AI buzz is far from a bubble — the game has yet to start

CNBC’s Jim Cramer said Wednesday that the impact of artificial intelligence on business and the stock market is not yet fully realized, pushing back against suggestions that it is a fad technology that is losing its steam. glow.

“It’s clear that many investors have no idea what AI is,” Cramer said on “Mad Money.” “In all honesty, the reason they have no idea is because we haven’t seen anything transformative from the AI ​​camp yet.”

Cramer cautioned that it was not prudent to dismiss AI indicators like the chipmaker so quickly. Nvidia in favor of high-performing refinery and dollar store stocks. He said that kind of outlook is like telling investors, “Move over, Nvidia CEO Jensen Huang, it’s all about oil and gold.” »

“In terms of rounds, I don’t think the AI ​​game has started yet,” Cramer said.

Expanding on his baseball metaphor, Cramer said AI is in its batting practice phase, but could eventually replace many “undesirable” jobs involving physical labor. In doing so, AI could become a tool to revive businesses that otherwise wouldn’t have enough funds to open their doors, he said.

“The most difficult aspects of generative AI and large language models have to do with our inability to understand what can actually be changed here,” Cramer said. “Most of us have trouble seeing things in 10 minutes.”