Jim Cramer advised investors not to sell Apple stock on Mad Money, despite acknowledging that Apple does not build its own AI and that its Siri assistant lags behind competitors like Google's Gemini.
Cramer argued that Apple's different business model makes direct spending comparisons with other tech firms misleading, and he pointed to the company's historical pattern of eventually perfecting products it initially launches imperfectly.
What happened
Jim Cramer told investors on Mad Money to hold Apple stock, acknowledging that the company does not build its own AI and that Siri is not as capable as competitors' AI assistants like Google's Gemini (which is the default AI on iPhone).
Why it matters
Apple has faced criticism for years over insufficient spending on data centers and AI strategy compared to other tech giants. Cramer argues the comparison is misguided—Apple's business model differs, and the company has a track record of eventually perfecting products it initially releases as imperfect, suggesting patience may be warranted.
What to watch
Cramer's call hinges on his belief that Apple will improve its AI offering over time, though he concedes the company's current AI product is "not the best" relative to its usual standard.
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Cramer's call on Apple reflects a broader debate in the tech industry about how to evaluate companies with different strategic approaches to artificial intelligence. While competitors like Google and others have poured resources into data centers and AI development, Apple has taken a different path, focusing on consumer devices and partnering with other AI providers rather than building its own large language models. This distinction is crucial to understanding Cramer's position: he is arguing that the market's criticism of Apple for "underspending" on AI misses the point, because Apple operates in a different business category. The core tension Cramer identifies is that Apple's current AI offering—Siri—is demonstrably weaker than alternatives, yet the company has historically shown the ability to close product gaps through iteration. His recommendation to hold reflects confidence in that track record, not a claim that Apple's AI is currently competitive.
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