Jim Cramer says the market’s reaction to Samsung may signal a shift in AI leadership
CNBC’s Jim Cramer says Tuesday feels like a nostalgic day on Wall Street Samsung’s The gains caused chip stocks to fall and megacaps to recover, which had been lagging for much of the year.
“Today was like the old days when we understood that you needed an Nvidia chip to compute things… when shares of Google, Meta, and Amazon had enough power to carry this market. It was back when Apple didn’t need anyone and wasn’t worried about commodity chip prices,” the “Mad Money” host said.
The move follows Samsung’s earnings report on Tuesday local time, which caused the Korean electronics giant’s shares to fall 7%. Cramer said the results were “excellent but not perfect enough,” raising new questions about demand for its products, especially memory chips.
Investors were quick to extrapolate Samsung’s results across the broader AI hardware ecosystem, sending shares of companies tied to the physical structure of data centers sharply lower, according to Cramer. Idaho-based Micron, one of Samsung’s few rivals in the memory market, fell 4.7%.
But what caught Cramer’s attention was where investors were putting their money.
Rather than abandoning technology altogether, he said, investors are returning to some of the megacap companies that have been struggling for much of the year. Amazon, Alphabet, Meta, Appleand even Nvidia. Like corporate software names sales force, AdobeAnd ServiceNow It also attracted the attention of buyers. Cramer’s Charitable Trust portfolio, managed by CNBC’s Investment Club, holds shares of Alphabet, Amazon, Apple, Meta, Nvidia and Salesforce.
Cramer said the reversal may reflect a growing view that the AI supply chain trade is getting crowded, while many of the companies financing data center construction are becoming more attractive after months of underperformance.
He said tech giants like Amazon, Alphabet and Meta “had a terrible time for most of the year.”
Cramer added that it remains to be seen whether the session is the beginning of a permanent change, but said Tuesday’s trade stands out because the lead changed so dramatically.
“Today could be the first day of a bigger move. Or maybe it was nothing at all. But it certainly feels like a change to me,” he said.
