CNBC’s Jim Cramer said Wednesday that Wall Street’s rally in Big Tech looked more like a burst of optimism than a reflection of much-improved fundamentals.
“I will tell you that I think today’s impressionist judgment may not hold up under close scrutiny,” the “Mad Money” host said.
Technology stocks climbed Wednesday as investors embraced a chain of positive developments. Cramer, however, questioned whether the moves accurately reflected the companies’ underlying outlooks.
Alphabet jumped more than 3% after Warren Buffett told CNBC’s Becky Quick that he personally made the decision for Berkshire Hathaway to invest in the Google parent. Cramer said that disclosure eased concerns that Buffett might be worried about Alphabet’s heavy artificial intelligence spending, including bond sales. Berkshire first took a stake in Alphabet in the third quarter of 2025.
“That’s the endorsement people have been looking for,” Cramer said.
Cramer also highlighted Microsoft, which rallied about 2.5% after a bullish Citi note said they expect a strong fiscal 2026 fourth quarter, with momentum building into fiscal 2027 from its Copilot and Azure cloud. He said the report is “so counter to the realist wisdom of the situation” and pushed back against all of his concerns about the software giant’s AI strategy.
Meta and Amazon each increased roughly 3%. While he thinks Meta continued to climb after unveiling plans to sell excess compute capacity on July 1, Cramer said Amazon remains difficult to justify given “it’s spending fortunes on AI but still doesn’t seem to be able to show any return to date.”
Meanwhile, he noted that some of the companies most closely tied to AI infrastructure moved in the opposite direction. Cramer pointed to weakness in names such as Dell and Micron, despite what he described as strong underlying fundamentals. Dell and Micron dropped about 10% and 8%, respectively.
The disconnect, he said, reinforces his view that the market’s day-to-day fluctuations are driven by shifting sentiment, rather than material new updates that justify repositioning.
Looking ahead, Cramer said he expects investors to return their focus to fundamentals, particularly as second-quarter earnings season progresses.
Cramer’s Charitable Trust, the portfolio run by CNBC’s Investing Club, owns shares of Alphabet, Amazon, Apple, Meta, and Microsoft.
