Tech sell-off highlights why diversification still matters, Jim Cramer says

CNBC host Jim Cramer said recent tech losses underline the importance of portfolio diversification, noting gains in health care, industrials and banks while the S&P 500 and Nasdaq fell this week.

Jim Cramer told viewers that the recent sell-off in technology stocks is a reminder of why portfolio diversification matters. He observed that while the S&P 500 and Nasdaq have fallen amid intensified tech selling, other sectors such as health care, industrials and banks have shown relative strength. Cramer suggested some parts of the enterprise software group have fallen out of favor amid shifts tied to AI. He contrasted those moves with a rise in the Dow Jones Industrial Average, which gained about 260 points on Wednesday. Key developments: - Jim Cramer said tech-only portfolios have struggled during recent volatility and emphasized diversification. - The article mentions that both the S&P 500 and Nasdaq fell Wednesday amid intensified tech selling, while the Dow Jones Industrial Average rose about 260 points (0.5%). - The article mentions that Advanced Micro Devices fell about 17% after a perceived disappointing first-quarter outlook, and that Broadcom and Micron Technology also declined. - The article mentions that some software names, including Oracle (down about 5%), and an expanded tech-software ETF fell, with the ETF declining for a seventh session. - The article mentions that banks and industrial companies such as Honeywell, Dover and Emerson Electric have been advancing; Cramer noted these firms show earnings, dividends and buybacks. Summary: Cramer framed the recent market shifts as a reminder that leadership can change across sectors, and he noted that non-tech areas have been posting gains amid the tech pullback. Undetermined at this time.