Record highs meet a pivotal week for tech earnings
Key Points
- CNBC’s Jim Cramer said the market has become a “beast”, driven by a powerful rally in data center and AI-related stocks.
- He then turned to the week ahead, where a packed slate of tech earnings will test whether the surge can continue or if expectations have gotten too high.
CNBC’s Jim Cramer said Friday that next week’s packed slate of tech earnings will test the mettle of a market driven overwhelmingly by a surge in artificial intelligence-related stocks. “This market is a beast,” said the ” Mad Money ” host. “More accurately, it’s a beast if you own anything connected to the data center.” The S & P 500 and Nasdaq Composite closed Friday at record highs, powered by a rally in chipmaker Intel and other stocks that benefit from the massive AI infrastructure buildout. It will be challenged in the week ahead, Cramer warned. “Next week is the most important week of the quarter for tech,” he said, arguing it will show “if everything was a little too much or not.” Monday Verizon reports in the morning, offering a reminder that consistency still matters. Cramer highlighted its yield and steady returns as a contrast to high-flying tech names. Steelmaker Nucor also reports. He called it “the best industrial in the market,” and believes a pullback could create a more attractive entry point to own the stock. Tuesday Corning kicks things off. Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owns Corning. The increasing use of fiber-optic cables instead of copper wiring inside data centers is a big win for Corning, Cramer said. After the close, brokerage app Robinhood reports. Cramer said market volatility should translate into a strong quarter, though questions remain about whether the platform can expand beyond its core trading base. Cramer said Bloom Energy could have a “gigantic quarter” thanks to its solid-oxide fuel cell technology that’s capable of generating electricity without combustion. Starbucks also reports, with the stock quietly climbing in recent weeks. The stock has struggled to break through the $100 level, but Cramer suggested the results may finally push it higher. Wednesday “Wednesday is about as consequential as any day I have seen in my entire career,” Cramer said, pointing to a packed slate of earnings and the last Federal Reserve meeting that Jerome Powell will chair. Powell’s term expires in May, and President Donald Trump has nominated Kevin Warsh to replace him. Microsoft reports after the close and could deliver “a spectacular data center number,” though Cramer believes demand for its AI tool Copilot may come in weaker than expected. Amazon reports as well, with investors watching whether results can match recent optimism following CEO Andy Jassy’s bullish shareholder letter . Cramer said he’s sticking with it for the Investing Club. Cramer believes concerns around Meta’s recent layoffs are overblown, arguing CEO Mark Zuckerberg is simply trimming excess. Alphabet offers one of the broadest stories in tech — from search to cloud to AI — and Cramer said the results “could be outstanding.” Thursday Pharma giant Eli Lilly pulled back Friday on disappointing prescription data for its new weight loss pill, but Cramer believes the sell-off is overdone. “It will tell a good story when it reports,” he predicted. After the bell, Apple reports as CEO Tim Cook prepares to step down . Cramer said momentum in the business could keep shares moving higher. After the close, Sandisk and Western Digital report after huge runs already this year. Cramer noted ongoing memory shortages could help them “keep blowing away the numbers” and push their stocks even higher. Friday Chevron and Exxon report, with investors listening for any shift in long-term strategy following the Iran conflict. “These are usually placid affairs. Not this time,” Cramer said. No matter the company reporting, Cramer urged investors to approach the busy week with diligence. “You need to stop, look, and listen before you take action,” he said. “The conference call, not the headlines will determine the stock price.” Disclosure: Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owns shares of Alphabet, Apple, Amazon, Corning, Eli Lilly, Meta, and Microsoft. Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market. Disclaimer Questions for Cramer? Call Cramer: 1-800-743-CNBC Want to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com
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