Always be respectful of the power of hope, Jim Cramer reminded hisMad Moneyviewers Tuesday. There are many negatives in the stock market, including tariffs and escalating tensions with Iran, but when it comes to technology stocks in particular, hope springs eternal.
Tech stocks are typically strong going into the new year. This is when analysts begin making their bullish predictions for the year, and this year is no different. It's also the time when the annual CES conference sparks the interest of consumers, and this year is no different.
Tuesday, we heard from several semiconductor companies, like Advanced Micro Devices( AMD ) - Get Report, which told us about the power of artificial intelligence. Meanwhile, shares of Microchip Technology( MCHP ) - Get Reportrose 6.7% on strong earnings.
Tesla's( TSLA ) - Get ReportElon Musk had bullish things to say about electric cars in China, while here in the U.S., we have the 5G wireless rollout to look forward to. Social media advertising continues to flourish, while companies across the globe continue to move to the cloud and digitize their operations.
Cramer said investors still aren't late to the rally in tech, but they do need to be mindful of the market's recent gains and expect a short-term pullback. That's the time to be buying some of these high-quality tech stocks, he said, because things are looking promising for 2020 and beyond.
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At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.