Jim Cramer says he’s not bailing on the Mag 7 amid storage stock rally
Most stocks will not bail out the tech giants known as the Magnificent Seven despite a sluggish start to 2026, CNBC’s Jim Cramer said Thursday.
“I think the money will ultimately flow back to most people. [Mag 7] … because these companies have too much leverage and too much money. “They’re run by people who are too smart to bet against,” Cramer said on “Mad Money.”
The Mag 7 cohort consists of: Amazon, Alphabet, Apple, Microsoft, Meta Platforms, Nvidia And Tesla’s. artificial intelligence chip manufacturer broadcom Cramer noted that sometimes there is another stock included in this group. Of those eight stocks, only Amazon and Google parent Alphabet are higher year-to-date.
Cramer said he believes one of the biggest reasons why these stocks, leaders of the multi-year AI-fueled bull market, have calmed recently is the monster rally in storage and semiconductor equipment stocks. “These stocks have become equity donors to the market capitalization of these storage companies,” Cramer said.
Micron It’s one of the companies benefiting from this market rotation, rising roughly 39% year-to-date and doubling in the last three months, driven by a shortage of memory chips needed for AI computing. shares Seagate, sandiskAnd Western Digital The need for storage bubbles has also increased, giving these companies tremendous pricing power over their customers.
“We’re now in this weird, never-before-seen moment where storage companies keep raising prices over and over again and there’s no resistance because these devices are like gasoline in a car,” Cramer said. “If oil were scarce and gas prices were high, you wouldn’t say you won’t use it. You would have to pay whatever it takes,” he continued.
But Cramer said he believes skyrocketing memory prices can’t last forever, which means these stocks will eventually start to lose momentum. That’s why Cramer argued that now is not the time to jump on the big tech names. Eventually, he believes, investors will come back to them.
“I’m sticking with it [Mag 7]” said Cramer. “When [the storage plays] If you eventually reach the top, you will be handsomely rewarded if you stay at that level. [Mag 7]”
Disclosure: Cramer’s Charitable Trust, the portfolio used by CNBC Investment Club, owns shares of GOOGL, META, AAPL, AMZN, NVDA, MSFT and AVGO.
