AI Capital Raises Threaten Bull Market as Alphabet's $80 Billion Sale Adds to Supply Fears
Updated
Updated · CNBC · Jun 3
AI Capital Raises Threaten Bull Market as Alphabet's $80 Billion Sale Adds to Supply Fears
2 articles · Updated · CNBC · Jun 3
Summary
$80 billion in recent and planned AI-linked equity deals could pressure stocks near term by flooding the market with new share supply, Jim Cramer said Wednesday.
Cramer argued the risk is not weakening AI demand but investors selling existing winners to fund IPOs and offerings from companies such as SpaceX, Anthropic and OpenAI.
Nvidia may already be feeling that rotation, he said, calling it a market "piggy bank" after the stock fell 3.6% in Wednesday trading.
Alphabet's large sale was absorbed smoothly, but Cramer said too many AI fundraisings at once could still drag the broader market lower before the long-term AI thesis reasserts itself.