Jim Cramer Remains Bullish on AI Infrastructure Despite Wall Street Skepticism

Jim Cramer explains why he's still optimistic on data center buildout

"When it comes to AI infrastructure, Wall Street's become very skeptical, and I don't think that's really changed," Cramer said. "But looking at what we've seen so far this earnings season, I'm feeling much more sanguine about this story, especially if we get some more trade war...de-escalation from the White House and stocks stay as cheap as they are." As the hype around stocks related to the data center starts to die down on Wall Street, CNBC's Jim Cramer explained why he's hopeful the artificial intelligence infrastructure theme still holds weight. "When it comes to AI infrastructure, Wall Street's become very skeptical, and I don't think that's really changed," Cramer said. "But looking at what we've seen so far this earnings season, I'm feeling much more sanguine about this story, especially if we get some more trade war...de-escalation from the White House and stocks stay as cheap as they are." At the start of the year, investors grew concerned the AI boom would turn bust after learning that Chinese startup DeepSeek developed a large language model that is purportedly as advanced as the dominant competitors, but requires much less energy and money. The revelation from DeepSeek triggered a drastic shift in the tone of the market and sent down AI stocks that had seen immense gains for the better part of a year -- including AI darling Nvidia, which set a record by losing nearly $600 billion in a single session. AI stocks and other former market leaders have also declined more recently as Wall Street worries broadly about the economic impact of President Donald Trump's sweeping tariff policies and the potential for a recession. But according to Cramer, there hasn't yet been any concrete evidence to suggest a slowdown in AI infrastructure buildout. He pointed out that on Thursday, executives from Amazon and Nvidia denied that data center spend was on the decline. While Microsoft has pulled back on some early stage projects, Cramer claimed the company may just be starting to build fewer data centers on behalf of partner OpenAI as the startup begins to raise its own cash. Cramer was also encouraged by strong earnings results so far this season for companies connected to the data center. He mentioned that Vertiv, which makes power and cooling equipment for the data center, easily topped estimates. GE Vernova also managed a substantial beat, he continued. The power company indicated that strong demand for data centers is driving gas turbine sales as well as boosting its nuclear business. Cramer named stocks in several sectors related to AI buildout: semiconductor companies, data center builders, outfits responsible for servers and networking equipment, power utilities, climate control businesses as well as industrials. If the data center theme is still strong, he said it might be good to own names including Broadcom, Arm Holdings, CoreWeave, Arista Networks, Cisco Systems, Constellation Energy, Vistra, Carrier Global, Trane Technologies, Cummins and Dover. "These are very much cyclical companies, so you can't just buy them if you think we're headed into a recession," he said. "But if we get a reprieve on some of...these tariff issues and investors return to the AI trade, I just gave you everything that's going to fly again."

Jim Cramer Stays Bullish On Data Centers, Says If Trump Tariffs Eases, These AI Stocks 'Will Fly Again' Despite Wall Street Doubts - Arista Networks (NYSE:ANET), Amazon.com (NASDAQ:AMZN)

Despite growing skepticism on Wall Street, CNBC's Jim Cramer remains optimistic about the future of artificial intelligence infrastructure and data center stocks. What Happened: Cramer acknowledged the turbulence in AI stocks, especially following revelations from DeepSeek, a Chinese startup. On top of that, there's anxiety about Donald Trump's tariff policies potentially hurting the broader economy. However, he thinks the data center boom isn't slowing down, reported CNBC on Thursday. The Mad Money host mentioned that executives at Amazon.com, Inc. AMZN and Nvidia Corporation NVDA have said they're still spending big on data centers. Microsoft Corporation MSFT may be building fewer data centers for OpenAI, but Cramer said that's likely because ChatGPT-parent is now raising its own money to do it independently. See Also: Trump Grants Tariff Reprieve to Tech - Including From China - In Surprise Move He believes that if trade tensions ease and AI enthusiasm resurges, several sectors are poised for significant growth, including: Semiconductors: Broadcom Inc. AVGO, Arm Holdings ARM Server and networking gear: Arista Networks ANET, Cisco Systems Inc. CSCO Data center builders and power suppliers: CoreWeave Inc. CRWV, Constellation Energy CEG, Vistra VST Cooling and climate control: Carrier Global CARR, Trane Technologies TT Industrial manufacturers: Cummins CMI, Dover Corporation DOV "These are very much cyclical companies, so you can't just buy them if you think we're headed into a recession," he stated, adding, "But if we get a reprieve on some of...these tariff issues and investors return to the AI trade, I just gave you everything that's going to fly again." Why It's Important: In January, DeepSeek's assertion that its AI model was built at a fraction of the cost of its U.S. competitors led to Nvidia losing $600 billion in market cap in just one day. Meanwhile, earlier this week, the International Monetary Fund significantly revised down its 2025 growth forecast for the U.S., attributing the downgrade to President Trump's broad tariffs and increasing economic uncertainty. Benzinga Edge Stock Rankings gives the company a strong growth score of 94.78%. Click here to see how it stacks up against other top tech giants such as Microsoft, Amazon, Broadcom, Arm, and more. Image Via Shutterstock Read Next: Tariffs To Impact End Demand: Goldman Sachs Analyst Expects Drag On Corporate Spending, Hiring Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMZNAmazon.com Inc$189.991.85%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum48.20Growth94.15Quality67.83Value50.08Price TrendShortMediumLongOverviewANETArista Networks Inc$76.371.43%ARMARM Holdings PLC$113.070.95%AVGOBroadcom Inc$189.870.91%CARRCarrier Global Corp$60.800.81%CEGConstellation Energy Corp$220.040.90%CMICummins Inc$293.96-%CRWVCoreWeave Inc$42.752.35%CSCOCisco Systems Inc$56.500.37%DOVDover Corp$170.010.17%MSFTMicrosoft Corp$387.630.09%NVDANVIDIA Corp$107.721.21%TTTrane Technologies PLC$344.000.28%VSTVistra Corp$126.251.63%Got Questions? AskWhich AI stocks could rebound with tariff easing?How will semiconductor companies respond to tariffs?Can data center builders thrive post-tariff relief?Which industrial manufacturers are set to gain?How might Amazon leverage data center spending?What impact will Nvidia face if tariffs ease?Could cooling tech companies see growth with AI demand?Which server and networking gear stocks are undervalued?How will trade tensions affect tech investments?What opportunities exist in climate control sectors?Powered ByMarket News and Data brought to you by Benzinga APIs