Cramer: CoreWeave and Nebius Test AI Data Center Business Results

CNBC’s Jim Cramer said Friday that next week’s earnings from major neoclouds could test investor confidence in the struggling data center sector.

Stocks rallied to end a turbulent election week, in which investors dumped companies linked to artificial intelligence. infrastructure construction after Democrats flipped the House, Senate and some key governor seats. After the worst day on Wall Street in 19 months, Friday’s gains were welcome but cringeworthy. Cramer remained skeptical of a possible recovery, just as he also had been about what proved to be a short-lived recovery at Wednesday’s midpoint.

Cramer argued that concerns about data center spending and funding have not yet been resolved. “It was like a dead cat bounce,” the “Mad Money” host said, referring to Friday’s largely positive market. “I know we’ll never get the green light. But it still feels like there are a lot of sellers hiding, just waiting for stocks to rally more so they can get out.”

Against this backdrop, Cramer looked toward the week ahead.

Constellation Energy reports before the bell, offering a first look at how political uncertainty could affect the power infrastructure that supports AI data centers.

On hold releases results, but Cramer remains cautious on athletic shoes. He said the industry feels increasingly crowded. “I’m going to leave this one out,” he said.

The Consumer Price Index also arrives Tuesday morning, with Cramer hoping for a significant slowdown in inflation. He warned that continued high prices could prompt Federal Reserve Chairman Kevin Warsh to raise interest rates again. The Fed raised rates in September for the first time in three years.

After closing, neocloud CoreWeave ” reports in what could be one of the most important earnings releases of the week. Cramer said debt-heavy Neocloud needs to explain how it plans to finance its expansion and manage its borrowing costs.

Corteva reports in an otherwise quiet session. Cramer said the agricultural chemicals company has fallen out of favor with investors and wants to better understand what’s weighing on its stock.

Nebiusanother leading neocloud, reports before the bell, providing another major test for the AI ​​infrastructure trade following CoreWeave’s results. Cramer said investors will be looking for large new orders, completed data centers and a strong pipeline of future projects. “What I don’t want to hear is that the sites they’re building are coming in late and over budget,” he said.

Cisco Systems also reported Thursday evening. He said the networking provider may be oversold, but he would wait to see how the market reacts to CoreWeave and Nebius before buying.

Applied materials reports as well. Although shares of the semiconductor equipment maker have fallen sharply from their highs, Cramer cautioned that a sharp decline alone does not make a stock attractive. “Remember, we don’t care where a stock comes from. We just care where it goes,” he said.

Kraft-Heinz is holding an investors meeting on Thursday. Cramer remains optimistic about CEO Steve Cahillane’s ability to unlock shareholder value, citing his track record at Kellogg.

The Producer Price Index arrives Friday, providing another important reading on inflation.