Jim Cramer has named the 5 stocks he believes are best positioned to benefit from the artificial intelligence (AI) spending cycle, pointing to several chip suppliers as the market’s current winners.

Cramer argued that Wall Street is rewarding companies that supply the AI boom while punishing the Big Tech giants that fund it.

The Stocks Cramer Says Will Win

Cramer described Micron Technology (MU), Sandisk (SNDK), Intel (INTC), Marvell Technology (MRVL), and Advanced Micro Devices (AMD) as the quarter’s biggest gainers.

According to him, “supply-demand imbalance” has boosted earnings growth, leading analysts to issue a wave of upgrades and lift price targets for companies across the group.

The numbers behind the memory names are extreme. Micron reported fiscal third-quarter revenue of $41.5 billion. Furthermore, it briefly topped Meta in market cap at $1.4 trillion. Bank of America has also lifted its Micron target to $1,500 from $950.

Meanwhile, other firms have also experienced notable growth. The company posted $5.95 billion in fiscal third-quarter revenue, up 97% from the prior quarter.

The stock has rallied roughly 4,800% over 12 months on AI-driven NAND demand. Citi set a $2,500 price target with a Buy rating.

Intel follows with steadier numbers, reporting first-quarter revenue of $13.6 billion, up 7% year over year. Cramer named it his new favorite.

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Why Suppliers Are Beating Big Tech

Cramer explained that demand for compute has outrun supply, driving up the cost of memory chips and networking gear. That dynamic has rewarded the sellers rather than the hyperscalers writing the checks.

“Wall Street’s now rewarding tech companies with products in high demand and punishing their customers,” he said.

The pressure shows in the tape. The Magnificent 7 shed roughly $2.3 trillion in market value during June. The drop came as investors questioned whether record AI spending would generate enough profit to justify it.

Even Nvidia (NVDA), a core supplier of AI compute, has lagged the rally. Cramer attributed the drag to concerns that custom chip competition would eat into its dominance.

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Источник: BeInCrypto