Cramer says technology still offers the market’s broadest upside

CNBC’s Jim Cramer said Monday that technology shares remain the area of the stock market most likely to produce outsized gains, even after recent volatility in the group. He argued that large technology companies can alter their valuation case quickly through new products, asset sales or changes in strategy, while many other sectors rely more heavily on incremental operational gains.

Speaking on CNBC’s “Mad Money,” Cramer said major technology companies have “so much more to offer than the rest of the market.” His comments came as CNBC reported that oil prices rose Monday after President Donald Trump announced he was reinstating a blockade on Iran in the Strait of Hormuz, prompting investors to move into sectors that often benefit from higher energy prices.

Cramer said that rotation did not change his view that technology offers a wider set of potential catalysts. In his framing, energy-linked sectors may benefit from commodity-price moves, while large technology companies can create fresh investor narratives through product development, corporate actions or new uses for existing assets.

Meta Platforms was his central example. Cramer said he had previously urged the Facebook and Instagram parent to consider selling or otherwise monetizing some of its artificial intelligence computing capacity. CNBC reported that Meta later said it was considering ways to monetize that AI infrastructure, a development that helped lift the stock 15% last week.

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

The mechanism he described is straightforward: a company that has built costly AI infrastructure may be able to turn unused or excess capacity into a revenue source, changing how investors value the investment. That is separate from a quarterly earnings beat or miss, and it can affect the market’s view of future returns on capital.

Cramer contrasted Meta’s position with PepsiCo, whose latest earnings disappointed investors despite what he described as operational improvements by management. CNBC reported that PepsiCo shares fell more than 3% after the results.

He said Alphabet offers another case of latent value inside a technology group. Cramer argued that the Google parent could create shareholder value by spinning off Waymo, its autonomous-driving business. He compared that optionality with companies such as Conagra, the owner of Slim Jim, and Pfizer, which he said do not have the same degree of control over investor perception through portfolio moves.

CNBC’s summary of Cramer’s remarks also listed SK Hynix among the technology companies he cited as having more than one route to unlock value beyond quarterly earnings.

Cramer’s broader point was that many companies outside technology depend on execution within existing businesses, while large technology groups can change the market’s assessment through new initiatives or structural decisions. He said Meta’s recent share-price move reinforced his view that technology remains a more fertile area than other sectors for investors seeking large winners.

This story draws on original reporting from CNBC.