Jim Cramer Commented on 12 Stocks Linked to Data Centers

9. Cummins Inc. (NYSE:CMI)

Number of Hedge Fund Holders: 53

Cramer pointed out the link between Cummins Inc. (NYSE:CMI) and data centers as he said:

“A whole swath of industrials like Cummins for motors… Constellation Energy, Vistra for nuclear power. Vertiv for the guts of the data center. They’ve all been trading together. They’re linked and they’re hanging in the balance.”

Cummins (NYSE:CMI) provides a wide range of power solutions, including engines, drivetrain systems, after-treatment technology, power generation systems, and electrified power systems, along with related engineering services and aftermarket support. In August 2024, discussing the company and its operations related to data centers, Cramer stated:

“Cummins actually hit a new all-time high earlier this month… For starters, these guys have definitely managed the energy transition, developing lower carbon solutions that work right out of the gate like natural gas-powered engine platforms as well as working on zero carbon stuff for the future for electric and hydrogen engines… More importantly, Cummins has a thriving power systems business where they make generators and commercial power systems for buildings, including yes, data centers, which are all being, being built all over the place. Even if truck sales are slow, the data centers are on fire. These are backup power systems.

Remember, data centers can’t afford to go offline during a power outage. When Cummins reported earlier this month, they delivered much higher than expected earnings and power systems accounted for roughly two-thirds of that beat. I was shocked at that. I just didn’t think it was that big. Now we spoke to CEO Jennifer Rumsey… and she explained that the data center has become a key source of growth for Cummins.”