TLDR:
Jim Cramer argues that AI is not a bubble and its potential impact on business and the stock market has yet to be fully realized. He cautions against dismissing AI bellwethers like chipmaker Nvidia in favor of other stocks.
- Jim Cramer believes that the impact of artificial intelligence on business and the stock market has not been fully realized.
- He warns against quickly dismissing AI bellwethers like Nvidia in favor of other stocks.
Jim Cramer, from CNBC’s “Mad Money,” challenges the notion that artificial intelligence (AI) is just a passing trend that is losing its excitement. He believes that many investors do not fully understand the potential of AI because we have not yet seen transformative applications of it. Cramer emphasizes that it is premature to overlook key players in the AI industry, such as chipmaker Nvidia, in favor of other types of stocks.
Cramer compares the current stage of AI development to baseball, suggesting that AI is still in its early stages of practice, similar to batting practice in baseball. He speculates that AI has the potential to replace certain jobs that involve physical labor, ultimately helping to launch new businesses that may have been financially constrained without AI technology. Cramer also discusses the challenges in understanding the possibilities of generative AI and large language models, highlighting the difficulty in envisioning significant changes that AI could bring about.
Overall, Cramer’s perspective on AI is optimistic, suggesting that the potential of AI in business and stock market performance has not been fully realized, and investors should pay attention to the developments in this field.