Jim Cramer said Equinix is a strong investment for those looking to capitalize on the growth of the data center sector [1].
This recommendation comes as artificial intelligence and semiconductor infrastructure continue to drive market momentum. Because these sectors are currently leading the broader market, investors are seeking stable ways to gain exposure to the physical infrastructure that supports AI computing [1, 2].
Cramer said these comments during the lightning-round segment of "Mad Money" on May 20 [1]. He said Equinix, which trades under the ticker NASDAQ:EQIX [2], is a solid play in the current economic environment [2].
According to Cramer, the demand for data centers is a primary growth driver for the company [1]. He said, "Equinix is a great way to play the data center" [1].
The endorsement highlights a broader trend where investors are moving beyond chipmakers to the real estate and connectivity hubs that house the hardware. By positioning Equinix as a key vehicle for this strategy, Cramer said the role of infrastructure in the AI ecosystem is emphasized [1, 2].
Equinix operates global interconnected data centers that allow companies to store and manage their data. This infrastructure is essential for the low-latency requirements of modern AI applications, a factor Cramer said is a compelling reason for investment [1].
“"Equinix is a great way to play the data center."”
Cramer's endorsement reflects a shift in AI investment strategies. While initial market gains were concentrated in semiconductor manufacturers, the focus is expanding toward the 'picks and shovels' of the digital economy. Equinix provides the physical environment and connectivity necessary for AI to function, meaning its growth is tied to the overall expansion of cloud computing and AI deployment regardless of which specific AI software wins the market.
