GoKawiilJim Cramer urges investors to buy lagging Magnificent Seven stocks
Jim Cramer told CNBC viewers that most of the Magnificent Seven tech stocks—Amazon, Alphabet, Meta, Microsoft, Tesla and Nvidia—have underperformed the S&P 500 this year and now trade at unusually cheap valuations. He argued the group's earnings multiples have fallen out of step with their growth prospects, particularly Amazon, which he says is poised to benefit from heavy AI infrastructure spending under CEO Andy Jassy.
GoKawiil's interpretation of the reporting above, not reported fact.
Cramer's call signals a possible rotation back toward established tech giants after months of investor enthusiasm for newer AI-linked winners like Dell and Snowflake. If large investors follow this thesis, it could reverse recent market leadership trends and reprice mega-cap tech stocks upward.
- Cramer says six of the Magnificent Seven stocks have become undervalued relative to the broader market.
- Amazon's heavy AI infrastructure spending is framed as a future profit driver, not a balance-sheet risk.
- Apple and Nvidia are excluded from the 'laggard' label, though Nvidia is still seen as cheap on a P/E basis.
Mad Money" by Jim Cramer (book) — If Cramer's take on the Magnificent Seven has you thinking about your portfolio, his book lays out the stock-picking framework behind the show's calls. It's a readable primer on how he evaluates valuation and catalysts — the same lens he applies to names like Nvidia and Amazon here.
See Mad Money" by Jim Cramer (book) on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: cnbc.com — Alexa Lomonaco, 2026-09-03
Published there as: “Revenge of the 'Magnificent Seven' — Jim Cramer says it’s time to buy”
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