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Jim Cramer Warns: AI Stocks Face 50% Crash Without Earnings Growth
Key takeaways
- MU EPS surged from $4.78 to $12.20 with $19.15 guided, while SNDK EPS jumped from $1.22 to a guided $30+, both outpacing their stock price gains.
- Compare your AI stock s six-month price gain to EPS growth.
- Many financial professionals are salespeople paid on what they push, not whether you end up wealthier.
Jim Cramer Warns: AI Stocks Face 50% Crash Without Earnings Growth Tulane Public Relations/Wikimedia Commons Ian Cooper Mon, June 8, 2026 at 11:47 PM GMT+7 5 min read MU SNDK NVDA GOOG AVGO Quick Read Cramer warned parabolic AI stocks without earnings acceleration risk a 50% drop and could take years to recover.
MU EPS surged from $4.78 to $12.20 with $19.15 guided, while SNDK EPS jumped from $1.22 to a guided $30+, both outpacing their stock price gains.
Compare your AI stock s six-month price gain to EPS growth. If price outpaced earnings, the multiple expanded and Cramer s 50% rule applies.
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