CNBC’s Jim Cramer expressed skepticism over the latest market bounce, noting that the narrow rally is being heavily propped up by data center memory stocks capitalizing on an artificial intelligence storage shortage.
The AI Storage ‘Gold Mine’
Despite the major indices posting modest gains, Cramer warned investors that the advance lacks broad, dependable leadership. Instead, the market’s heavy lifting is being done by the “big four” of memory and storage: Micron Technology Inc. (NASDAQ:MU), Western Digital Corp. (NASDAQ:WDC), SanDisk Corp. (NASDAQ:SNDK), and Seagate Technology Holdings PLC (NASDAQ:STX).
As artificial intelligence (AI) requires unprecedented amounts of data to function, the demand for digital storage has skyrocketed.
Cramer noted that memory was historically a “bad business” plagued by low margins and commoditization. Today, however, the data center boom has transformed the landscape, and these tech companies are now sitting on a “gold mine.”
Unfortunately for consumers, the industry was caught “flat footed” by the sudden surge. While Micron is attempting to add capacity at scale, the …
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