Cramer: Midterms split hyperscalers from Nvidia, AMD — SkimNews
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- Democrats won a decisive victory in the midterms, and stocks rallied afterward, but the gains masked a divide within technology.
- Jim Cramer said the midterm results controlled Wednesday’s trading, but warned Friday’s Labor Department nonfarm payrolls report could reverse much of the move and leave him hesitant to guess the next direction.
- Apple hit an all-time high Wednesday as investors bet a slowdown in data-center construction would ease memory-chip prices that had been pressuring the company’s margins.
- Microsoft and Amazon rallied with hyperscalers as investors expected a slower AI buildout to reduce data-center costs and rein in massive capital spending.
- Nvidia and AMD were sold alongside data-center developers CoreWeave, Nebius and Iren as investors exited companies whose growth depends on continued AI-infrastructure investment.
- Michael Cembalest said the business cycle drives markets and midterms do not affect 10-year interest rates, commodity prices, Fed policy, corporate profits, budget deficits, defense spending, AI investment over the next 12 months, AI-company borrowing needs or credit spreads.
Why it matters: Apple’s all-time high and gains in Microsoft and Amazon contrasted with selling in Nvidia, AMD, CoreWeave, Nebius and Iren, revealing an eight-stock split over infrastructure costs, chip demand and margins. Friday’s Labor Department nonfarm payrolls report was the next concrete test.
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