CNBC's Jim Cramer warned that Wednesday's rally in tech may have gotten carried away from fundamentals. He pointed to jumps in the stocks of Alphabet, Microsoft, Meta, and Amazon without any fundamental changes in their businesses.
Cramer said that technology stocks climbed Wednesday as investors embraced a chain of positive developments. However, he questioned whether the moves accurately reflected the companies' underlying outlooks.
Alphabet jumped more than 3% after Warren Buffett told CNBC's Becky Quick that he personally made the decision for Berkshire Hathaway to invest in the Google parent. Cramer said that disclosure eased concerns that Buffett might be worried about Alphabet's heavy artificial intelligence spending.
Microsoft rallied about 2.5% after a bullish Citi note said they expect a strong fiscal 2026 fourth quarter. Cramer noted that the report countered his concerns about the software giant's AI strategy.
Meta and Amazon each increased roughly 3%. While he thinks Meta continued to climb, Cramer said Amazon remains difficult to justify given its spending on AI.
Meanwhile, he noted that some companies closely tied to AI infrastructure moved in the opposite direction. Cramer pointed to weakness in names such as Dell and Micron.
Looking ahead, Cramer said he expects investors to return their focus to fundamentals, particularly as second-quarter earnings season progresses.
