CNBC's Jim Cramer warns that the sharp rally in semiconductor stocks could lead to a sizable pullback. The Philadelphia Semiconductor Index (SOX) posted 18 consecutive winning sessions in April and is up about 64% year-to-date as of Oct. 28. Cramer compares this with February 2000, when the SOX reached the 1,100 range before the dot-com bubble burst and later fell as low as 238, though he has not predicted a similar crash. His in-house data shows 94 U.S.-listed chip or AI data center companies gained 50%+ since Mar. 30, and Goldman Sachs and Morgan Stanley also view these stocks as overextended. POET Technologies rose from $5 per share to about $15 before plunging 47% in one day after Marvell Technologies said it wouldn't partner with the company, and Cramer says he has sold part of winners such as Qnity Electronics to realize gains.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NVDAsemiconductorsvaluationJim Cramer
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/29/2026 | 213.72 |
| Change that session | -0.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- The One Stock Jim Cramer Calls His Only Trust Crashes 15%
- Jim Cramer's 5% to 8% rule puts Nvidia stock in focus
- Jim Cramer says this week's AI sell-off offers a crucial lesson for investors
CNBC's Jim Cramer said this week's AI stock turbulence shows why investors should avoid putting all their money into the market's hottest trade. On Thursday, Kimberly-Clark rose 4.7%, Waste Management gained 3.9% and Eli Lilly advanced 3.6%, while the iShares Semiconductor ETF (SOXX) fell for an eighth straight day, its longest losing streak in more than a decade. The CNBC Investing Club's Charitable Trust sold Corning on Sept. 1 and bought Kimberly-Clark, and since then Corning has fallen almost 5% while Kimberly-Clark has gained more than 10% from its Oct. 1 low. Cramer acknowledged it is unclear how long the rotation away from AI will last, but warned that overconcentration could lead investors to give up on the asset class altogether.
- Jim Cramer's top 10 things to watch in the stock market Tuesday
Jim Cramer's watchlist for Tuesday, October 13, starts with a chip stock sell-off that began in South Korea, where the Kospi fell 5.5% overnight and Micron slid nearly 4%. Broadcom CEO Hock Tan said investor expectations, not weak demand, drive the sharp swings in AI stocks. Goldman Sachs beat estimates with revenue topping consensus by nearly $2 billion, while Wells Fargo beat on profit but missed on revenue and its shares fell 2%. JPMorgan posted a rare EPS miss but raised its full-year net interest income outlook, and Johnson & Johnson's devices unit fell short even as it raised its full-year earnings guidance. Bernstein downgraded AT&T to hold over SpaceX's growing broadband and wireless presence, while Truist raised its Meta price target to $1,000 from $763 and Barclays lifted its Microsoft target to $600 from $512.
- Jim Cramer Calls the Chip Trade Broken, but Semiconductors Are Still Up 62% in 2026
On the October 12 Mad Money episode, Jim Cramer argued software has taken over AI leadership from chips, citing a 23% gain for software and a 10% drop for chips since June 30. From June 30 to October 13, the actual figures were 22.4% for the iShares Expanded Tech-Software ETF (IGV) and a fall of 11.1% for the VanEck Semiconductor ETF (SMH). Since December 31, 2025, however, SMH is up 61.9% versus 5.0% for IGV, so the conclusion depends on the start date. Cramer blamed part of the slide on the Situational Awareness hedge fund's reported 67% loss in July, a figure not independently confirmed, as its largest positions Micron, SanDisk and Bloom Energy fell 14.3%, 34.6% and 13.35% between June 30 and October 12. The article argues fundamentals remain strong, citing Microsoft's $115.95 billion of fiscal 2026 capital expenditure.
- We're adding to our position in a rebounding bank stock
Jim Cramer's Charitable Trust bought 75 shares of BNY at about $150, raising its holding to 750 shares and its portfolio weight to 2.85% from about 2.56%. The purchase lowers the average cost basis, following earlier purchases at roughly $138 on Oct. 15, the day the bank reported earnings. The trust says the bank beat earnings expectations two weeks ago, helping end a slide that began in September, though shares remain about 10% below their September closing high of $164.84. The stock trades at 14.4x 2027 earnings estimates per FactSet, which the trust views as undemanding. It expects the stock could rise if BNY wins more client business and grows its fee-based revenue, supporting P/E expansion.
