Technology stocks may be finding new leaders beyond the sector’s biggest names, CNBC’s Jim Cramer said Tuesday. Nvidia, Microsoft, Alphabet and Meta have struggled to sustain rallies in recent weeks, while Broadcom and Micron gains helped support the major averages during Tuesday’s session.
“Tech’s trying to make a stand here. It’s just not the tech that’s led us for the last few years,” Cramer said. He pointed to Advanced Micro Devices and Arista Networks, which reported strong quarterly results after the market close, as potential contributors to a recovery. Oracle also stood out, with its shares rising nearly 6% during Tuesday’s session.
Cramer cautioned that a single session of gains does not establish a lasting turnaround. He cited opposition to data center construction from communities concerned about electricity costs and water use. Smaller developers such as Iren, Nebius and CoreWeave could be more exposed if projects are canceled or moved, he said, while larger companies such as Amazon have more resources to find alternative locations.
The war with Iran is another source of uncertainty. Oil prices fell Tuesday amid hopes for progress in U.S.-Iran negotiations, but Cramer said markets have repeatedly underestimated the risk of further escalation.
Cramer stopped short of declaring that technology stocks had reached a lasting bottom, saying he would wait for a “crescendo” before committing too much money back into the sector.
Sources: CNBC Markets.