Jim Cramer Commented on 12 Stocks Linked to Data Centers

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 339

Cramer, whilst discussing market sentiment toward stocks like Amazon.com, Inc. (NASDAQ:AMZN) that are tied to the data center theme, said:

“Today we’ve got a defense of our large-cap tech companies, which have been endlessly targeted by our European allies. These, these countries, they’ve used our tech companies, Amazons, the Alphabets, the Apples like honeypots. Now when it happens, our government will retaliate for a similar amount of money. No more plunder… Suddenly the data center feels fragile. The tech titans, Amazon, Alphabet, Meta, Oracle, Microsoft, throw in Tesla, have been dependent on this data center and the spend.”

Amazon (NASDAQ:AMZN) has become a major presence in the global technology sector, with a diverse range of offerings that include e-commerce, advertising, and subscription services. Mar Vista Investment Partners, LLC stated the following regarding the company in its Q4 2024 investor letter:

“Amazon.com, Inc.’s (NASDAQ:AMZN) profitability was the key highlight of the third quarter financial results, with AWS and International Retail achieving record operating margins, and North America Retail posting its second-best margin in five years. Even more impressive was the fourth quarter operating income forecast, projecting up to $20 billion, significantly exceeding the expected $16 billion and suggesting a record 11% margin. This exceptional performance was driven by economies of scale, logistics efficiencies, successful AI implementations, increasing ad revenue, and accelerated AWS growth.

We keep our investment in Amazon due to several factors: AWS growth has further potential, Amazon Prime Video monetization is in its initial stages, and the company is expanding into promising sectors like Pharmacy and Logistics. Furthermore, with strengthening profitability and cash reserves exceeding $100 billion, the possibility of substantial capital returns increases. By continuing to innovate and invest in technologies like AI and cloud computing, Amazon is well-positioned to keep its competitive edge.”

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.