Don't let Abbott Labs' litigation overhang keep you out of the stock

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 Thursday's key moments. 1. Stocks were higher Thursday, a day after the Federal Reserve cut interest rates by 50 basis points. The S & P 500 rose 1.7%, while the Nasdaq gained 2.8% and the Dow added 1%. The central bank's decision Wednesday is fueling risk-on buying in the tech sector, with the semis leading the charge. Club holdings Nvidia and Advanced Micro Devices rallied 4.6% and 5.2%, respectively Thursday. Meanwhile, our trusted S & P 500 Short Range Oscillator is overbought, prompting a trim of Morgan Stanley into Thursday's market strength. Jim Cramer has been debating swapping Morgan Stanley for Goldman Sachs , which he argued is a "cheaper and better" bank option. 2. Jim interviewed Advanced Micro Devices CEO Lisa Su on "Mad Money" Wednesday evening . Su sounded bullish on the company's future due to massive chip demand driven by the artificial intelligence boom. When Jim asked about competitor Nvidia, Su argued "there's no one size fits all in computing," suggesting there's plenty of room for more than one chip player in the competitive market. Jim highlighted another catalyst to look out for is demand for AMD's latest Turin chip for advanced AI personal computers. 3. Abbott Labs was initiated at Piper Sandler Thursday with a buy-equivalent rating and a $131 price target. Analysts said the stock is trading at an attractive valuation, given shares have underperformed year to date due to ongoing litigation alleging the company's infant formula causes diseases in premature babies. Jim advised investors to pay attention to how these court cases turn out since "they're the only thing between Abbott trading at $130 versus where it's trading now," at $114 per share. Piper Sandler argued the litigation is well understood and already reflected in the stock. The firm also likes the company's growth trajectory in its MedTech division and projects double-digit earnings-per-share growth in 2025. 4. Stocks covered in Thursday's rapid fire at the end of the video were Darden Restaurants , Cracker Barrel Old Country Store , Five Below , Elanco , and DoorDash . (Jim Cramer's Charitable Trust is long NVDA, AMD, MS. 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.