Jul 27, 2026 · 44 min
Cramer warns investors against data-center concentration
Mad Money w/ Jim Cramer 7/27/26
The episode tests whether data-center enthusiasm still justifies heavy portfolio exposure while identifying industrial and infrastructure alternatives.
- 1Data-center exposure may be becoming a portfolio risk rather than an automatic advantage as investors question the trade’s durability.
- 2CRH’s quarries, infrastructure businesses, and acquisition strategy offer a case study in industrial growth tied to construction and reshoring.
- 3Strong earnings can still trigger selloffs, making valuation, expectations, and business concentration as important as headline results.
Don't miss
Cramer joins CRH for a controlled quarry blast after exploring how aggregates become roads and other infrastructure.
The brief
Jim Cramer opens by challenging investors’ dependence on data-center stocks, arguing that the market’s enthusiasm may be creating concentration risk and that opportunities remain elsewhere.
Viewer questions put Intel, CrowdStrike, and SpaceX under scrutiny, while Cramer explains why strong earnings can still send shares lower when expectations and valuation get ahead of results.
The episode’s industrial counterpoint is CRH, where a New Jersey quarry visit leads into its aggregates, roads, water, energy infrastructure, acquisitions, and exposure to construction and data centers.
A controlled quarry blast provides the episode’s most vivid moment, turning CRH’s otherwise strategic discussion into a concrete demonstration of the business being examined.
The lightning round covers Cerebras, First Horizon, Nike, and Kemper before Cramer returns to the central warning: data-center exposure may no longer be an unqualified positive.
What was said on this episode
30 statements · 18 positive · 11 negative · 1 neutral
Investors should avoid data-center-related stocks.
“Right now, this market's saying that you should stay as far away from the data center as possible”
Listen at 0:53
Lower oil prices support the view that inflation may be temporary.
“The decline in oil helps make the case that inflation could be transitory.”
Listen at 1:37
Vendor financing to customers can expose suppliers to defaults and earnings damage.
“What we learned in 2000 is that you don't lend to customers who buy your goods.”
Listen at 4:39
NVIDIA’s financing transactions are weighing on investor sentiment toward its stock.
“The stock market is telling you what it thinks of NVIDIA because of these kinds of transactions”
Listen at 6:47
Cramer doubts NVIDIA should be making customer-financing transactions.
“I hope NVIDIA isn't actually making these kinds of transactions.”
Listen at 7:50
NVIDIA should not guarantee financing for customer data centers.
“NVIDIA shouldn't make these guarantees, even if it has all the money in the world.”
Listen at 8:21
CPU usage will increase substantially relative to GPU usage.
“CPUs are going to start being used a lot more than GPUs, which is what NVIDIA makes.”
Listen at 9:20
Global semiconductor manufacturing capacity is currently insufficient.
“the world is short foundry space”
Listen at 9:35
Cramer recommends buying Intel shares.
“So we are buyers of Intel.”
Listen at 9:40
Cramer evaluates CrowdStrike as an exceptionally attractive stock.
“CrowdStrike is an incredible stock.”
Listen at 10:28
George Kurtz is probably the world’s leading cybersecurity figure.
“George Kurtz is probably now the foremost person in cybersecurity in the world.”
Listen at 10:40
Cramer recommends owning CrowdStrike.
“Own CrowdStrike.”
Listen at 10:45
American Express shares offer an attractive buying opportunity after their decline.
“I think you're getting a terrific buying opportunity”
Listen at 12:34
American Express’s reinvestment decision is strategically correct.
“I think he's making the right call.”
Listen at 16:11
American Express is an excellent investment opportunity and exceptionally well managed.
“I think it's a terrific opportunity and one of the best-run companies on Earth.”
Listen at 18:49
Honeywell’s separated businesses are worth more independently than together.
“They're worth more because they didn't belong under the same roof.”
Listen at 19:43
Honeywell Technologies appears capable of meeting its long-term financial targets.
“Now it looks like Honeywell Technologies can truly hit its long-term financial targets”
Listen at 21:59
Honeywell Aerospace’s 2030 targets appear achievable.
“Those targets look achievable to me.”
Listen at 23:44
Honeywell Aerospace should not trade at a valuation discount to RTX.
“Honeywell Aerospace is a great company, doesn't deserve to trade a discount to RTX.”
Listen at 25:02
Honeywell Aerospace’s share-price weakness creates an attractive buying opportunity.
“you're getting an incredible buying opportunity in Honeywell Aerospace”
Listen at 25:35
Cramer’s charitable trust will not buy SpaceX.
“We're not going to buy it for the trust”
Listen at 26:30
Confidence in Elon Musk implies confidence in SpaceX’s space-exploration technology.
“if you believe in Elon, you believe in space exploration tech.”
Listen at 26:32
SpaceX shares are available at an attractive price.
“I think you can get in at a great price here.”
Listen at 26:43
First Horizon is inexpensive and should be bought.
“First Horizon, I think it's a terrific stock, very inexpensive, and I think you should buy it.”
Listen at 38:16
Nike is merely adequate as an investment.
“I think Nike's okay.”
Listen at 38:32
Nike faces substantial competitive pressure.
“there's a lot of competition.”
Listen at 38:37
Cramer does not recommend owning Kemper.
“Kemper is not a stock I want to own.”
Listen at 39:10
Investors should favor nontraditional technology rather than conventional big tech.
“we want tech, but not the kind of big tech investors used to buy.”
Listen at 41:55
Investors using margin should exit those leveraged positions.
“If you're on margin, get off it.”
Listen at 42:27
Investors borrowing to buy data-center-related assets should sell immediately.
“If you are borrowing money to buy something related to the data center, okay, here's what you're going to do. Tomorrow morning, 9.30 a.m., sell it no matter what.”
Listen at 43:26
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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