Revenge of the 'Magnificent Seven' — Jim Cramer says it’s time to buy

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CNBC's Jim Cramer said Thursday it's time to revisit the "Magnificent Seven," declaring that months of underperformance have made many of these former market leaders too cheap to ignore.

"We're witnessing the revenge of the Magnificent Seven and most people don't even seem to know it," the " Mad Money " host said. "I think it's time to buy."

Stocks like Dell and Snowflake have surged this year, while many of the Mag 7 have fallen behind — even trailing the overall market as measured by the S&P 500 's year-to-date gain of 13%.

With the exception of Apple , Cramer said Amazon , Alphabet , Meta , Microsoft and Tesla have become relative laggards as investors gravitated toward newer winners. Nvidia , like Apple, is beating the market, year to date, but its price-to-earnings multiple is so cheap that Cramer lumped it in with the rest.

"We have to go back and pick at this market's old leadership, the forgotten Mag Seven, because a lot of them have gotten real cheap," he explained. "On a price-to-earnings basis, they've fallen way behind and that's just plain wrong."

Here's a rundown of the catalysts Cramer sees across six of the seven Mag 7.

Ultimately, Cramer said investors have turned away from the Magnificent Seven just as the companies could begin reaping the rewards of their massive AI investments. Years of data center spending have weighed on their balance sheets, but he expects that infrastructure to increasingly generate returns. "If the rest of the market was doing nothing, then it would be fine that the Magnificent Seven are doing nothing," Cramer said. "That's not the case."

Cramer's Charitable Trust , the portfolio run by CNBC's Investing Club, owns shares of Alphabet, Amazon, Apple, Meta, Microsoft, and Nvidia.

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