CNBC’s Jim Cramer said Thursday he’s sticking with the market’s biggest tech companies, even though many companies have posted lackluster earnings recently.
“One day, one of these companies is going to announce on a conference call that their earnings estimates are going up because of their AI product, and you’re going to see all of those companies go up, and the uptick is going to be so strong that you’re going to blame yourself for missing out,” the “Mad Money” host said.
Former Wall Street darlings known as “Magnificent Seven” After boosting the market during several years of the generative AI boom, it is mostly struggling in 2026. Mag 7 stock is Google’s parent company alphabet, Amazon, apple, Meta, microsoft, Nvidiaand tesla. Cramer said these stocks are being unfairly lumped together despite their vastly different businesses and AI strategies.
“Stop comparing and start thinking,” Kramer said. Charitable Trust, a portfolio used by CNBC Investment Club, owns six of the seven Mag stocks. Tesla is an outlier.
Kramer noted that Meta plans to start manufacturing its own AI chips later this year, part of a broader effort by Facebook and Instagram’s parent company to expand its computing footprint over the next year, Reuters reported on Thursday. Cramer said the market initially didn’t like the news because it suggested capital spending was unlikely to slow anytime soon. It also follows reports last week that Meta is working on a new business selling computing power in an area dominated by cloud giants Amazon, Alphabet and Microsoft.
While some investors may question whether Meta can really compete with these powerful incumbents, Cramer argued that Meta may have advantages that Wall Street is missing.
“Maybe we should buckle down and realize that he knows more about the company’s prospects than we do,” Cramer said of Meta CEO Mark Zuckerberg. “He’s proven that over and over again.”
Cramer made a similar argument about Alphabet, saying investors are focused too much on the company’s massive AI spending and competition from ChatGPT, Claude and other chatbot creators, and overlooking the value of businesses like YouTube and Waymo.
Cramer acknowledged that big tech stocks will continue to trade together, and that weakness in one will likely cause the others to fall as well. But he said the same dynamics could ultimately work in their favor if a company proves that AI can be a meaningful profit driver.
“If just one of these big players is saying that their AI business is profitable, then you can forget about owning commodity semiconductor stocks,” Cramer said. “Instead, you’ll choose a hyperscaler that spits out so much cash flow that you won’t even know what to do with it.”
