Jim Cramer is cautioning investors against jumping back into AI stocks after Monday's rebound. On CNBC's "Mad Money," he said the bounce doesn't mean the coast is clear, citing unresolved technical and fundamental headwinds that the hardest-hit AI data-center stocks still face.
In a separate commentary, Cramer linked the recent AI sell-off to the 1987 market crash, which occurred 39 years ago on Monday. He noted that portfolio insurance, designed to protect investors, instead triggered waves of automatic selling that sent stocks plummeting — a dynamic he sees echoed in the current AI trade.
The two comments are consistent: both urge patience. The first focuses on current market conditions; the second adds historical perspective. Neither suggests the sell-off has fully run its course, and Cramer explicitly says he is in no hurry to dive back in.