Jim Cramer Warns Wall Street's AI Obsession Could Be Nearing Its Peak: 'Those Days Will Be Numbered Soon Unless...'

Jim Cramer has warned about Wall Street’s enthusiasm for artificial intelligence (AI), suggesting it may be reaching unsustainable levels, CNBC reported.

Cramer compared the current AI trend to the action camera craze led by GoPro years ago. He noted that many companies are incorporating AI into their stories to boost their stock’s valuation, similar to how GoPro’s popularity soared before it inevitably crashed.

“We’ve seen tons of CEOs and analysts try to shoehorn AI into their bullish narratives. And that's going on for a while now, and it worked. But I think those days will soon be numbered unless they've got a legitimate way to make lots of money off AI,” Cramer warned.

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Cramer doesn’t dispute AI’s potential to revolutionize businesses, especially those handling substantial data. However, he expressed skepticism regarding companies marketing AI directly to consumers, stating that AI is meant to save businesses money, not to serve individual consumers.

“Unless there’s a return on investment that’s tangible and visible, generative AI may not be all that valuable,” he added.

The CNBC host suspects that many companies may be showcasing AI for show and if they fail to provide a real return, the hype will peak, and the stocks of those companies will deflate along with it.

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