TLDR
- CNBC’s Jim Cramer keeping his Magnificent Seven tech stock positions despite weak 2026 start
- Memory chip shortage driving Micron up 39% year-to-date while big tech struggles
- Storage sector rally pulling investor capital away from Amazon, Microsoft, and Nvidia
- Cramer believes high storage prices unsustainable and expects return to Mag 7 stocks
- Only Amazon and Alphabet showing positive returns among major tech stocks this year
Jim Cramer told viewers Thursday he’s holding onto Magnificent Seven stocks. The Mad Money host explained his strategy despite most of these tech giants struggling in 2026.
The Magnificent Seven consists of Amazon, Alphabet, Apple, Microsoft, Meta Platforms, Nvidia, and Tesla. Broadcom sometimes rounds out the group as an eighth stock. Just two companies show gains this year.
Cramer cited the financial strength and leadership quality of these firms. “These companies just have too many levers, too much money,” he explained. Their management teams make them solid long-term holdings.
The host sees current weakness as temporary. He expects market conditions to shift back in favor of big tech companies.
Memory Chip Shortage Fuels Storage Stock Rally
Storage and semiconductor equipment companies are experiencing massive gains. This rally explains why Mag 7 stocks are losing momentum in early 2026.
A shortage of memory chips needed for AI computing drives the surge. Micron stock jumped 39% year-to-date and doubled in three months. Supply constraints give these companies pricing power.
Seagate, Sandisk, and Western Digital also rallied sharply. Buyers must accept higher prices due to limited alternatives. The shortage forces customers to pay whatever storage makers charge.
Cramer described this as money shifting between sectors. “These stocks have become share donors to the market capitalization of these storage companies,” he said. Capital flows from big tech into storage plays.
The host compared it to buying fuel during an energy crisis. Companies need storage for AI operations no matter the cost. This creates a situation where price increases meet little resistance.
Cramer Predicts Return to Big Tech Stocks
The CNBC host doesn’t believe storage prices can stay elevated forever. Market forces eventually solve supply problems. When that happens, storage stocks will lose their momentum.
Cramer expects investors to rotate back into Magnificent Seven companies. These tech giants remain fundamental leaders in artificial intelligence development. Their competitive positions haven’t weakened despite recent stock performance.
He advised viewers to maintain their positions in these stocks. “When they finally peak, you will be handsomely rewarded if you stay with the Mag 7,” Cramer said. Patience should pay off for investors.
The host emphasized the diverse revenue sources these companies control. They can adapt to changing technology trends and market conditions. Multiple business lines provide stability during sector rotations.
Market cycles regularly move capital between different industries. Storage companies attract attention now because of supply issues. Big tech companies built advantages that should outlast the current trend favoring storage plays.
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