Jim Cramer Says Buy 2 AI Stocks Down 24% and 46% Before They Soar

Prominent financial commentator Jim Cramer, host of CNBC's Mad Money, recommended buying Meta Platforms (META) and Shopify (SHOP) after they fell 24% and 46% respectively from recent highs, calling them "deeply undervalued" amid the AI boom.

Recommendation Change

Cramer did not change his previous rating but reiterated his strong buy stance on both stocks. He had previously recommended them at higher levels and now sees the pullback as a buying opportunity.

Analyst's Rationale

Cramer believes Meta is heavily investing in AI through its large language models (LLaMA) and AI-powered advertising tools, which will boost ad revenue. For Shopify, he thinks its e-commerce platform will benefit from generative AI tools that improve merchant and buyer experiences, driving future growth.

Context

Other Wall Street analysts share Cramer's cautious optimism. The average price target for Meta is $550, while for Shopify it is $85, according to Bloomberg data. However, some analysts warn that valuations may remain compressed if interest rates continue to rise.

What We Conclude

Cramer's recommendation reflects confidence in big tech's ability to monetize AI investments, but investors should weigh opportunity against risks, especially amid ongoing economic uncertainty.