Jim Cramer Says AI-Driven Memory Stocks Still Have Upside

Jim Cramer, host of CNBC’s “Mad Money,” argued that the artificial-intelligence boom has fundamentally altered the dynamics that traditionally governed memory-chip makers. Cramer’s own charitable trust, which runs CNBC’s Investing Club portfolio, has recently taken a position in Micron, reflecting his confidence that the rally can continue.

CNBC

• Sandisk: +653% year-to-date gain.

CNBC

• Seagate: +261% gain.

CNBC

• Micron: +254% gain.

CNBC

• Western Digital: +211% gain.

CNBC

• Share-repurchase authorizations still in place: Sandisk $15.5 billion, Seagate $5 billion (announced last year), Western Digital $4 billion (earlier this year).

CNBC

All figures are attributed to Cramer’s market commentary.

CNBC

Cramer emphasized that memory manufacturers are “building only to suit” current demand, favoring share buybacks over new capacity expansion. He noted that Elon Musk has highlighted memory scarcity on X as a bottleneck for data-center growth, reinforcing the view that supply constraints are real.

CNBC

• “Memory's in such short supply that Elon Musk has taken to X to talk about how it's become the key bottleneck to data center growth,” — Jim Cramer

CNBC

• “They're taking that money and sending it to you, the shareholder, rather than investing in new capacity,” — Jim Cramer

CNBC

• “I think Micron can double again before the boom comes to an end, assuming there's no data center slowdown,” — Jim Cramer

CNBC

If Cramer’s assessment holds, the continued shortage of memory chips could sustain elevated valuations for Sandisk, Seagate, Micron, and Western Digital, benefitting shareholders and influencing capital-allocation decisions across the broader tech sector. Conversely, a reversal in data-center spending could revive the historic cycle of excess capacity, potentially eroding the gains that have propelled memory stocks this year.

CNBC