“They’re sucking the cash out of this market, and it looks like every new dollar that’s available is going to this group.” Jim Cramer’s problem at the moment is with stocks related to the data center boom. He said this on CNBC Monday morning to emphasize a point he made in his latest column. “Even the most irrelevant ‘stories’ in data center, such as warehouse REITs and machinery stocks like Cummins and Dover, can manage to survive with healthy data center orders, but not much else,” Jim wrote on Sunday. Dover stock rose again on Monday, nearing all-time highs after four consecutive weeks of gains. The company’s stock rose 5.5% last Thursday on impressive earnings and forecasts for 2026 revenue from solutions that support AI and power generation infrastructure to exceed $1 billion. This is only 11.5% of revenue. Our other industrial data center stocks, Corning, GE Vernova, and Eaton, have performed well as well, with GE Vernova in particular posting a phenomenal quarter. Corning announced its financial results on Tuesday morning. Despite Monday’s decline, Corning stock is still up more than 90% since the beginning of the year. Jim said Monday that no one would blame him for profiting from it. It’s hard to argue against this move. This is because profit forecasts are trending steadily. This suggests that the stock is not actually overvalued in terms of valuation, but is simply catching up with the reality of demand for AI hardware. And given that we’re currently invested in semiconductor makers Nvidia, Broadcom, and Arm Holdings, as well as all of these industrial stocks (minus Cummins), we have nothing to complain about. NVDA AVGO, ARM YTD Mountain Nvidia, Broadcom, Arm YTD Performance Nvidia closed at an all-time high on Friday, with a market cap of over $5 trillion. The stock price, which had been flat for several months, rose further on Monday. Broadcom fell slightly on Monday from its record closing price on Friday. It also remained flat for months. We’ve used Broadcom’s rise to shore up our capital and ensure that our customer chipmakers don’t get too big in our portfolio. Now let’s talk about Arm. The stock has grown exponentially since the beginning of the year, nearly doubling. We started Arm last Monday at about $173. Despite falling more than 8% on Monday, it is still up nearly 25% in arm position. “This is a day that I want everyone to be very careful about,” Jim said during Monday’s morning meeting. “It certainly feels like stocks that hit overnight highs like Qualcomm and Nvidia are falling, and that doesn’t bode well for the group.” But Jim wants the market rally to extend further. Because the more cash flowing into data center cohorts, the less money there is to spend on other things. Case in point, enough money has finally flowed into semiconductors to absorb all of the NVIDIA supply that saw it enter the market at $200, a key technology level resistance level dating back to October 2025. To understand the technicals better, resistance occurs when supply from sellers overwhelms demand from buyers and the stock struggles to rise further. The opposite is true for support, which occurs when demand from buyers exceeds supply from sellers, and the stock price tends to rise. This tug of war between buyers and sellers won’t last forever. Eventually, either the seller runs out of things to sell or the buyer runs out of dry powder. In any case, a breakout or breakout occurs when the equilibrium that maintains the stock price at support/resistance levels is disrupted. That’s exactly what we think happened in recent weeks as Nvidia battled the $200 level and eventually overcame it. If large-cap capex guidance is reaffirmed, we will be in a strong position this week. I previously talked about how I suspected Nvidia stock was “locked in.” The idea is that options market activity is making it difficult for Nvidia to break above $200. Either way, the idea is the same whether a natural seller enters the market or an options trader circles and places an order to sell on the upside at $200. That means NVIDIA will be stuck at $200 until that large group of sellers is overcome. That doesn’t seem to be the case anymore. The stock is now firmly above $200, trading up 2% to around $212 on Monday, which would be another closing high, but the next test will probably come Wednesday night when we learn more about Hyperkahler’s spending intentions. The Big Four – Amazon, Microsoft, Alphabet and Metaplatform – all report earnings on Wednesday night. Usually they don’t all take place on the same night. This allows you to get a snapshot of your capital spending outlook all at once, rather than piecemeal over several days. But the staying power of NVIDIA’s stock price rise stems from the fact that money isn’t flying around. Consider the potential for a record-breaking initial public offering (IPO) to take place soon. We’re talking SpaceX, OpenAI, and Anthropic. These are sure to attract a lot of attention and perhaps even pull money away from the S&P 500, making it difficult for the overall stock market to sustain its incredible gains from the March 30 Iran war lows. On April 15th, the index closed at its first all-time high since the conflict began on February 28th. It was flat on Monday, but closed at a recent high on Friday. What will happen to technology revenues then? Be cautious. We believe that important levels have been overcome, but we do not intend to follow Nvidia’s moves yet. At least until we see some expansion, or as Jim pointed out in Sunday’s column, perhaps one of the major IPOs scheduled for later this year could be delayed. 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