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Jim Cramer says it is time to buy the Magnificent Seven again, arguing several of the stocks have become cheaper just as their huge AI investments start producing stronger growth.
"We're witnessing the revenge of the Magnificent Seven and most people don't even seem to know it," Cramer said Thursday. He added that it was time to buy.
Cramer called six of the seven "forlorn losers," with Apple the exception. He said investors had moved on to other stocks even as businesses such as cloud computing and AI continued to grow.
For much of the AI boom, investors worried that Big Tech was spending hundreds of billions of dollars on data centers without knowing whether AI would generate enough revenue to justify the cost.
Cramer's argument is that this is starting to change.
Amazon (NASDAQ:AMZN) saw AWS revenue jump 37% to $42.2 billion last quarter, its fastest growth in 18 quarters. Microsoft (NASDAQ:MSFT) saw Azure growth accelerate to 43%, while Alphabet (NASDAQ:GOOGL) posted 82% Cloud revenue growth.
Those results suggest demand is beginning to catch up with the enormous sums the companies have spent building AI infrastructure.
That is the core of Cramer's bet: investors punished the Magnificent Seven for the cost of the AI buildout, but may now be underestimating how quickly that spending can turn into revenue.
Friday added a fresh risk. The U.S. economy created 162,000 jobs in August, nearly triple expectations, pushing Fed hike odds to above 50% on Polymarket.
That creates a problem for Cramer's bet. Higher rates typically put pressure on expensive technology stocks, meaning the Mag 7 may need stronger growth to justify higher valuations.
Cramer also called Nvidia (NASDAQ:NVDA)'s $12.9 billion Hugging Face acquisition a "brilliant move." Nvidia's latest quarter showed revenue jumping 106% and Data Center sales rising 117%.
Prediction traders remain convinced by the chipmaker.
A Polymarket market with about $6.6 million traded gives Nvidia a 77% chance of ending 2026 as the world's largest company. Apple (NASDAQ:AAPL), the one Mag 7 stock Cramer said had held its ground, ranks second at 15%, while Alphabet sits at 8%.
Cramer's call is for a broader Magnificent Seven revival. The prediction market asks a narrower question, and on that one traders are clear: they still expect Nvidia to finish 2026 on top.
Read Also:Nvidia Is Backstopping AI Boom as 'Buyer of Last Resort,' Prominent Economist Tells 'Prof G'
This article Jim Cramer Says Buy the Magnificent Seven Again, Traders See Nvidia as Clear Winner originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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