Jim Cramer says it’s time to look beyond tech as AI uncertainty rattles the market
AI trading has become too noisy and unpredictable to aggressively invest new money, at least for now, CNBC’s Jim Cramer said Monday.
“If you have too much technology, you get slaughtered and you don’t even know what hit you,” the “Mad Money” host said. “For now, it’s time to move on to other sectors. They can make you money without volatility.”
Semiconductor and AI-related stocks have come under pressure in recent weeks after hitting records earlier this year. Cramer argued that it may be time to stop chasing every development in the AI business and instead focus on high-quality companies in other sectors.
“It makes me want to find high quality companies like this Goldman Sachs And Wells Fargoor I dig my teeth FedEx And FedEx Shippingor collect some Honeywell’s And Boeing’sCramer’s Charitable Trust, the portfolio used by CNBC Investment Club, owns all six companies.
Cramer emphasized, however, that he has not completely abandoned artificial intelligence.
He said he remains optimistic about the club’s name Nvidiaargues that the chipmaker continues to dominate the data center market despite customers’ efforts to develop its own chips.
“Nvidia is at the heart of the data center,” Cramer said, adding that AI server racks “are the envy of the world, and only AMD can come close.”
Cramer also reiterated his bullish stance Intel Ahead of the chip maker’s earnings report, it calls it a “triple play” due to its central processing unit (CPU) business, advanced chip packaging capabilities and improving third-party foundry business.
“Intel is a national treasure,” said Cramer, who also owns the club’s Intel.
Even so, Cramer said he expects broader disruption to occur in technology before it can make a meaningful contribution to the industry. Until then, he thinks investors would be better off putting their money into high-quality companies outside of tech while awaiting more attractive entry points into AI stocks.
