For the past few years, investing in artificial intelligence felt like betting on a single team; if one stock went up, the whole group rallied. But according to Jim Cramer, those days of lockstep trading are over. The market is finally starting to pick favorites, creating a clear split between the “Google complex” and the “OpenAI complex.”
Cramer points out that companies tied to Alphabet—such as Broadcom and Celestica—are currently roaring ahead. This shift is happening as investors warm up to Google’s Gemini model, seeing it as a formidable competitor to ChatGPT. On the flip side, the group linked to OpenAI, which includes heavyweights like Microsoft, Oracle, and AMD, has taken a beating. Wall Street is growing anxious about the massive spending commitments required to keep OpenAI running, and that fear is dragging down its partners.
Cash is king in this new phase. Cramer notes that the tech giants with the deepest pockets—Alphabet, Meta, and Amazon—are holding up well because they can afford to burn cash on infrastructure without blinking. In contrast, companies with tighter balance sheets, such as Oracle and CoreWeave, face more scrutiny.
Nvidia serves as a prime example of this messy new reality. Despite reporting a blowout quarter with demand far outstripping supply, the stock stumbled. Investors sold off shares amid fears of new competition and the chipmaker’s close ties to the “OpenAI complex.”
Cramer warns that the situation is volatile. What works this month might fail next year. However, he views this separation as a positive development. It was always unsettling to watch the entire sector move in unison, regardless of actual business results. Now, investors are finally doing the homework to decide which companies actually deserve to win.
