DoorDash shares have fallen 32% year to date. Jim Cramer called the stock a buy, blaming a sector rotation toward semiconductors that has punished consumer-tech platforms while fueling AI hardware names.
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DoorDash slides 32% as Cramer calls it a buy during chip rotation
DoorDash shares have fallen 32% year to date, and Jim Cramer called the stock a buy, blaming a sector rotation toward semiconductors.
"There's a real group of stocks now. Uber, DoorDash, Reddit, they are going down. People want to own hardware," Cramer, host of CNBC's Mad Money, said on the May 26 episode. "That's what they want is semi, not DoorDash."
DASH traded at $158.30 after starting the year above $226. Uber Technologies Inc. fell 14% year to date and Reddit Inc. dropped 37% over the same period. Nvidia Corp. gained 15% year to date and Broadcom Inc. rose 22%, as capital flowed into AI infrastructure. Nvidia's second-quarter revenue guide of $91 billion reflects 85% revenue growth, with Chief Executive Jensen Huang calling AI infrastructure "the largest infrastructure expansion in human history." The Philadelphia SE Semiconductor index hit a record high on Tuesday before pulling back.
The rotation has punished consumer-tech platforms even as DoorDash's business accelerates. The company posted first-quarter revenue of $4.04 billion, up 33% from a year earlier, with marketplace gross order value rising 37% to $31.6 billion. Adjusted EBITDA climbed 28% to $754 million, and free cash flow reached $420 million. The Deliveroo acquisition, which closed in October, contributed $362 million in revenue during the quarter.
Goldman Sachs flagged the rotation in its 2026 outlook, noting that semiconductors are seeing continued multiple expansion while software platforms face compression. The bank raised its year-end S&P 500 target to 8,000 from 7,600, citing strength in corporate earnings. The Dow Jones Industrial Average reached a record closing high on Wednesday, lifted by a rotation into healthcare and consumer stocks, while chip stocks pulled back after a strong rally.
Cramer's buy call puts him against the prevailing current. The analyst who called Nvidia in 2010 recently named his top 10 stocks — and DoorDash was not among them. The caller who prompted Cramer's response confessed to being down 30% on the position, asking whether the stock still belonged in the "own it, don't trade it" bucket.
The decline puts DoorDash at its lowest level since early 2025, testing investor patience in a market that rewards hardware over platforms. The company's next catalyst will be its second-quarter earnings report, where investors will watch whether growth can overcome the rotation headwind.
This article is for informational purposes only and does not constitute investment advice.
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