Jim Cramer Calls QUALCOMM a “Boastful Company”

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the stocks Jim Cramer recently provided insights on. Cramer highlighted the company’s announcement of its new chip for AI hardware. He said:

“Today, though, another highly elevated stock stole the show, and that’s Qualcomm, which announced that it’s going to produce a new chip for artificial intelligence hardware, something that can compete with Nvidia and AMD… My problems are twofold. First, Qualcomm is a boastful company. I don’t want to say anymore about that. Second, the action in Qualcomm today reminds me of the action in Qualcomm in 1999 when that stock advanced 2,600% only to experience one of the worst collapses in the entire dot-com era.

It’s the ghost of Qualcomm bull market’s past. It’s a very different company now than it was 25 years ago, but I do not like the parallel. Perhaps the most worrisome, though, is the fact that all the semiconductor stocks have been up at the opening off a possible Chinese deal, but then reversed and reversed hard when the Qualcomm news broke. That’s a telltale sign of the dot-com era…

This extraordinary move on just a press release from Qualcomm really jarred me. I know there’ll be more competitors to Nvidia. I know Qualcomm has a history of developing lower-cost and lower-powered chips, which is exactly what the data center needs. If Qualcomm can do it though, why not Arm Holdings issue a press release? Why not Intel? Why not anyone? And that’s what this market seems to be saying. We’re advancing past the bold to the ridiculous with this Qualcomm move.”

QUALCOMM Incorporated (NASDAQ:QCOM) supplies wireless technologies, chips, and software for mobile, automotive, and IoT applications.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.