Jim Cramer Warns Tech Stocks Could Stay Volatile After $1 Trillion Chip Selloff

Jim Cramer, host of "Mad Money," said Friday that technology stocks may remain volatile after a brutal week of losses. Semiconductor shares erased about $1 trillion in market value Friday. Intel fell more than 28% in one session after its fourth-quarter outlook came in far below expectations. Nvidia, Advanced Micro Devices, Taiwan Semiconductor Manufacturing and Broadcom also declined, helping push the Nasdaq down 2.86%. Cramer said investors are still unsure whether massive artificial intelligence spending is producing returns fast enough to justify technology valuations. He pointed to major earnings, the monthly jobs report and the midterm elections as possible catalysts in the week ahead. "After a brutal week for tech, don't assume the worst is behind us," he said. Cramer advised investors not to try to call a bottom in the Nasdaq. He suggested looking at high-quality companies that are being sold indiscriminately. Intel's update showed that strong data center demand does not guarantee uninterrupted shipments when components are scarce. The company's Data Center and AI unit raised third-quarter revenue 78% to $7.3 billion. Intel flagged wafer and substrate shortages that could limit server deliveries until the second half of 2027. Analysts also tied Intel's weakness to conditions in the PC market. Intel said expensive memory was making large-scale PC sales more difficult. Intel forecast fourth-quarter revenue of $15 billion to $16 billion, compared with consensus expectations of about $17.1 billion. It warned that the slowdown could last through the first half of 2027. Cramer's earnings calendar starts with Apple, which reports Monday after the close. He said Apple remains a company he wants to own. He warned that a valuation near 40 times earnings offers little protection against disappointing results. Cramer called AMD's Tuesday report another test for semiconductor stocks after Intel's setback. The iShares Semiconductor ETF fell 8% during the chip selloff. The PHLX Semiconductor Index dropped 7.1%, its second decline of more than 6% in a little over a week. Cramer said Tuesday's midterm elections could prolong volatility if changes in Washington complicate data center development. He warned that political opposition to data centers could delay construction and hurt businesses that rely on AI infrastructure spending. Some states remain receptive to data centers, he noted. Cramer expects Friday's monthly jobs report to show strong hiring with limited wage growth.