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CNBC
Jim Cramer issues a warning to investors trading with borrowed money
In a recent segment, CNBC's Jim Cramer warned investors against using margin to invest in AI-related stocks, citing increased volatility and uncertainty about data center spending. He urged investors to sell positions related to this sector. Instead of focusing on high-flying tech stocks, he recommended looking for companies with more diversified growth sources, pointing to building materials supplier CRH as a safer investment. Cramer emphasized that while some tech stocks may weather the storm, caution is warranted for those using borrowed funds.
MonitorConfidence: HighShort term horizon
Published 27 Jul 2026, 23:55 UTC2 min read
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Summary
TL;DR
- Jim Cramer issues a warning about margin trading in AI stocks.
- Investors should be cautious of volatility in data center-related investments.
- Cramer suggests diversifying investments instead of concentrating in tech.
- He advocates for companies with broader growth potential.
- Margin trading increases risk during market fluctuations.
Interesting facts
- Cramer indicates a substantial rise in margin debt within the last year.
- He refers to CRH as a strong example due to its diversified operations.
- Cramer mentions that well-positioned tech investors may still succeed.