CNBC’s Jim Cramer said Tuesday looked like a vintage day for Wall Street. samsung’s Semiconductor stocks fell on the results, while megacap stocks, which had lagged for much of the year, rebounded.
“Today it seems like a long time ago when we realized we needed Nvidia chips to compute things…when Google, Meta and Amazon stocks were strong enough to support this market. When nobody needed Apple and no one was worried about the price of commodity chips,” the “Mad Money” host said.
The move followed Samsung’s earnings report on Tuesday, local time, and the South Korean electronics giant’s stock price fell 7%. Kramer said the results were “great, but not great enough” and raised new questions about demand for the company’s products, particularly its memory chips.
Investors quickly extrapolated Samsung’s performance to the broader AI hardware ecosystem, Dr. Cramer said, significantly lowering the stock prices of companies related to physical data center ramp-ups. Idaho-based Micron, one of Samsung’s few competitors in the memory market, fell 4.7%.
But what caught Kramer’s attention was where investors would put their money instead.
He said investors have returned to some of the mega-cap companies that have struggled for much of this year, rather than abandoning technology altogether. Amazon, alphabet, meta, appleeven Nvidia. Enterprise software name sales force, adobeand ServiceNow also attracted buyers. Cramer’s Charitable Trust, a portfolio managed by CNBC’s investment club, owns stock in Alphabet, Amazon, Apple, Meta, Nvidia, and Salesforce.
Kramer said the reversal may reflect a growing view that while AI supply chain deals are crowded, many of the companies financing data center construction are becoming more attractive after months of poor performance.
Tech giants such as Amazon, Alphabet and Meta “have all had a terrible time for most of this year,” he said.
Cramer added that Tuesday’s deal was notable because of the dramatic change in leadership, although it remains to be seen whether the deal marks the beginning of lasting change.
“Today could have been the first day of a big move, or maybe nothing. But it certainly felt like a change to me,” he said.
