Cramer urges investors to be more selective in the AI frenzy
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- Cerebras completed the year's largest IPO, pricing at $185 per share, opening near $350, and closing at $311 for a market cap of about $95 billion.
- Jim Cramer warned that investors must be more selective in the AI‑driven semiconductor rally, calling the Cerebras debut "fanciful" and reminiscent of 1999.
- Cisco posted a 13% rally justified by accelerating AI‑infrastructure sales and earnings, which Cramer said "deserved the run."
- Nvidia remains attractively valued, according to Cramer, with forward earnings estimates suggesting its price is now cheaper than the average S&P 500 stock.
- Micron (along with Sandisk and Western Digital) remains a reasonable stock as long as AI computing demand stays strong and supply shortages persist.
Why it matters: Investors who focus on disciplined chip names—Cisco, which rallied 13%, and Nvidia, whose valuation is cheap relative to the S&P 500—avoid overpaying, while hype‑driven buys risk overpaying after Cerebras’ $95 B IPO.
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