CNBC’s Jim Cramer on Tuesday named hammered tech stocks that he thinks can stage a comeback after the Federal Reserve ended its tightening of the economy.
Here is his list:
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“Almost all of these, except Apple, are variations on the same story — stocks that were halved when their businesses weren’t having such dips,” he said, adding, “Their stocks were way ahead of themselves before the Fed took them away in the slight.” Money.”
Tech stocks have plummeted this year after climbing to stratospheric levels during the peak of the pandemic. Persistent inflation, the Fed’s rate hikes, Covid-19 lockdowns in China and Russia’s invasion of Ukraine pushed investors away from risky tech stocks into safer bets.
At the same time, fears of an impending recession have prompted investors to prioritize a company’s profitability over growth. Once thriving tech companies have shed thousands of jobs across the industry to cut costs.
Cramer explained that focusing on the dot-com collapse belies the stocks that could survive this phase of the economic downturn. “It was the best of its kind at the time that eventually managed to bounce back – the rest of them just never came back,” he said.
Cramer also predicted that there are many pandemic games that are unlikely to recover from this year’s challenges.
“Once the Fed relents, I’d much rather be in big tech or the top cloud games or the better run chipmakers AMD Spirit NVIDIAhe said.
Disclaimer: Cramer’s Charitable Trust owns shares in AMD, Amazon, Apple, Microsoft, Nvidia and Salesforce.