Palo Alto Networks shares fell more than 1.5% on June 2, 2026, despite rallying over 80% since March, as the company reported a strong beat-and-raise quarter after the market closed [1, 2]. CEO Nikesh Arora reinforced on Mad Money that AI is accelerating demand for the company’s cybersecurity solutions [1, 2]. Jim Cramer urged investors to hold the stock despite possible short-term declines of 7-8%, emphasizing the long-term opportunity [2, 3].

CrowdStrike also posted a beat-and-raise quarter on June 3, but its shares fell more than 4% initially and extended declines by 3.4% through June 5 [2, 3, 4]. CEO George Kurtz said on June 4 that expectations for immediate earnings impact from Anthropic’s AI model Mythos are premature [4]. Cramer called CrowdStrike’s upcoming quarter “gigantic” and described the recent stock weakness as a buying opportunity, saying “people are wrongly not sensing opportunity for the AI-native cybersecurity firm” [3, 4].

Amid the earnings reports, Cramer highlighted a rotation in the market in early June from AI hardware and technology stocks into more defensive sectors such as healthcare and financials [3, 4]. On June 3, he initiated a new position in Intel, viewing the company’s recent stock decline as a good entry point given the strong future demand for AI-driven CPUs [2, 4].

Broadcom reached an all-time high on June 2 but gave disappointing guidance, leading to a roughly 20% decline in its stock over the following week [2, 4]. Marvell Technology’s stock surged 29% on June 2, benefiting from positive AI sentiment [1].

Cramer warned against excessive enthusiasm for AI gains, particularly after comments from Nvidia’s CEO about building a trillion-dollar company, saying, “I don’t like that level of enthusiasm” and noting that stock sells via ATM programs can cap rallies [1]. He said the growth in orders from Mythos “does matter” but advised caution amid market volatility [2].

The May U.S. labor market showed 172,000 non-farm payroll gains and a 4.3% unemployment rate, supporting cautious optimism for economic stability [4].

The next key event will be CrowdStrike’s full quarterly reporting to clarify AI revenue contributions and set expectations for the coming months.