If you own too much tech, now is the time to use caution, says Jim Cramer

NOW. >> MY MISSION IS SIMPLE TO MAKE YOU MONEY. I'M HERE TO LEVEL THE PLAYING FIELD FOR ALL INVESTORS. THERE'S ALWAYS A BULL MARKET SOMEWHERE, AND I PROMISE TO HELP YOU FIND IT. MAD MONEY STARTS NOW. HEY I'M CRAMER, WELCOME TO MAD MONEY. WELCOME TO CRAMER ERICA. OTHER PEOPLE MAKE FRIENDS. I'M JUST TRYING TO MAKE A LITTLE MONEY. MY JOB IS NOT JUST TO ENTERTAIN BUT TO EDUCATE. SO CALL ME AT ONE 800 743 CNBC OR TWEET ME JIMCRAMER. YOU COME IN TO WORK AND YOU LEARN THAT THE CHINESE ARE TARGETING ALL THE FRONTIER AI MODELS, THE ANTHROPIC AND THE OPEN AI. AND YOU WONDER IF THEY CAN GET THEIR IPOS OFF. MAYBE NOT BECAUSE THE CHINESE ALSO HAVE CHEAP MEMORY WHICH WE THINK THEY DO. OR MAYBE THEY DON'T. BUT IF WE CAN GET SOME HANDS ON IT, IT WOULD BE GREAT. BUT IF AMERICAN COMPANIES TRULY AVAIL THEMSELVES OF THE CHINESE TECH, WON'T THEY BE TARGETED BY CHINA'S OPEN SOURCE MODELS? AND WHAT DOES THAT MEAN FOR THE PRICE OF TOKENS? JEVONS PARADOX AND NATIONAL SECURITY. DID YOU UNDERSTAND ANY OF THAT? OH, I DON'T I CAN'T FIGURE OUT HOW THIS WILL ULTIMATELY IMPACT INTEL OR NVIDIA, TWO OF MY CHARITABLE TRUST CORE HOLDINGS. COULD IT DELAY AN OPEN AI IPO IMPACT? THEIR DEAL WITH ORACLE WILL KEEP PROPELLING AMD EVERY DAY. WHERE THE DOW SHED 307 POINTS, S&P DECLINED 0.1 9%. NASDAQ DIPPED 0.05% AFTER WHAT WAS, BY THE WAY, A VERY STRONG OPENING. ALL THIS HAND-WRINGING OVER AI COMPETITION FROM CHINA MAKES ME WANT TO TURN MY BACK ON TECH AND JUST FIND HIGH QUALITY COMPANIES LIKE GOLDMAN SACHS AND WELLS FARGO WHO DIG MY TEETH INTO FEDEX AND FEDEX FREIGHT, OR MAYBE SCOOP UP SOME HONEYWELL AEROSPACE AND BOEING. YOU KNOW WHY? BECAUSE IF YOU OWN TOO MUCH TECH, YOU'RE GOING TO BE SLAUGHTERED. AND YOU WON'T EVEN KNOW WHAT HIT YOU. OKAY, NOT TODAY. AND WE'VE BEEN HIT PRETTY HARD HERE, AS YOU WILL >> FIND OUT IF YOU STICK AROUND. BUT I DON'T WANT TO BE SOME JOURNO. ONLY PILES ON WHEN THINGS ARE DOWN. WE MIGHT HAVE SOME MOMENTUM HERE, BUT IF YOU OWN THESE KINDS OF NON-TECH STOCKS THAT I LIKE AND THEY DO GO DOWN, YOU KNOW WHAT YOU CAN DO. YOU CAN CONFIDENTLY BUY MORE OF THEM BECAUSE GOLDMAN SACHS OR FEDEX ARE COMPREHENSIBLE AND THEY'RE SUBJECT TO RUMORS OR CHINESE REPOSTS. IN SO MANY WAYS, THAT'S WHAT'S WRONG WITH THIS MARKET. I MEAN, RIGHT NOW, FOR EXAMPLE, IF SK HYNIX, THE HIGH BANDWIDTH MEMORY MAKER FROM KOREA OR SPACEX, THE MOST SATELLITE COMPANY OR ORACLE WITH ITS FLAGGING BONDS AND STOCK REALLY BREAK DOWN. AND BELIEVE ME, THEY'RE GOING TO TAKE EVERYTHING WITH THEM, INCLUDING MANY TECH STOCKS THAT DO NOT DESERVE TO BE HAMMERED. NOW, I'VE TOLD YOU HOW MY TRAVEL TRUST HAS DIVERSIFIED AWAY FROM TECH FOR NEW WITH WITH NEW MONEY, WITH THE EXCEPTION OF INTEL. MORE ON THAT IN A SECOND FOR THE CLUB. I'VE BEEN CONTENT