Cramer analyzes tech stock divergence and AI investments

Jim Cramer, host of the CNBC Investing Club, offered an analysis on Thursday, July 11, 2026, detailing a significant divergence within the technology sector and the impact of artificial intelligence (AI) related investments. The broader market showed gains as Wall Street attempted a rebound despite renewed U.S.-Iran tensions and higher oil prices. Cramer highlighted a sharp divide within tech, with hardware and chip stocks like Micron performing well, while software companies lagged. He attributed this trend to the flow of capital from "hyperscalers" – major cloud providers – into the buildout of AI infrastructure. Companies that receive orders from these giants are thriving, while the hyperscalers themselves are facing pressures. The club's holding, Meta Platforms, is continuing its aggressive AI spending, including plans to manufacture its own AI chips. Cramer believes the company's escalating capital expenditures reflect strong underlying demand rather than excess capacity, even though Meta has struggled to clearly articulate its strategy to investors. He reiterated his confidence in the company's direction. He also addressed the recent decline in shares of Honeywell Aerospace, which recently separated from Honeywell Technologies. Cramer suggested the weakness is likely due to the typical volatility following a spin-off, rather than any fundamental deterioration in the business. He reaffirmed his conviction in the company and indicated it is approaching a price point where he would consider increasing the club's stake. During a rapid-fire segment at the end of the broadcast, Cramer also mentioned PepsiCo and Levi Strauss. The CNBC Investing Club closely monitors these and other technology companies as the market navigates the evolving AI landscape.