On Monday, Jim Cramer urged investors to dial back their exposure to technology stocks, warning that the artificial intelligence trade has become too volatile while maintaining his long-term confidence in industry leaders Nvidia Corp. (NASDAQ:NVDA) and Intel Corp. (NASDAQ:INTC).
Jim Cramer Says AI Trade Has Become Too Volatile
Cramer cautioned that investors should avoid aggressively adding to artificial intelligence-related stocks, arguing that the sector has become increasingly unpredictable after a massive rally earlier this year, CNBC reported.
"If you own too much tech, you’re going to be slaughtered, and you won’t even know what hit you," the Mad Money host said, warning against portfolios that are overly concentrated in technology.
Cramer said the recent weakness in semiconductor and AI-related stocks underscores the risks of chasing momentum in one of Wall Street’s hottest trades.
