The Jim Cramer under CNBC indicates that, despite a rebound in the technology sector on Monday, he is not in a hurry to reinvest in artificial intelligence stocks.

The host of “Mad Money” said, “Even after today’s rebound, I still think it’s too early to say that the situation has clarified and that it’s safe to reinvest in the stocks of AI data centers, which have fallen the most. He explained that this sector is facing both technical and fundamental headwinds that cannot be ignored.”

On Monday, the Nasdaq Composite Index rose by about 1.1%, as investors returned to tech stocks after a sell-off of beneficiary stocks last week. The S&P 500 Index gained nearly 0.5%, while the Dow Jones Industrial Average remainedほぼ unchanged. This rebound occurred following a wave of brutal selling last Friday, when both the Nasdaq Composite Index and the Nasdaq 100 Index fell below their 50-day moving averages; the CBOE Volatility Index, which measures panic on Wall Street, rose above 22 for the first time in four months.

In the column written on Sunday for Investing Club subscribers, Cramer clearly stated that he still has a long-term positive view on the AI trading theme. However, he mentioned that there are four obstacles that must be overcome before seeing another rise in the data center sector on Monday.

"I just think that it's not appropriate to be overly bullish on this sector until the charts improve, ultra-large cloud service providers release their financial results, the dust from the elections settles, and Anthropic successfully goes public," said Cramer on Monday. "These are all things that need to be closely monitored before you pay attention to this sector again, which has just suffered a significant setback."

Technically speaking, Cramer warns that the token issuance of VanEck Sem involving nductor, ETF, and Roundhill Memory ETF seems to have formed a double top, which is a bearish signal and may indicate that a round of upward movement has come to an end. "Worse still, for those assets that did not form a double top, they instead exhibited a clear head-and-shoulders top pattern—some even consider this to be even more negative—such that the only way forward seems to be continued decline," he said. "For experienced chart analysts, these stocks seem to have no bottom."

He also hopes that the Nasdaq Composite Index and the Nasdaq 100 Index will return to above the 50-day moving average, a level that technical analysts typically use to determine whether an asset is in an upward or downward trend. It is worth noting that he said that last week's selling pressure did not fall below the lows of late July; at that time, the market experienced significant volatility due to the forced liquidation of a highly leveraged hedge fund “Situational Awareness”.

According to Cramer, the upcoming financial reports must demonstrate that large technology companies are still continuing to invest in AI expenditures. SpaceX and Meta Platforms will announce their financial results this week, while Alphabet, Microsoft, and Amazon will release theirs next week. He also hopes to see that these expenditures are yielding returns, particularly reflected in the continuous growth of the company's public cloud business. The Cramer charitable trust, managed by CNBC Investing Club, holds shares in Meta, Alphabet, Microsoft, and Amazon.

Thirdly, the mid-term elections at the beginning of November need to pass. Cramer says that the growing political opposition to data centers has been dragging down the entire industry, but he expects that some of this pressure may ease after the election day on November 3rd. Although the election results may initially trigger more selling, he believes that greater political certainty could help AI's stock prices bottom out.

Finally, Cramer hopes to see Anthropic succeed. According to media reports, this listing could potentially take place as early as November. Cramer said, "We need to see at the very end of this expenditure chain that this is a sustainable and profitable business worth investing in. That's what Anthropic IPO represents." However, he also reminded that this issuance could also draw a large amount of capital away from other AI stocks.

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