Jim Kramer explains why I think the AI ​​boom is different from the dotcom bubble

CNBC’s Jim Kramer on Monday opposes the narrative that Wall Street’s enthusiasm for artificial intelligence is the same as the 2000 dot-com bubble, saying there are significant differences in terms of the quality and fundraising of the current major tech stocks that are leading the market to new heights.

“To speak as an internet pioneer, what I’m looking at now is the opposite of what we saw 25 years ago. When dotcom made a bad investment, most of them were below,” he said. “But in the worst case scenario, if Google, Amazon and Meta make a bad investment and suffer a big loss, that’s another day in the office.”

Kramer explains that some people on Wall Street doubt the validity of the large-scale investments in AI and data centers, fearing that the AI ​​boom will plunge the market into chaos like what happened at the end of the dot-com era.

But Cramer is, in each of the major players in the space, that is nvidia, Microsoft, Meta, apple, alphabet, Amazon and Tesla – Everything can “foster a reputation for something different,” more substantial than many Dotcom companies. He noted that most data centers are built by these very rich companies. But he said he was somewhat interested. OracleBuilding a data center with “a big sum from Openai” would mean building a data center, saying, “I don’t know where that money really comes from.”

He also suggested that the high-tech mega cup is not “the type of company that rolls down in a few months.” Instead, he said that most of the time they are washed away with cash and can be amortized for debts if necessary. He also expressed optimism that these companies will continue to succeed as AI technology becomes more and more sophisticated.

But despite his confidence in Big Tech and AI papers, Cramer said he doesn’t think investors should stop scrutinizing major stock movements into the space and investing.

“So should we remove the dotcom bomb scenario from the table? Strangely, I don’t want it to be removed from the table,” he said. “Look, skepticism keeps things under control. Now, if the story isn’t too negative and negative, everyone is in this pool and we can all own.”

Sign up now and follow CNBC Investing Club’s every move into Jim Cramer’s market.

Disclaimer CNBC Investing Club holds stocks in Apple, Meta, Microsoft and Nvidia.