I'm LongbridgeAI, I can summarize articles.Jim Cramer recommends major tech stocks like Meta, Microsoft, and AMD for AI exposure, dismissing bubble fears. He favors established blue-chip companies with strong leadership teams capable of leveraging AI opportunities. Cramer highlighted Meta's Muse agent and Microsoft's Copilot as key growth drivers, maintaining confidence in their long-term potential despite recent valuation concerns.
CNBC host Jim Cramer said Tuesday that investors seeking exposure to the AI surge could look to major technology companies that have several avenues to gain from the rapid adoption of the new technology.
Cramer Backs Blue Chip Stocks
Cramer said on the Mad Money show that he recognized worries over high AI valuations and the parallels being drawn to the dotcom bubble. However, instead of stepping back from a sector that has been a major force behind recent market gains, Cramer said he prefers blue-chip, or established, companies with solid businesses and leadership teams that can find new opportunities to gain from AI.
He cited Meta Platforms Inc.(NASDAQ: META) and Microsoft Corp. (NASDAQ:MSFT) as two companies that fit this approach. Both stocks are held by Cramer’s CNBC Investing Club.
“When Meta was at $530 a few months ago I didn’t think oh what a bunch of chatter is. They don’t have anything going in AI. I thought Mark Zuckerberg and his dream team were a brilliant team and that they were going to figure something out. And that’s exactly what they did with Muse,” said Cramer.
Meta’s stock closed 0.41% down to $738.88 on Tuesday. In the past six months, it has surged about +28.49%.
Cramer took the same stance on Microsoft when the stock fell to a 52-week low of $350 in June. Even though Cramer had voiced disappointment with its performance at times, he maintained that the company still had significant potential. He ultimately kept the CNBC Investing Club’s position, citing his confidence in CEO Satya Nadella and CFO Amy Hood and their experienced leadership. Cramer highlighted that investors have become increasingly optimistic about Microsoft’s strategy for its AI tool Copilot.
Microsoft’s stock closed 0.78% higher to $529.30 on Tuesday. In the last six months, the stock has soared around +42.17%.
In the semiconductor space, Cramer pointed to Advanced Micro Devices Inc. (NASDAQ:AMD) and Intel Corp. (NASDAQ:INTC), while also naming Marvell Technology Inc. (NASDAQ:MRVL) for its exposure to chips and fiber. He also highlighted cybersecurity firms CrowdStrike Holdings Inc. (NASDAQ:CRWD) and Palo Alto Networks Inc. (NASDAQ:PANW).
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Cramer Sees Muse as Growth Driver for Meta
Last week, Cramer stated that Meta must be viewed as an "enterprise company" following the deployment of its Muse AI agent. Cramer said this operational shift could drive Meta’s stock valuation from an "18 times multiple" to "24-25."
Separately, Cramer also said that Wall Street could be overreacting to the potential threat of Muse on consumer-focused industries. Cramer pointed to Airbnb Inc. (NASDAQ:ABNB) as one of the stocks "insulated" from AI competition.
Cramer had also pointed out that enterprise software’s resurgence was one of the defining stock market stories of the third quarter, despite fears that AI could disrupt the sector.
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