Cramer Backs Magnificent Seven for AI Upside Despite 2026 Slump in 7 Megacaps
Updated
Updated · CNBC · Jul 9
Cramer Backs Magnificent Seven for AI Upside Despite 2026 Slump in 7 Megacaps
3 articles · Updated · CNBC · Jul 9
Summary
Jim Cramer said investors are wrongly abandoning the Magnificent Seven after weak 2026 returns, arguing one earnings call showing AI profits could trigger a powerful rally across the group.
Seven megacaps — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — have traded as a bloc, but Cramer said their businesses and AI strategies differ sharply and should not be judged together.
Meta became his clearest example after reports it plans to start making its own AI chip later this year and is exploring a compute-capacity business, moves that raised fresh concerns about heavy capital spending.
Alphabet also looks underappreciated, Cramer said, because Wall Street is fixated on AI costs and chatbot competition while undervaluing assets such as YouTube and Waymo.
His broader bet is that once one hyperscaler proves AI is a meaningful profit engine, investor preference could shift away from commodity chip plays toward cash-rich cloud and platform giants.