CNBC’s Jim Cramer said he’s not worried about the market taking a breather, as the artificial intelligence boom remains strong enough to keep stocks rising.
After hitting early intraday highs in the tech-heavy Nasdaq Composite and S&P 500 indexes, all three major indexes closed lower on Thursday. of Dow Jones Industrial Average Although it decreased by 313 points (0.63%), Nasdaq Composite down 0.13%, S&P500 It fell by 0.38%. Still, Kramer said the backlash is healthy.
The “Mad Money” host noted that many AI stocks have been moving “parabolically” in recent weeks. “We need some rest. We want stocks to calm down.”
Cramer argued that the market downturn looks more like a pause than the start of a long recession, as the AI theme remains too strong to ignore, despite growing concerns about slowing consumer spending, weak employment and geopolitical tensions.
“My confidence in this market rests on the opportunity for one of our guests tonight to involve you. Nvidia’s Jensen Huang correctly calls it the Fourth Industrial Revolution, or artificial intelligence,” Kramer said, referring to an interview he conducted alongside Fan later in the show. corning CEO Wendell Weeks.
Cramer said investors continue to underestimate the scale of the AI-driven transformation underway across the economy. Its benefits have spread across an array of interconnected industries, from power generation, HVAC, and semiconductors to cloud infrastructure and cybersecurity.
“All of these tiers I just mentioned are like a giant American jobs program,” he said. “They all collectively have the power to keep this country’s economy strong.”
While Cramer acknowledged that the market could see further short-term declines after a strong rally, he maintained that the broader AI buildup is intact and strong enough to continue supporting stocks despite concerns about a prolonged Iran war, interest rates and weak consumer spending.
“Because any of them are Nvidia or corning?” he said.
