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Apple Sets Oct. 28 'Pro and tell' Event as China Smartphone Market Hits 14-Year LowSeoul shares slide as AI concerns spur tech profit-takingAmazon launches TorchNeuron toolkit for PyTorch on AWS Trainium chipsGemini 4 Argon extends magnetic-field solutions tied to 59-year-old fusion conjectureUgreen NAS HDMI Port Plays Media and Opens BIOS and Terminal AccessAnthropic, Nscale reportedly near second $45 billion compute deal
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Cramer Says AI Data-Center Rebound Is Not Yet a Buy Signal

Cramer: AI data-center stocks still risky despite rebound; charts, earnings, election and Anthropic IPO are hurdles.

AI News Feed · 2026-10-20 09:16

The bounce followed a brutal Friday session that pushed the Nasdaq Composite and Nasdaq 100 below their 50-day moving averages and lifted the Cboe Volatility Index above 22 for the first time in four months, according to CNBC. Cramer, host of “Mad Money,” said in his Sunday column for Investing Club subscribers that he remains a long-term believer in the AI trade, but he listed four conditions before he would turn aggressive on data-center shares.

On the technical side, Cramer said the VanEck Semiconductor ETF and Roundhill Memory ETF appear to have formed double-tops, a bearish signal. He said other stocks show pronounced head-and-shoulders patterns, and that the Nasdaq Composite and Nasdaq 100 need to reclaim their 50-day moving averages. He also noted that last week's sell-off did not breach the late-July lows reached during the forced unwind of highly leveraged hedge fund Situational Awareness.

Cramer said upcoming earnings must confirm that Big Tech remains committed to AI spending and that the spending is paying off through continued growth in public cloud businesses. SpaceX and Meta Platforms report this week, followed by Alphabet, Microsoft and Amazon next week, he said. Cramer's Charitable Trust, the portfolio run by CNBC's Investing Club, owns shares of Meta, Alphabet, Microsoft and Amazon.

He also wants the midterm elections in early November to pass. Cramer said growing political opposition to data centers has weighed on the industry, but he expects some of that pressure could ease after Election Day on Nov. 3. While results could initially spark more selling, he said greater political certainty may help AI stocks establish a bottom.

Finally, Cramer wants to see a successful Anthropic IPO, which could come as soon as November, according to media reports. He said investors need to see that the business at the very end of the spending chain can be sustainably profitable and worth investing in. He cautioned, however, that the offering could also divert substantial capital away from other AI stocks.