1. Alphabet Inc. (NASDAQ:GOOGL)
Alphabet Inc. (NASDAQ:GOOGL) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer noted the company’s decision to raise money for its data center business, as he said:
Last night, something else happened that really jarred me to the core, Alphabet, a total surprise, you know it as Google, one of the best, most respected companies on Earth, decided it had to raise $80 billion to continue its build-out of its data center business. Ouch. I thought they had raised enough money in the bond market. That was wrong. At the same time, I watched David Faber’s excellent interview with OpenAI’s Sam Altman in front of a construction site for a data center, 250 acres… in Michigan. The site was gigantic and, to the naked eye, largely empty.
While Sam has plenty of partners, the whole facility is going to cost more than $15 billion. And then Oracle CEO Clay Magouyrk told David that the tech that goes into it will cost another 30 to $40 billion more. Oh man, where is that money going to come from other than from you if you’re a shareholder? These revelations, plus a bit of a pause in a host of growthy stocks… connected to software that ran out of juice after a three-day… strength, it’s got me thinking a little more, I’m a little more circumspect.
In other words, tech seems to have found some newfound vulnerabilities. The build-out of AI is looking like it is going to be a lot more expensive than we thought. That’s what Alphabet’s saying. That’s what OpenAI is saying. That’s what they’re all saying or will be saying in the next few weeks, and I don’t really like that.
Alphabet Inc. (NASDAQ:GOOGL) provides technology-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms such as YouTube and Google Play.
While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about the cheapest AI stock.
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