Jim Cramer: No AI Stock Seems Safe Amid Data Center Uncertainty

According to CNBC, Jim Cramer said Thursday that uncertainty about future data center construction has made artificial intelligence stocks harder to value and contributed to steep selling over the past two sessions. The iShares Semiconductor ETF (SOXX) fell 3% Wednesday and 10% Thursday, while GE Vernova and Sandisk dropped 7% and 22%, respectively, on Thursday. Investors are concerned that regulatory hurdles and opposition to new data centers could slow construction and undermine growth forecasts supporting chipmakers’ valuations. Cramer said Nvidia trades at roughly 12 times next year’s earnings, with an expected growth rate of 70%, but those projections rely on demand staying strong for years. He also questioned whether Micron’s take-or-pay contracts would provide reliable revenue if customers faced financial distress. For Advanced Micro Devices, Cramer cited CEO Lisa Su’s projection that the broader data center market could eventually reach $1 trillion, but said the stock’s rise from $188 in March to $404 made its valuation seem high. He said uncertainty over whether regulatory hurdles will slow or merely delay data center construction leaves the outlook unclear.