Cramer Urges Buying Magnificent Seven as S&P 500 Gains 13% and Most Tech Giants Lag
Updated
Updated · CNBC · Sep 3
Cramer Urges Buying Magnificent Seven as S&P 500 Gains 13% and Most Tech Giants Lag
2 articles · Updated · CNBC · Sep 3
Summary
Months of underperformance have left most Magnificent Seven stocks cheap enough to buy, Jim Cramer said, arguing investors are missing a rebound already starting to form.
Amazon is up 12%, Alphabet more than 9%, Microsoft about 5%, Meta down 7% and Tesla down 16% this year, while the S&P 500 has gained 13%, making them relative laggards.
AI spending is the main reason Cramer sees upside: he said Amazon, Microsoft and Meta are nearing returns on heavy data-center investment, while Alphabet still has cloud, YouTube and Waymo strength.
Nvidia, up roughly 22%, still trades at about 14 times next year's expected earnings, which Cramer called too cheap; he said a larger buyback could add another catalyst.
Tesla remains the most speculative pick, but Cramer said the broader opportunity is that investors have abandoned old market leaders just as their AI infrastructure may start generating profits.