Cramer on AI data centers: financing is flowing, but profits still aren't
As seen on the 24/7 Wall St. homepage on October 27, 2026.
Mad Money w/ Jim Cramer 10/27/26
- Cramer rejects the AI all-clear despite Broadcom arranging $63 billion in financing for Anthropic compute
- Meta's $25 billion equity raise was five times oversubscribed, but the $60 billion at-the-market program worries him
- CoreWeave bonds reaching a 15% yield flagged as the sector's unresolved weak spot
- Caller questions on Micron volatility and Revolution Medicines' pancreatic cancer drug
The bull case for data centers today rested on financing rather than profits, and Cramer wants to hear a customer say the chips are minting money before calling it clear. He expects Meta's at-the-market selling to weigh on the stock as supply hits at the wrong moments, with borrowing costs into a Fed decision the swing factor for everything levered to the buildout.
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Broadcom arranged $63 billion in financing for Anthropic compute, and Meta's equity offering came in five times oversubscribed. Cramer's pushback is that capital flowing in is not the same as capital being earned back out.
His threshold for a genuine all-clear is simple: he wants to hear a customer say the chips are actually generating returns. Until that happens, he treats the celebratory rally in AI-linked names as premature, whatever the size of the deals being announced.
Meta's situation adds a specific overhang beyond the headlines. The $60 billion at-the-market selling program tied to its new Class C shares is expected to begin early next year, and Cramer expects that steady supply to weigh on the stock whenever it hits at an inopportune moment.
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CoreWeave's bonds reaching a 15% yield is the detail he flags as the sector's unresolved weak spot. Yields that high signal the bond market is pricing in real stress, and that sits awkwardly alongside the bullish narrative being built around the big financing announcements.
Borrowing costs into a Federal Reserve decision are the macro swing factor Cramer identifies for everything levered to the data center buildout. Callers also brought Micron's volatility and Revolution Medicines' pancreatic cancer drug into the conversation, reflecting how broadly the uncertainty is being felt across the growth end of the market.
Mentioned: NVDA, MSFT, AVGO, META, GE, NVS, AZN, TMO, BA, MU, DOV, OKTA, RVMD, NVSEF, AZNCF