Cramer urges investors to be more selective in the AI frenzy
Cramer urges investors to be more selective in the AI frenzy
https://www.cnbc.com/2026/05/14/cramer-urges-investors-to-be-more-selective-in-the-ai-frenzy.html
Publish Date: 2026-05-14 18:22:00
Source Domain: www.cnbc.com
- Jim Cramer emphasizes the need for greater investor selectivity in the semiconductor sector amidst a rally.
- Cerebras’ IPO performed exceptionally well, though Cramer criticized the valuation as “fanciful,” comparing it to the tech bubble of 1999.
- Despite the hype, Cramer still strongly supports the broader trend towards artificial intelligence but urges investors to exercise greater discipline.
- He highlights Cisco as a company with a justified rally due to strong performance in AI infrastructure spending.
- Cramer values Nvidia as attractively priced despite significant gains, suggesting it might be cheaper than the average S&P 500 stock.
- Semiconductor stocks like Micron, Sandisk, and Western Digital remain viable given persistent supply shortages and strong AI demand.
- Cramer concludes that while chip stocks should not be abandoned, investors need to be more discerning about which specific companies to invest in.
