Don’t lose faith in the Big Tech megacaps, Jim Cramer says

CNBC's Jim Cramer told investors not to write off Big Tech megacap stocks, some of which were able to jump on Tuesday after recent declines.
"Remember today. Remember it because it's a textbook reminder of what happens when you decide the mega capitalization stocks are done, when you think that they're written off," he said. "The moment you give up on them — what happens? They come roaring back."

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CNBC's Jim Cramer told investors not to write off Big Tech megacap stocks, some of which were able to jump on Tuesday after recent declines.

"Remember today. Remember it because it's a textbook reminder of what happens when you decide the mega capitalization stocks are done, when you think that they're written off," he said. "The moment you give up on them — what happens? They come roaring back."

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Cramer reviewed the action in stocks including Apple, Amazon, Nvidia, Microsoft and Meta. Many of these names led the market for much of this year, and Cramer explained what might have caused their gains during the day's session.

According to Cramer, Apple and Amazon are reaping the rewards of two positive analyst notes, with Bank of America praising the latter's e-commerce and online advertising businesses. Morgan Stanley suggested Apple's iPhone upgrade rates are improving, perhaps bolstered by its new artificial intelligence programming. Cramer expressed optimism about CEO Tim Cook's ability to negotiate with China as the threat of high tariffs floated by President-elect Donald Trump looms.

Cramer was less certain about the reasons for Tuesday's wins in Meta and Microsoft. But he suggested the software maker could have seen a boost because Best Buy reported decent sales of AI PCs, which bodes well for the company's Co-Pilot program. He also pointed out that Nvidia unveiled a new product Tuesday, Fugatto, an AI model designed to generate audio.