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CNBC
Jim Cramer says Wall Street is fleeing the AI trade and buying these stocks instead
Jim Cramer notes a trend on Wall Street where investors are selling off positions in AI infrastructure stocks like Micron and Western Digital, which have seen significant gains this year, and reallocating into firms with stronger growth prospects, such as Salesforce and Costco. This shift comes as concerns grow over the sustainability of the profits tied to AI-related memory shortages. Despite the pullback in AI stocks, Cramer remains optimistic about Nvidia and Intel due to their robust demand.
MonitorConfidence: MediumShort term horizon
Published 28 Jul 2026, 22:55 UTC2 min read
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Summary
TL;DR
- Investors are taking profits in AI infrastructure stocks like Micron and Western Digital.
- Cramer's advice emphasizes selling during parabolic moves typical of market cycles.
- Software stocks like ServiceNow and Salesforce are gaining traction amid the transition.
- Retail giants Costco and Walmart are showing positive stock performance.
- Johnson & Johnson's litigation settlement boosted investor confidence despite AI stock downturn.
Interesting facts
- Wall Street is reportedly fleeing AI stocks for more stable investments.
- Cramer has observed multiple boom-bust cycles in tech stock performance.