Jim Cramer on Sunday argued that the latest wave of Big Tech earnings proves aggressive artificial intelligence (AI) and data center spending is fueling competitive advantage rather than creating a dangerous market bubble.
Cramer Rejects AI Bubble Narrative After Big Tech Earnings
In a detailed analysis published on CNBC, Cramer pushed back against mounting concerns that hyperscaler spending on AI infrastructure is overheated, saying the latest quarterly results show the opposite.
“I am growing tired of the endless bubble talk about all of the data center spending,” Cramer wrote. “This was the quarter where we realized that if you didn’t spend, you were already behind the 8-ball.”
Cramer pointed to strong market performance from Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.com Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL) over the past five days, arguing investors are rewarding companies whose AI investments are producing measurable returns.
Over the past five days, Alphabet Class A shares surged 11.32% to $385.69, while Class C shares increased by 11.43% to $383.22.
Apple climbed to $280.25, …
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