AI boom has ‘power to keep the country’s economy humming’
CNBC’s Jim Cramer said he’s not worried about the market taking a breather because the AI boom is strong enough to keep stocks higher.
The three major indexes closed lower on Thursday after the tech-heavy Nasdaq Composite and S&P 500 hit intraday highs earlier in the session. Dow Jones Industrial Average It lost 313 points or 0.63%. Nasdaq Composite fell 0.13% and S&P 500 It fell 0.38%. Still, Cramer said the pullback is healthy.
“We need some rest. We want the stocks to cool down,” said the “Mad Money” presenter, noting that many names related to artificial intelligence have made “parabolic” moves in recent weeks.
Despite growing concerns about slowing consumer spending, weakening hiring and geopolitical tensions, Cramer argued that the market weakness appears to be a pause rather than the start of a long downturn, as the AI theme remains too strong to ignore.
“My belief in this market depends on the opportunity to involve you in what one of our guests will do tonight. Nvidia’s “Jensen Huang correctly names the fourth industrial revolution: artificial intelligence,” Cramer said, referencing his interview with Huang later on the show. Corning CEO Wendell Weeks.
Cramer said investors continue to underestimate the scale of the ongoing AI-driven transformation of the economy. Its benefits span a range of interconnected industries, from power generation, HVAC and semiconductors to cloud infrastructure and cybersecurity.
“Each of these layers that I just talked about is like a giant American jobs program,” he said. “All of them collectively have the power to keep the country’s economy alive.”
While Cramer acknowledged that the market could see additional weakness in the near term following a strong rally, he argued that the broader AI framework remains intact and strong enough to continue supporting stocks despite concerns about the continuation of the Iran war, interest rates and weakening consumer spending.
“Because you have to ask yourself: Do any of these belong to Nvidia or Corning?” he said.
