Jim Cramer says investors are getting excited again about the industrial data center trade after a series of new AI-related investments and major developments. “You can go back to these stocks,” Jim said Tuesday, naming Eaton and Dover as top industrial artificial intelligence plays. We don’t have to go back in for the Club because we never left them. In fact, on Monday, we added to our Dover position. “You want to be there … because the building is continuing,” Jim said Tuesday, referring to demand for data center infrastructure and power solutions. “I just feel like, wow, it’s a pretty good time.” Eaton’s power management products and services help these facilities run more efficiently. Dover makes liquid cooling thermal products needed to help servers from overheating. There’s a “gigantic amount of money going into a concentrated area with a lot of different contractors,” Jim added. “You need energy to get to the data centers.” All this data center investment is necessary because of all the Nvidia AI chips being deployed to run AI around the world. Late Monday, Club name Nvidia said it is filing applications to sell its H20 chips to China , a key market for the company’s growth. Nvidia shares advanced 4% on Tuesday. “This stock is not done going higher,” Jim said. So, what’s good for Nvidia is good for Eaton, which announced a partnership with the AI chip leader to develop power infrastructure in AI data centers. Eaton said the collaboration supports the accelerating need for power and cooling solutions driven by the high energy demands from Nvidia’s advanced graphics processing units. “This is power management, and you need power management very much to be able to have a data center,” Jim said. At the same time, President Donald Trump is going to Pennsylvania on Tuesday to promote $70 billion in energy and AI infrastructure investments in the state. Among the announcements, CoreWeave committed up to $6 billion to build a new data center in Pennsylvania. Alphabet ‘s Google said it will invest $25 billion in data center and AI infrastructure over the next two years in states, including Pennsylvania, across the biggest electric grid in the U.S. In addition to Eaton and Dover, Club name GE Vernova is a data center power play that Jim likes. Ahead of Trump’s Pennsylvania visit, GE Vernova on Tuesday announced up to $100 million to expand factories in the state that help modernize the power grid. The company also got a big order for natural gas turbines to power a new AI data center campus there. (Jim Cramer’s Charitable Trust is long ETN, DOV. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
