Cramer Sees Echoes of Dot-Com Bust as Wall Street Flees AI Stocks for Safety

Jim Cramer told CNBC viewers Wall Street is fleeing this year's hottest AI stocks. He says investors are moving into names like Coca-Cola and Walmart, a shift he compares to 2000's dot-com unwind.

The Mad Money host points to swings in memory chip stocks. He also cites Alphabet's stumble after it raised AI spending guidance.

AI Infrastructure Stocks Face a Reckoning

Alphabet's stock fell nearly 7% after the company lifted its 2026 capital spending guidance. The new range is $195 billion to $205 billion, up from $180 billion to $190 billion. That increase pushed quarterly free cash flow negative, a rare result for the company.

Memory chipmakers have swung even harder. SK Hynix and its US peers, Micron, Western Digital, and SanDisk, surged through much of 2026. AI data center demand created severe shortages and gave these companies pricing power.

However, those gains have reversed sharply as the rally has matured. Cramer has lived through several boom-bust cycles in this group. He expects stocks to fall before the underlying business slows.

… Continue reading the full article at the original source below.