The stock market’s biggest winners share a common thread—exposure to the rapidly expanding data center ecosystem—according to CNBC’s “Mad Money” host Jim Cramer.
On Thursday, Cramer said the current market can be divided into two sectors – the data center stocks and everything else. He said the surge in artificial intelligence infrastructure is spilling into far more than big tech, pulling in industrial, power, cooling, networking and even real estate names.
Data Centers Move Into The Mainstream
“The data center, the data center, the data center,” Cramer emphasized, noting that what was once a niche trade has now gone mainstream.
The S&P 500 soared to a new all-time high, topping 7200 for the first time as investors bought a wide range of businesses linked to the expansion of computing capacity. Cramer framed the rally as a connected set of winners, with data centers acting as the common thread.
Infrastructure And Power Names Surge
Companies tied to building and powering data centers are among the biggest beneficiaries. Quanta Services (NYSE:PWR), which develops power grids, is seeing strong demand as utilities race to meet rising electricity consumption.
Cramer described data centers as “giant …
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