Cramer says tech still offers the market’s clearest path to big gains

CNBC’s Jim Cramer said Monday that technology remains the most promising part of the market for investors looking for outsized stock moves, even as money shifted toward energy-linked trades. His point was straightforward for retail investors: tech companies often have more ways to change their own story than companies tied mainly to commodity prices or steady operating improvements.

On “Mad Money,” Cramer said large technology companies have “so much more to offer than the rest of the market.” He argued that their advantage comes from the ability to create fresh catalysts, meaning company-specific developments that can change how investors value a business.

CNBC reported that oil prices rose Monday after President Donald Trump said he was reinstating a blockade on Iran in the Strait of Hormuz. That move pushed some investors toward sectors that tend to benefit when energy prices climb. Cramer said those trades may get attention, but he questioned whether they can produce the same long-term gains as technology companies introducing new products, changing strategy or shifting investor expectations.

Meta was Cramer’s main example

Cramer pointed to Meta Platforms as a case where one strategic idea quickly changed the stock’s setup. He has urged the Facebook and Instagram parent to consider selling some of its artificial intelligence computing capacity, according to CNBC. Meta later said it was considering ways to make money from its AI infrastructure, and CNBC reported that the stock rose 15% last week.

AI infrastructure refers to the expensive computing systems, including data centers and chips, that companies use to train and run artificial intelligence models. If a company can rent out or otherwise monetize that capacity, investors may start treating it as a revenue opportunity rather than only a cost.

Cramer said Meta’s acknowledgement of that possibility produced a gain of nearly 100 points in the stock this month. CNBC also noted that Cramer’s Charitable Trust, the portfolio tied to CNBC’s Investing Club, owns Meta shares.

Why he says tech differs from consumer staples

Cramer contrasted Meta’s move with PepsiCo, whose latest earnings disappointed investors even though management had made operational improvements, according to CNBC. PepsiCo shares fell more than 3% after the report.

Earnings are a company’s profit results for a reporting period, and they can move a stock when investors decide the business is doing better or worse than expected. Cramer’s argument was that PepsiCo had less room to create a sudden new valuation story than Meta did.

He also cited Alphabet, Google’s parent company, as another tech business with options that could change how investors value it. Cramer said Alphabet could create shareholder value by spinning off Waymo, its self-driving car unit. A spinoff means separating a business into its own company, often so investors can value it more directly.

CNBC’s summary also said Cramer pointed to SK Hynix as part of his broader tech argument. By contrast, he said companies such as Conagra, the parent of Slim Jim, and Pfizer do not have the same degree of control over their own stock-market narrative.

Cramer’s broader takeaway was that technology companies can sometimes create new reasons for investors to pay more for their shares faster than companies in slower-changing sectors. That is an argument about where big stock moves may come from, not a guarantee that any specific tech stock will keep rising.

This story draws on original reporting from CNBC.