In this article, we will look at Jim Cramer’s Opinion on 5 Stocks: Arm, Quanta Services, and Others. Please visit Jim Cramer’s Opinion on 21 Stocks: Oklo, AST SpaceMobile, and Others, if you’d like to see the extended list and methodology behind it.
5. Arm Holdings plc (NASDAQ:ARM)
Arm Holdings plc (NASDAQ:ARM) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. During the episode, Cramer mentioned that QUALCOMM reminds him of the company and said:
Kind of reminds me of its competitor, Arm Holdings, a position we’ve been trying to build for the Charitable Trust ahead of when it reports on May 6. Candidly, Arm has gotten away from us. The stock’s going parabolic. You know, I don’t buy parabolas.
Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU architectures, system IP, and software used across automotive, computing, consumer, and IoT applications. Cramer mentioned the stock during the April 27 episode and remarked:
Last Monday, the Trust added semiconductor design company, Arm Holdings, to the portfolio, and then the… thing proceeded to rally 34% over the next four days. If you go back further, Arm gained over 71% from March 30th to April 24th. So even though we’re big fans of the stock, what we do, we can’t sell it because I mentioned it, but we downgraded it from a one, which means a buy for the Trust, to a two, meaning a buy into weakness, which typically means I try to take something off. Price matters and when something surges 34% in less than a week, well, you know what, you gotta pull in your horns. You can’t be a pig.
4. QUALCOMM Incorporated (NASDAQ:QCOM)
QUALCOMM Incorporated (NASDAQ:QCOM) was among the stocks Jim Cramer highlighted as he discussed the massive AI infrastructure buildout. Cramer highlighted the company’s latest deal with a hyperscaler, as he said:
QUALCOMM, okay, this one was up 15% today. It had been an out-of-favor semi. Now, it’s in favor. They just landed a big account with a hyperscaler. We don’t know which one, but we do know that QUALCOMM was considered more of a niche cell phone play, and no longer.
QUALCOMM Incorporated (NASDAQ:QCOM) supplies wireless technologies, chips, and software for mobile, automotive, and IoT applications. During the April 7 episode, a caller asked whether the stock was a good buy at the level it was at the time, and Cramer replied:
No. No, we don’t want to, but why don’t you just go buy Arm? I mean, I think Arm’s much better than Qualcomm. Qualcomm, I think, is making a series of missteps. Arm is making a series of good steps.
3. Teradyne, Inc. (NASDAQ:TER)
Teradyne, Inc. (NASDAQ:TER) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer mentioned the stock during the episode and commented:
Then there’s Teradyne. Okay, now this is a little more arcane. This is, it’s up 12%. It’s not new. It’s been a tremendous performer during the data center build-out. It’s a semiconductor test and measurement play. The semiconductor’s a fragile thing. When you first start building a new line of chips, you gotta throw away a lot of them. No one can afford an error in a semiconductor, given how many are in a data center. That’s a lot of testing, but that’s narrow, okay, so I understand someone might say, Jim, that doesn’t do it for me.
Teradyne, Inc. (NASDAQ:TER) supplies automated test equipment for semiconductor devices across industries such as automotive, communications, consumer electronics, and computing. The company also provides collaborative robots, mobile robotics, test instrumentation, and wireless testing solutions for manufacturing and industrial applications.
2. Carrier Global Corporation (NYSE:CARR)
Carrier Global Corporation (NYSE:CARR) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer highlighted the market’s reaction after the company reported, as he said:
Eaton, based in Ohio, makes the transformers needed to put that electricity into the data center. And when that electricity gets in there, well, you know what? It burns real hot. We know that Eaton has cooling technology, so does Vertiv, but the one that was up the biggest today was Carrier, you know, the air conditioning company. It’s up almost 9% after reporting a big upside surprise. I think this quarter may be the beginning of a multi-year move for the climate control company. Also had very good numbers out of Europe.
Carrier Global Corporation (NYSE:CARR) provides climate and energy solutions through its HVAC and refrigeration products and services. During the March 27 episode, a caller asked Cramer about how the company can capitalize on the rising demand for “complex cooling solutions” due to data center build-out, and he replied:
No, you’re not going to, if you want to do that, that’s Vertiv. Vertiv is still the one… Carrier just doesn’t, Carrier doesn’t have the horses.
1. Quanta Services, Inc. (NYSE:PWR)
Quanta Services, Inc. (NYSE:PWR) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer called the company an “obvious winner when you want to build out the electric grid,” as he stated:
I’m going to go down, literally go down the S&P’s top gainers today. I’m doing a little bit of order that changes just so we can get the narrative right, but let’s see if they’re representative of anything other than the data center, even if they’re involved in it. So let’s start with Quanta Services, PWR. This stock soared nearly 16% today. That’s a big gain. It’s an installer of power lines and infrastructures of all kinds. Quanta’s been a decent company for a long time. It’s been worth owning, but it’s been roaring because it’s the obvious winner when you want to build out the electric grid.
Management explains this very clearly right at the beginning of this incredibly stunning positive conference call they had today, “Utilities are being asked to double in size. Technology customers are demanding speed at scale they haven’t dealt with before.” See, this is a whole new way our country’s doing business. A rally that includes Quanta tells you that the data centers about a lot more than just the semiconductors and disk drives. Data centers are like giant mouths that must be fed with constant activity and never-ending electricity.
We know there are many ways for the utilities to produce more energy, the most frequent being converting natural gas to a GE turbine that’s connected to the grid. Quanta builds that. They can also build the other end where the grids connect to the data center. Quanta does this with American labor.
Quanta Services, Inc. (NYSE:PWR) provides engineering, construction, and maintenance for energy and communication systems, including electrical grids, renewable power plants, and natural gas pipelines.
While we acknowledge the potential of PWR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PWR and that has 100x upside potential, check out our report about the cheapest AI stock.
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