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Cramer Bullish on Data Center 'Picks and Shovel' Plays

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  Published in Stocks and Investing on Wednesday, February 11th 2026 at 14:57 GMT by CNBC
      Locales: UNITED STATES, IRELAND

New York, NY - February 11th, 2026 - CNBC's Jim Cramer on Wednesday reiterated his bullish stance on companies providing crucial infrastructure for the rapidly expanding data center market, dubbing them "picks and shovel" plays. As artificial intelligence (AI) and cloud computing become increasingly integral to modern life, the demand for robust and scalable data center infrastructure is soaring, and Cramer believes certain companies are uniquely positioned to benefit.

Speaking on CNBC's "Lightning Round," Cramer emphasized that the current surge in data center construction isn't just a trend, but a fundamental shift in the technological landscape. "The boom is coming, and it's coming for data centers," he stated. "And these are the companies that are going to build them." He highlighted that while the tech giants garner much of the attention for using these data centers, the true long-term investment value may lie with the companies enabling their creation.

This "picks and shovel" analogy draws a parallel to the California Gold Rush, where the suppliers of tools and equipment to miners often benefited more than the miners themselves. In this case, the "miners" are the cloud service providers and AI developers, and the "picks and shovels" are the companies manufacturing the essential components and systems needed to build and maintain data centers.

Cramer updated his price targets for three companies he believes are particularly well-positioned to capitalize on this growth:

• Core & Main (CNM): Cramer raised his price target from $70 to $75. Core & Main specializes in providing pipes, valves, and other water and fire protection systems. While seemingly basic, these components are critical for the cooling systems and overall functionality of massive data centers. The reliability and efficiency of these systems are paramount, making Core & Main a key player in the buildout.

• Hubbell (HBL): The "Mad Money" host increased his price target for Hubbell from $220 to $230. Hubbell is a diversified electrical solutions provider, manufacturing a wide range of components including connectors, wiring devices, and power distribution systems. Data centers are power-hungry facilities, and Hubbell's expertise in electrical infrastructure is essential for ensuring a stable and efficient power supply. Recent innovations by Hubbell in smart grid technologies and energy management systems are particularly well-suited to meet the evolving demands of data centers focused on sustainability.

• SPX (SPX): Cramer boosted his price target for SPX from $135 to $140. SPX focuses on infrastructure technologies, with a significant portion of its business dedicated to cooling solutions. Data centers generate tremendous amounts of heat, and effective cooling is vital to prevent equipment failure and maintain optimal performance. SPX's specialized cooling equipment, including chillers and heat exchangers, is in high demand as data center operators seek more efficient and environmentally friendly cooling methods. The company has been investing heavily in liquid cooling technologies, considered a next-generation solution for high-density data centers.

Beyond the Targets: The Broader Implications

The increasing demand for data centers is driven by several converging factors. The proliferation of AI applications, from generative AI chatbots to machine learning algorithms, requires massive computational power and data storage. Cloud computing continues its upward trajectory, with more businesses migrating their operations to the cloud, further increasing the demand for data center capacity. The rise of the Internet of Things (IoT), with billions of connected devices generating vast amounts of data, adds another layer of complexity and need for data processing and storage.

Analysts predict that the global data center market will continue to grow at a compound annual growth rate (CAGR) of around 10-15% over the next five to ten years. This translates to billions of dollars in investment in new data center construction and upgrades. However, challenges remain, including energy consumption, water usage, and land availability. Sustainable data center designs, incorporating renewable energy sources and efficient cooling technologies, are becoming increasingly important.

Cramer's picks aren't simply about identifying companies with good growth potential; they're about recognizing the foundational infrastructure that underpins the digital future. Investors looking to participate in the AI and cloud computing revolution may find that focusing on these "picks and shovel" plays offers a more stable and predictable path to returns than investing directly in the often-volatile tech sector itself.