Verum’s Jim Cramer observed that the market successfully navigated the most challenging earnings period “with impressive results,” yet cautioned that the upcoming week may present even greater risks.
“Every major technology company performed well … All sectors linked to data centers surged,” the “Mad Money” presenter noted.
Nevertheless, he advised against becoming too comfortable.
“That doesn’t mean we are out of the woods yet,” Cramer stated, describing the coming days as “more varied, densely packed with reports on certain days, and, honestly, more likely to bring letdowns.”
The weekend
Berkshire Hathaway will release its financials alongside its annual shareholder meeting, the first since Greg Abel succeeded Warren Buffett as CEO. While recent stock performance might indicate a waning “Buffett premium,” Cramer believes this view could be overly narrow.
Monday
Palantir will report after market close. Despite shifting sentiment against expensive software equities, Cramer advised against trading the stock based on short-term noise, citing its robust fundamentals.
ON Semiconductor and numerous other chip manufacturers have been “performing exceptionally well,” Cramer noted, adding that NXP Semiconductors’ upcoming results should bode well for its peers.
Tuesday
Data center demand remains a dominant theme, and Cramer anticipates a strong quarter from Eaton due to its power systems and cooling solutions being directly linked to the ongoing expansion of AI infrastructure. Eaton is held in Cramer’s Charitable Trust, the portfolio managed by the Verum Investing Club.
Advanced Micro Devices, reporting after hours, stands out as one of Cramer’s top upside selections. “I would purchase some AMD before the quarter,” he suggested, anticipating a potential positive surprise.
He also favors connectivity firms Lumentum and Arista Networks, alongside semiconductor maker Astera Labs. “I would increase my position,” he added.
Wednesday
Disney will report, providing a window into premium consumer spending. Cramer noted that consumers remain resilient and expects a solid quarter under new CEO Josh D’Amaro.
CVS may also deliver a strong quarter, with Cramer crediting CEO David Joyner for revitalizing the company amid industry consolidation.
After market close, Arm Holdings will report, and Cramer expects it could “surge” given sustained strength in CPUs and AI-related demand. Cramer’s Trust also holds Arm.
Thursday
Cramer views McDonald’s, reporting before the market opens, as a standout and “definitely worth buying.”
Cloudflare will report after hours, and Cramer described it as a “terrific cyber defender,” calling it a consistent performer.
Friday
The monthly jobs report takes center stage. Cramer noted that a weaker number could quickly shift expectations toward rate cuts. Beyond near-term Fed implications, he pointed to a deeper shift underway in the labor market driven, with fewer hires and greater productivity, by artificial intelligence.
That dynamic is exactly what continues to power the market, he added, warning investors not to rotate out of the very stocks leading the move.
“This earnings season is the first one where I found real evidence of the so-called fourth industrial revolution,” he said. “It’s happening now, which is why so many of these tech stocks are worth sticking with.”
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