Jim Cramer Breaks Down the Data Center Growth Story for Generac Holdings

Jim Cramer reviewed Generac Holdings Inc. (NYSE:GNRC) while breaking down 16 stocks for a market facing higher energy costs and economic uncertainty. Cramer explained why the stock recently sold off, as he commented:

Today, one of our favorites, Generac Holdings, the maker of backup power generators for both housing and the data center, held an investor meeting. At first glance, Wall Street, I don’t know, a little cool. Even though management said that their data center backlog has surged 75% over just the last 6 weeks, they didn’t announce a new long-term contract with a big hyperscaler. Maybe that’s what the hedge funds were looking for. You can never please those guys. That’s why the stock initially sold off 10% today before rebounding, finishing the session off less than 2%. It may sound like Generac’s being held to a ridiculously high standard, but this is a stock that’s up over 50% year to date. We don’t have a lot of those.

Photo by Yiorgos Ntrahas on Unsplash

Generac Holdings Inc. (NYSE:GNRC) manufactures and distributes energy technology products, including residential and industrial generators, battery storage systems, smart home solutions, and outdoor power equipment.

While we acknowledge the potential of GNRC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

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