Jim Cramer Answers If the Market Has Bottomed and Weighs In On 11 Stocks

2. Powell Industries, Inc. (NASDAQ:POWL)

Number of Hedge Fund Holders: 26

A caller pitched Powell Industries, Inc. (NASDAQ:POWL), highlighting its growth and valuation. Cramer acknowledged its potential but flagged it as a data center play, a category currently out of favor. Here’s what he said:

“I know Powell Industries and it was in favor – kind of like an Emerson – not that long ago, and suddenly it’s out of favor. If you’re willing to hold on for the next cycle it’s fine, but I’ve got to tell you it’s considered to be a data center play, and people think that data centers are slowing down and that’s the case with Powell Industries too. I’m sorry, I wish I could be more positive. It’s a very inexpensive stock.”

Earlier this year, Jim Cramer analyzed the downfall of Powell Industries, Inc. (NASDAQ:POWL) and explained the reasons behind the stock falling out of favor. Here’s what he said:

“This is not an ordinary moment, people. It’s been really interesting to watch Powell stock since the calendar flipped to 2025. It actually went on a huge run in mid-January, climbing quickly from around $230 to nearly $330 in a blistering six-day rally. At one point, that was right after SoftBank, Oracle, and OpenAI announced their $500 billion Stargate AI data center investment project at the White House. Like I said, when the data center was hot, this thing was unstoppable. However, you live by the data center sword, you die by the data center sword. That January rally was followed almost immediately by a sickening 16% decline on January 27th. You know, that day is now known on Wall Street, at least, as “DeepSeek Monday,” when the AI data center stocks just collapsed after the release of a reportedly low-cost Chinese model that seemed to perform just as well as the US competition while using far less hardware. Since then, POWL stock has become the house of pain. Of course, Powell’s not alone here. Everything connected with the data center theme, as I said at the top of the show, has been taking a hit, including the old-line industrial plays that looked like they had made it last year. I think this is now overdone, but many think that the buildout was overdone and we are now past our due date if we own these stocks.”