Updated

Updated · CNBC · Aug 24

CNBC Investing Club Downgrades Corning, GE Vernova to 2s as AI Data Center Backlash Deepens

Updated

Updated · CNBC · Aug 24

CNBC Investing Club Downgrades Corning, GE Vernova to 2s as AI Data Center Backlash Deepens

Q: With AI infrastructure facing severe power bottlenecks, which high-flying tech stock will Jim Cramer's trust dump next to protect its massive gains?

There is no confirmed next stock. Cramer’s trust said only that it may trim another AI- or infrastructure-related holding “in the coming days” if power and data-center bottlenecks keep threatening the buildout, but it did not name one. The clearest candidate, based on the trust’s disclosed holdings and Cramer’s own recent comments, is CrowdStrike. It is a high-flying tech name in the portfolio, Cramer has already warned that the stock had gone “parabolic,” and he previously said the trust had trimmed some of both CrowdStrike and Palo Alto Networks because the gains had become too large. That makes CrowdStrike a plausible target if the trust wants to further cut richly valued momentum exposure. Broadcom itself was the first move in that direction. The trust halved its weighting from about 3% to 1.5%, locking in roughly a 323% gain, explicitly citing concern that pressure on new data-center construction could slow AI infrastructure investment. That reasoning fits the broader market worry that AI demand remains strong but power availability, grid equipment, cooling, construction, and permitting are becoming real constraints. Other possible trim candidates would be AI-linked holdings such as Nvidia or Palo Alto Networks if they remain stretched, but the available reporting does not identify either as the next trade. So the factual answer is that no next dump has been announced; CrowdStrike appears to be the most likely name from the publicly available clues.

3 articles · Updated · CNBC · Aug 24

Corning and GE Vernova were cut to rating 2 on Monday, though no trade was executed, after the club said both names no longer fit its latest AI outlook.
Political resistance to data center expansion ahead of the November midterms has intensified selling across AI infrastructure, memory, semiconductor and industrial component stocks, prompting the reassessment.
Broadcom was already trimmed earlier Monday, and Jim Cramer said more AI-exposure cuts may be needed to protect gains built over the past few years.
Nvidia earnings on Wednesday, support from prominent politicians for data center development, or a clear easing in the recent selloff could improve the group’s outlook.