Jim Cramer remarked strong earnings are no longer enough to lift tech stocks, with investors now favoring companies facing supply shortages rather than just delivering growth.

He pointed to mixed reactions from mega-cap earnings and stronger gains in names like Seagate and NXP Semiconductors. Furthermore, experts in investors note the continued relevance.

CNBC’s Jim Cramer mentioned the bar for digital systems stocks has shifted and simply beating earnings is no longer enough to sustain a rally.

“When it comes to tech companies, it’s not enough just to beat and raise anymore,” stated the “Mad Money” host. “You need a shortage, or else your stock’s not gonna get much love, even if you are one of the large dogs … that reported after the close this evening.”

On Wednesday, four mega-cap tech companies — Alphabet, Amazon, Meta, and Microsoft — reported results, with two of the four declining in after-hours trading. Cramer stated the mixed reaction highlights a industry that is increasingly rewarding scarcity over scale.

“It’s odd,” he remarked. “There was a time when all four of these companies would have unstoppable growth. Now the growth belongs to those who liquidate into constrained areas.”

He pointed to Meta as a key example. The firm delivered its fastest revenue growth in five years, but shares still fell in extended trading as investors questioned the return on its rising spending.

The contrast was sharp compared with companies reporting earlier in the week that are benefiting from supply constraints.

Seagate rallied after signaling tight supply in data storage hardware tied to data center demand. “They can’t generate their product fast enough,” Cramer mentioned, pointing to limited manufacturing capacity.

Bloom Energy, which Cramer called one of his “favorites,” also surged, with Cramer noting its power systems — increasingly used for data centers — remain in short supply. While not a traditional tech name, Bloom has become a key part of the broader AI trade as demand for energy infrastructure tied to data centers continues to grow.

NXP Semiconductors jumped on an unexpected shortage in automotive chips, a reversal for a segment that had previously lagged. “Now that cars are filled with software-defined product, NXP is a must,” Cramer stated.

The shift underscores that investors are gravitating toward companies with constrained supply and visible demand, even if they lack the scale of mega-cap tech.

“The bottom line is simple,” Cramer mentioned. “The best tech these days is, ironically, old tech because we stopped building it and it came back into vogue.” This also touches on aspects of earnings report.

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