CNBC’s Jim Cramer refuted the idea that artificial intelligence (AI) is a fading tech trend, stating that its impact on businesses and the stock market is still not fully realized.
What Happened: Cramer voiced his concerns about the premature disregard of AI trailblazers like Nvidia NVDA in favor of high-performing refinery and dollar store stocks, CNBC reported on Wednesday.
"It's clear that lots of investors have no idea what AI is. In fairness, the reason they have no idea is because we really haven't even seen anything transformative from the AI camp just yet,” he said.
“In terms of innings, I don’t think the AI game has even started yet.”
Cramer further extended his baseball analogy, stating that AI is still in its batting practice stage, but could eventually replace many physically demanding jobs.
AI could potentially be a tool for jump-starting businesses that otherwise wouldn’t have sufficient funds to start, added Cramer. He also underscored the difficulties in comprehending the transformative potential of generative AI and large language models.
Why It Matters: The future of AI has been a topic of debate in recent times with contrasting viewpoints about AI bubble. Google DeepMind’s co-founder, Sir Demis Hassabis, expressed concerns over the surge in AI funding leading to exaggerated hype, overshadowing actual scientific progress.
Tech stock analyst Richard Windsor warned of an impending AI bubble, highlighting recent activities of Nvidia, Amazon.com, and Microsoft.
However, Dallas Mavericks owner Mark Cuban dismissed rumors of an AI bubble, comparing the current situation to the dot-com era.
Price Action: Nvidia shares closed 0.55% lower on Wednesday, according to Benzinga Pro.
Image via Shutterstock
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