The burgeoning trend of relational artificial intelligence, as per CNBC’s Jim Cramer, is in its early stages. Cramer anticipates continued momentum for AI-related stocks despite a significant uptick this week.
During a recent discussion with Cramer, Amazon CEO Andy Jassy projected that generative AI would drive substantial revenue growth for the company’s web services, transitioning enterprises from on-premises computing to cloud-based solutions. This shift, according to Jassy, could fuel further interest from investors in AI stocks even during market pullbacks.
Cramer believes that AI companies, although experiencing notable gains recently, still have considerable growth potential. The nascent stage of wonder and excitement surrounding AI implies a robust trajectory ahead, with any market dips likely prompting increased buying activity rather than selling, especially considering Jassy’s revelation that a significant portion of technology remains on-premises rather than on the cloud where ChatGPT operates.
Describing generative AI as a transformative innovation, Cramer envisions a paradigm shift in how individuals approach tasks and challenges in the future.
Microsoft emerges as a frontrunner in the AI domain, attributed in part to its stake in OpenAI, the entity behind ChatGPT, which propelled this technology into the mainstream. Unlike its counterparts, Microsoft is reaping tangible benefits from its AI initiative, Co-pilot, noted Cramer.
Aside from Amazon and Microsoft, Cramer spotlights Nvidia as a key player in the AI landscape. He commends Nvidia’s CEO, Jensen Huang, for his foresight in anticipating the AI boom. Huang’s early demonstration of generative AI’s capabilities by creating a seascape artwork in the style of post-impressionist painter Paul Cézanne left a lasting impression on Cramer.
Cramer asserts that the AI sector’s momentum is unstoppable, dismissing pessimistic views. Drawing from personal interactions in Seattle, he emphasizes that this transformative journey is merely in its infancy, with vast potential on the horizon.
