Jim Cramer: AI Trading Logic Shifts as Chip Suppliers Like Micron and Intel Benefit from Mega Spending Cycle

According to Jim Cramer on July 1, the pricing logic for AI trades has shifted on Wall Street, with the market now rewarding technology suppliers rather than companies bearing the cost of AI investments. Cramer noted that the Magnificent Seven stocks shed $2.3 trillion in market value in June as investors questioned whether massive AI data center spending would generate sufficient profits and free cash flow. He said memory chip makers Micron and SanDisk, along with Intel, Marvell Technology, and AMD, were among the biggest Q2 winners, as supply-demand imbalances drove earnings growth and analyst upgrades. Cramer highlighted Intel as a top stock pick, citing CEO Pat Gelsinger's efforts to revitalize the chipmaker and benefit from growing demand for CPU, advanced packaging, and U.S. semiconductor manufacturing.
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