“One day, one of these companies is going to announce on its conference call that it is raising forecast because of its AI products, and you are going to see a rally in all of them, a rally that will be so powerful that you kick yourself for missing out on it” the “Mad Money” host said.
The onetime Wall Street darlings known as the “Magnificent Seven” have largely struggled in 2026 after powering the market higher in the few couple years of the generative AI boom. The stocks in the Mag 7 are Google parent Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. Cramer said the stocks have been unfairly lumped together despite having vastly different businesses and AI strategies.
“Stop comparing and start thinking,” said Cramer, whose Charitable Trust, the portfolio used by the CNBC Investing Club, owns six of the Mag 7 constituents. Tesla is the outlier.
Cramer pointed to Meta, which plans to begin manufacturing its own AI chip later this year, Reuters reported Thursday, part of the Facebook and Instagram parent’s broader push to grow its computing footprint into next year. Cramer said the market didn’t like the news initially because it signaled that capital expenditures are unlikely to slow anytime soon. It also follows last week’s reports that Meta is working on a new business to sell compute capacity — terrain dominated by cloud giants Amazon, Alphabet and Microsoft.
While some investors may wonder if Meta can really compete against those heavyweight incumbents, Cramer argued the company may have advantages that Wall Street is overlooking.
“Maybe we should lean in and recognize that he knows more about his company’s prospects than we do,” Cramer said of Meta CEO Mark Zuckerberg. “He’s demonstrated that time and again.”
Cramer made a similar case for Alphabet, saying investors are too focused on its massive AI spending and competition from ChatGPT, Claude and other chatbot creators, while overlooking the value of businesses such as YouTube and Waymo.
Cramer acknowledged the megacap technology stocks will likely to continue trading together, with weakness in one often dragging down the rest. But he said that same dynamic could eventually work in their favor once one company proves AI can become a meaningful profit driver.
“We get one, just one, of these heavy hitters saying its AI business is now profitable, then you can forget about owning a commodity semiconductor stock,” Cramer said. “Instead, you’ll go for the hyperscaler that’s spewing so much cash flow it won’t even know what to do with the money.”
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