Cramer Predicts Strong Quarter for Alphabet Amid AI Concerns

MOUNTAIN VIEW, Calif. — Jim Cramer, the host of CNBC’s Mad Money, has expressed confidence in Alphabet Inc. (NASDAQ: GOOGL), predicting a “monster quarter” led by its YouTube and Search segments. In a recent episode aired on September 5, Cramer highlighted Alphabet as a strong long-term growth stock, stating, “There’s a lot to like here.” Cramer emphasized the company’s substantial growth over the past two decades, comparing it to NFL star Justin Jefferson.

Alphabet, the parent company of Google, provides a variety of digital products and platforms, including Search, YouTube, Android, Chrome, and Google Play, along with advertising services and cloud computing tools. However, Cramer noted concerns about how the rise of AI might impact Google’s core search business. “So far so good… I think they’ll both be just fine,” he said.

In the broader conversation about the future of AI, experts like Elon Musk have predicted that AI technology could shape the global economy, potentially worth $250 trillion by 2040. Musk also raised alarms about the energy demands this technology creates. “AI will run out of electricity by next year,” he stated.

With AI innovations transforming industries, there’s an emerging concern regarding the energy supply needed to power these advancements. Analysts believe companies with strategic positions in energy infrastructure will likely benefit from the growing demand driven by AI.

Cramer’s comments come amidst a backdrop where major corporations are rapidly developing AI technologies, with firms investing heavily in the necessary infrastructure. The ongoing developments indicate that investor interest in companies like Alphabet could see significant changes, revealing new opportunities amid rising challenges associated with AI’s energy consumption.

As investors brace for potential shifts in the tech landscape, Cramer’s remarks on Alphabet serve as a reminder of both the opportunities and obstacles that lie ahead in the evolving AI market.