Cramer: Neocloud Earnings Could Test Battered AI Data Center Trade

Earnings from two major neoclouds next week could put investor confidence in the struggling data center sector to the test, CNBC's Jim Cramer said Friday, according to CNBC Technology. His remarks followed a turbulent election week in which traders sold off companies linked to the build-out of artificial intelligence infrastructure.

The selling came after Democrats took control of the House, the Senate and several governors' races. Wall Street posted its worst session in 19 months before Friday brought gains, though Cramer said he would not trust the rebound. He had likewise doubted what turned out to be a brief midterm rally on Wednesday.

Cramer said worries about data center spending and how those projects get financed remain unresolved. He described Friday's mostly positive market as a dead cat bounce and said sellers appear to be waiting for a larger recovery before exiting.

Constellation Energy reports before the opening bell, giving an early signal on whether political uncertainty is affecting the power infrastructure that supports AI data centers. On Holding also posts results, but Cramer said he will skip the athletic footwear name because the sector looks increasingly crowded.

The consumer price index lands Tuesday morning. Cramer wants to see inflation cool meaningfully and warned that stubbornly high prices could lead Federal Reserve Chairman Kevin Warsh to lift rates once more. The central bank raised rates in September, its first increase in three years.

After the close, CoreWeave reports in what Cramer called one of the week's most consequential releases. He said the heavily indebted neocloud must lay out how it will fund expansion and handle borrowing costs.

Corteva reports on an otherwise quiet day. Cramer said the agricultural chemicals company has lost favor with investors and he wants to learn what is pressuring the shares.

Nebius, another prominent neocloud, reports before the bell and offers a further test for the AI infrastructure trade. Cramer said he wants to see solid new orders, finished data centers and a strong project pipeline, and does not want to hear about sites running late or over budget.

Cisco Systems reports Thursday evening. Cramer said the networking company may be oversold but he will watch how the market digests CoreWeave and Nebius first. Applied Materials also reports, and Cramer noted that a sharp share decline alone does not make a stock appealing.

Kraft Heinz holds an investor meeting Thursday. Cramer is upbeat on CEO Steve Cahillane's record of creating shareholder value, pointing to his time at Kellogg. The producer price index arrives Friday.