CNBC’s Jim Cramer said there are basically only two sectors in the market these days: data center stocks and other sectors.
“Data center, data center, data center,” the “Mad Money” host said. “You might be tempted to say enough is enough, but this quarter it has become mainstream.”
of S&P500 It once again closed at an all-time high on Thursday, buoyed by a broad group of stocks benefiting from the massive build-out of artificial intelligence infrastructure. Kramer said the pattern is unmistakable, with many of the market’s biggest winners connecting directly or indirectly to data centers.
he pointed to quanta service As a typical example. The company builds power lines and grid infrastructure, which are critical as utilities meet surging demand for electricity. Kramer said data centers are “giant mouths that have to be fed endless amounts of power,” creating opportunities far beyond semiconductors.
Kramer also explained: Eaton and Vertive Benefits from power management and cooling needs, career global We are seeing an upturn in data center cooling. “This quarter could be the start of a multi-year move,” Kramer said.
Teradyne The company is on the rise as chip production increases, requiring more testing services. Kramer said that chip manufacturers Qualcommhas been trading around the smartphone market for years, but is entering the data center market with a new, unknown customer.
Even industry names are being pulled in. caterpillar has recognized a strong demand for turbines, which are increasingly being used to power data centers. “I’m worried there won’t be enough supply,” Kramer said, pointing to strong demand.
On the other hand, network companies siena, Arista Networksand Cisco Data centers are benefiting because they require more connections to move large amounts of data.
Even real estate investment trusts iron mountainThe company, long known for physical document storage, is now renting out space to hyperscalers looking for more computing power.
Kramer said the breadth of winners shows that the data center boom is no longer a narrow technology trade, but a full-fledged industrial expansion with many opportunities for investors.
“What are we looking at? A mosaic of manufacturing,” he said. “As far as I’m concerned, data centers are a windfall for almost every part of the economy.”
