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CNBC’s Jim Cramer on Tuesday said he thinks recent money migration from artificial intelligence companies into stocks across sectors has bolstered the market even as big tech names see weakness.
“Institutional money and institutional memory fled the bubble stocks months ago and moved into all sorts of non-tech growth plays,” he said. “That’s the strength of this market. That’s why the deflating of the Mag Seven means much less than the bears told you.″
This migration is contrary to Wall Street’s fears of a bubble developing in data center stocks, he indicated. Cramer added that data center hype settled down months ago as investors rotated into sectors like aerospace, retail and fintech. The groups were the “salvation of this market” as sky-high speculative stocks started to come down, he continued.
Cramer compared the current market to the dotcom collapse. There is now more money around and more money indexed to the S&P 500
