CNBC’s Jim Cramer said the market just recovered from a tough week of earnings with “flying colors,” but warned that next week could be even trickier.
“All the big tech did well … Everything connected to the data center went bad,” said the “Mad Money” host.
However, he warned against complacency.
“That doesn’t mean we’re out of the woods,” Cramer said, calling the week ahead “eclectic, very crowded some days, and, frankly, prone to disappointment.”
It’s the weekend
Berkshire Hathaway reports accompanying its annual meeting, the first since Greg Abel took over as CEO from Warren Buffett. The recent underperformance may reflect a “Buffett premium,” but Cramer thinks that may be short-sighted.
Monday
Palantir reports after closing. Although sentiment has turned to expensive software stocks, Cramer said he would not trade the stock given its strong business.
ON Semiconductor and many other chip makers “They’re on fire,” Cramer said, adding that the results of peers focused on themselves NXP Semiconductors it bodes well for its future numbers.
Tuesday
Data center demand remains front and center, and Cramer expects a strong quarter to take off Eaton because its power systems and cooling devices are directly connected to the continuous expansion of the AI infrastructure. Eaton is a member of Cramer’s Charitable Trust, a portfolio managed by the CNBC Investing Club.
Advanced Micro Devicesreporting after the bell, it’s one of Cramer’s top picks. “I’m going to buy AMD before the quarter,” he said, anticipating a potential surprise.
He also likes communication words Lumentum again Arista Networksand a semiconductor company Astera Labs. “I was going to hedge my bets,” he added.
Wednesday
Disney reports, which provide insight into high consumer spending. Cramer said the consumer appears strong and expects a strong quarter under new CEO Josh D’Amaro.
CVS and could deliver a strong quarter, with Cramer rewarding CEO David Joyner for turning the business around amid industry consolidation.
After closing, Arm Holdings reports, and Cramer expects it “could be a bullish stock” given continued power in CPUs and AI-related demand. Cramer’s Trust also owns Arm.
Thursday
Cramer thinks McDonald’sreporting before the market opens, it remains outstanding, and “definitely worth buying.”
Cloudflare reports behind the bell, and Cramer said he’s still a formidable cyber defender, calling it “a consistent winner.
On Friday
The monthly jobs report is in the middle. Cramer said the soft number could quickly change expectations for rate cuts. Despite the imminent Fed results, he pointed to a profound change underway in the labor market driven, with fewer jobs and greater productivity, by artificial intelligence.
That volatility is what continues to power the market, he added, warning investors not to switch out of the very leading stocks.
“This lead period is the first where I found real evidence of what is called the fourth industrial revolution,” he said. “It’s happening now, which is why many of these tech stocks are worth sticking with.”
