Tech

Jim Cramer says chip stocks have gone ‘parabolic,’ and he’s making moves with his own portfolio before it’s too late

Web Desk April 30, 2026

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Jim Cramer says chip stocks have gone ‘parabolic,’ and he’s making moves with his own portfolio before it’s too late

CNBC’s Jim Cramer is scared that the surge in semiconductor stocks could be setting up for a nasty pullback.

In a recent Mad Money episode, Cramer focused his fears on the recent outperformance of the Philadelphia Semiconductor Index (SOX), which posted a historic 18 consecutive winning sessions in April. Even with a recent dip, the SOX has climbed very far and very fast, at roughly 30% in April (1).

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But what’s really spooking Cramer about this rally is its resonance with one prior bull run. As he noted, the only time the SOX did better than April 2026 was in February 2000, right before tech stocks bled in the dreaded dot-com bubble (2).

Back then, the SOX was trading in the 1,100-range at the bubble’s peak, but it fell as low as 238 a few years later (3).

Granted, there were other impressive increases in the SOX’s history that didn’t correlate with declines, and Cramer isn’t ready to say that we’re headed for a similar fall this time around. But he did tell his viewers that these “parabolic moves all over the market” are “worrisome,” CNBC reports (2).

Cramer then presented some in-house analysis on U.S.-listed companies in the chip or AI data center sector that posted 50%+ gains since March 30th. According to his data, 94 companies fit this category, including big chip players such as AMD, Marvell Technology and Intel.

And it’s not just Cramer that’s sounding alarm bells on semi and AI-related stocks. CNBC reports that Goldman Sachs and Morgan Stanley also feel these types of high-tech stocks are overextended and due for a decline.

From orbital to oversold: The case of POET Technologies

To illustrate why he’s so fearful of a drop in chip stocks, Cramer pointed out one small semiconductor name that is already down big time: POET Technologies. At the start of April, this semiconductor startup rode a massive wave of momentum from $5 per share to about $15 at its recent peak (4).

However, one bad headline virtually erased POET’s price pump.

After news broke that Marvell Technologies wouldn’t partner with POET, the stock cratered 47% in a day, MarketWatch reports (5). A week before POET’s reversal, Cramer criticized the company as too small and speculative when a viewer asked about it on Mad Money.

After mentioning POET on his show, the company had two days with over 20% increases, thanks in part to the extra media attention. Cramer now says the steep decline in POET’s value should serve as a cautionary tale for overinflated expectations in the chip sector.

As Cramer said on his show, “That’s exactly the kind of thing that I’m worried about when I see all these parabolic moves (2).”

So, is it time to sell off chip stocks?

Although Cramer has concerns about the sustainability of the latest tech rally, he hasn’t gone full bear-market mode just yet. The Mad Money host is eyeing dips in some chip companies like Arm Holdings to jump in at better prices (2).

But at these current levels, Cramer says he started selling a portion of winners like Qnity Electronics to lock in gains and avoid getting caught in a downturn if it arrives.

“When you see these kinds of moves, you don’t need to freak out. But you’ve got to be disciplined,” Cramer said. According to his strategy, that means taking some profits if you’re up big and avoiding the “parabolic stuff like POET Technologies.”

Overall, Cramer wants everyone in the chip or AI trade to step back and take a chill pill. As he put it, “Keep your cool. And let’s wait to see if we have a more benign pullback from these wild past few weeks, setting us up for more gains ahead.”

But Cramer still warned investors that “if the stocks keep flying, well, that is when you need to worry.”