CNBC Financial Commentator: Avoid chasing high AI stocks, shift toward overlooked but fundamentally solid targets

Golden Finance reports that on April 21, CNBC’s well-known financial program host Jim Cramer warned that investors should avoid chasing “parabolic” rising hot stocks; chasing them at too high a price often leads to losses. Instead, he said investors should turn their attention to assets that the market has overlooked but that have solid fundamentals. Cramer noted that, lately, technology and semiconductor stocks have been rising too fast, driven by artificial intelligence themes—which, in his view, is “overheated.” He also acknowledged that past experience shows that when buying stocks that have surged rapidly, investors are often likely to face pullback pressure. He specifically mentioned that AI-related stocks, including Sandisk, Intel, and AMD, have been performing strongly recently, but he chose not to follow the market’s hype. By contrast, Cramer has adopted a contrarian allocation strategy, shifting toward healthcare stocks that have been relatively underperforming, and his investment portfolio has recently increased its stake in Johnson & Johnson.