Jim Cramer from CNBC analyzed the surge in certain technology stocks on Thursday, foreseeing a market landscape dominated by leading players in the realm of conceptual artificial intelligence.
Cramer highlighted the resurgence of the relational AI movement as a dominant force in the stock market, showcasing its ability to outperform other sectors significantly. The Nasdaq Composite rose by 1.3% on Thursday, with technology stocks taking the lead. Cramer specifically mentioned the remarkable performance of tech giants like Advanced Micro Devices, which saw a 9.89% increase, and Alphabet, which experienced a 5.31% rise.
In Cramer’s view, AMD played a pivotal role in driving the advancement of AI technology, particularly after CEO Lisa Su’s optimistic projections on the growth of the AI chip market. Su’s forecast of a potential $400 billion market size within the next four years, double the previous estimate, fueled investor enthusiasm.
While Nvidia has traditionally been the frontrunner in the AI chip sector, Cramer noted a shifting sentiment among investors, indicating a willingness to explore alternative options. The recent decisions by Meta and Microsoft to adopt AMD’s latest chip suggest a growing demand for alternatives to Nvidia’s high-priced graphics processors.
Additionally, Cramer pointed out Alphabet’s significant progress in the AI domain, particularly with the introduction of Gemini, a cutting-edge AI architecture. Gemini’s emergence showcases Alphabet’s expanding capabilities beyond its existing ventures like YouTube and research initiatives, positioning the company as a formidable player in the AI market.
Cramer emphasized the continuous evolution and surprises within generative AI technology, underscoring the ongoing potential for innovation and growth in companies associated with this field. As long as generative AI continues to deliver unexpected advancements, companies investing in this technology are poised to deliver impressive results.
