Cramer Says AI Trade Has Become Increasingly Fragile

According to CNBC, Jim Cramer said the AI trade has become increasingly fragile as data center and AI infrastructure stocks have pulled back and investors question whether data center spending can keep rising. He warned that buying those stocks with borrowed money, or on margin, is especially risky amid the volatility and urged investors to avoid margin trading. Cramer said investors should favor companies with more diversified growth drivers, citing CRH as an example because it supplies materials for data center construction but gets most of its business from roads, bridges and office complexes. He also said quality technology stocks held outright may still hold up if investors can tolerate the swings.