Jim Cramer explains why no AI stock seems safe from the market carnage
CNBC · Alexa LoMonaco ·
CNBC’s Jim Cramer said AI stocks are becoming increasingly difficult to value.
CNBC's Jim Cramer said Thursday that uncertainty over the future of a data center build-out has made artificial intelligence stocks increasingly difficult to value, leading to the steep selling over the past two sessions.
The sell-off swept across the AI trade, hitting everything from chipmakers to companies supplying power and electrical equipment for data centers. The iShares Semiconductor ETF (SOXX) fell 3% Wednesday and another 10% Thursday, while GE Vernova and Sandisk dropped 7% and 22%, respectively, on Thursday. Investors are concerned that regulatory hurdles and opposition to new data centers could slow the build-out, undermining the growth forecasts supporting chipmakers' valuations.
"We don't know what to pay for any of the stocks connected to the data center and that's why this moment is so fraught," the "Mad Money" host said.