Related markets
Latest news
- Proposal to pilot gold certificates
Delegate Lê Hoàng Anh proposed piloting gold certificates and other channels to direct capital into the economy, noting that households hold about 500 tonnes of gold while the economy relies heavily on bank credit, at around 155% of GDP. He argued the problem is not a shortage of capital but of channels: household deposits exceed 11.2 million billion VND, while corporate bonds total only about 11% of GDP, short of the 20% target for 2025. He also proposed linking household savings to businesses through voluntary pension funds and open-ended funds, and lending based on data and cash flow instead of land as collateral. The State Bank of Vietnam said in an early-October report that it has not set up a gold exchange for now and will keep refining the proposal. The 2027 plan targets GDP growth of 10% or more, CPI inflation of about 4.5%, and total state budget revenue of about 3.33 million billion VND.
- Gold price today, Friday, October 30, 2026: Gold slips below $4,000 as Mid-East concerns mount
December gold futures (GC=F) opened Friday, October 30, 2026 at $4,033.60 per troy ounce, up 0.1% from Thursday's close, but slid to $3,986.20 by 7:04 a.m. ET and dipped below $4,000 amid instability in the Middle East. Markets also weighed the expectation that the U.S. could ramp up attacks after the mid-term elections next week. On Friday a tanker in the Strait of Hormuz was hit by explosive devices attached by a small boat, according to UKMTO, and it was not immediately clear who was behind the attack, while Brent crude rose to $113.49. Gold was down 0.2% over the past week and 4.3% over the past month, but up 2.3% over the past year. The article also lists gold allocations suggested by five experts, ranging from 0% to 20% of a portfolio.
- Marvell in advanced talks to buy Nvidia-backed Lumentum – report
According to Bloomberg, which cited unnamed sources, Marvell Technology is in advanced talks to buy Lumentum Holdings in an all-stock deal that could be announced as soon as next week, though the talks could still end without a transaction. Marvell is valued at around $196 billion and Lumentum at about $85 billion; if completed, the deal would give Marvell more control over optical technology used in AI data centres. Lumentum makes lasers and optical components for high-speed data transfer, and its CEO Michael Hurlston said its products are sold out through early 2029 and it may be unable to meet about 70% of demand for some products next year. Marvell already buys lasers from Lumentum, and an acquisition would give it more direct access to optical technology and manufacturing capacity.
- Hoa Phat board member plans to sell some HPG shares
Independent board member Đặng Ngọc Khánh of Hòa Phát Group (HPG) has registered to sell 100,000 HPG shares through matched orders between November 4 and December 3, 2026, citing personal financial needs. After the sale he would hold 450,000 shares, down from 550,000, or about 0.005% of charter capital; at the October 30 closing price of 21,000 dong per share, the proceeds would be about 2.1 billion dong. In the third quarter of 2026, Hòa Phát posted revenue of 62,669 billion dong, up 70% year on year, and after-tax profit of 8,265 billion dong, up 106%. For the first nine months, revenue reached 171,539 billion dong and profit 23,746 billion dong, having completed 82% of its full-year revenue target and 108% of its profit target. The group produced 3.7 million tonnes of crude steel in the quarter, up 85% year on year, and paid 12,038 billion dong to the state budget across 20 provinces and cities.
- Hoa Sen Group earns VND 623 billion in after-tax profit in fiscal 2025-2026, reaching 104% of plan under the high-case scenario
Hoa Sen Group (HSG) has announced its fourth-quarter and cumulative results for fiscal year 2025-2026 (from 01/10/2025 to 30/9/2026). Consolidated output reached 1,794,500 tons, 97% of plan; consolidated revenue reached 37,736 billion VND, 102% of plan; and consolidated after-tax profit reached 623 billion VND, 104% of plan under the high-case plan. Book value was about 14,735 VND per share as of 30/9/2026. Domestic demand is improving on public investment and infrastructure, but competition is rising due to excess domestic steel supply, high raw material costs and high interest rates, while exports face trade protection tendencies and trade defence measures. The group operates 9 factories and over 400 branches and stores domestically, with a business network in 100 countries and territories, and is developing the Hoa Sen Home building materials and furniture supermarket system through a company established in January 2026.
- AI could hit consumers’ ability to manage their debt. Here’s the trade.
The article says that if AI causes workers to lose their jobs, households would face credit stress. This could affect consumers' ability to manage their debt.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.