Cramer sees new tech leaders emerging as megacaps lag
The CNBC host noted that Broadcom and Micron are currently supporting market averages while Nvidia and Microsoft struggle to maintain momentum.
By Larissa Shah ·
Jim Cramer stated on Tuesday that a new cohort of technology stocks is beginning to lead market gains while established giants lose steam.
The "Mad Money" host observed that major indices received support from Broadcom and Micron during the session. This performance occurred despite recent weakness in heavyweight names like Nvidia, Microsoft, Alphabet, and Meta. Cramer described this shift as a sign that investors are rotating their capital away from the previous leadership group.
"Tech's trying to make a stand here. It's just not the tech that's led us for the last few years," Cramer said.
The host identified specific companies as potential drivers for a sector recovery. Advanced Micro Devices and Arista Networks both reported strong quarterly results after the market closed on Tuesday. Oracle shares also climbed nearly 6% during regular trading hours. Cramer expressed a desire to see non-megacap tech stocks take the lead, though he warned against overconfidence based on a single positive session.
Two major risks could undermine this new momentum. First, local opposition to data center construction is growing. Communities are raising concerns about rising electricity bills and water usage. Cramer noted that smaller developers like Iren, Nebius, and CoreWeave face higher vulnerability if projects are canceled or moved. Larger firms such as Amazon possess more resources to secure alternative sites. Second, the ongoing conflict with Iran introduces uncertainty. Oil prices fell on Tuesday amid hopes for progress in U.S.-Iran negotiations. However, Cramer cautioned that Wall Street has historically underestimated the risk of further escalation.
The host did not declare that the tech sector has hit a permanent bottom. After a series of failed rebounds over recent months, he said he "would like to wait for the crescendo before I commit too much money back into tech."
Cramer will continue to monitor these developments on his show, where he also provides a direct line for viewer questions.
More Business · Bad Service · Report a business · Got a Story?
