Jim Cramer says he's not abandoning the Mag 7 stocks despite recent struggles. Here's why

On Thursday, CNBC's Jim Cramer reaffirmed his commitment to the so-called Magnificent Seven stocks, despite a rocky start for many of them in 2026. During his segment on "Mad Money," Cramer expressed confidence that investment will eventually return to these tech giants. "These companies have numerous advantages and are led by exceptionally savvy individuals; betting against them seems unwise," he stated. The Magnificent Seven includes industry leaders such as Amazon, Alphabet, Apple, Microsoft, Meta Platforms, Nvidia, and Tesla. Cramer also mentioned Broadcom, an AI chipmaker frequently associated with this elite group. So far this year, only Amazon and Alphabet have shown positive performance. Cramer pointed out that a significant factor in the recent decline of these stocks, which were previously the front-runners in a multi-year AI-driven market surge, is the substantial rally seen in the storage and semiconductor equipment sectors. He explained that these companies have become "share donors" to the market capitalization of storage firms. Micron Technology stands out in this market shift, experiencing a remarkable 39% increase this year and doubling its value in the past three months, spurred by a shortage of essential memory chips for AI computing. Other companies like Seagate, Sandisk, and Western Digital have also thrived as the demand for storage skyrockets, granting them substantial pricing power. Cramer likened the current situation to a hypothetical scenario where oil prices soar due to scarcity, saying, "If gasoline were scarce and prices were high, you wouldn't simply stop using it. You'd pay whatever it costs." Despite the recent price hikes in memory chips, Cramer believes this trend cannot sustain indefinitely. He argues that the large-cap tech stocks will see renewed interest once the storage stocks reach their peak. "I am sticking with the Magnificent Seven," he concluded. "When the storage stocks finally stabilize, those who remain invested in the Magnificent Seven will see significant rewards." Disclosure: Cramer’s Charitable Trust, which guides the CNBC Investing Club, holds shares in GOOGL, META, AAPL, AMZN, NVDA, MSFT, and AVGO.