Cramer: AI Boom Differs From Dotcom Bubble Due to Financial Strength of tech Megacaps
NEW YORK – September 29, 2025 – CNBC’s Jim Cramer explained today why he believes the current artificial intelligence (AI) boom is fundamentally different from the dotcom bubble of the late 1990s, citing the robust financial positions of the tech companies driving the latest wave of innovation.
Speaking on his show, Cramer noted that the companies currently investing heavily in AI – including Apple, Meta, Microsoft, and Nvidia – are “developing a reputation for something different” and are more financially sound than many of their dotcom-era predecessors. He observed that data centers are largely being funded by thes “massively rich companies,” unlike the dotcom period where companies often accumulated debt to build infrastructure.
However, Cramer expressed some concern regarding Oracle‘s announcement of data center construction funded with “big money from openai,” stating, “we have no idea where that money’s realy going to come from.”
He emphasized that these tech “megacaps” are not likely to fail quickly, asserting they are “flush with cash and could pivot and write off debt if they needed.” Cramer also voiced optimism about the continued success of these companies as AI technology advances.
Despite his generally positive outlook, Cramer cautioned investors against complacency. “So, should we take the dotcom bomb scenario off the table? Oddly, I don’t want it to be taken off the table,” he said. “See, The skepticism keeps things in check. If there weren’t such a negative bent to the story right now, everyone would be in this pool, and we’d all drown.”
CNBC’s Investing Club holds shares of Apple, Meta, Microsoft and Nvidia.
