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Jim Cramer thinks investors have gone too far. <\/p>\n
As the tech slump dragged into a new week, the CNBC host said in a post on X that the negativity around Marvell, Apple, and Palantir “is pretty thick,” adding, “No matter what they say, it isn’t enough.” <\/p>\n
He made the remark as all three stocks slid on Nov. 2.<\/p>\n
His comments landed in a rough market. Chip and memory stocks have lost about $3.7 trillion in market value since Oct. 6, and Intel suffered its worst day since 1974 on Oct. 30, falling nearly 29% after a disappointing forecast. <\/p>\n
The chip group shed more than $400 billion on Nov. 2 alone, as reported by Yahoo Finance. In a market this nervous, even good news is getting sold.<\/p>\n
Marvell’s mega-deal spooks investors<\/p>\n
Marvell took the hardest hit. Its shares fell sharply on Nov. 2 after it announced an all-stock deal to buy Lumentum for $115 billion, and the stock has pulled back significantly since reports of the deal surfaced on Oct. 28.<\/p>\n
Also read: Jim Cramer has a new way of thinking about the biggest tech stocks<\/p>\n
The size of the bet explains part of the worry. Lumentum holders will get 4.5 Marvell shares for each share they own, leaving them with roughly a third of the combined company, and the deal is more than 10 times bigger than Marvell’s previous largest purchase. <\/p>\n
Marvell CEO Matt Murphy acknowledged that in a stock deal, the buyer’s share price is the real price tag. “You take more risk when you do it,” he said.<\/p>\n
Murphy is not backing away. Marvell wants Lumentum’s optical connectivity technology, which links the chips used to train and run large language models. <\/p>\n
He called the deal “a double-down on supporting Nvidia, who is the ecosystem leader in this area.” Meanwhile, investors appeared to view Marvell as overpaid, sending Lumentum down almost 19% after its stock had soared more than 450% over the past year. <\/p>\n
The deal’s final value will depend on Marvell’s share price when it closes, according to CNBC. The deal is not expected to close until the first half of 2028.<\/p>\n
Apple beats, but its memory costs bite<\/p>\n
Apple’s numbers were good. Fiscal fourth-quarter revenue hit $114.48 billion and earnings came to $2.10 a share, both ahead of Wall Street’s forecasts. <\/p>\n
It wrapped up what Apple called its strongest fiscal year on record. Even so, the stock drifted lower after hours, with investors fixated on slowing growth.<\/p>\n
What really spooked investors was the guidance. Apple expects a gross margin of 45% to 46% in the December quarter, down from 47.9%, and blamed most of that drop on pricier memory chips, Reuters reported. <\/p>\n
Shay Boloor, chief market strategist at Futurum Equities, pointed out the irony in a post on X: The same DRAM boom helping Micron and SK Hynix is pinching Apple right as it leans into on-device AI.<\/p>\n
CEO John Ternus called the memory situation “unprecedented” on his first earnings call, MacRumors noted. Still, Apple expects December-quarter revenue to grow 7% to 10%, which would make it the company’s best quarter on record. <\/p>\n
Services also hit a quarterly record of $31.6 billion, though Mac and iPad supply will stay tight.<\/p>\n
The memory squeeze is good news for chipmakers. SK Hynix said DRAM prices rose in the high 20s percent from the second quarter, helping it post a record operating profit, while DRAM shipments grew about 10%, according to its Q3 2026 earnings. <\/p>\n
What fills a memory maker’s pockets drains Apple’s margins.<\/p>\n
Apple’s numbers were good. Fiscal fourth-quarter revenue hit $114.48 billion, and earnings came to $2.10 per share.<\/p>\n
Michael M. Santiago \/ Getty Images<\/p>\n
Palantir’s bookings spark doubts<\/p>\n
Palantir also beat on both lines in the third quarter. Revenue came in at $2.31 billion against estimates of $2.18 billion, and adjusted earnings were 44 cents a share against 41 cents, yet the stock closed 3% lower.<\/p>\n
The growth itself was huge. It was Palantir’s first quarter above $2 billion. Revenue rose 96% from a year earlier, and U.S. commercial revenue climbed 148% to $984 million, passing the $953 million from U.S. government work for the first time, as reported by TechCrunch.<\/p>\n
Investors zeroed in on bookings instead. U.S. commercial total contract value fell to $1.46 billion from a record $2.13 billion in the prior quarter. Boloor said in a separate post on X that he genuinely does not think anyone knows how high the ceiling is for this business.<\/p>\n
More Jim Cramer:<\/p>\n
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Karp had an explanation for the slowdown. He said customers are adopting faster but signing shorter contracts, with “an ability to expand that contract dramatically,” and Palantir raised its full-year revenue guidance. <\/p>\n
That suggests the slowdown may reflect how deals are being structured rather than weaker demand.<\/p>\n
AI spending fears hang over tech<\/p>\n
The bigger backdrop is anxiety about AI spending. Last week’s two-day rout erased hundreds of billions in market value from Alphabet and Intel as investors punished cash-draining AI investment. <\/p>\n
That set a sour tone heading into the Nov. 2 session.<\/p>\n
Alphabet’s report showed why. Its free cash flow came in at negative $9.07 billion in the third quarter, following a negative $5.86 billion in the second, while capital spending reached about $51.4 billion.<\/p>\n
The stock then suffered its worst post-earnings sell-off on record, though some managers still see value, citing strong Google Cloud growth and a rapidly expanding order backlog. <\/p>\n
That is the kind of disconnect Cramer is pointing to at Apple, Palantir, and Marvell, where solid results are being drowned out by fear.<\/p>\n
Related: Jim Cramer has a new way of thinking about the biggest tech stocks<\/p>\n
#Jim #Cramer #sends #clear #signal #Apple #Palantir #stock<\/p>\n","protected":false},"excerpt":{"rendered":"
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