Cramer Backs GE Vernova's AI-Powered Surge, Holds Firm on Starbucks

In a volatile market rattled by soaring oil prices, CNBC's Jim Cramer highlighted a standout performer during Monday's Investing Club meeting. As the Dow tumbled over 400 points amid stagflation fears, Cramer's focus turned to a specific industrial stock benefiting from the artificial intelligence boom.

GE Vernova, the energy spin-off, received a dramatic vote of confidence from Rothschild, which upgraded the stock from sell to buy. Analysts pointed to sharply accelerating demand for both AI infrastructure and gas turbines, noting the company is essentially sold out of its products. The firm more than doubled its price target to $1,100. "They're sold out. It's really a terrific story," Cramer remarked.

Meanwhile, Cramer defended his position in Starbucks despite a downgrade to hold from Wolfe Research. The analysts cited a multiyear turnaround ahead and potential limits from competition. Cramer expressed unwavering confidence in CEO Brian Niccol's leadership. "I don't question it because Brian Niccol is not going to do something stupid," he said. "He has proven over and over he's done the right things. So I want to stick with him."

Amid the broader sell-off, the Club trimmed its Cisco position to raise cash. Other stocks discussed included Netflix and several regional banks. Cramer's charitable trust holds positions in Cisco, GE Vernova, and Starbucks.