Jim Cramer Picks These 4 Stocks As Better AI Investments Alongside Nvidia, Skips Super Micro Computer

CNBC’s “Mad Money” host Jim Cramer has suggested that there are better investment options in the artificial intelligence (AI) sector than Super Micro Computer Inc. (NASDAQ:SMCI).

What Happened: Cramer identified four stocks that he believes are superior AI investments compared to Super Micro Computer, CNBC reported on Monday.

"If you really need to buy something that's an add-on investment to leading AI chipmaker Nvidia, "remember it's Dell (NYSE:DELL), it's AMD (NASDAQ:AMD) as a competitor, it's Cadence Design Systems (NASDAQ:CDNS), which I like by the way," Cramer said.

"I like all of those more than Super Micro." 

Arm Holdings (NASDAQ:ARM) is another Nvidia-adjacent investment idea, Cramer said.

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Why It Matters: The recommendation comes after Super Micro Computer’s stock price soared by over 276% this year. Cramer, however, recently expressed caution about the stock, stating that it has “gotten too hot” for his liking.

Super Micro Computer, a prominent manufacturer of AI servers, is set to join the S&P 500 Index on Mar.18. This move, along with other new additions, is expected to replace Whirlpool Corporation and Zions Bancorporation.

However, the stock’s rapid rise has raised concerns. Harvard economist Ken Rogoff has warned that the current stock market rally, driven by the belief that AI will remain unregulated, could lead to a bubble. Rogoff cautioned that this bubble could burst, leading to significant economic consequences.

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