CNBC’s Jim Cramer said the data center and artificial intelligence boom is becoming all-consuming, reaching far beyond tech companies and into nearly every corner of the market.
“AI is relentless. It’s ferocious. And it’s creating wealth for its believers,” the “Mad Money” host said Tuesday, as all three major indexes ended higher.
The market during the first quarter earnings season was buoyed by what Kramer called an “explosion of profits” from companies related to AI and data centers. And the rally is increasingly being seen across a broad group of stocks, he said.
To illustrate the breadth of this trend, Cramer pointed to a framework popularized by Nvidia CEO Jensen Huang. Huang described the AI economy as a “five-layer cake,” one in which interconnected industries all benefit from the same construction.
At its core, power is the foundation of the entire system. Data centers require enormous amounts of power, which is an advantage for companies such as: Vistra, GE Vernovaand constellation energy.
The next layer is the semiconductor. “I need a tip,” Kramer said, pointing to the next thing. NvidiaWith rivals like AMD and intel. He also highlighted storage and memory players such as: western digital and micron technologyand the following equipment manufacturers: ASML and applied materials.
On top of that, there is another layer of hardware that enables the AI system. Kramer pointed out that Dell Technologies For the server, Vertive cooling technology, and Eaton For electrical equipment. Additionally, he said network companies include: Cisco Systems and Arista Networks and fiber optic cable suppliers corning Helps tie data centers together. backup power provider etc. caterpillar and cummins Please help keep the lights on, he added.
Next is the AI model layer. Cramer suggested that when you think about the rapid adoption of AI models, think about cloud computing providers such as: Amazon web services, microsoft’s Azure and Google Cloud can benefit from all of their uses.
At the top is the application layer, which includes tools for direct interaction between consumers and businesses, including services such as ChatGPT, “the interface that started it all,” Kramer said.
The key point for Kramer is that the AI boom is no longer about a narrow technology, but a broader economic shift in which everything from utilities to industry to technology is being “hit by a ton of money.”
“We have a well-funded revolution that has already brought benefits to our leaders, and those benefits are now almost spread throughout the economy,” he said. “Those who hold S&P index funds will get a piece of the action. Those who pick the right stocks will get all of it, because I’ve only given them a buy list from 2026 onwards.”
Disclosure: Cramer’s Charitable Trust, a portfolio used by CNBC Investment Club, owns stock in GEV, NVDA, ETN, GLW, AMZN, MSFT, and GOOGL.
