CNBC’s Jim Cramer remains bullish on the artificial intelligence boom, arguing that this wave of investment won’t collapse like past tech frenzies—thanks to the sheer financial power of Big Tech giants.

“This might be the boom that doesn’t go bust because the players are so well capitalized it simply doesn’t have to end that way,” Cramer said on Tuesday, pushing back against comparisons to the dotcom bubble of the late ‘90s.

With companies like Meta, Amazon, Alphabet, and Microsoft planning to spend a staggering $320 billion on AI infrastructure in 2025—up from $230 billion in 2024—Cramer sees this as a sustainable revolution rather than a speculative bubble.

Why AI’s Boom is Different from Past Tech Cycles

Big Tech's Deep Pockets: Unlike past booms, where startups relied heavily on debt and stock issuance, today's AI surge is bankrolled by some of the world’s most profitable companies. Cramer likened these tech giants to “incredibly well-financed nation-states with unlimited firepower.”

Data Center Expansion: While some skeptics worry about overinvestment in AI-related infrastructure, Cramer views the ongoing data center boom as an opportunity rather than a liability.

Historical Parallels: A recent Deutsche Bank analysis found that most private-sector booms were fueled by high leverage. In contrast, today's AI investment is driven by cash-rich companies, reducing the risk of a crash.

Will AI Mimic the Dotcom Bubble—or Eclipse It?

Alibaba Chairman Joe Tsai recently warned that the AI sector is “at the beginning of some kind of bubble,” noting the massive spending spree. However, Cramer pointed out that even in the dotcom collapse, winners emerged—like Amazon and Google (now Alphabet).

“Some companies will lose billions, but others will make out like bandits,” he said, suggesting that the winners will reshape the global economy—just as Amazon did post-dotcom crash.

AI’s Transformational Potential: More Than Just Hype?

Cramer believes the AI revolution is akin to the Industrial Revolution, with countless yet-to-be-discovered applications.

New Use Cases Are Still Unfolding: He cited his experience at Nvidia’s GTC AI Conference in San Jose, calling it the "Woodstock of AI", where he witnessed breakthroughs he never imagined possible.

The Unknown Factor: “It’s just too early to identify all the winners because everything’s so new, and we don’t fully understand what these companies are really working on,” Cramer emphasized.

The Bottom Line: AI Is Here to Stay

While market skepticism remains, Cramer’s optimism is rooted in the financial muscle and long-term vision of the tech industry’s biggest players. Rather than a fleeting hype cycle, AI’s evolution appears poised to fundamentally reshape industries, from healthcare to finance and beyond.

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