My top 10 things to watch Wednesday, Feb. 25 1. Workday shares are down 9% this morning after issuing disappointing guidance last night. We’re seeing the AI disruption threat: fewer seats without more product to bill per seat. A definite slowdown that could be secular because of the power of AI. Cowen and Evercore downgraded the stock to hold from buy. Tons of price-target cuts, too. 2. The memory-chip crisis is hurting HP Inc. , which now sees double-digit unit declines this year in its personal computer division. Memory and storage is usually 15% to 18% of a PC’s input costs. Now it’s 35%. Shares are down over 5% this morning. The AI boom is driving this memory shortage, and we’ll hear from a big driving force, Nvidia , tonight. 3. At last night’s State of the Union, President Donald Trump said he’s told tech giants to, essentially, bring their own source of power for data centers. Hyperscalers building their own power plants would be a windfall for Club name GE Vernova and credible nuclear players like BWX Technologies , whose CEO joined me on “Mad Money” on Monday. Still not a fan of speculative nuclear stocks. 4. Lowe’s shares are down 3.5% in the premarket. While fourth-quarter comparable sales of 1.8% easily beat the consensus, its full-year guidance was light on multiple lines including EPS. Club name Home Depot , which reported yesterday , outshines its main rival at last. Wells Fargo lifted Home Depot’s price target to $420 from $395 and said underlying trends are stabilizing. 5. Diageo shares are plummeting 10% this morning after the Guinness maker cut its 2026 sales outlook and slashed its dividend to fund a turnaround plan under new CEO Dave Lewis. Known as “Drastic Dave” for his cost-cutting reforms at Unilever and Tesco, Lewis said these moves are necessary to revive Diageo. Alcohol stocks continue to be a house of pain. 6. Club name TJX Companies delivered a fourth-quarter beat this morning, led by same-store sales up 5% versus 3.8% expected. The T.J. Maxx parent’s guidance for Q1 and the full year came in below the Street. But shares are down just slightly in the premarket. This management team is known for underpromising and overdelivering. 7. Morgan Stanley cut IBM’s price target to $247 from $304 and kept its hold rating. Analysts believe IBM faces “some degree of AI disruption risk” due to recent AI advancements. But over at UBS, analysts now see a more balanced the risk/reward in IBM after its 23% year-to-date declines, upgrading the stock to hold from sell. 8. Club stock CrowdStrike’s price target was cut to $472 from $582 at JPMorgan ahead of quarterly earnings next week. Still, analysts kept their buy rating on shares and expect a “healthy” fourth quarter thanks to the cybersecurity leader’s strong deal pipeline. CrowdStrike’s stock is decline is a multiple shrinkage issue, not a problem with its business. 9. Oppenheimer upgraded Oracle to buy from hold and with a $185 price target, implying about 27% upside. Analysts admitted they might be early with this call considering the market’s concerns about Oracle’s hefty AI spending plans. But with the stock’s multiples cut by more than half since September, they said the risk/reward profile looks favorable. 10. Wells Fargo upped its price target on buy-rated Caterpillar to $870 from $756. The firm’s raised its forecasts for nonresidential construction this year and next by about 3%, and you need Caterpillar’s earth-moving machines to build. Caterpillar fits within the simple framework for identifying winning stocks that I laid out on “Mad Money” last night. 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.
Jim Cramer’s top 10 things to watch in the stock market Wednesday
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