CNBC’s Jim Cramer said Tuesday that a new group of technology stocks could emerge as market leaders.
While there are heavyweight athletes such as Nvidia, microsoft, alphabet and Meta Other companies are also showing signs of strength, although they have struggled to sustain gains in recent weeks. That became clear during trading on Tuesday. broadcom and micron This suggests investors may be shifting to another tech winner.
“The tech industry is trying to establish itself here. It’s just not the tech industry that’s been leading us all these years,” the “Mad Money” host said.
Kramer pointed to the chipmaker. advanced micro device and network companies Arista Networks Both reported strong quarterly results after the bell on Tuesday, citing them as examples of technology companies that could lead the sector’s recovery. he also emphasized oracle‘s stock rose nearly 6% in Tuesday trading.
“I would like to believe that technology, which is not a big deal, will guide us,” he said. “But I also know that there are concerns that need to be acknowledged before we get cocky about a series of positives from one session.”
One concern is that opposition to data center development is growing as local communities oppose it over concerns about rising electricity costs and the facility’s water consumption. According to him, small developers such as: Airen, Nevius and coreweave You may be particularly vulnerable if your project is canceled or you are forced to relocate. Amazon We need more resources to secure alternative locations.
The ongoing war with Iran is also a source of uncertainty. Oil prices fell on Tuesday on hopes of progress in negotiations between the US and Iran. But Cramer cautioned that Wall Street has repeatedly underestimated the risk of further escalation, making it difficult to declare the conflict no longer a threat to markets.
He never said the sector had reached a permanent bottom. After months of unsuccessful rebounds, Mr. Cramer said, “I want to wait for a peak before I throw a lot of money into the tech industry.”