TO OWN INDUSTRIALS, NOT NECESSARILY DATA CENTER INDUSTRIALS AS WELL AS HEALTH CARE, BECAUSE WE DON'T WANT TO BE THE NEXT SK HYNIX, THE STOCK OF A TREMENDOUS SEMICONDUCTOR COMPANY THAT'S BEEN BY DESPERATE TRADERS WHO REALLY SHOULD BE REALLY SHOULD BE STICK WITH BETTING ON THE WORLD CUP. THE BULLS REMEMBER THE EARLY 2025 DEEP TECH AFFAIR, WHERE STOCKS WERE CRUSHED BECAUSE OF THE INTRODUCTION OF A CHINESE AI PROGRAM, BUT THEN BOUNCED RIGHT BACK. NOW THE BULLS ARE ARGUING THAT THIS NEW AI THREAT, KIMMY K THREE, BROUGHT TO YOU BY THE CHINESE COMPANY MOONSHOT AI, IS SIMILAR TO THE DEEP CREEK AFFAIR WHERE EVERYTHING ELSE WAS BROUGHT DOWN. BUT IF YOU BOUGHT TECH, ESPECIALLY DATA CENTER TECH, YOU'RE GOING TO MAKE FORTUNES. JUST LIKE WHEN DEEP SEA TURNED OUT TO BE SECOND RATE. I'M NOT SO SURE THAT WE SHOULD SWOOP IN AND BUY THIS TIME, BECAUSE THE STOCKS THAT COULD BE ROCKED ARE STOCKS THAT, EVEN AFTER THE DECLINE, ARE STILL INCREDIBLY HIGH, LIKE A MICRON, LIKE AN SK HYNIX, OR THEY'RE RIDICULOUSLY CHEAP ON AN EARNINGS BASIS, BUT THEY'RE HIGH. WE WILL EXAMINE SOME OF THE MOST HARD HIT STOCKS LATER IN THE SHOW. YOU CAN MAKE UP YOUR MIND. I'M THINKING SOME HAVE COME DOWN SO MUCH. THERE IS SOME REAL OPPORTUNITY HERE AND I'M NOT BLIND TO IT. THAT SAID, LET ME TELL YOU WHAT WE'RE DOING. FIRST, WE ARE NOT TOUCHING THE TRUST LONG STANDING APPLE POSITION. THE SHARP KNIVES ARE INDEED OUT FOR THE APPLE. LET'S SAY MANAGEMENT FROM THE TECH INTELLIGENTSIA. THE INTELLIGENTSIA SAY THAT APPLE MISS THE MOST IMPORTANT STORY OF OUR LIVES ARTIFICIAL INTELLIGENCE. THEY LAMBAST SIRI. THEY REGARD THE LOST OPPORTUNITY AS CRITICAL TO APPLE'S FAILURE FOR THE NEXT GENERATION. YET YOU KNOW WHAT THESE SAME PEOPLE ARE POSTING FROM THEIR IPHONE 14 PRO MAX? YOU KNOW WHAT? THEY'D RATHER THEY WOULD RATHER SLIT THEIR WRISTS THAN SWITCH TO SAMSUNG. THEY REMIND ME OF WHEN I SAT NEXT TO STEVE BALLMER AT MY 35TH COLLEGE REUNION, WHEN HE WAS STILL CEO OF MICROSOFT, AND HE PULLED OUT SOME SORT OF GIZMO THAT MADE ME GIGGLE. IT WAS A WINDOWS MOBILE. DOES ANYONE ELSE REMEMBER THAT? I DOUBT IT. SO IN ITS CORE BUSINESS, APPLE'S BULLETPROOF AND THEY NEVER SPENT MUCH ON THE AI IN THE FIRST PLACE. I WANT YOU TO THINK ABOUT THIS AS AS YOU LOOK AT APPLE DOWN SEVEN BUCKS TODAY. DID ANYONE SWITCH TO SAMSUNG DURING THIS TRAVESTY OF AN AI ISSUE? DID ANYONE SAY THAT'S IT? I AM SICK OF IT. I'M SICK OF THE 17 PRO MAX. GET ME A NOVO. PERHAPS THE COGNOSCENTI WISHES THAT APPLE WOULD SPEND $200 BILLION, MAYBE 70% ON THE DATA CENTER STRUCTURE AND POWER. MAYBE GIVE THE REST TO GOOGLE TPUS, MAYBE BUY SOME EXPENSIVE NVIDIA GPUS. AS SOMEONE WHO OWNS APPLE FOR MY CHARITABLE TRUST, I ACTUALLY LIKE THAT THEY LET ALPHABET SPEND THOSE BILLIONS OF DOLLARS ON AI, AND THEN THEY HAD ALPHABET PAY THEM A NOMINAL SUM. SO IT WAS IN THE