Jim Cramer has raised alarm over Dell Technologies' substantial exposure to China, stressing the risk potential due to looming tariffs and inflationary pressures. This concern has reflected sharply in Dell's stock performance, which saw a 19% drop as investor anxiety mounted regarding the company’s position in China, reports suggest.

Cramer has previously advised buying goods likely affected by tariffs before implementation but dismisses shifting supply chains to Mexico as a feasible escape route from these tariffs. Despite these challenges, he hasn’t entirely turned bearish on Dell, noting that the recent AI sector downturn has already devalued Dell's stock, providing possible buying opportunities.

While acknowledging the risks tied to tariffs and AI uncertainties, Cramer argues Dell's robust enterprise segment could be advantageous over competitors like HP Inc and Hewlett Packard Enterprise. He maintains faith in Dell’s strategic role within AI infrastructure, despite the current volatility spurred by startups promising more efficient AI operations.