 500 dropped nearly 1%, putting the broad-based index on pace for a weekly decline after a streak of nine consecutive weekly gains. Non-farm payrolls in May rose by 172,000, more than the consensus estimate, while unemployment held steady at an expected 4.3%. In response, Treasury yields climbed on the possibility of a rate hike by the end of the year, which would be a negative for stocks. Jim Cramer added perspective on the market's pullback, saying this "cooling off period" could be a chance to take advantage of chip stocks that are down, because "there's really no negative data center thesis in sight." Some of the laggards in the portfolio on Friday include Arm Holdings , Intel , and Corning . Jim called out Intel as a "great level to buy" with the stock down 6% Friday; we made a small buy ourselves. The chipmakers are extending declines triggered by Broadcom 's disappointing guidance on Wednesday, sending the stock 20% on the week. Investors are moving money to defensive areas, especially health care. This out-of-favor sector is making a comeback, with shares of Johnson & Johnson , Eli Lilly , and Cardinal Health moving higher on Friday. 2. CrowdStrike stock extended Thursday's declines by falling another 3.4%. CEO George Kurtz appeared on "Mad Money" last night with Jim to discuss the company's earnings results and explained that investor expectations that Anthropic's AI model, Mythos, will boost earnings are premature. Mythos is part of Anthropic's Project Glasswing, a cybersecurity AI initiative that CrowdStrike is part of and that helps find software vulnerabilities. Jim said that people are wrongly "not sensing opportunity" for the AI-native cybersecurity firm. For new members, Jim believes this pullback is an entry point, as he anticipates "this [current] quarter will be huge." 3. Apple holds its Worldwide Developers Conference on Monday, and investors are expecting a big Siri upgrade built on Google Gemini with a chatbot-like function. The event is "going to be very positive," Jim said, and Siri will be much better. Club holding Honeywell hosts a 2026 guidance update for its Honeywell Aerospace division, which will become a separate, publicly traded company on June 29, followed by an investor day on Thursday. Jim is interested in adding to the Club's Honeywell position, but at a lower price. Finally, the highly anticipated SpaceX IPO is set for next Friday. The S & P issued a release Thursday saying it won't make an index inclusion adjustment for SpaceX. Jim remains cautious that investors may be selling their existing holdings to make room for SpaceX, along with the expected IPOs of Anthropic and OpenAI later in the year. 4. Stocks covered in Friday's rapid fire at the end of the video were: Lululemon , Chipotle , Qualcomm , and Tesla . (Jim Cramer's Charitable Trust is long AVGO, ARM, INTC, GLW, JNJ, LLY, CAH, CRWD, AAPL. See here for a full list of the stocks.) 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.