Feb 24, 2026 · 44 min
AI fears drive sell-off as investors reassess industry disruption
Mad Money w/ Jim Cramer 2/23/26
The episode tests whether AI is creating broad, investable economic damage or prompting exaggerated assumptions across markets.
- 1AI fears are spreading from software into legal, financial-data, marketing, and other professional-services businesses.
- 2Private credit’s rapid expansion is showing warning signs through Blue Owl, while elevated valuations complicate stock selection.
- 3Nuclear and power-generation demand remain central opportunities as data centers increase pressure on electricity supply.
Don't miss
Rex Geveden explains how BWX Technologies connects nuclear propulsion and defense expertise with commercial growth and rising data-center power demand.
The brief
A sharp sell-off has pushed AI job fears beyond software, with investors questioning whether legal, financial, marketing, and other professional services face lasting disruption.
Cramer remains constructive on GE Vernova’s power-generation and nuclear exposure, but warns that strong themes do not justify every elevated valuation.
Private credit gets a stress test through Blue Owl, as a decade of direct lending faces questions about underwriting, valuations, and emerging cracks.
BWX Technologies CEO Rex Geveden discusses nuclear propulsion, naval contracts, uranium processing, commercial growth, and the long timeline for new nuclear construction.
The episode’s central argument is that AI may reshape industries without destroying them all, requiring investors to separate real disruption from extrapolation.
What was said on this episode
37 statements · 19 positive · 14 negative · 2 mixed · 2 neutral
AI will not eliminate the white-collar workforce.
“Frankly, I don't believe that AI will wipe out the white-collar workforce.”
Listen at 1:06
AI fears will compress stock multiples and reduce prices.
“I think it will hurt the price journeys, multiples, what we pay for a host of stocks, causing them to drop without seeming, well, let's say, anything being wrong.”
Listen at 1:15
The fourth industrial revolution will create more jobs than it destroys.
“And like the previous ones, it'll create a lot more jobs than it destroys.”
Listen at 4:55
AI cannot destroy the entire software industry within two years.
“Artificial intelligence can't wreck the entire software industry in the next two years.”
Listen at 5:43
Many service and technology stocks trade at excessively high multiples.
“The multiples are too high.”
Listen at 6:20
Cramer recommends not buying Blue Owl's offerings.
“I'm not a buyer of anything they have to offer.”
Listen at 7:19
Investors should be more cautious about all stocks.
“I think we need to be more cautious about all stocks”
Listen at 7:34
GE Vernova is well positioned for rising domestic energy demand.
“It's probably the single most stock that's most positioned for us getting more energy in the country. So I've got to say I still like it.”
Listen at 8:51
AI-exposed companies should receive lower earnings multiples.
“We do not know what to pay for the earnings of a company being attacked by an AI giant anymore, but you might surmise that it's certainly a lower multiple than it has been.”
Listen at 10:50
Some AI-related stock sell-offs have become excessive.
“I think it's gotten a little ridiculous.”
Listen at 13:40
Claude poses little competitive threat to cybersecurity but threatens valuations.
“I don't believe there's a genuine competitive threat here, but there's a clear and present danger to their price to earnings multiples.”
Listen at 15:43
Some enterprise software stocks may eventually become attractive purchases.
“At some point, I think they've become too cheap to ignore.”
Listen at 16:32
Investors should not sell trucking stocks based solely on an unproven AI announcement.
“You shouldn't sell the trucking stocks because some karaoke machine maker says that that's the technology to revolutionize the freight market.”
Listen at 16:50
Stock exchanges face little threat from AI disruption.
“The stock exchanges, I don't think they have much to fear.”
Listen at 17:09
Charles Schwab is undervalued because its AI threat is negligible.
“I think it's a steal because the AI threat here is a borderline non-existent threat.”
Listen at 17:47
Conditions in private credit appear to be deteriorating.
“things... Things just seem to be getting worse here, not better.”
Listen at 25:06
BDC failures would create broader negative financial effects.
“And if any of these BDCs start blowing up, there's going to be a lot of negative pin action.”
Listen at 25:10
Investors should sell investments exposed to fraught situations.
“I am a seller, not a buyer, of fraught situations. Sell, sell, sell.”
Listen at 25:31
Robinhood will remain volatile until its business mix shifts away from crypto.
“until they get so that the balance is less crypto and more, say, equities and bonds, I think it's going to be too volatile and it's going to trade like Bitcoin.”
Listen at 26:47
Robinhood currently trades with excessive volatility like Bitcoin.
“I think it's going to be too volatile and it's going to trade like Bitcoin.”
Listen at 26:51
BWXT is strongly positioned in national security and commercial energy markets.
“we're extremely well competitively positioned in both of those markets.”
Listen at 29:05
BWXT has strong growth prospects in government and commercial businesses.
“We've got strong growth characteristics in both businesses and certainly really good competitive positioning.”
Listen at 29:21
The Navy shipbuilding plan improves BWXT's backlog visibility.
“That 30-year shipbuilding plan is super meaningful to backlog visibility at BWXT.”
Listen at 31:47
AI data centers will drive future demand for nuclear power.
“And then you've got AI data center demand out there in the future.”
Listen at 32:24
BWXT won $3.13 billion in NNSA contracts during the third quarter.
“So we won $3.13 billion in new contracts with the National Nuclear Security Administration in the third quarter”
Listen at 33:21
“I think that's about right. But that's the end point for a new plant.”
Listen at 33:57
Vertiv is the best data-center investment choice.
“No, Vertiv's the best. I love Vertiv.”
Listen at 35:59
Huntington Ingalls should continue performing well because valuation is reasonable.
“It's going to continue to be right because it's not that expensive a stock.”
Listen at 36:44
Investors should avoid Supermicro.
“Supermicro is still my no-fly zone.”
Listen at 37:22
The unnamed pawn-credit company is a good stock.
“I think it's a very good stock.”
Listen at 37:50
Rambus has underperformed comparable companies.
“Rambus has not kept pace.”
Listen at 38:16
Texas Instruments and Analog Devices are better buys than Rambus.
“In that space, I do prefer Texas Instruments. I think that they are a better buy, as is Analog Devices.”
Listen at 38:20
Chevron's stock can rise substantially.
“I think it can go up a lot.”
Listen at 38:53
Investors should continue holding Chevron.
“I would hold on to that.”
Listen at 39:01
Claude will disrupt some businesses but cannot replace critical human-touch missions.
“I know Anthropics Claude will disrupt a bunch of different businesses, but not everything because some missions really are critical and require human touch.”
Listen at 41:05
Anthropic aims to sell tools to cybersecurity firms, not replace the industry.
“They're not trying to replace the cybersecurity industry. They're trying to sell tools to the cybersecurity industry.”
Listen at 42:37
AI will not destroy the cybersecurity business.
“AI won't destroy the cybersecurity business”
Listen at 43:24
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Books & mentions
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