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Jim Cramer lists 3 tech CEOs he's giving ‘the benefit of the doubt'

Jim Cramer on the set of Mad Money, August 18, 2022.
Bryan Bedder | CNBC
  • CNBC's Jim Cramer on Thursday listed the CEOs he trusts even when the market doesn't, primarily naming executives from top tech companies.
  • "Not every executive deserves the same level of skepticism if not scorn. Some CEOs have earned your trust," he said.
  • Cramer said he's giving Amazon's Andy Jassy, Broadcom's Hock Tan and Nvidia's Jensen Huang "the benefit of the doubt."

CNBC's Jim Cramer on Thursday listed the CEOs he trusts even when the market doesn't, primarily naming executives from top tech companies.

"Look, it's right to be skeptical when you're investing. It's right to be jaundiced," he said. "But the bottom line? Not every executive deserves the same level of skepticism if not scorn. Some CEOs have earned your trust."

He attributed some of Thursday's gains to Wall Street's realization that many companies aren't performing as badly as previously thought. The Dow Jones Industrial Average gained 0.58%, the S&P 500 rose 0.75% and the Nasdaq Composite added 1%. Cramer said investors shouldn't doubt solid companies every time a negative data point surfaces. He added that some on Wall Street are so caught up pondering the Federal Reserve's next move that they forget about the effect of good management.

Cramer said he's giving Amazon's Andy Jassy, Broadcom's Hock Tan and Nvidia's Jensen Huang "the benefit of the doubt." All of these companies' stocks have performed unevenly over the past several weeks as investors weigh the validity of the artificial intelligence boom. Shares have started to recover in recent days, with Amazon closing up 1.34%, Broadcom up nearly 4% and Nvidia up 1.92% on Thursday.

Cramer said he was impressed by the performance on Amazon's web services division, brushing off investors who were put off by some weaker shopping data. Some had been worried about demand for Nvidia's new graphics chip, but Cramer said he trusts Huang's assurances that customers are clamoring for the products.

Tech stocks can be hampered by investors who don't completely understand the companies' operations or trajectories, according to Cramer. He gave Broadcom as an example, saying it's hard to understand the stock because "there are many moving parts that aren't well known." While some were worried about the company's AI division, Cramer said he has confidence in Tan because the CEO has a solid track record.

"It's quite different when it comes to tech, where the analysts are constantly doubting the resolve and perspicacity of CEOs who simply know far more about their own business than the critics," he said. "In tech, the complexity is such that Wall Street often reaches conclusions that have little to do with reality."

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Amazon, Broadcom and Nvidia.

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