Jim Cramer: AI data center stocks “not too late yet,” the list covers four major categories from chips to power

CNBC host Jim Cramer on May 10 commented on AI data center stocks: even after the stock prices have already surged, entering now is “not too late,” because the capital expenditure scale of the hyperscalers and the revenue expectations starting next year make it hard for data center stocks to fall. CNBC’s report summary: Cramer believes AI has moved from a “narrow technical story” to a “broad economic transition,” striking everything from utilities and industrials to tech—a “flood of capital.”

AI data center-related stocks Cramer recommended: spanning chips, infrastructure, power, and cloud

Cramer named AI beneficiaries, grouped into four categories:

Chips: Western Digital, Micron (memory and storage); ASML, Applied Materials (wafer equipment)

Infrastructure and networking: Dell (servers), Vertiv (cooling), Eaton (power equipment), Cisco, Arista (networking), Corning (fiber optics)

Power and energy: Vistra, GE Vernova, Constellation Energy

Cloud platforms: Amazon Web Services, Microsoft Azure, Google Cloud

This list covers the full stack of “data center construction”—from chips to servers, from cooling to power, from networking to cloud platforms. Cramer’s view is that AI capital expenditures are no longer concentrated only on GPUs, but are spreading across every layer of the data center construction supply chain.

Logic: the scale of hyperscaler capital expenditures, and revenue expectations beginning next year

Cramer’s specific reasoning for why it’s “not too late”:

Hyperscalers (Amazon, Microsoft, Google, Meta) have already publicly disclosed their capital expenditures, and the scale is staggering

Starting next year, these data centers will begin contributing to revenue

“Hard to imagine AI data center stocks falling”

AI has spread beyond a narrow technical story into utilities, industrials, and tech across multiple sectors

Cramer’s argument is based on already published capital expenditure guidance, not predictions of undisclosed numbers. abmedia’s May 9 report on Alphabet’s Cloud backlog of $462 billion is concrete support for this thesis—cloud revenue has contracts locked in for the coming years.

Contrast: related to this week’s AI chip generation changeover theme

The connection between this Cramer statement and abmedia’s prior reporting:

5/9 Wall Street “AI chip generation changeover”: the market is shifting from concentrating on a single GPU leader to a full-stack set of AI suppliers

5/10 Alphabet’s full-stack AI execution: the concrete presentation of the $462 billion Cloud backlog

Cramer’s list converts this view into specific stock names, covering a wider set of sub-industries

Specific events to watch next: the Q2 earnings guidance for the individual stocks in the list, whether hyperscalers’ capital expenditures will be raised in the second half of the year, and the HBM shipment numbers from memory makers such as SK hynix and Micron (moving in the same direction as abmedia’s report today on the strength of KOSPI semiconductors).

This article, Jim Cramer: AI data center stocks “not too late,” a list covering 4 categories from chips to power, first appeared on Chain News ABMedia.