IPHONE. THE PROS HAVE A TERM FOR THIS APPLE ALPHABET DEAL. YOU KNOW WHAT IT'S CALLED A GREAT DEAL. OH I ALSO WANT NVIDIA. I KNOW PEOPLE THINK I'VE BEEN UNKIND TO NVIDIA OF LATE. THEY SAY I'VE BEEN CRITICAL THAT THEY'RE NOT BUYING BACK MORE THAN $80 BILLION WORTH OF STOCK. GIVEN THAT THE SHARES ARE INSANELY CHEAP ON NEXT YEAR'S EARNINGS ESTIMATES. DO YOU KNOW THIS IS ACTUALLY MORE OF A LOVE TAP, PEOPLE? THROUGHOUT THIS PERIOD, THERE HAVE BEEN COMPANIES THAT CLAIM THAT THEY THINK THE WORLD OF NVIDIA, BUT THEY WANT TO MAKE THEIR OWN CHIPS. YOU KNOW WHAT I SAY GO AHEAD, MAKE NVIDIA'S DAY. BUT IF THE CUSTOMER WANTS NVIDIA WHAT DO YOU DO. WHAT DO YOU SAY TO THEM. NO NO. YOU SEE LIKE WE DON'T HAVE NVIDIA. YOU KNOW WE'VE GOT THE DELI WURST. I MEAN THAT GOES SOMEWHERE ELSE. NVIDIA IS AT THE HEART OF THE DATA CENTER. PRACTICALLY INVENTED THE DATA CENTER. IT HAS NO CHINESE COMPETITOR FOR REAL. THE FACT IS THESE MACHINES AND THEY ARE MACHINES BY THE WAY PACKED WITH HARDWARE AND SOFTWARE. THEY'RE THE ENVY OF THE WORLD. I, IN DEFERENCE TO LISA SU AMD COMES CLOSE, BUT THERE REALLY IS NOTHING LIKE NVIDIA. AND THAT MATTERS. YES, AND WE WENT. INTEL, WHICH REPORTS THIS WEEK. INTEL IS A TRIPLE PLAY CPUS THAT YOU NEED FOR THE NEW AI AGENTS, THE FOUNDRIES TO MANUFACTURE CHIPS AND THE PACKAGING OF CHIPS WITH THEIR HIGH MARGINS, SOMETHING CEO LEE BOUTIN KNOWS BETTER THAN ANYONE. WHY? BECAUSE HE SAVED CADENCE THE BEST AT PACKAGING. AND THEN HE GAVE YOU A 50 BAGGER WHILE HE WAS AT IT. HIS FOUNDRIES ARE GOING TO BE THE BEST HOPE WE HAVE FOR AMERICAN SEMICONDUCTOR. RENAISSANCE. INTEL IS A NATIONAL TREASURE. I HOPE THE STOCK SELLS OFF ON THURSDAY. PLEASE, PLEASE SELL, PLEASE SELL OFF. YOU KNOW WHY? SO WE CAN GET A BIGGER POSITION. UNDERSTAND? AGAIN, I THINK THE WORLD OF AMD, BUT I CAN'T OWN BOTH INTEL AND AMD. TOO MUCH OVERLAP. WE THINK ARM CAN BE TERRIFIC, BUT IT NEEDS FOUNDRY SPACE. WE OWN BROADCOM. WHY? BECAUSE CEO HOCK TAN HATES TO LOSE. HE'S A COMPETITOR. HEY BY THE WAY THOUGH SAME GOES FOR MATT MURPHY AT MARVELL TECH. BUT AGAIN THE CONCENTRATION IS TOO MUCH FOR ME BECAUSE THESE STOCKS AT THE VERY MOMENT MISTAKENLY TRADE WITH THE KOREAN STOCK MARKET OVERNIGHT. AND THEN THEY GET BEATEN DOWN BY THE AMERICAN PRESS IN THE MORNING, WHICH LOVES TO PRAISE THE CHINESE COMPETITION. OH, WHY THE AMERICAN PRESS LOVES CHINA SO MUCH. THEY'RE SO SMART, THEY'RE SO SMART. WE'RE SO STUPID. WE'RE SO STUPID CLOWNS TO THE LEFT OF ME AT CALTECH, JOKERS TO THE RIGHT AT STANFORD, STUCK IN THE MIDDLE WITH MIT. IN THE END, TODAY WAS A DAY TO BUY FEDEX. IT WAS A DAY TO PICK UP SOME HONEYWELL AEROSPACE. HEY, HOW ABOUT BUYING SOME GE? IT WAS DOWN A RIDICULOUS AMOUNT EVEN AFTER IT GOT THE BIGGEST ORDER FOR ITS ONE EVER 1000 LEAP ENGINES TO POWER THE AIRBUS A320NEOS, PART OF A JOINT VENTURE. THAT WASN'T