Jim Cramer says look to buy these 5 stocks outside the AI trade for diversification

CNBC Top News ·

Jim Cramer says look to buy these 5 stocks outside the AI trade for diversification

CNBC's Jim Cramer on Tuesday provided investors a handful of beaten-down stocks that he believes could outperform if the artificial intelligence trade begins to cool. …

CNBC's Jim Cramer on Tuesday provided investors a handful of beaten-down stocks that he believes could outperform if the artificial intelligence trade begins to cool. "These are the stocks that will start going higher if tech retreats," the " Mad Money " host said. "You'll wish you had some of these when the time comes and the momentum tech stocks run out of, well, momentum." The comments come after Nvidia CEO Jensen Huang's keynote at Computex fueled fresh gains in data center and AI-related stocks . But Cramer said signs of fatigue in some software names — coupled with a looming flood of stock supply coming into the market from Alphabet and the expected mega IPOs of SpaceX, Anthropic and OpenAI — have him considering opportunities in largely abandoned sectors. "Tech seems full of vulnerabilities ... I want to find an antidote in some other sectors where growth stocks in non-growth sectors are being thrown away," Cramer said. Cramer pointed to JPMorgan Chase as one potential opportunity. Financials have been the worst-performing sector in the S&P 500 this year amid concerns about credit quality and a slowing economy, leaving JPMorgan trading at roughly 13 times forward earnings. That's down from roughly 15 at the start of the year, according to FactSet data. "You normally don't get to buy this stock so cheap, and no one would regard it as a lousy franchise, even as the stock's down 7% year-to-date," he said. …

Original source: CNBC Top News

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