Jim Cramer says Big Tech is underspending on AI. Here’s why

On Thursday, Jim Cramer from CNBC confirmed the belief of artificial intelligence in the power of earnings, and said that the great technology hyper scales did not spend much on the new technology.

“These companies do not spend much on AI, in fact they are inadequate against AI.” He said. “Look, this winner is a losing situation. The only reason for spending less is, if you don’t believe you can win.”

Tech Megacaps is increasingly spending more and more money in the AI as the dominance race in the area is intensified. Meta– Amazon– Alphabet And Microsoft In 2025, CNBC reported that it intends to spend $ 320 billion on AI technology and data center buildings. This is a significant increase from $ 230 billion from total capital expenditures in 2024. Companies invading especially for AI products Nvidia. AI Darling has seen that the market value has increased significantly in the last few years. Nvidia became the first company to reach $ 4 trillion at the beginning of this month and provided the status of the world’s largest outfit.

There are some who believe that AI investments of technology giants will not work in Cramer, Wall Street. However, the last quarter of Alphabet shows that such criticism is unfair.

When the Alphabet was reported on Wednesday night, he easily defeated earnings and income estimates. The company also announced that it will add $ 10 billion to capital expenditures by specifying the increasing demand for cloud services. The search giant continues to support the infrastructure to strengthen AI services using cloud technology.

He told Cramer that the alphabet expenses seem justified, which makes him think that these investments are “urgent and needed”. Authorized, AI expenditures also increased market gains, he added.

Cramer, especially those careful against the chat boots agreed to understand some skeptics. AI told the way chatbots make mistakes and even produce information. However, Cramer said that technology will improve as companies buy more advanced chips than Nvidia.

“My buying is that Google’s expenditure increases, because the right chatbot will be the winner just like how Google Search wins to start,” he said. “If you win the AI race, you can result in a close monopoly and hundreds of billions of dollars profit.”

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