Jim Cramer Says AI Stock Sell-Off Differs From Dot-Com Crash

Mad Money host Jim Cramer said Thursday, Nov. 5, that AI-linked stocks may keep falling as data-center opposition clouds spending plans, while profitable businesses set the slide apart from the dot-com collapse.

Opposition to new data centers after the midterm elections raised doubts about future AI infrastructure spending. Micron fell 17% and GE Vernova dropped 7% Thursday; both also fell sharply Wednesday, Nov. 4.

Cramer said investors had priced in continued rapid data-center construction, pushing AI shares too high. He singled out CoreWeave, Iren and Nebius as more exposed because they borrowed to fund projects that could face regulatory delays.

Cramer said no major borrower was defaulting and that debt tied to those neocloud companies was not enough to sink the market. He described the downturn as different from the dot-com bust because many affected companies have profitable businesses, unlike speculative firms that collapsed then.

Cramer has also warned that concentrated exposure can deepen losses when market leadership shifts, a concern discussed in earlier coverage of AI sell-off risks.