CNBC’s Jim Cramer said Thursday he’s backing the market’s biggest tech companies, even though many have posted weak earnings recently.
“One day one of these companies will announce on their conference call that they are raising forecasts because of their artificial intelligence products, and you will see a rally in all of them, a rally that will be so powerful that you will kick yourself for missing it,” the “Mad Money” host said.
Former Wall Street darlings known as “The Magnificent Seven” they’re largely struggling in 2026 after leading the market through several years of the generative AI boom. Mag 7 shares are owned by Google’s parent company. Alphabet, Amazon, Apple, Meta, Microsoft, NvidiaAnd Tesla. Cramer said the stocks are unfairly lumped together despite having vastly different businesses and AI strategies.
“Stop comparing and start thinking,” said Cramer, whose charitable foundation, whose portfolio is used by CNBC’s Investment Club, owns six Mag 7 members. Tesla is the exception.
Cramer pointed to Meta, which plans to start producing its own artificial intelligence chip later this year, Reuters reported on Thursday, part of a broader push by the parent company of Facebook and Instagram to increase its computing power next year. Cramer said the market initially didn’t like the news because it signaled that capital spending was unlikely to slow down anytime soon. It also follows reports last week that Meta was working on a new business selling computing power, an area dominated by cloud giants Amazon, Alphabet and Microsoft.
While some investors may question whether Meta can really compete with these heavyweights, Cramer argues that the company may have advantages that Wall Street is overlooking.
“Maybe we should acknowledge that he knows more about his company’s prospects than we do,” Cramer said of Meta CEO Mark Zuckerberg. “He has demonstrated this time and time again.”
Cramer has made a similar argument about Alphabet, saying investors are too focused on its massive artificial intelligence spending and competition from ChatGPT, Claude and other chatbot makers, while ignoring the value of businesses like YouTube and Waymo.
Cramer acknowledged that mega-cap tech stocks will likely continue to trade together, with weakness in one often causing the rest to fall. But he said those same dynamics could end up working in their favor once one company proves that AI can be a meaningful driver of profit.
“We have one, just one, of these strong players saying that its artificial intelligence business is now profitable, and then you can forget about owning commodity semiconductor stocks,” Cramer said. “Instead, you will choose a hyperscaler that is throwing away so much cash flow that it won’t even know what to do with it.”
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