CNBC’s Jim Cramer said the rise in tech stocks on Thursday could lead to a long-term recovery as the beaten name struggles to float in the seesaw market.
“At least when you’re looking at a company that breathes new life into it, consumers certainly still look pretty ugly, but realize that technology can be more than a temporary bounce. is needed.”Flirt“The host said.
Nasdaq Composite Index, which makes heavy use of high tech 2.28% increase on ThursdaySupported by Samsung 11% profit surge and 21% profit leap It has pushed chip makers and other tech departments higher.Share AMD Increased by 5.2% Nvidia It increased by 4.8%. Onsemi It surged by more than 9%.
The rally was a welcome grace for names hit by the Russian-Ukraine War, the blockade of Covid in China, and a series of rate hikes in the Federal Reserve. The tech sector’s recovery this year was generally short and lenient, but Kramer said he believes stocks could recover sustainably even in a recession.
“Why do you think technology is staying strong now? First, Chinese consumers may come back, but more importantly, the Fed’s mandated slowdown is usually The company isn’t as weak as you might expect, “he said.
China Shortened quarantine For overseas travelers last month Rise in the case of Covid The country is strengthening health protocols in several cities.Bank of America Securities Said it didn’t expect China re-enters Extended blockade As in the second quarter, we acknowledged that the rebound in the case of Covid could lead to some volatility.
Cramer reminded investors that the products and services of tech companies go beyond the declining popularity of laptops and home office equipment since the heyday of the pandemic. He added that the recession could further increase the demand for services of technology companies.
“Technology deflation. New technology can fire more people. Thanks to technology, we can find ways to do more things cheaper and at less cost. More. Technology can make better products. This is all happening now, “he said.
Disclosure: Cramer’s Charitable Trust owns shares in AMD and Nvidia.