On CNBC's 'Squawk on the Street,' Jim Cramer emphasized the importance of Seagate Technology as a gauge for the AI infrastructure trade's potential recovery. He praised Seagate's latest earnings report as exemplary, noting that the company's stock surged in after-hours trading following a significant 18% decline over the previous three sessions.
Cramer pointed out that if Seagate can maintain its gains, it may alleviate investor concerns stemming from the disappointing results of memory maker SK Hynix. He highlighted that Seagate's strong demand for AI-related storage could indicate resilience in the sector, despite prevailing skepticism.
However, Cramer cautioned that sustaining the stock's post-earnings rally may be challenging, as investors who missed earlier selling opportunities might use any rebound to exit their positions. As of late morning trading, Seagate's stock remained up 2%, contrasting with a broader decline in the tech-heavy Nasdaq.
Despite being up 175% year-to-date, Seagate's stock has fallen over 30% from its peak of $1,145 on June 18, indicating volatility in the market