CNBC’s Jim Cramer said Friday that next week’s earnings from major neoclouds could test investor confidence in the battered data center deal.
Stocks rebounded, capping a tumultuous election week in which investors dumped companies related to artificial intelligence infrastructure development after Democrats flipped the House and Senate and some key gubernatorial seats. Friday’s gains were welcome but not credible after Wall Street’s worst day in 19 months. Cramer remained skeptical of a recovery as he was also concerned about the short-term intermediate bull market on Wednesday.
Mr. Kramer maintained that concerns about data center spending and funding remain unresolved. “It felt like a dead cat bounced,” the “Mad Money” host said, referring to Friday’s largely positive market. “We know everything will never be resolved, but it still feels like there are a lot of sellers lurking, waiting for a bigger recovery in the stock price.”
With this background, Kramer turned his attention to the week ahead.
Monday
constellation energy Report before the bell and get an early look at how political uncertainty could impact the power infrastructure that supports AI data centers.
Tuesday
pending reported earnings, but Kramer remains cautious when it comes to athletic shoes. He said he feels the industry is becoming increasingly crowded. “I’ll give this away,” he said.
Consumer price index data will also be released on Tuesday morning, and Cramer expects a significant slowdown in inflation. He warned that if rates remained high, it could prompt Federal Reserve Chairman Kevin Warsh to raise rates again. The Federal Reserve raised interest rates for the first time in three years in September.
After the close, Neocloud coreweave This is being reported in what could be one of the most important financial results announcements of the week. Cramer said Neocloud, which is heavily in debt, will need to explain how it plans to finance expansion and manage borrowing costs.
Wednesday
corteva Otherwise, report in a quiet session. Cramer said the agrochemical company has seen a sharp decline in support from investors and wanted to better understand what’s weighing on the company’s stock price.
Thursday
Neviusanother high-profile neocloud report before the bell, giving AI infrastructure trading another big test following CoreWeave’s results. Kramer said investors are looking for strong new orders, a completed data center and a strong pipeline of future projects. “What I don’t want to hear is that the site they’re building is late and over budget,” he said.
Cisco Systems It was also reported on Thursday evening. He said the networking provider may be oversold, but he will wait to see how the market reacts to CoreWeave and Nebius before buying.
applied materials I will also report. Semiconductor equipment makers’ stocks have fallen sharply from their highs, but Cramer cautioned that a sharp decline alone doesn’t make a stock attractive. “Remember, we don’t care where the stock comes from. All we care about is where it goes,” he said.
Kraft Heinz We will hold an investor meeting on Thursday. Kramer is optimistic about CEO Steve Cahillane’s ability to unlock shareholder value, citing his track record at Kellogg.
Friday
The Producer Price Index will be released on Friday, providing another key measure of inflation.
