In October 2025, CNBC’s Jim Cramer spotlighted the changing face of the U.S. economy by breaking down three critical sectors.

First, AI and tech companies are the undisputed stars. Led by Nvidia and a constellation of chip, data center, and AI platform stocks, this group has powered most of 2025’s 3.8% GDP growth. These firms are flush with cash, insulated from rate worries, and riding a non-stop wave of digital transformation. Even as the Fed keeps interest rates high to curb inflation, tech and AI names are driving nearly all S&P 500 returns and shaping Wall Street sentiment.

By contrast, the consumer economy is limping along. Cramer points out that the housing market is especially weak, with new home starts dropping, mortgage applications flatlining, and big homebuilders cutting prices to move rising inventories. Until rates come down, don’t expect a housing bounce. Autos and transportation companies are in a tough spot too—automakers are caught in tariff disputes, raw material costs are up, and global supply chains are still messy. Freight and trucking stocks are also struggling to find momentum.

Cramer’s key message for investors: Embrace the “bifurcated” market. Focus on stocks with strong AI integration and innovative business models. Sectors tied to traditional consumer spending or interest-rate sensitivity should be approached with caution until macro conditions shift. Flexibility and a sharp eye on economic data—especially inflation and employment reports—will be vital for portfolio success as sector performance continues to diverge.

Bottom line: In 2025, the big winners are those who adapt to rapid change and invest in innovation. Keep your radar up for the latest earnings and economic signals, and always make sure your investments match the realities of today’s split market landscape.