Jim Cramer on Charles Schwab: “I Think It’s a Steal Because the AI Threat Here Is a Borderline Non-Existent Threat”

The Charles Schwab Corporation (NYSE:SCHW) is one of the stocks that was on Jim Cramer’s radar recently. Cramer was bullish on the stock due to its valuation, as he said:

Two weeks ago, for instance, an online insurance marketplace called Insurify released a new application that uses ChatGPT to compare insurance rates. Immediately, the insurance brokerage stocks tanked. The next day, a company called Altruist came out of nowhere with an AI-powered tax planning offering to help financial advisors create personalized strategies for their clients. Immediately, anything connected to wealth management got hammered. Charles Schwab, Raymond James… even the mighty Morgan Stanley sold off a bit despite the fact that it’s firing on all cylinders… Take Charles Schwab. This is mainly an online brokerage firm, yet it’s sold off [of] the financial advisors. Now, it trades at less than 16 times earnings, the cheapest it’s been in years. I think it’s a steal because the AI threat here is a borderline non-existent threat.

Charles Schwab, bank, finance

Photo by Brendan Church on Unsplash

The Charles Schwab Corporation (NYSE:SCHW) provides wealth management, brokerage, banking, and advisory services, providing trading platforms, investment products, and financial planning solutions.

While we acknowledge the risk and potential of SCHW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SCHW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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