Jim Cramer explains how Microsoft, Meta and Nvidia led the Mag 7 pack in the first half of 2025

CNBC

14 hours ago

CNBC's Jim Cramer on Tuesday pointed out that three megacap tech names managed to exit the first half of the year at all-time highs: Microsoft, Nvidia and Meta. He reviewed each company and explained why he thinks they have outperformed their "Magnificent Seven" peers.
"Not FANG. Not Magnificent Seven. Just M-N-Ms," Cramer said. "The sole survivors of a brutal quarter from what used to be the most captivating group in the market."
These stocks hit some "pretty hideous darn levels" earlier in the quarter, Cramer said, so it's worthwhile to examine how and why they managed to triumph.
Microsoft disappointed Wall Street in January when its Azure cloud business put up lighter growth than expected. But when Microsoft reported again at the end of April, the cloud segment beat expectations, putting up 33% growth. According to Cramer, this development was enough to send the stock to the new high list.
Artificial intelligence powerhouse Nvidia had a rocky start to the year. Wall Street soured on the stock as they feared Chinese startup DeepSeek could pose a threat to the company's dominance in the AI sector. Nvidia then had an "anemic bounce" coinciding with its annual GTC conference in March where it unveiled new technology, Cramer said. The stock then declined in April when the U.S. government hampered sales of its products in China, he continued. However, Cramer said, Nvidia rallied hard over the next few months because of "semiconductor superiority and persistent demand from the hyperscalers." These same factors were what sent Nvidia's stock roaring last year, he added, suggesting that perhaps "there was nothing wrong with Nvidia the whole time." Nvidia's AI chips, he continued, "remain unrivaled."
Meta's run is tougher to explain, Cramer said. He suggested that Meta's stock got caught up in the broader decline of a number of growth stocks towards the beginning of the year. But in April, Meta's quarterly earnings results blew past the estimates, Cramer said. He said it seems the company's advertising abilities are especially strong.
"Microsoft, Nvidia, Meta," Cramer said. "M-N-Ms. Melt in your mouth, not your hands."
Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter.Disclaimer The CNBC Investing Club's Charitable Trust holds shares of Microsoft, Nvidia and Meta.