CNBC’s Jim Cramer pushed back Wednesday against the growing narrative that investors are fleeing artificial intelligence and technology stocks, arguing the real story is simpler: expensive stocks are out, cheaper ones are in.
“There’s no revulsion to the data center or AI stocks or even momentum plays,” the “Mad Money” host said. “It’s just that when bond yields go up, money managers dump their expensive stocks and swap into cheaper ones.”
His comments come as some of the market’s highest-flying technology names have stumbled in recent weeks, stoking concerns that the AI trade is losing steam. Cramer insists that’s a misread. The pullback, he said, reflects a growing reluctance among investors to pay premium valuations for stocks that need near-flawless execution to keep climbing.
Valuation Gap in Focus
To illustrate the divide, Cramer pointed to two very different reactions to quarterly earnings. MongoDB, which trades at roughly 52 times expected earnings over the next 12 months, saw its shares tumble around 13% Wednesday despite beating estimates and issuing upbeat guidance. Dell, by contrast, trades at a far more modest multiple of about 16 times forward earnings and rallied 16% after delivering strong results Tuesday.
“The buyers aren’t fleeing from the data center or tech in general,” Cramer said. “They’re just fearful of high multiple tech stocks — because they have to be perfect.”
The contrasting moves, he argued, show that investors are still willing to own technology and AI names when the price is right. “As it happens, many of the data center plays have high multiples, but the ones that don’t, like Dell, are doing fine,” he noted.
Nvidia’s Discounted Multiple
Cramer also highlighted Nvidia as a case in point. Even as the chipmaker sits at the center of the AI boom, it trades at only about 17 times expected earnings over the next 12 months — a level cheaper than many slower-growing tech companies. That low multiple, he said, reflects skepticism that Nvidia’s extraordinary earnings growth can continue, with investors questioning how durable data center spending really is.
Cramer, however, thinks those doubts are overblown. He cited Dell’s recent results as evidence that customers are starting to see real returns from their AI investments — a signal that spending on data center infrastructure is translating into tangible business value.
“What the heck is Nvidia doing with such a low price-to-earnings multiple despite the phenomenal growth?” he asked.
Selective, Not Skeptical
For Cramer, the recent sell-off is not a sign that the AI trade is broken. Instead, investors are becoming more selective about what they’ll pay for exposure to the theme.
“We hear that investors are fleeing the artificial intelligence trade. Or that they don’t want to own technology anymore. Or the data center’s become a nightmare. Or, worst of all, the momentum trade is broken,” he said. “These are all wrong. They’re getting the symptoms right — these groups truly are going down — but missing the real cause.”
Source: www.cnbc.com — https://www.cnbc.com/2026/09/02/cramer-says-investors-arent-ditching-tech-they-want-cheaper-stocks.html
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