On July 29, 2026, CNBC's Jim Cramer discussed the recent turnaround in enterprise software stocks, which had faced significant pressure earlier in the year due to fears that AI models would disrupt their business models.
Following ServiceNow's earnings report on July 22, stocks like ServiceNow and Salesforce saw increases of approximately 22% and 15%, respectively, despite still being down for the year. Cramer emphasized that the rapid change in investor sentiment illustrates how quickly a sector can recover when stocks become undervalued.
He noted that AI infrastructure stocks, which have also seen declines after earlier gains, could experience a similar rebound if they become cheap enough. For instance, he mentioned Vertiv, a data center stock that has dropped about 40% from its peak in May, suggesting that it may soon reach attractive valuation levels.
Cramer concluded that the same factors driving the recovery in enterprise software could eventually apply to data center stocks, provided the fundamentals remain strong