Cramer: Don’t Trade Apple/Nvidia; Buy Value Stocks
Jim Cramer Warns: Don't Trade Apple and Nvidia as Money Shifts to Overlooked Stocks Before Earnings
- Jim Cramer recommends owning Apple and Nvidia long-term rather than trading them short-term, as their strong fundamentals remain intact despite recent dips.
- Money is rotating from tech giants to overlooked sectors, such as data storage and equipment, driven by broader market rallies and upcoming earnings reports.
- Investors should watch for opportunities in stocks like Western Digital, Micron, and Seagate, which have shown strong recent gains.
- Economic indicators from the Federal Reserve suggest cautious rate cuts in 2026, supporting a balanced approach to investing amid potential inflation.
- Research from the IMF and World Bank points to moderate global growth, encouraging diversification into undervalued areas to mitigate risks.
Why Jim Cramer's Advice Matters Right Now
Have you ever felt like the stock market is a giant game of musical chairs, where everyone scrambles for the next hot seat? Well, that's exactly what's happening now, according to CNBC's Jim Cramer. In a recent segment, he dropped some eye-opening advice: don't trade Apple and Nvidia. Instead, hold onto them as money flows into overlooked stocks ahead of earnings season. This isn't just casual chatter; it's a signal of a bigger shift in the market that's worth paying attention to, especially if you're an investor trying to navigate these choppy waters.
Let’s set the scene. For years, the stock market has been dominated by a small group of tech giants. The S&P 500’s rally has been strikingly narrow, with Apple and Nvidia carrying much of the advance. But as earnings season kicks off next week, the dynamics are starting to shift. Jim Cramer notes that investors are rotating out of these megacaps and into less flashy—but potentially more rewarding—parts of the market. The reason: market leadership is broadening, and fund managers are increasingly hunting for value in sectors that have long been overlooked.
Think about it – Apple has revolutionized how we communicate and work, with its ecosystem of devices and services. NVIDIA, on the other hand, is the king of graphics processing units (GPUs), powering everything from gaming to artificial intelligence. Yet, their stocks have faced headwinds lately. From December 2025 to early January 2026, Apple's stock dipped from around $283 to $259, a noticeable slide. NVIDIA saw similar pressure, dropping from $180 to about $185 over the same period. Cramer argues this isn't because their businesses are weakening; it's because investors are selling to fund new bets elsewhere.
This rotation is happening against a backdrop of solid economic data. The latest unemployment figures were uneventful, allowing focus on positive trends like a broad rally. Cramer highlights how data storage stocks are surging – think Western Digital, Micron, and Seagate. These companies provide the backbone for data centers and cloud computing, which are exploding with AI demand. For instance, Micron's stock jumped from $285 on December 31, 2025, to $345 by January 9, 2026 – that's a breathtaking rally!
But why should you care? If you're a beginner investor, this advice could save you from knee-jerk trades that lead to losses. For more experienced folks, it's a reminder to diversify. Earnings season, kicking off with big banks like JPMorgan, could spark volatility. Cramer suggests waiting for comments from leaders like Jamie Dimon before making moves. He also flags upcoming data like the December consumer price index, which might show sticky inflation from holiday spending.
Diving deeper, this isn't just about stocks; it's tied to global trends. The Federal Reserve is eyeing slight rate cuts in 2026, with the Fed Funds Rate potentially dropping to 3.25%. This could ease borrowing costs, boosting sectors like manufacturing and tech infrastructure. The IMF projects global growth at 3.1% in 2026, up slightly from 3.0% in 2025, driven by emerging markets. Meanwhile, the World Bank warns of a slowdown to 2.3% in 2025 before a tepid recovery, highlighting risks from trade tensions.
Cramer's take aligns with these outlooks. He urges owning Apple and Nvidia for their long-term potential – Apple's foldable iPhone rumors and Nvidia's AI dominance aren't going away. But don't ignore the rotation. Transport stocks like J.B. Hunt and FedEx could benefit too, as economic growth supports logistics.
To illustrate, consider how this rotation mirrors past cycles. In 2023-2024, money poured into AI leaders, but now it's spreading. Cramer mentions equipment plays like Applied Materials, which saw its stock rise from $257 to $301 in early 2026. This broadening rally could make the market healthier, reducing reliance on a few giants.
As an investor, ask yourself: Are you positioned for this shift? If your portfolio is heavy on tech, it might be time to explore overlooked areas. But remember, Cramer's advice is to own, not trade – patience is key. In the next sections, we'll break this down further, with examples and tips to help you apply it.
Understanding the Current Market Rotation
Market rotation is like shifting gears in a car – sometimes you need to slow down in one area to speed up in another. Right now, that's exactly what's happening in the stock market.
What Is Market Rotation and Why Is It Happening?
Market rotation means investors are moving money from one sector or group of stocks to another. In this case, funds are leaving high-profile tech stocks like Apple and Nvidia and heading into overlooked ones. Cramer explains this is due to a broad rally expanding beyond the "Magnificent Seven" – those big tech firms that dominated for years.
The trigger? Uneventful economic data, like stable unemployment at around 4.4%, allows focus on growth opportunities. With earnings season looming, investors are betting on companies that might surprise positively. Sectors like data storage are booming because of AI's data hunger. Global trends support this: The IMF sees stronger productivity driving 3.1% growth in 2026. But risks like tariffs could slow things, per World Bank forecasts.
