In the midst of the artificial intelligence construction boom, another new "shovel-selling" target has emerged, but Jim Cramer of CNBC stated on Tuesday that investors should keep their distance from this stock.
The host of Mad Money gave two main reasons for delaying the purchase of Accelevation Holdings: first, as the mid-term elections approach, he has become more cautious about stocks in the data center sector; second, he prefers established companies with a track record of successful performance. Therefore, the Cramer charitable trust, managed by CNBC Investing Club, currently holds stocks in GE Vernova and Eaton, among other AI infrastructure companies. The former produces gas turbines, while the latter supplies electrical equipment.
"The story of Accelevation is very appealing, but its performance after it went public has been mediocre, so I'm not in a hurry to buy it."He said."For now, my opinion is to put Accelevation on the observation list first to see if the management can fulfill their promises, and then we can decide whether to take action or not."
Accelevation provides and installs power equipment, cooling equipment, and support structures within data centers. On September 29th, the company set the issue price at $18 per share, which was lower than the previously proposed range. The stock was listed the following day and closed at $17.95. Since then, the stock price has fallen to just over $15. For a company that benefits from the surge in demand for AI infrastructure, the performance in the first few weeks after listing was disappointing.
The first concern of Cramer is not limited to Accelevation. With only three weeks left until the mid-term elections, he expects that political opposition to data center construction will continue to pose a barrier to the entire industry. The substantial power demand of such facilities and their potential impact on energy costs have become a focal point of political controversy, which also makes Cramer reluctant to recommend buying into this sector before voters cast their ballots.
"If you're considering buying a data center provider, I think you should wait for three weeks, until after the elections are over. I anticipate that by then, the political fervor will have subsided a bit."He said.
His second concern is more specifically directed at Accelevation. Although the company's growth momentum is impressive, Cramer lacks confidence in its ability to continuously convert demand into profit, especially in the face of competition with larger industrial enterprises.
Accelevation experienced a 147% surge in revenue in 2025, and sales in the first half of 2026 increased by another 176% year-on-year. However, during this period, higher labor costs and issues with project execution efficiency dragged down the gross margin."This indicates that some of these businesses are more difficult to turn profitable than they originally anticipated."Cramer says.
He also expressed concerns about the competitive position of Accelevation, and mentioned that both Vertiv and Eaton are established companies in the relevant sub-sectors of the data center infrastructure market.There are many ways to participate in this thematic investment.He said."I would rather choose those companies that have already won my trust."
