CNBC’s Jim Cramer said Monday that artificial intelligence trading has become too noisy and unpredictable to attract new capital, at least for now.
“If you have too much technology, you’re going to get slaughtered and you won’t even know what hit you,” the “Mad Money” host said. “For now, it’s time to look at other sectors, where you can make money without worrying about volatility.”
Semiconductor and AI stocks have come under pressure in recent weeks after a record rally earlier this year. Kramer argued that it may be time to stop following every development in the AI industry and instead focus on high-quality companies in other areas.
“You want to find quality companies that: goldman sachs and wells fargoor sink your teeth into fedex and fedex cargoor scoop up some honeywell and boeingCramer’s Charitable Trust, a portfolio used by CNBC Investment Club, owns all six companies.
Still, Kramer emphasized that he is not abandoning artificial intelligence completely.
He said he remains bullish on the club’s name. Nvidiaargued that chip makers continue to dominate the data center market even as customers seek to develop their own chips.
“NVIDIA is at the heart of the data center,” Cramer said, and its AI server racks are “the envy of the world, rivaled only by AMD.”
Kramer also reiterated his bullish stance. intel Ahead of the chipmaker’s earnings report, it called it a “triple play,” citing the company’s central processing unit (CPU) business, advanced chip packaging capabilities and fast-growing third-party foundry business.
“Inter is a national treasure,” said Cramer, who also owns the club Inter.
Still, Kramer said he is waiting for a broader shakeout of the technology before making any meaningful additions to the field. Until then, he thinks investors are better off putting their money into high-quality non-tech companies while waiting for more attractive entry points into AI stocks.
