CNBC's Jim Cramer said Monday that the artificial intelligence trade has become too noisy and unpredictable to aggressively put new money to work. Semiconductor and AI-related stocks have come under pressure in recent weeks after surging to records earlier this year. Cramer argued it may be time to stop chasing the AI trade and instead focus on high-quality companies in other sectors, stating investors can make money without the volatility currently affecting tech stocks.
Cramer Recommends Goldman Sachs, Wells Fargo, FedEx Among Non-Tech Stocks
The "Mad Money" host said Monday that investors who own too much tech risk being "slaughtered" and advised it's time to go to other sectors. Cramer named specific companies he considers high-quality alternatives, including Goldman Sachs, Wells Fargo, FedEx, FedEx Freight, Honeywell, and Boeing. Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club, owns all six companies.
Cramer Maintains Bullish Stance on Nvidia and Intel
Cramer stressed he is not abandoning artificial intelligence altogether. He said he remains bullish on Club name Nvidia, arguing the chipmaker continues to dominate the data center market despite customers' efforts to develop their own chips. Cramer said Nvidia is at the heart of the data center and its AI server racks are "the envy of the world and only AMD comes close."
Cramer also reiterated his bullish stance on Intel ahead of the chipmaker's earnings report, calling it a "triple play" because of its central processing unit business, advanced chip-packaging capabilities, and its burgeoning third-party foundry business. "Intel is a national treasure," said Cramer, who also owns Intel for the Club.
Cramer Awaits Tech Sector Washout Before Adding Positions
Cramer said he is waiting for a broader washout in technology before adding meaningfully to the sector. Until then, he thinks investors are better off putting money to work in high-quality companies outside tech while they wait for more attractive entry points into AI stocks.
FAQ
What did Jim Cramer say about AI stocks on Monday?
Jim Cramer said Monday that the artificial intelligence trade has become too noisy and unpredictable to aggressively put new money to work. He advised that investors who own too much tech risk significant losses and recommended moving to other sectors that can generate returns without the current volatility affecting technology stocks.
Which non-tech stocks did Jim Cramer recommend?
Cramer recommended high-quality companies including Goldman Sachs, Wells Fargo, FedEx, FedEx Freight, Honeywell, and Boeing. Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club, owns all six of these companies.
Does Jim Cramer still support any AI-related stocks?
Yes, Cramer said he remains bullish on Nvidia, arguing the chipmaker continues to dominate the data center market, and on Intel, which he called a "triple play" due to its CPU business, chip-packaging capabilities, and foundry business. However, he is waiting for a broader washout in technology before adding meaningfully to the sector.
