CNBC’s Jim Cramer says investors shouldn’t panic over the recent rotation out of AI stocks. Instead, he sees it as a chance to buy some of the market’s strongest companies at lower prices.
According to Cramer, quarterly rotations are common, but they usually last only a few sessions before money flows back into long-term winners.
“You are getting a chance to sell the losers at a premium and switch to winners at a discount,” Cramer said. “This is one of those breaks. Don’t blow it.” He said.
Micron and SanDisk Lead the AI Memory Boom
Cramer remains highly bullish on Micron, calling its latest earnings one of the strongest quarterly reports he has seen. He said memory prices are “going through the roof” as AI data centers require increasing amounts of high-performance memory.
He also highlighted SanDisk, saying both memory companies have benefited from soaring AI demand and remain among the biggest winners in the sector despite the recent pullback.
Intel, AMD and Marvell Stay at the Center of AI
Cramer named Intel as one of his favorite AI plays, praising CEO Lip-Bu Tan for the company’s turnaround. He said Intel has three major growth drivers: AI-focused CPUs, its high-margin chip packaging business, and its expanding semiconductor manufacturing operations.
He also continues to like AMD, saying the recent dip offers investors another buying opportunity. According to Cramer, AMD’s CPUs and GPUs make it an essential supplier for AI data centers, while CEO Lisa Su has positioned the company well for long-term growth.
Another stock on his list is Marvell Technology, which specializes in optical networking used by AI infrastructure. Cramer noted that NVIDIA CEO Jensen Huang has previously suggested Marvell could eventually become a trillion-dollar company.
While most AI infrastructure stocks pulled back, Meta moved higher after reports that it plans to launch its own cloud computing business.
Cramer says this could become a major long-term growth driver beyond advertising.
“I think it has more room to run because their cloud business will be instantly profitable,” he said, adding that renting out excess computing capacity could create a lucrative business similar to Amazon Web Services and Microsoft Azure.
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