Analysts expect data center stocks to gain traction as consumer inflation remains tame

The article discusses the impact of a tame consumer inflation report on the S&P 500 and highlights the data center stock sector, with Jim Cramer suggesting that analysts may increasingly favor these stocks if interest rates remain stable. Notable movements include Vertiv, which is down 24% from its May high but has gained almost 20% in August, and Iron Mountain, down 7.6% from its June high.

The iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT) is down 8% from its June high but has seen an 8% increase in August. The article also notes upcoming economic data, including jobless claims and the producer price index, which could influence market dynamics.

Companies like Applied Materials, which has seen a 27% rise over three months, and Apple, which is part of a $600 billion U.S. manufacturing investment, are also highlighted. Apple shares are down 12% from their July high.

Additionally, Charles Schwab and US Bancorp reached all-time highs, while Cerebras and StubHub faced challenges, with Cerebras shares down 16% after missing revenue expectations. Cisco beat earnings expectations but saw a slight decline in after-hours trading. Overall, these developments indicate a mixed market sentiment that investors should monitor closely

Stocks in this article

Company Price Change Change % AI
Applied Materials AMAT.US 548.15 +22.54 +4.29% Buy
Cisco CSCO.US 123.88 +3.45 +2.86% Buy
Vertiv VRT.US 288.36 +6.55 +2.32% Hold
Iron Mountain, Inc. IRM.US 124.36 +1.97 +1.61% Buy
Charles Schwab SCHW.US 109.34 +1.64 +1.52% Buy
US Bancorp USB.US 65.02 +0.73 +1.14% Buy
Apple AAPL.US 302.25 -2.66 -0.87% Hold

More investing news