Jim Cramer, host of CNBC’s Mad Money, said this week’s turbulence in artificial intelligence stocks is reminding investors of the importance of diversification. Defensive stocks like Kimberly-Clark, Waste Management and Eli Lilly rose at least 6% for the week, while the iShares Semiconductor ETF (SOXX) experienced its longest losing streak in more than a decade. The CNBC Investing Club’s Charitable Trust sold its position in AI beneficiary Corning on September 1, then invested in Kimberly-Clark to reduce exposure to the data center trade. Corning shares have fallen nearly 5% since that sale, while Kimberly-Clark has gained more than 10% since its October 1 low. Cramer warned that investors too concentrated in one sector risk losses that could cause them to abandon the asset class entirely.
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