There’s a new picks-and-shovels play on the artificial intelligence build-out, but CNBC’s Jim Cramer said Tuesday that investors should keep the stock at arm’s length.
The “Mad Money” host gave two primary reasons for holding off on Accelevation Holdings: He’s becoming more cautious about data center stocks ahead of the midterm elections and prefers established companies with proven track records. That’s why Cramer’s Charitable Trust, the portfolio run by the CNBC Investing Club, instead owns shares of AI infrastructure players such as gas turbine maker GE Vernova and electrical equipment supplier Eaton.
“Accelevation has an exciting story, but after it came public with a whimper, I’m not too eager to jump on this one,” he said. “For now, I say let’s put Accelevation on our watch list and see if management can deliver before we pull the trigger.”
Accelevation, which makes and installs electric, cooling equipment and support structures inside data centers, priced its offering on Sept. 29 at $18 per share, below its proposed offering range. Shares debuted the next day and closed at $17.95. They have since fallen to just over $15, a disappointing first couple of weeks for a company benefiting from surging demand for AI infrastructure.
Cramer’s first concern extends beyond Accelevation. With the midterm elections just three weeks away, he expects political opposition to data center construction to remain a headwind for the broader industry. The enormous electricity demands of these facilities and their potential impact on energy costs have become political flashpoints, making Cramer reluctant to recommend buying into the sector before voters head to the polls.
“If you’re going to buy a data center supplier, I think you should wait three weeks until after the election — that’s when I expect some of the political heat to die down,” he said.
His second concern is specific to Accelevation. While the company’s growth has been impressive, Cramer is less confident in its ability to consistently turn that demand into profits, particularly as it competes with larger industrial players.
Accelevation’s revenue surged 147% in 2025, while sales jumped another 176% year over year in the first half of 2026. However, higher labor costs and project inefficiencies weighed on gross margins during that period. “That tells me some of this work has been much harder to execute profitably than these guys expected,” Cramer said.
He also expressed concerns about Accelevation’s competitive position, citing Vertiv and Eaton as established companies that pursue overlapping segments of the data center infrastructure market. “There are a ton of different ways to play this story,” he said. “I’d rather go with the ones that have earned my confidence.”
