The Magnificent 7’s biggest commonality is growth, Jim Cramer says

CNBC’s Jim Cramer dismissed concerns about the Magnificent Seven’s market capitalization on Monday, saying they are tied together because of their high growth rates rather than their products.

“What matters to stock investors is not the data center, not accelerated computing, not even artificial intelligence, but growth,” he said. “Growth is what the Magnificent Seven have in common, and growth is what the market has always loved.”

Magnificent Seven — Amazon, Alphabet, Meta, Apple, Microsoft, Nvidia And Tesla’s – some of the biggest names in the market, with AI chip giant Nvidia recently becoming the first company to reach a $5 trillion valuation.

Cramer said he understands some may be tempted to avoid tech large caps and look for cheaper stocks. However, he constantly emphasized his achievements and focused on technology Nasdaq Composite It started to rise on Monday.

He noted Amazon’s recent stock movements and earnings results. While the company lags behind its big tech peers, the stock rose 10% last week following a strong quarterly report that showed significant growth in its AWS cloud division. Amazon set a new record by adding another 4% on Monday after announcing a $38 billion deal with OpenAI.

Despite the megacaps’ size, Cramer suggested that Amazon and its peers are “driving the best growth.” He added that growth stocks are generally safe investments because they can withstand some macroeconomic troubles.

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Nvidia, Amazon, Microsoft, Meta and Apple.