AI stocks had a strong run in 2023. While experts warn of hot stocks and investors become more cautious, TV personality Jim Cramer remains bullish.
• AI stocks rose sharply in 2023
• Jim Cramer still sees upside potential
• Trend doesn’t end after one year
How strongly AI stocks have developed this year can be seen from large industry representatives: The chip manufacturer NVIDIA has increased in price by around 195 percent since the start of the year, while Microsoft shares, which were able to benefit greatly from their OpenAI investment, went up up around 54 percent since January, Amazon has delighted investors with a price increase of a good 78 percent.
Jim Cramer sees AI epicenter in Seattle
However, former hedge fund manager Jim Cramer does not believe that the end of the road has already been reached. In his show “Mad Money” on CNBC, the market expert took a close look at AI stocks and came to an optimistic assessment. The epicenter of AI is in Seattle, said Cramer, referring to the headquarters of Amazon and Microsoft.
He expressed his belief that the enthusiasm for generative artificial intelligence is just beginning and also emphasized that AI-related stocks still have more room to run. Andy Jassy apparently also contributed to the conviction: The Amazon boss was convinced that generative AI would bring tens of billions of US dollars to his company’s web services in the future, as companies would switch from local data processing to the cloud. “If, as Amazon CEO Andy Jassy told me, 90 percent of the software is still on-premises and not in the cloud where ChatGPT runs, then I think everyone [Aktien-]”The decline is actually met with a buy rather than a sell because, folks, the amazement and astonishment is just beginning, and what huge trend has ever stopped before it was only a year old?” said Cramer.
For him, AI is “anything but a cheap sleight of hand” and will change the way people do their work and approach challenges, Cramer said in his broadcast.
Amazon, Microsoft and NVIDIA in sight
Cramer cited Amazon, Microsoft and NVIDIA as examples of stocks that still have room for improvement thanks to AI. Amazon uses the technology to determine what buyers want before they know it themselves.
Microsoft stands out as a leader in the AI space, partly because it owns half of OpenAI, the company behind ChatGPT, emphasized Cramer. In contrast to some of its competitors, Microsoft is making noticeable profits with its AI company Co-Pilot, the TV presenter continued.
Meanwhile, NVIDIA CEO Jensen Huang is also prepared for the AI trend: Long before ChatGPT went viral, Huang Cramer demonstrated the power of generative AI and used the new technology to create, at Cramer’s request, a drawn seascape in the style of post-impressionist painter Paul Cézanne.
The TV host is convinced that AI has not yet reached the end of its possibilities and that AI stocks still have significant upward potential. The cynics would say that the moves in AI stocks are already too big, Cramer said. “I can tell you from my personal conversations with people in Seattle that this step is just beginning.”
Just three months ago, Cramer was less optimistic
Cramer’s bullish view of the AI market and AI stocks is surprising, as the ex-hedge fund manager had taken a different tone in September. “We’ve seen a lot of CEOs and analysts trying to incorporate AI into their bullish narratives. And it’s been going on for a while now, and it’s worked,” Cramer said. “But I think those days will soon be numbered unless they find a legitimate way to make a lot of money with AI instead of watching a goat surf off the coast of Hawaii,” Cramer recently said Looking at possible legitimate use cases of AI.
Editorial team finanzen.net
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