CNBC’s Jim Cramer said Wednesday that the rally in Wall Street’s Big Tech market looks more like a burst of optimism than a reflection of much improved fundamentals.
“I’m telling you, I think today’s impressionistic verdict may not hold up under close scrutiny,” the “Mad Money” host said.
Technology stocks rose on Wednesday as investors embraced a series of positive developments. But Kramer questioned whether the move accurately reflected the company’s fundamental outlook.
alphabet Shares rose more than 3% after Warren Buffett told CNBC’s Becky Quick that Berkshire Hathaway had personally decided to invest in Google’s parent company. Mr. Cramer said the disclosure allayed concerns that Mr. Buffett was concerned about Alphabet’s large spending on artificial intelligence, including bond sales. Berkshire first acquired a stake in Alphabet in the third quarter of 2025.
“That’s the support people were looking for,” Kramer said.
Mr. Kramer also emphasized microsoftCiti rose about 2.5% after issuing bullish comments saying it expects Copilot and Azure cloud to provide momentum heading into fiscal 2027 and a strong fourth quarter of fiscal 2026. He said the report was “very contrary to realist perceptions of the situation” and dismissed all his concerns about the software giant’s AI strategy.
meta and Amazon Each increased by approximately 3%. Cramer believes Meta continued its rise after announcing plans to sell excess computing power on July 1, but said it’s still difficult to justify given Amazon’s “huge investments in AI that still don’t seem to be able to show historical returns.”
However, he noted that some of the companies most closely connected to AI infrastructure have moved in the opposite direction. Kramer pointed out the weaknesses of the name: Dell and microndespite what he said were strong underlying fundamentals. Dell and Micron fell about 10% and 8%, respectively.
He said this disconnect reinforces the view that day-to-day fluctuations in the market are driven by changes in sentiment rather than significant new updates that justify position changes.
Looking ahead, Cramer said he expects investors to shift their focus back to fundamentals, especially as second-quarter earnings season progresses.
Cramer’s Charitable Trust, a portfolio managed by CNBC’s investment club, owns stock in Alphabet, Amazon, Apple, Meta, and Microsoft.
