Key takeaways
- The iShares Semiconductor ETF (SOXX) fell 3% Wednesday and another 10% Thursday, while GE Vernova and Sandisk dropped 7% and 22%, respectively, on Thursday.
- The AI chipmaker trades at roughly 12 times next year's earnings with an expected growth rate of 70%, making it appear remarkably cheap.
CNBC's Jim Cramer said AI stocks are becoming increasingly difficult to value as uncertainty over the future of the data center build-out raises questions about their long-term growth prospects. Cramer highlighted Nvidia, Micron and AMD as examples of companies delivering strong results but facing risks that could undermine their valuations if AI infrastructure spending slows.
