In this article, we will look at the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. The host of CNBC’s Mad Money said on Thursday that the ongoing expansion of data centers is proving a major positive for the broader economy and added that he believes the trend is still in its early stages.
The data center, the data center, the data center. You’re probably tempted to say enough already… Give me something else. So on still one more day where the averages roared… I got an idea. Why don’t we take a look at some of the top performers in the S&P today, not the Sandisks and the Western Digitals, I know you’re sick of all those, just to figure out if they’re real companies in here. If the data center is too narrow a concept to lead the stock market, or as a whole, is this list representative of what we want? Because if it’s too narrow, then the market will have a hard time going further.
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Discussing the outperformers of the day, Cramer described it as a “manufacturing mosaic.” He added that such a thing has not been seen since a large portion of industrial production shifted overseas to countries such as China in search of cheaper labor. He pointed out that, not long ago, data centers seemed like a niche area with limited influence on the broader economy, but this quarter, the theme has moved into the mainstream. He added that after listening to various conference calls, he believes the current data center expansion is still in its early stages.
Listen, I got nothing against any other sector, including the consumer sector, the healthcare sector, but the bottom line: As far as I’m concerned, the data center is a windfall for almost every slice of the economy. I say don’t look a gift horse in the mouth, and instead, maybe you buy some of these stocks. I think there’s some real winners on that list.
Our Methodology
For this article, we compiled a list of 21 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 30. We listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
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21. Cardinal Health, Inc. (NYSE:CAH)
Cardinal Health, Inc. (NYSE:CAH) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer mentioned the stock during the episode and said:
Cardinal Health, a company that had repeatedly come on Mad Money telling a terrific story, just imploded. Did I tell people to buy it? Well, it’s in my Trust. Ouch. Gotta put that one behind, but only after further investigation.
Cardinal Health, Inc. (NYSE:CAH) supplies branded, generic, and specialty medicines and provides pharmacy and specialty drug services. The company also makes and distributes medical and surgical products and procedure kits. During the April 23 episode, Cramer said that he is a “huge believer” in the company, as he commented:
Next, I’m a huge believer in Cardinal Health with a stock that’s just been annihilated here without any reason, other than, I think, a vicious rotation out of healthcare. Cardinal’s down from $233 to $204. It’s beaten the quarterly estimates repeatedly, shifts its model from being a pure middleman to being a drug wholesaler, to being a manager of services to its clients… Given the complexity of large independent medical organizations, Cardinal’s filling a gap in management for specialty chains that really don’t know how to run their own business. I think there’s maybe many more to come. High growth that now trades at less than 20 times earnings. To me, Cardinal’s a steal. Although we’ve been buying it for the Charitable Trust, and admittedly, I started early. Some would say wrong. Okay.
20. Seagate Technology Holdings plc (NASDAQ:STX)
Seagate Technology Holdings plc (NASDAQ:STX) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer was slightly bearish on the stock during the episode, as he commented:
Seagate, which had just reported a terrific quarter, but with Western Digital, Sandisk, those stocks though, are really overextended for me. They’re way too parabolic. I say [sell, sell, sell].
Seagate Technology Holdings plc (NASDAQ:STX) makes hard drives, solid-state drives, and storage solutions for personal, gaming, and business use. During the April 29 episode, Cramer mentioned the company and remarked:
What’s working here? The shares of companies where they can’t make enough product in technology. No, not Amazon, not Alphabet, not Microsoft, not Meta, Seagate, Seagate, the maker of disk drives that store data, including data spewed from machines in the data center. Oh, Seagate’s been a horse for ages now, and it rallied 11% today on the conference call. They talked about how they can’t make their product fast enough. I don’t know when that will change because there aren’t enough machines available for Seagate to expand its disk drive production. Boy, that’s exactly what you want to see. That’s what the market wants.
