The rally in storage stocks is taking money away from the Mag 7, says Jim Cramer

Watch on YouTube ↗  |  January 23, 2026 at 00:14  |  1:35  |  CNBC
Speakers
Jim Cramer — Host, Mad Money

Summary

Jim Cramer says the market is seeing a rotation out of enterprise software and into storage stocks. He warns enterprise software holders face multiple compression and AI disruption fears, though no software company has missed estimates yet. Cramer remains committed to the Magnificent Seven, owning many in his charitable trust and expecting money to eventually flow back to most of them. He thinks storage plays are going higher.

  • Cramer highlights money rotating from enterprise software into storage.
  • Enterprise software names face P/E multiple shrinkage on generative AI obsolescence fears.
  • Cramer says no enterprise software company has actually missed estimates.
  • Cramer has grown distrustful of software companies due to AI tools like Anthropic.
  • Cramer is sticking with the Magnificent Seven and owns many for his charitable trust.
  • He expects money to ultimately flow back to most of the Seven, not just Alphabet.
  • He says storage plays are going higher.
Ideas
Jim Cramer Host, Mad Money 0:08
Cramer distrusts enterprise software amid AI risk.
Cramer warns it could be worse if you own enterprise software names like Salesforce, ServiceNow, Adobe, Workday and Atlassian. He says their P/E multiples are shrinking as nervous holders fear generative AI platforms will make them obsolete, and he has come not to trust the software companies because Anthropic-like tools can create rival products for a fraction of the cost.
IGV HIGH
Jim Cramer Host, Mad Money 0:25
Storage plays are going higher.
Cramer says money is pouring out of enterprise software and into storage, and he thinks the storage plays are going higher. He frames the software weakness as a psychological, anticipatory selloff even though no enterprise software company has missed estimates, implying storage is the beneficiary of that rotation.
Storage stocks HIGH
Jim Cramer Host, Mad Money 0:47
Stick with Magnificent Seven; money will return.
Cramer is not abandoning the Magnificent Seven and is sticking with them. He owns a lot for his charitable trust and expects money to ultimately flow back to most of the Seven, not just Alphabet, because these companies have too many levers, too much money, and are run by people too smart to bet against.
MAGS HIGH
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This CNBC video, published January 23, 2026, features Jim Cramer discussing IGV, Storage stocks, MAGS. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jim Cramer  · Tickers: IGV, Storage stocks, MAGS