Jim Cramer Says AI Data Center Stocks Still Have Room to Run

CNBC reported Sunday that Mad Money host Jim Cramer is pushing back hard against the notion that AI data center stocks have already peaked. Writing for CNBC’s Investing Club, Cramer argued that low earnings multiples and relentless AI-driven demand still make the sector attractive, even after substantial price gains.

The Memory Supercycle Draws Massive Cash

Cramer pointed to the Roundhill Memory ETF, ticker DRAM, as evidence of accelerating investor conviction. The fund pulled in more than $5 billion over a single month, including a striking $1.1 billion in one Thursday session alone. Rather than reading that as a sign of a crowded trade, Cramer framed it as validation. He described the ETF’s core holdings, which span South Korean, Japanese, and American memory manufacturers, as a uniquely concentrated bet on a global supply bottleneck that AI computing has made almost impossible to bypass.

Micron’s Rally Looks Extreme but the Valuation Disagrees

Micron Technology shares surged roughly 38% in a single week, moving from around $542 to $747 per share. Cramer acknowledged that kind of vertical move would normally signal an overheated stock. He quickly added, however, that Micron trades at only about nine times forward earnings according to FactSet data, which he called one of the cheapest valuations for a high-quality name in the entire market. Analysts at Melius Research initiated coverage of Micron and peer Sandisk with buy ratings in late April. Investors who followed that call captured a roughly 50% gain within weeks, Cramer noted.

Modine Manufacturing and the Less Discovered Plays

Background: Why Data Center Infrastructure Became a Market Theme

The surge of generative AI applications over the past two years has forced hyperscale cloud operators to pour capital into data center expansion at an unprecedented pace. That buildout has lifted demand for everything from high-bandwidth memory chips to advanced cooling systems. Companies supplying thermal management and power infrastructure have re-rated sharply as investors priced in years of elevated capital spending.

Cramer drew a direct line from that backdrop to his interest in Modine Manufacturing, a heating and cooling specialist that he described as less well-known than data center suppliers like Vertiv or Investing Club holding Eaton. He argued Modine’s deep ties to hyperscale customers and its exit from slower industrial segments make it an underfollowed opportunity.

Where Cramer Sees Remaining Upside

Despite conceding that construction, cooling, and memory stocks have already posted historic gains, Cramer said price-to-earnings ratios across much of the sector remain surprisingly modest. He flagged materials suppliers serving the chip fabrication process as additional sleeper opportunities. The core thesis is straightforward: AI infrastructure spending shows no sign of slowing, and valuations in many cases have not caught up with the earnings power being built.

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