Jim CramerThe host of CNBC’s “Mad Money” show suggested it may be time for investors to consider taking profits from their holdings of AI stocks.
What happenedIn his presentation on Monday, Cramer highlighted the significant gains the AI sector has made over the past week.
He pointed to the outstanding performance of companies such as: Apple company Camel, Oracle Corporation ORCL, Broadcom Company Afgo, Adobe company ADBEAnd Nvidia company NVDA, mentioned CNBC.
Apple shares rose after the company announced new AI programming, Oracle shares rose after its earnings report and partnerships with Microsoft and Alphabet, Broadcom beat estimates, and Adobe reported a better-than-expected quarter. NVIDIA also reached a new 52-week high on Friday.
Despite his continued confidence in Nvidia, Cramer advised against greed and suggested that it may be time to scale back on AI-related investments. He also pointed to chart artist Larry Williams’ analysis, which suggested that NVIDIA may have peaked and could see a decline until late July.
Read next: Apple, Nvidia or Microsoft, who will reach the $4 trillion valuation first? Top Analyst Lays Out Big Thesis for Tim Cook, Predicting Potential iPhone Upgrades of Up to 270 Million
“We know we were getting a little greedy, and that’s completely inappropriate — when you make big gains, you have to take something off the table,” Cramer said.
“Let’s not be too greedy. Remember, this is a wonderful, albeit limited, tight year – you don’t want to spoil it by refusing to register every single one of your shares that might be an AI.”
“I’m still a true believer in Nvidia, but I don’t want to be oblivious to how big this production is.”
why does it matter?: Apple’s AI-related advancements have been an important factor in its recent success. The company’s shares soared after its annual WWDC event, where it unveiled several new software features.
This helped Apple surpass Microsoft in terms of market value, and regain its title as the largest company in the world.
Meanwhile, the AI sector has been a hot topic reddit company r/WallStreetBets, where users celebrate huge wins on AI-related bets. Apple’s AI technologies and partnerships were announced at WWDC, and although investors were initially disappointed, the company’s shares were on the rise.
On the other hand, the famous investor Steve Eisman He also expressed confidence in the artificial intelligence sector, citing it as a key driver of the US economy’s resilience. Eisman dismissed fears of an imminent recession, attributing the economy’s strength to investments in artificial intelligence and infrastructure.
Price movement: Apple stock closed at $212.49 on Friday, after hitting a 52-week high of $220.20 earlier in the week. Nvidia shares closed at $131.88, just below their 52-week high of $132.84.
Read next: Tesla’s ‘Shoot the Champagne Moment’? Shareholders have been vocal about Elon Musk, one analyst says
Disclaimer: This content was produced in part with help from Benzinga Neuro and has been reviewed and published by Benzinga editors.
Image courtesy: Shutterstock
More Stories
JPMorgan expects the Fed to cut its benchmark interest rate by 100 basis points this year
Shares of AI chip giant Nvidia fall despite record $30 billion in sales
Nasdaq falls as investors await Nvidia earnings