Jim Cramer, host of Mad Money on CNBC, says Wall Street is taking profits on the biggest AI infrastructure winners and rotating into stocks with other growth drivers. Memory makers like Western Digital, Micron, Seagate and Sandisk, which hit record highs thanks to shortages of AI server components, have tumbled nearly 40% in less than six weeks after their June peak. Capital is now flowing into companies like ServiceNow, Salesforce, Costco, Walmart and Johnson & Johnson, which are up 11% to 16% this month. Johnson & Johnson notably hit an all-time high Tuesday after announcing a $5.5 billion settlement to resolve talc litigation. Despite this sector pullback, Cramer remains bullish on Nvidia and Intel, which he sees as supported by durable demand.
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