Cramer Ditches Chips and Teslas for Old-School Industrials — Inverse-Cramer Index Perks Up 🪞

Jim Cramer has told viewers of “Mad Money” to avoid new tech buys this week as Intel, Tesla, and Alphabet prepare to release quarterly results, redirecting fresh capital into industrials and financials instead. The host named FedEx, Honeywell Aerospace, and Goldman Sachs as preferred names during the current selloff.

The recommendation comes against the backdrop of the so-called Inverse-Cramer Effect, a market pattern in which stocks move in the opposite direction of Cramer’s on-air calls. He labeled Intel his “favorite chip stock” on July 15, and the shares dropped roughly 8% within hours, even after ASML confirmed a manufacturing milestone. A similar reversal hit Nike, which fell 15% after a bullish Cramer mention.

Intel is set to report second-quarter results on Thursday, July 23. Analysts forecast earnings of approximately $0.21 per share, reversing a $0.10 per-share loss a year earlier, with revenue projected at $14.4 billion, up about 12% year over year. Alphabet and Tesla are both scheduled to report on Wednesday, July 22, after the close. Analysts expect Alphabet earnings of $2.87 per share, a 24.2% annual increase, with Google Cloud revenue at $22.79 billion, up 67.3%. Tesla delivered 480,126 vehicles last quarter, and analysts project revenue of $25.81 billion and earnings of $0.50 per share, even as the stock trades at 177 times forward earnings, the highest multiple among mega-cap peers. Alphabet and Tesla tickers referenced in coverage are $GOOGL and $TSLA.

Cramer has made bullish calls elsewhere this quarter, including a recommendation to buy Nvidia amid a broader AI chip selloff. Some analysts have noted a potential bull case for chip stocks should Alphabet’s cloud and AI hardware figures exceed expectations. The performance of all three names on their report dates will determine whether Cramer’s rotation call into industrials and financials holds or whether the Inverse-Cramer Effect extends its recent run.