Cramer and Analysts Highlight Strength in Tech and Financial Stocks

November 16, 2025 at 07:07 UTC

7 min read

Tech and financial sector growth chart with AI investment highlights and strong earnings trends

Key Points

Jim Cramer favors Lam Research over Applied Materials, citing stronger company performance and innovation in semiconductor equipment.
American Express upgraded to Hold after strong Q3 2025 results and successful launch of updated credit cards.
Visa and Mastercard report robust revenue growth driven by increased consumer spending and digital payment adoption.
Microsoft expands AI data center infrastructure with a new AI super factory, signaling increased investment in AI capabilities.

Lam Research Gains Favor Amid Semiconductor Industry Growth

Lam Research Corporation (NASDAQ:LRCX) has recently drawn positive attention from both market analysts and financial commentator Jim Cramer. Cramer expressed a clear preference for Lam Research over Applied Materials, noting that Applied Materials' recent earnings report was disappointing, whereas Lam Research continues to demonstrate strong execution and innovation. Lam Research specializes in equipment for depositing, etching, and cleaning semiconductor materials, including systems for tungsten and copper metallization, plasma and atomic-layer deposition, dielectric and conductor etch, and wafer cleaning. The company’s President and CEO highlighted ongoing innovations that support customers in addressing AI-driven semiconductor manufacturing inflections. Citi analyst Atif Malik raised Lam Research’s price target from $175 to $190, maintaining a Buy rating, citing increased wafer fab equipment estimates driven by AI investments. Lam Research anticipates closing calendar 2025 with three consecutive quarters of over $5 billion in revenue, reflecting sustained growth supported by investments in the Foundry market segment and customer support services. Despite a slight decline in net income from $1.7 billion in Q2 2025 to $1.56 billion in Q3 2025, the company’s revenue rose 3% sequentially to $5.32 billion, underscoring robust company-wide execution and its critical role in the semiconductor industry’s technology roadmap.

American Express Shows Strong Performance and Card Launch Success

American Express Company (NYSE:AXP) has demonstrated solid financial performance in its third quarter of 2025, leading to an upgrade from Sell to Hold by Freedom Capital Markets. The price target was increased from $280 to $325 following the company’s report of earnings per share of $4.14, a 19% year-over-year increase and 4% above expectations. Revenue also exceeded estimates by 2%, reaching $18.43 billion. The company’s growth was supported by higher revenue, reduced provisions, and share repurchases, which offset increased operational and tax expenses. CEO Stephen Squeri highlighted the successful launch of updated U.S. Consumer and Business Platinum Cards, noting that initial demand and engagement surpassed projections, with account acquisitions doubling compared to pre-refresh levels. Jim Cramer expressed positive sentiment toward American Express, emphasizing its strength as the preferred credit card for travel-related expenses despite challenges in the experiential economy. The company’s consistent performance and strategic product updates position it well within the financial services sector.

Visa and Mastercard Report Strong Revenue Growth Fueled by Consumer Spending

Visa Inc. (NYSE:V) and Mastercard Incorporated (NYSE:MA) have both reported robust financial results driven by strong consumer spending and the ongoing shift toward digital payments. Visa posted an 11.5% year-over-year revenue increase in its fourth quarter, with total revenue of $10.72 billion surpassing Wall Street expectations by 1.1%. Payment volume on Visa’s network grew 8% year-over-year on a constant-dollar basis, while cross-border volume increased 13% in fiscal 2024. The company forecasts low double-digit net revenue growth for fiscal 2026, aligning with analyst expectations. Mastercard reported 17% year-over-year net revenue growth (15% on a currency-neutral basis) to $8.6 billion in Q3 2025, supported by strong consumer and business spending and growth in differentiated services. Adjusted net income and diluted EPS rose 8% and 11% respectively on a currency-neutral basis. Mastercard anticipates high-end low double-digit net revenue growth in Q4 2025, excluding acquisitions. Analysts attribute Mastercard’s growth to the secular transition from cash to electronic and digital payments, with organic growth in its payment network and value-added services playing a significant role.

Microsoft Expands AI Infrastructure with New Data Center Build-out

Microsoft Corporation (NASDAQ:MSFT) is significantly expanding its data center infrastructure to support growing AI computing demands. According to a Wall Street Journal report, Microsoft is constructing an AI super factory in Atlanta, consisting of two-story structures designed to integrate seamlessly with other infrastructure to harness substantial computing power. The company plans to double its total data center footprint over the next two years. Microsoft spent over $34 billion on capital expenditures in Q1 2026 and intends to increase infrastructure investments in the upcoming fiscal year. The tech giant is among several companies investing a combined $400 billion into AI efforts in 2025, reflecting heightened demand for AI computing capacity. During its Q1 2026 earnings call, Microsoft indicated plans to increase spending on GPUs and CPUs to meet accelerating demand and growing remaining performance obligations (RPO). The company now expects fiscal 2026 growth rates to exceed those of fiscal 2025, underscoring its commitment to AI infrastructure development.

Additional Analyst Updates on Key Technology Stocks

Several other technology companies have received notable analyst attention reflecting optimism about their growth prospects, particularly in AI and semiconductor sectors. Evercore ISI raised the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) from $270 to $283, maintaining an Outperform rating. AMD outlined a transformative long-term financial model targeting over 35% revenue compound annual growth rate (CAGR), non-GAAP operating margins above 35%, and non-GAAP earnings per share exceeding $20 within 3-5 years. Despite some concerns about the sustainability of growth, AMD is well-positioned to capture market share driven by AI demand. Bank of America maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a $275 price target, emphasizing the company’s central role in AI infrastructure buildout despite short-term challenges. NVIDIA’s AI data centers, networking, and accelerated computing segments remain on track for growth. Additionally, Salesforce, Inc. (NYSE:CRM) announced a definitive agreement to acquire Spindle AI, an agentic analytics platform that combines AI agents and machine learning with data modeling to enhance business decision-making. This acquisition, expected to close in Q4 2026, aligns with Salesforce’s strategy to advance AI-driven analytics and forecasting capabilities.

Jim Cramer’s Views on Enterprise Software and Semiconductor Stocks

Jim Cramer has recently shared his perspectives on several stocks, highlighting both opportunities and challenges in the current market environment. Regarding Lam Research, Cramer considers it a superior company compared to Applied Materials, encouraging investors to buy Lam Research shares, especially after Applied Materials’ underwhelming earnings report. He noted Lam Research’s critical intellectual property in semiconductor capital equipment and its strong stock performance, which had risen approximately 65% before his comments. On the enterprise software front, Cramer discussed ServiceNow, Inc. (NYSE:NOW), advising long-term holders to maintain their positions due to solid fundamentals and effective leadership under CEO Bill McDermott. However, he acknowledged that the enterprise software sector has faced headwinds amid AI advancements that automate coding tasks traditionally performed by software companies. Cramer’s insights reflect a nuanced view of technology stocks, balancing optimism for innovation-driven growth with caution about sector-specific challenges.

Key Takeaways

Lam Research is favored over Applied Materials due to stronger innovation and execution in semiconductor equipment.
American Express’s upgraded rating follows strong quarterly results and successful credit card product launches.
Visa and Mastercard benefit from increased consumer spending and the ongoing shift to digital payments.
Microsoft’s expansion of AI data centers underscores the growing investment in AI infrastructure across the tech industry.