Jim Cramer says concerns about AI market froth are overblown. Here's why

CNBC's Jim Cramer said Tuesday that today's stock market is nowhere near the kind of bubble that preceded the dot-com crash. While companies such as SpaceX may fuel perceptions of excess, Cramer argued they are exceptions to the rule, rather than representative of the broader market. "There are always outliers," the " Mad Money " host said. "There is some froth, but the froth does not represent what we trade. What we own." Stocks have surged to new highs over the past year as enthusiasm surrounding artificial intelligence fueled massive gains in semiconductor and other AI-related companies. Memory-chip makers Micron and Sandisk have jumped more than 243% and 644% this year, respectively. That rally has led some investors to question whether the market has become overheated, drawing comparisons to the dot-com boom of the late 1990s. Cramer disagreed , pointing to lower interest rates, stronger corporate earnings, and far more reasonable valuations than investors saw during the tech bubble. The latest consumer price index report came in cooler than expected Tuesday, he noted, which eased concerns that the Federal Reserve would soon need to raise interest rates. "You don't get a dotcom crash scenario without a series of tremendous rate hikes and we simply aren't there yet ...