Jim Cramer says 'it's not to late' to own AI winners powering the market

In a recent discussion, CNBC's Jim Cramer emphasized that the market's momentum is largely fueled by the excitement surrounding semiconductors and data center stocks. He noted that the coming week will be crucial in determining whether investors continue to respond positively to any developments related to artificial intelligence. Cramer remarked on the persistent rise in the market, attributing it to both new and recycled news about semiconductors. "This market keeps climbing on the same narratives: news about semiconductors, even outdated information, and pure speculation," he stated. The Nasdaq Composite and S&P 500 reached new intraday highs, closing at record levels, significantly driven by AI-related stocks. Technology emerged as the top-performing sector for the week, gaining an impressive 7%, while the overall S&P 500 index increased by 2.3%. Despite this, Cramer advised caution for investors tying their portfolios exclusively to the data center sector. He expressed a growing belief that these stocks represent a fundamental shift in the market. "We are increasingly convinced that these stocks are foundational and should be included in your portfolio," he noted. He recommended buying on dips but acknowledged that for those lacking the patience, it’s better to acquire shares now rather than miss out altogether. "This is still a massive opportunity. It’s not too late to invest," he added. Looking ahead to the upcoming week, Constellation Energy is set to make headlines as investors pay close attention to its role in providing clean energy, including nuclear power, to support AI infrastructure. Cramer remarked on the importance of the zeitgeist over earnings results. The consumer price index report may influence expectations for future Federal Reserve rate cuts, with Cramer suggesting that a softer report could rekindle hopes for looser monetary policy by 2026. On the earnings front, Qnity Electronics, which was spun off from DuPont last year, is expected to release results. Cramer noted the stock's recent rally linked to its semiconductor material supply but believes strong performance can validate this increase. In addition, sportswear brands On Holding and Under Armour are set to report earnings. Cramer acknowledged concerns over management changes at On but indicated that Under Armour's turnaround efforts are gaining traction. "Too many people still sport the Under Armour logo for me to dismiss this brand," he said. Moreover, Nebius, a cloud infrastructure firm, recently secured a $2 billion investment from Nvidia, highlighting the intensifying competition in the AI space among major players like Nvidia, Amazon, and Alphabet. Following this, Cisco Systems, which has seen significant stock appreciation related to its data center exposure, will also report earnings. Cramer mentioned that while Cisco's stock is performing robustly, its valuation remains attractive compared to other AI stocks, though some legacy business aspects are concerning. Finally, semiconductor equipment manufacturer Applied Materials is expected to see benefits from high demand for chipmaking machinery. Cramer suggested that the current supply-demand dynamics present further investment opportunities in these stocks. As the market prepares for a quieter earnings season, Cramer likened the current semiconductor rally to the early days of the internet boom, suggesting that AI is driving another transformative wave. While skepticism exists among investors, he maintains that these stocks demonstrate resilience and potential for growth.