Jim Cramer says investors aren't ditching tech
CNBC's Jim Cramer said investors aren’t abandoning AI or technology stocks — they’re rotating out of high-multiple names and into cheaper stocks.
TL;DR
- Investors are not abandoning AI or technology stocks, but are selling expensive stocks and buying cheaper ones.
- The shift is driven by rising bond yields, making investors wary of high-multiple tech stocks.
- Companies like MongoDB, with high forward P/E ratios, have seen declines, while Dell, with a lower multiple, has rallied.
- Nvidia, despite AI leadership, has a relatively low P/E multiple, reflecting concerns about the sustainability of its growth.
- The sell-off is not a sign that the AI trade is broken, but rather that investors are becoming more selective about valuations.