Jim Cramer's 2026 Outlook: Why He’s Not Bailing on the Magnificent Seven

They're shaking hands, but keeping their fists clenched. The market's heavyweights are currently losing their luster as a massive rally in storage stocks steals the spotlight. Jim Cramer noted on Thursday that while most of the Magnificent Seven have had a sluggish start to 2026, it's far too early to bet against the tech titans. Investors have shifted focus toward semiconductor equipment and memory plays, but this rotation might just be a temporary detour.

The Storage Stock Surge vs. Magnificent Seven 2026 Performance

According to Jim Cramer, the market is witnessing a bizarre moment where storage companies like Micron are commanding immense pricing power. Micron shares have surged roughly 39% year-to-date, effectively doubling over the past 3 months. Cramer compared these storage devices to gasoline in a car—essential at any price during the AI boom. This shortage has turned companies like Seagate and Western Digital into "share donors," pulling market cap away from the traditional tech leaders.

Why Smart Money Stays with the Tech Giants

Despite the cooling off of names like Apple and Tesla, Cramer argues that the Magnificent Seven—including Amazon, Alphabet, and Microsoft—have too much money and too many levers to be ignored. He believes the skyrocketing prices for memory can't last forever. Once that momentum peaks, the handsome rewards will go to those who stayed the course with the large-cap titans.