Jim Cramer Warns AI Backlash Could Pressure Growth Stocks
The Mad Money host said concerns over jobs, electricity costs and safety are weakening support for artificial intelligence as market breadth narrows.
Mad Money host Jim Cramer said Sept. 29 that artificial intelligence companies are losing public support as concerns over jobs, electricity costs and safety challenge the technology’s promise of economic growth and higher productivity.
Cramer said the shift in sentiment could add pressure to growth stocks as market breadth narrows. Treasury yields are at multiyear highs, more than half of S&P 500 constituents are trading below their 200-day moving averages, and 204 stocks are at least 20% below their 52-week highs.
“The culture has turned against these people, these products, and the proponents have been caught flatfooted,” Cramer said. “Wall Street’s losing the battle of the narrative and all sorts of stocks might end up getting hurt.”
Concerns about job losses, rising electricity costs and safety risks are increasingly competing with the industry’s claims about AI-driven growth. The debate is unfolding during a midterm election year, with Democrats and Republicans competing for control of Congress.
“Eighteen months ago, people might’ve said these execs are putting tens of thousands of people to work building data centers,” Cramer said. “Now we think how much have they raised electricity prices? How much water did they despoil? How many towns just got had?”
Cramer said AI companies need to do more to demonstrate tangible benefits. He cited Meta’s efforts to limit the effect of its data centers on local electricity costs and support nearby communities.
He also praised Meta’s Muse AI agent, including a version designed to help small businesses automate administrative work.
“Meta’s Muse may be the best new tool for the scaling of small business that I’ve heard of in years,” Cramer said.
Cramer said he remains constructive on AI but warned that the technology’s deteriorating public image could become another pressure point for a market with limited breadth.
“It didn’t have to be this way,” he said. “But that’s the new narrative and it’s going to be hard to break.”
