Recent trading sessions have battered the tech sector, with Sandisk dropping 22%, Micron sliding 17%, and GE Vernova losing 7% on Thursday. While semiconductor charts lack nearby technical support following an extended boom, the downturn remains an orderly retreat rather than a systemic bubble burst. Particular concern centers on smaller developers like CoreWeave, Iren, and Nebius, which carry project debt vulnerable to local regulatory roadblocks, although no major defaults have occurred.
Key points
Modern artificial intelligence enterprises feature lucrative, profitable operations that…: Modern artificial intelligence enterprises feature lucrative, profitable operations that sharply contrast with the speculative businesses of the dot-com era.
Investors are urged to hold cash reserves to navigate near-term chart volatility while no…: Investors are urged to hold cash reserves to navigate near-term chart volatility while no major project debt defaults have materialized.
Long-term market stability may be supported by easing inflation trends, declining interes…: Long-term market stability may be supported by easing inflation trends, declining interest rates, and an eventual end to the Iran war.
Sources checked by our analysis pipeline: 1
The steep sell-off in artificial intelligence stocks likely has further to go, CNBC's Jim Cramer predicted Thursday — but he urged investors not to panic.
Growing opposition to new data centers following the midterm elections has raised doubts about future AI infrastructure spending, sending shares of companies tied to the buildout sharply lower. Micron tumbled 17%, GE Vernova dropped 7% and Sandisk plunged 22% on Thursday. All three stocks were also crushed in Wednesday's session.
"I wish I could say that today's flush was the bottom," the "Mad Money" host said, before cautioning that there may be more downside ahead, though he didn't believe this was an internet bubble redux. Cramer argued that today's AI companies are fundamentally different from the speculative businesses that collapsed during the dot-com bust.
"But I look at the charts, and there still seems like there's no support for so many Tech stocks, especially the semis, because they ran so much on the way up. However it might feel, it's actually an orderly decline because unlike 2000, these are mostly lucrative companies with stocks that…
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