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CNBC’s Jim Cramer said the market continues to be driven overwhelmingly by enthusiasm around semiconductors and data center stocks, and next week will test whether investors keep rewarding nearly any positive AI-related development.
“This market keeps going up and up on the same old stuff: news about semiconductors, even old news about semiconductors, retreaded news about semiconductors, even pure conjecture,” the “Mad Money” host said Friday. “Anything remotely positive moves the group higher.”
The Nasdaq Composite and S&P 500 both hit new intraday highs and closed at records on Friday, powered by AI-related names. Technology was the S&P 500’s top-performing sector for the week, up a blistering 7%. The overall index rose 2.3%.
Cramer cautioned investors against making their entire portfolio tied to the data center complex. But, at the same time, he said he has grown more convinced the group represents a long-term shift.
“We are coming around to the idea that these stocks are foundational and must be owned,” he said. “Ideally, I’d tell you to buy them on down days, and there are down days occasionally, but if you don’t have the patience to wait, it’s better to pay up than to not own them at all.”
Cramer later added, “This is still a gigantic opportunity. It’s not too late to buy.”
Here’s what Cramer is watching in the week ahead.
Monday
Constellation Energy kicks off the week, with investors focused on its role supplying clean power such as nuclear energy to AI infrastructure. “The earnings have been fine,” Cramer said. “It’s the zeitgeist that matters.”
Tuesday
The consumer price index report could shape expectations for future Federal Reserve rate cuts. Cramer believes a softer number could reignite optimism around easier monetary policy in 2026.
On the earnings front, Qnity Electronics, which spun off from DuPont last fall, reports in the morning. Cramer said the stock has already rallied thanks to its role supplying materials used to make semiconductors, but believes the company can justify the move with strong results. Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owns shares of both Qnity and DuPont.
Sportswear names On Holding and Under Armour also report. While management turnover at On has raised concerns, Cramer said Under Armour’s turnaround is gaining traction. “Too many people still wear the distinctive Under Armour insignia … for me to write this one off,” he said.
Wednesday
Nebius reports in the morning. The cloud infrastructure company recently received a $2 billion investment from Nvidia, which Cramer believes highlights the intensifying AI race among Nvidia, Amazon, and Alphabet.
After the bell, networking giant Cisco Systems reports following a massive run tied to its data center exposure. “Its stock is galloping like it’s 1999,” Cramer said. Even so, he noted Cisco’s valuation remains reasonable compared with many AI names, though parts of its legacy business remain a little fraught.
Thursday
Semiconductor equipment maker Applied Materials reports after the bell. Cramer expects the company to benefit from overwhelming demand for chipmaking machines. “This confluence of lackluster supply and insatiable demand makes me feel as if you can still buy these stocks too,” he said.
Friday
Cramer said Friday should be quieter as the market enters a slower stretch of earnings.
He added the semiconductor rally resembles the early days of the internet boom, with AI driving another transformational shift.
“Now the country is going toward an agentic world where machines do some heavy lifting,” he said.
While some investors remain skeptical, Cramer insisted “these stocks don’t have much quit in them.”
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