ENOUGH. I WAS SHOCKED THAT THE STOCK WASN'T UP ON THAT NEWS. INSTEAD, IT FELL NEARLY EIGHT BUCKS. KIND OF A CRAZY MARKET. BUT TO BUY MORE TECH ONLY IF WE GET A WASH OUT, SELL, SELL OFF FIRST, WHERE ALL THE MARGIN MONGERS AND THE OPTION OGRES, THEY JUST GET BLOWN OUT. BOTH HERE AND IN KOREA, WHERE THE NASDAQ, OF COURSE TRULY HAD TO MAKE A BUCK BRINGING THEM OVER. I SHOULD ADD, WE HAVE PLENTY OF HYPERSCALER STOCKS FOR THE THE CHARITABLE TRUST, BUT WE DON'T TALK ABOUT THEM MUCH UNLESS IT'S THE MONTHLY MEETING. WHEN WE GET THAT SPECULATIVE WASH OUT SO OFTEN, IT'LL BE ALL OVER TECH AND THE VALUES WILL BE SELF-EVIDENT TO ANYONE WHO STILL HAS CASH. BUT THE BOTTOM LINE FOR THE MOMENT, IT'S TIME TO GO TO OTHER SECTORS. THEY CAN MAKE YOU MONEY WITHOUT THE VOLATILITY. YOU KNOW WHAT IT MAKES ME THINK OF? PHARAOH'S FURY. THE LAST TIME I THREW UP AT A THEME PARK. BUT I MISSED MY DAUGHTER. I MEAN, I DIDN'T HIT HER. BILL AND INDIANA BILL. >> HI, JIM. I'M WHAT'S HAPPENING, AND I THANK YOU FOR THE HELP AND ADVICE YOU'VE BEEN GIVEN ME OVER THIS PERIOD. >> OF TIME. THANKS, BUDDY. THANK YOU, THANK YOU, THANK YOU. >> MY QUESTION IS ABOUT AUTOZONE. I'VE HELD THE STOCK FOR ABOUT FIVE YEARS. WHILE THERE'S BEEN A BIG CONSOLIDATION IN THE AUTO PARTS INDUSTRY. SO IT'S BEEN A VERY PROFITABLE TRADE FOR ME. BUT IT HAS NOW LOST ABOUT 30% OVER FROM ITS HIGH FROM THE LAST SEVERAL MONTHS AGO. SO I'M THINKING ABOUT SELLING IT. >> WHAT'S YOUR NO NO BILL. I MEAN, LOOK, THEY DID HAVE A PROBLEM, BILL. THEY HAD A PROBLEM. YOU KNOW, LIKE THEY HAVE A LOT OF CHINESE. YOU KNOW, THEY HAD SOME TARIFF PROBLEMS. I DON'T THIS STOCK SELLS ONLY AT 19 TIMES EARNINGS. THEY CONTINUE TO BUY BACK STOCK. I WISH YOU WOULD NOT SELL IT DOWN HERE. I THINK THAT THEY CAN MAKE A COMEBACK. BUT I HEAR YOU BECAUSE I DID THINK THIS WAS GOING TO BE A BIG YEAR FOR THEM. AND SO FAR I AM WRONG. THANKS FOR BEING A MEMBER OF THE CLUB. I'M LOOKING AT THE STOCK AND THINKING, OH WOW, DON'T SELL IT HERE. ALL RIGHT. FOR THE MOMENT, WHEN IT COMES TO THE MARKET, I THINK YOU HAVE TO LOOK OUTSIDE OF TECH TO GET THE BEST OPPORTUNITIES, BUT THAT WILL CHANGE IF WE GET A REAL WASHOUT ON MAD MONEY TONIGHT I'M DIGGING DEEPER INTO THE SELLOFF IN ANYTHING RELATED TO AI. DON'T MISS MY RUNDOWN OF WHERE THE WORST SPOTS ARE AND WHERE TO FIND OPPORTUNITY. THAT IS IT. TIME TO PRESS PLAY ON A POSITION IN NETFLIX AND WHY THE STOCK HAS BEEN BEATEN DOWN SO MUCH, AND WHETHER NOW'S THE TIME TO BUY. I'LL FIND YOU. AND THIS EARNINGS SEASON HASN'T BEEN TOO EXCITING, BUT THERE ARE SOME THINGS TO KEEP YOUR EYE ON THAT I'M POINTING OUT. SO STAY WITH CRAMER. >> DON'T MISS A SECOND OF MAD MONEY. FOLLOW JIMCRAMER ON X. HAVE A QUESTION. TWEET CRAMER HASHTAG MAD MENTIONS. SEND JIM AN EMAIL TO MADMONEY@CNBC.COM. 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