Jim Cramer makes the case for buying Procter & Gamble stock

CNBC’s Jim Cramer reviewed recent market action and made the case for Procter & Gamble. He drew a distinction between companies like the consumer giant, which makes use of new technology, and tech hyperscalers that spend billions on artificial intelligence to compete with each other.

“My favorite tech stocks right now are the business-to-business users of technology,” he said. “I think these companies will increasingly be given a chance to buy amazing tech that will help them cut costs and bring new products to market much faster than ever, and that we never even knew we needed.”

Procter & Gamble owns many well-known household and hygiene brands including Pampers, Crest, Olay, Gillette, Dawn, Febreze and Mr. Clean. The company has used AI to improve its supply chain and design factories more efficiently, Cramer said, suggesting the outfit has saved millions.

Cramer dubbed Procter & Gamble a buy at these levels, saying “in this whacky market, you want those who use the technology, not those who make it.” The stock is down more than 13% for the year, it trades at 20 times earnings, and its dividend has a 2.91% yield.

Cramer said he’s not arguing for investors to abandon tech stocks all together, but he emphasized that he’s less enthusiastic about the group because of the growing competition and enormous spending. He said the Magnificent Seven — Nvidia, Microsoft, Meta, Apple, Alphabet, Amazon and Tesla — have had huge runs but are now pulling back because “their future prospects are so darned murky.”