CNBC’s Jim Cramer said Tuesday that he thinks the recent movement of money from artificial intelligence companies into stocks across sectors is supporting the market, even as big tech companies show weakness.
“Institutional money and institutional memory fled bubble stocks months ago and moved into all kinds of non-tech growth strategies,” he said. “That’s the strength of this market. That’s why the mag-seven contraction means much less than the bears said.”
The move runs counter to Wall Street’s concerns about a bubble forming in data center stocks, he noted. Kramer added that the data center hype died down several months ago as investors moved to sectors such as aerospace, retail and fintech. The group was “the saving grace of this market,” he continued, as high-flying speculative stocks began to fall.
Kramer likened the current market to the dot-com bust. There is more money in the world now, and more money is indexed into the world. S&P500 The average hasn’t collapsed, he said, because it’s higher than it was 25 years ago.
He added that this immigration movement has made him “more optimistic than most” about the current moment, adding: “There’s a lot of power in the very stocks that tried to save us in 2000 and failed because they didn’t have enough capital to put it there.”
“It’s not 2000. What I call 2025 is an orderly transition to the sustainable growth of the past, where we are the beneficiaries of AI, not the creators of it,” Kramer said.
