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Jim Cramer warns AI stock winners may narrow as sector enters consolidation phase
Jim Cramer said AI stock leadership may narrow as the sector consolidates, with capital favoring firms showing strong cash flows and differentiated AI models.
CNBC’s Jim Cramer cautioned that while AI stocks have enjoyed substantial gains, the number of outperformers could shrink as the market enters a consolidation phase. He highlighted that investors may rotate away from weaker AI names as competition intensifies and capital becomes more selective. Cramer noted that companies with strong cash flows, differentiated models, and clear enterprise adoption will continue to outperform.
His remarks follow rising valuations across AI hardware, software, and cloud names, prompting debates on sustainability within the sector.