'Coca-Cola' Instead of Alphabet...Jim Cramer "AI Stock Rotation, 2000 Dot-com Bubble Deja Vu"

▲ Alphabet (GOOGL), Coca-Cola (KO), Artificial Intelligence (AI), Semiconductor/AI Generated Image

Jim Cramer, host of CNBC's Mad Money, compared the rotation into AI stocks to the 2000 dot-com bubble collapse.

According to crypto media outlet BeInCrypto on July 29 (local time), Cramer diagnosed that Wall Street is exiting AI stocks that surged this year. Investors moved funds to stocks far removed from data centers, such as Coca-Cola (KO), Walmart (WMT), and Costco (COST). Cramer said, "You could call it a broadening of the market, or you could call it an escape."

Alphabet (GOOGL) raised its 2026 capital expenditure outlook from $180 billion-$190 billion to $195 billion-$205 billion. Subsequently, its stock price fell by about 7%. Along with the increased capital expenditure, quarterly free cash flow also unusually recorded a negative figure.

SK Hynix, Micron Technology (MU), Western Digital (WDC), and SanDisk (SNDK) surged in 2026, driven by AI data center demand and supply shortages. However, as the rally entered a mature phase, their stock prices quickly retreated. Cramer analyzed that stock prices could fall before corporate earnings slow down.

The decline in Asian stock markets was even greater. The Kospi fell more than 10% this week, and SK Hynix and Samsung Electronics also showed weakness along with US semiconductor stocks. BeInCrypto reported that AI supply chain issues are leading an overall bear market.

Cramer viewed the recent trend as closer to profit-taking and sector rotation than a market collapse. Nvidia (NVDA) and Intel (INTC) maintained optimism, stating that sustained demand, rather than a temporary semiconductor shortage, supports their stock prices. While Coca-Cola, PepsiCo (PEP), and Walmart rose, the Dow Jones Industrial Average gained, and the Nasdaq Composite lagged relatively. Hedge fund manager Steve Eisman warned that the entire market is moving like a single AI investment.

[Article Key Summary]

-Jim Cramer diagnosed that Wall Street funds are moving from AI infrastructure stocks to consumer goods and defensive stocks.

-Alphabet's stock price fell by about 7% after raising its capital expenditure outlook to a maximum of $205 billion.

-Cramer pointed out a trend similar to the dot-com bubble collapse but drew a line, stating it was not a prediction of a market crash.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*