Here's where Jim Cramer stands on this newly public AI infrastructure stock

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Mad Money

Published Tue, Oct 13 20266:47 PM EDT

Key Points

• CNBC’s Jim Cramer said investors should hold off on buying newly public AI infrastructure company Accelevation Holdings, citing political uncertainty surrounding data centers ahead of the midterm elections and the presence of well-established competitors.
• "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."

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.