Cramer on AI Infrastructure: Why the Selloff in CSCO and AMAT Is Not Over
As seen on the 24/7 Wall St. homepage on November 7, 2026.
Mad Money w/ Jim Cramer 11/6/26
- Cramer calls Friday's tech bounce a dead cat bounce, with sellers waiting on any data-center recovery
- Cisco seen as oversold after falling from $230 back to the 90s; he'd buy a small position
- Applied Materials at $332 versus its $740 summer peak is not automatically a buy
- Neocloud earnings from CoreWeave and Nebius framed as the week's real test on debt costs
Cramer is telling holders of AI infrastructure names that the washout is unfinished, and that a strong jobs report did nothing to help. The one place he is willing to put money is Cisco, which he thinks has been dragged down with everything else. Applied Materials gets the opposite treatment: its lower price still looks expensive because the old price was built on a squeeze.
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On this episode of Mad Money, Jim Cramer calls Friday's bounce in AI infrastructure stocks a dead cat bounce. He sees sellers waiting on the sidelines, ready to act on any sign of a data-center recovery, so pressure on the group is not finished.
The one name Cramer is willing to buy into the weakness is Cisco, which he views as collateral damage dragged down alongside the rest of the sector. The stock fell from $230 back into the 90s, a move he considers oversized enough to justify a small position.
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Applied Materials gets the opposite read: Cramer says the drop from its $740 summer peak does not automatically make it a bargain. The old high was built on a valuation squeeze, so the lower price today still looks expensive relative to underlying fundamentals.
The episode frames the week's real test as neocloud earnings from CoreWeave and Nebius, with debt costs the number to watch, since those figures will reveal how sustainable the buildout economics actually are. A strong jobs report did nothing to lift sentiment.
Sources
Mentioned: GOOGL, NVDA, MSFT, AVGO, AMZN, META, TSLA, JPM, NFLX, CVX, CSCO, AMAT, TJX, PANW, CRWD