"Undoubtedly, it can be easy to panic when geopolitical risks spike over the weekend. And while selling first might make one feel the best, it's not always the best way to go. While Cramer remains a big believer in the long-term potential of the AI, he did acknowledge that there has been a cooling-off period and that the stocks might begin to move in different directions rather than collectively."
"When asked about shares of Super Micro Computer ( NASDAQ:SMCI) from a caller, Cramer was quick to label the name as a sell, and it's really not hard to imagine why. While Cramer didn't elaborate much further, I do think his call has a good chance of being proven correct with his sell call. Undoubtedly, there are lower-risk names in the AI trade to go with right now."
Volatility and geopolitical spikes can prompt investor panic, and selling first may feel best but is not always optimal. Long-term potential for AI remains, yet a cooling-off period has begun, and AI stocks may diverge rather than move collectively. Risk and reward vary across AI companies; some carry heavy debt and limited diversification while others appear positioned for next-level AI monetization. Super Micro Computer was labeled a sell and has already fallen more than 83% from peak to trough, creating potential for outsized moves and a difficult recovery. Upcoming Vera and Rubin product rollouts could boost demand for data-center building blocks, but margins are a concern.
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