Jim Cramer, a television personality and former hedge fund manager, has raised new concerns about the market’s rush to splurge $600 billion on some of the world’s largest technology and artificial intelligence (AI) companies.
Notably, in a June 2 post on X, Cramer pointed to reports and valuations surrounding several major firms, including publicly traded Alphabet (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN), as well as Anthropic, OpenAI, and SpaceX, which are among the most widely discussed initial public offerings (IPO) this year.
“Let’s see: $80 billion for GOOGL, probably $100 billion for Anthropic, $100 billion for OpenAI (maybe more) and $100 billion for SpaceX and $100 billion for Amazon? does this market have $500 billion in spare change. What has to be sold to raise it???” Cramer wrote on X.
Cramer provided additional context for his concerns in a June 2 article on CNBC, where he noted that Alphabet had announced an $80 billion equity offering to fund its AI efforts. This, he wrote, ‘likely puts a lid’ on the stock now that blockbuster IPOs are adding excess supply to the market.
“I’ve been worried about blockbuster IPOs adding excess supply to the market. Now this. Too much supply all at once. I’ve been worried about blockbuster IPOs adding excess supply to the market. Now this. Too much supply all at once,” he wrote.
Microsoft doesn’t need money, Jim Cramer says
The CNBC host later expanded his list, suggesting that Microsoft (NASDAQ: MSFT) may not require as much capital as some estimates imply, either ($100 billion, to be precise). In a separate post, he again warned that the broader market still lacks sufficient liquidity to accommodate the scale of fundraising being discussed.
Cramer’s estimates suggest that combined capital needs across leading AI developers and technology giants could approach $600 billion. The figure, he implies, will raise questions about where the money will come from and whether large-scale fundraising efforts such as these could create selling pressure elsewhere in financial markets.
“I am betting that Microsoft doesn’t need $100 b. I could be too bullish. This market does not have $600b,” he added.
The comments come as companies continue to accelerate spending on AI infrastructure and report some of the best results in the history of the sector, which Cramer has recently weighed in on, arguing, for example, that Nvidia (NASDAQ: NVDA) was ‘the true winner’ behind the recent Dell (NYSE: DELL) rally.
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