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1987 crash lesson: recent AI stock sell-off may not reflect company health, says Jim Cramer

Market News
19 Oct 2026
CNBC
View Source
Neutral
1987 crash lesson: recent AI stock sell-off may not reflect company health, says Jim Cramer

Jim Cramer draws a parallel between the 1987 stock market crash and the recent sell-off in AI-related stocks, emphasizing that falling share prices don't always indicate problems with the companies themselves. The 1987 crash involved automatic selling triggered by portfolio insurance strategies, which led to a sharp market drop despite strong company fundamentals. Similarly, recent declines in semiconductor and data center stocks may be driven by external factors like hedge fund liquidations rather than deteriorating business conditions. Cramer advises investors to distinguish between market-driven sell-offs and genuine business troubles to avoid missing buying opportunities.

Jim Cramer's comparison of the recent AI stock sell-off to the 1987 market crash provides context for market dynamics. For readers following Technology-sector stocks, here is Pluang's market snapshot as of Oct 20, 2026 03:41 WIB: Out of 150 priced US Technology stocks, 101 rose and 45 fell. Notable movers include PATH (UiPath Inc) at USD 12.80 with a 1-day change of -6.64% and Pluang order activity showing 87% Sell, ASAN (Asana Inc.) at USD 10.41 with a 1-day change of +6.12% and 100% Buy activity, and UMC (United Microelectronics Corp) at USD 19.68 with a 1-day change of -5.90% and 55% Sell activity. Typical hold times vary from 35 to 140 days among these stocks.

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