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Jim Cramer calls four memory chip stocks indispensable for AI demand
Cramer said memory has become the bottleneck as data centers are being built at unprecedented rates, a factor he believes could keep memory prices supported longer than usual.
Mad Money host Jim Cramer highlighted four memory chipmakers, Seagate, Western Digital, Micron, and Sandisk, saying they are indispensable for investors as artificial intelligence demand rises, according to Yahoo Finance. Cramer argued that memory has turned into the bottleneck, pointing to the role memory plays in data center systems, and said the opportunity is too large to ignore when supply and demand are favorable.
He also noted the cyclicality of memory stocks, explaining that memory manufacturing requires large upfront costs, which can lead to boom and bust cycles as supply and demand swing. In his view, data center construction that is expanding rapidly could allow memory stocks to keep climbing longer if combined data center and consumer chip demand outpaces memory makers ability to produce memory. He cautioned that the tailwind depends on how long data centers continue building.