Jim Cramer says investors should wait before buying AI data center stocks
Jim Cramer warned on Monday that the recent bounce in AI‑related equities may be premature. The Nasdaq Composite rose about 1.1% and the S&P 500 gained nearly 0.5%, while the Dow traded flat after a sharp Friday sell‑off that pushed the Nasdaq Composite and Nasdaq‑100 below their 50‑day moving averages and sent the VIX above 22 for the first time in four months.
Key points
- Nasdaq Composite rose about 1.1% Monday after AI stocks rebounded
- Cramer cites four hurdles: chart recovery, hyperscaler earnings, post‑election certainty, Anthropic IPO
- VanEck Semiconductor ETF and Roundhill Memory ETF show bearish double‑top patterns
Cramer outlined four hurdles he believes must clear before the AI data‑center cohort can sustain another rally: technical charts need to improve, the major cloud hyperscalers must confirm continued AI spending, the November 3 mid‑term elections must pass to reduce political risk, and Anthropic must successfully go public. He noted bearish double‑top patterns in the VanEck Semiconductor ETF and Roundhill Memory ETF and head‑and‑shoulders formations elsewhere, suggesting no clear bottom yet. Cramer’s Investing Club portfolio holds shares of Meta, Alphabet, Microsoft and Amazon, underscoring his long‑term belief in the AI trade despite the current caution.
The story so far
9 episodes →- Jim Cramer says investors should wait before buying AI data center stocksthis story
Jim Cramer says don't chase the AI rebound just yet. Here's what needs to happen first
CNBC Technology · 19 October 2026
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