Jim Cramer says this data center stock could soar if more analysts cover it

The S&P 500 rose as investors awaited a potential U.S.-Iran deal, with technology stocks leading on strength in Micron, Western Digital, Seagate, and Arm. Eli Lilly said it will spend $3.83 billion to buy Curevo, LimmaTech Biologics, and Vaccine Company to expand its infectious disease vaccines business, and the stock rose more than 1%. Jim Cramer also said Qnity could reach $250 if analyst coverage broadens, while he urged caution on Arm after a sharp run.

Analysis

The market is rewarding scarcity of exposure to the current macro narrative more than pure fundamentals: memory/storage is acting like a high-beta geopolitics/AI proxy because supply discipline plus any demand stabilization can re-rate earnings quickly. WDC, and to a lesser extent MRVL, look better positioned than Nvidia for near-term flow rotation because they benefit from a broader “compute infrastructure” trade without needing a perfect AI capex acceleration; NVDA’s relative lag signals the crowd is questioning whether margins can keep expanding without explicit capital returns.

Qnity is the clearest second-order beneficiary of analyst undercoverage. If sell-side ownership broadens from materials specialists to tech hardware analysts, multiple expansion can outpace any near-term earnings revision because the buyer base changes before the model does; that creates a 3-6 month rerating window rather than a purely fundamentals-driven move. The bigger setup is a category-creation event: if the market starts valuing Q as semiconductor-enablement rather than specialty chemicals, comparable multiples could shift materially higher.

LLY’s tuck-in M&A is less about revenue contribution and more about preserving optionality outside GLP-1. That matters because the market already prices a durable obesity franchise, so incremental pipeline diversification reduces left-tail risk on patent/regulatory dependence and can support a premium multiple over the next 12-24 months. The drag is execution: early-stage vaccine assets can consume capital without moving consensus, so the stock likely needs proof of development milestones to sustain further upside.

The contrarian read is that Arm’s trim may be the right risk management call, but the more interesting fade is NVDA complacency: if peers can rally on capital return discipline and broader thematic exposure while NVDA does not, capital may rotate toward names with more visible shareholder yield. That doesn’t mean shorting NVDA outright; it means the stock is vulnerable to continued underperformance versus the rest of semis unless management reframes the capital allocation story within the next 1-2 quarters.

Key Decisions for Investors

• Long WDC vs short NVDA as a relative-value trade for the next 4-8 weeks: benefit from ongoing rotation into storage/AI infrastructure and hedge against a continued semis leadership reversal.
• Initiate a starter long in Q on a 3-6 month horizon; add on any post-broadcast consolidation, targeting multiple expansion from broader analyst coverage rather than near-term earnings beats.
• Keep LLY long but sell upside calls into strength over the next 1-2 months: upside remains intact, but the M&A-driven bid is likely to be slower than GLP-1 optics and can be monetized.
• Avoid chasing ARM after the recent parabolic move; if already long, use strength to reduce by 20-30% and redeploy into WDC or Q where rerating still has room.
• For a hedged semis expression, pair long MRVL with short NVDA over 1-3 months: lower-multiple exposure to the same infrastructure theme with less dependence on a perfect capital-return narrative.