Institutional Rotation from Tech to Non-Tech: Analysis of Jim Cramer’s 2025 Comments

On December 16, 2025, CNBC’s Jim Cramer highlighted that institutional investors have been moving capital away from tech “bubble stocks” (primarily AI and tech-related assets) and into non-tech growth opportunities over the past several months [1]. This rotation aligns with Bloomberg’s December 13, 2025 report, where Wall Street strategists advised clients to prioritize non-tech sectors—including healthcare, industrials, and energy—over the “Mag Seven” large tech stocks for 2026 growth [2]. Bank of America (BofA) data indicates tech stocks are on track for a record $75 billion in inflows in 2025, but the sector has faced recent pressure, suggesting a potential shift in institutional sentiment [3]. On the day of Cramer’s comments, major tech stocks like AAPL (up 0.66%) and MSFT (up 0.95%) rebounded slightly after earlier declines, though the NASDAQ Composite’s 0.56% gain underperformed broader market expectations [0]. Non-tech sector performance data (for ETFs like XLU: Utilities and XLB: Basic Materials) was conflicting due to real-time data delays [0].

1. Sentiment Shift Contrast
   : Despite record projected 2025 inflows, recent institutional outflows from tech and growing interest in non-tech sectors indicate shifting concerns about tech valuation bubbles [3].
2. Market Resilience Factors
   : Cramer noted the current market is more stable than the dot-com era due to increased capital availability and S&P 500 indexing, which distribute risk across more stocks [1].
3. Strategic Alignment
   : Cramer’s observations about non-tech growth opportunities align with 2026 sector recommendations from major financial firms, reinforcing a medium-term trend [2].

• Risks
  :
  • Tech sector volatility could persist if institutional outflows continue, particularly for AI-related stocks with lofty valuations [1].
  • A potential rotation reversal (if tech fundamentals improve) could lead to underperformance in non-tech sectors [0].
  • Market breadth risk: The market’s resilience depends on sustained growth in non-tech sectors; a lack of breadth could increase vulnerability to broader declines [0].
• Opportunities
  : Non-tech sectors (healthcare, industrials, energy) are emerging as growth opportunities for 2026, supported by institutional rotation and strategist advice [2].

This analysis integrates Jim Cramer’s on-air comments with market data and strategist reports. Institutional rotation from tech to non-tech is a noted trend driven by tech valuation concerns, despite strong 2025 tech inflows. Non-tech sectors are positioned as potential growth areas for 2026. Conflicting real-time sector performance data on the day of the event warrants monitoring for up-to-date insights. No prescriptive investment recommendations are provided.