CNBC's Jim Cramer on Tuesday reiterated his faith in tech stocks, especially Nvidia and its "Magnificent Seven" peers.
Cramer recognized that some investors question how tech shares are so pricey, especially when the stock is up. He has shared that skepticism, Cramer acknowledged, especially at the start of his career when similar doubts about the value of tech stocks were prevalent.
A cover story he read in Money Magazine 40 years ago helped change his mind about the sector, Cramer said. The money manager author suggested tech would roar back after sell-offs. Cramer was initially doubtful of the theory until he saw it prove true, he said.
According to Cramer, this shift in mindset led him to bring Microsoft to Goldman Sachs as well as other tech stocks he considered winners, like Apple and Nvidia.
"Tech has a well-deserved premium because of stocks like Nvidia," he said. "Sure, you can sell the stock here. Maybe you'll even look like a genius if it sells off tomorrow when it reports. But people doubted Microsoft every step of the way, too. They thought it was ridiculously overvalued and couldn't justify paying up. That's how they missed one of the best runs in history."
Meta, Alphabet, Tesla and Amazon are the other members of Cramer's Magnificent Seven.
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, Apple and Microsoft.
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