Cramer Urges Selectivity in AI Chip Rally After Cerebras Jumps 68% on IPO Debut

4 articles · Updated · CNBC · May 14

$185 Cerebras shares opened near $350 and closed at $311 Thursday, prompting Jim Cramer to call the AI chipmaker's debut "fanciful" and warn investors to be far more disciplined in semiconductor stocks.
Cramer said the surge showed a broad rush into anything tied to artificial intelligence, comparing the trading to 1999 even as he maintained his bullish view on the sector's long-term growth.
Cisco was one exception he endorsed after what he called extraordinary AI-driven results, saying its 13% rally was justified by accelerating sales and earnings tied to data-center infrastructure.
Nvidia also remains attractive on forward earnings, he said, while memory and storage names including Micron, Sandisk and Western Digital still look reasonable if AI demand stays strong and shortages persist.
His broader message was not to abandon chip stocks, but to understand each company's business and valuation as AI enthusiasm intensifies.

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