CNBC's Jim Cramer on Wednesday dismissed suggestions that the hot technology is losing its luster, arguing that the impact of artificial intelligence on business and the stock market has yet to be fully realized.
“It's clear that many investors have no idea what AI is,” Cramer said on “Mad Money.” “To be fair, the reason they're not thinking anything is because they haven't really seen anything transformative yet from the AI camp.”
Cramer warned that it would be unwise to dismiss AI powerhouses like chipmaker Nvidia too soon in favor of better-performing refinery stocks or dollar store stocks. He said such an outlook is tantamount to telling investors, “NVIDIA CEO Jensen Huang, fuck it. It's all about oil and money.”
“I don't think the AI game has started yet in terms of innings,” Kramer said.
Extending the baseball analogy, Kramer said that while AI is in the batting practice stage, it could eventually replace many “undesirable” jobs that involve physical labor. In doing so, he said, AI could become a tool to launch businesses that otherwise wouldn't have enough capital to start.
“The most challenging aspect of generative AI and large-scale language models has to do with not understanding what can actually be changed,” Kramer says. “Most of us have trouble understanding things within 10 minutes.”