Jim Cramer said Tuesday that investors looking to profit from the artificial intelligence boom should focus on established blue-chip technology companies rather than speculative names. He argued that these large firms have multiple ways to benefit from the technology, making them more reliable vehicles for the trade.
Cramer acknowledged that AI valuations have raised concerns and invited comparisons with the dotcom bubble. But he noted that the AI trade continues to drive much of the market's gains, so he is not backing away from it.
Instead, he said he prefers companies with strong businesses and capable management teams that can find new ways to apply AI. This approach, in his view, allows investors to stay exposed to the trend while reducing some of the risk associated with more speculative plays.