Timing Ahead of Earnings Season
Earnings season starts next week, with banks leading. Cramer says watch JPMorgan's report – if it's strong, it could boost confidence. He predicts good results from Citigroup, Wells Fargo, and others. Inflation data on Tuesday might show stickiness, influencing Fed decisions. The Fed expects growth to accelerate to 2.2% in 2026.
Jim Cramer's Take on Apple and Nvidia
Cramer is clear: These are stocks to own, not trade.
Why Own Instead of Trade?
Apple and Nvidia have solid businesses. Apple's services revenue is steady, and Nvidia's chips are essential for AI. But they're being sold to fund rotations. Cramer's advice: Hold for long-term gains. On X, users echo this, with some saying it's a buy-on-weakness opportunity.
Recent Performance and What It Means
From the data, Apple's stock fell 8% from early December 2025 to January 2026, while Nvidia stayed flat. This contrasts with overlooked stocks' surges. Here's a quick table of closing prices:
| Date | AAPL Close | NVDA Close |
|---|---|---|
| 2025-12-01 | 283.1 | 179.92 |
| 2026-01-09 | 259.37 | 184.86 |
Spotlight on Overlooked Stocks
These are the hidden gems Cramer is talking about.
The Rise of the Data Storage Sector
Data storage is key for AI and the cloud. Stocks here are rallying hard.
Key Examples: Western Digital, Micron, Seagate
Western Digital jumped from $172 to $200 in early 2026. Micron surged 20%, Seagate 10%. Applied Materials up 17%.
- Western Digital: Focuses on hard drives and flash storage.
- Micron: Memory chips for devices and servers.
- Seagate: Leading in HDDs for data centers.
Table of recent performance:
| Stock | Dec 31, 2025 Close | Jan 9, 2026 Close | % Change |
|---|---|---|---|
| WDC | 172.27 | 200.46 | +16.4% |
| MU | 285.41 | 345.09 | +20.9% |
| STX | 275.39 | 304.01 | +10.4% |
Mini Case Study: John Deere as an Overlooked Stock
John Deere (DE), the iconic agricultural machinery company, is a perfect example of an overlooked stock that's starting to shine amid this rotation. While not directly mentioned by Cramer, it fits the bill for industrial sectors benefiting from economic recovery. Let's dive into its story.
Founded in 1837, Deere has evolved from making plows to high-tech farming equipment with AI and precision agriculture. In 2025, its stock hovered around $465-470, but by January 2026, it hit $500.80 before settling at $488.08 – a solid 5% gain in days. This surge coincides with broader rotation, as investors seek value in cyclicals.
Why Deere? Agriculture is resilient. Global food demand rises with population growth, according to the World Bank reports. Deere's tech integrations, like autonomous tractors, position it for growth. In Q4 2025, revenues topped $13 billion, up 5% YoY, driven by equipment sales.
But 2025 was tough – supply chain issues and high interest rates hurt farmers. Fed's projected rate cuts to 3.25% in 2026 could lower borrowing costs, boosting machinery purchases. IMF's 3.1% global growth forecast supports commodity prices, helping farmers invest.
Recent news: CEO John C. May sold shares worth $20.8 million on Jan 8, but this is routine – not a red flag. Analysts like Parnassus Investments hold it in a top position. Stock P/E is 27, reasonable for its dividend yield of 1.2%.
Challenges: Trade tariffs could raise costs, per Deloitte's outlook of 0.4% US growth in 2026. But Deere's diversification into construction helps.
For investors, Deere offers stability. If earnings beat expectations, it could rally further. Compared to tech: While Nvidia trades at 45 P/E, Deere's lower multiple suggests upside.
In summary, Deere exemplifies how overlooked stocks can thrive in rotations.
Broader Economic Trends Supporting This Shift
The Fed, IMF, and World Bank provide context. Fed sees unemployment edging to 4.4% in 2026, with two rate cuts. IMF's outlook: Global GDP $123.6 trillion by 2026. World Bank cautions on trade hits but sees recovery.
Practical Tips for Navigating This Rotation
- Diversify: Allocate 20-30% to overlooked sectors.
- Research: Use tools like Yahoo Finance for stock data.
- Be Patient: Own winners like Apple; buy dips.
Suggest internal links: Our Guide to Earnings Season Strategies, Top AI Stocks for 2026.
External: CNBC's Jim Cramer page, Federal Reserve site.
Conclusion
Jim Cramer's advice to hold Apple and Nvidia while eyeing overlooked stocks like data storage names is timely as earnings approach. With economic support from Fed cuts and global growth, this rotation could reward smart investors. Diversify wisely and stay informed. Ready to adjust your portfolio? Check out our latest investment guides or consult a financial advisor today.
FAQs
What does Jim Cramer mean by 'don't trade Apple and Nvidia'? He means hold them long-term, not buy/sell short-term, as their value will endure.
Which overlooked stocks are money rotating into? Mainly data storage like Western Digital, Micron, Seagate, and equipment like Applied Materials.
How will earnings season affect this? Strong bank reports could boost markets; watch inflation data for Fed clues.
Is John Deere a good investment now? Yes, with recent gains and economic tailwinds, but research risks like tariffs.
What's the global economic outlook for 2026? IMF says 3.1% growth; Fed expects rate cuts; World Bank sees tepid recovery.
Trending Question: Should I sell Nvidia amid AI hype slowdown? No, experts like Dan Niles see long-term potential, with semiconductor sales hitting $1T in 2026.
Trending Question: Are memory stocks like Micron overvalued? Morgan Stanley sees a tighter supply, with 2026 prices up 62% for DRAM.
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