Jim Cramer Warns Against Rushing Into AI Data Center Stocks
Jim Cramer advised investors to avoid AI data center stocks until technical charts improve and Anthropic completes an initial public offering.
CNBC host Jim Cramer advised investors against rushing back into artificial intelligence data center stocks on October 19, 2026, despite a 1.1% rise in the Nasdaq Composite. He argued that technical indicators in semiconductor and memory ETFs, such as double-tops and head-and-shoulders patterns, suggest the stocks may have no bottom.
Cramer identified four specific requirements for a sustainable rally: improved technical charts, earnings reports from hyperscalers confirming cloud growth and AI spending, the conclusion of the November 3 midterm elections, and a successful initial public offering from Anthropic. He noted that an Anthropic IPO would serve as a critical test of whether the AI spending chain can produce a sustainably profitable business.
