AI Stocks Grow Harder to Value Amid Data Center Doubts

Jim Cramer says uncertainty over the data center build-out has made AI stocks increasingly difficult to value.

Updated on Nov. 6, 2026 in Semiconductors

AI Stocks Grow Harder to Value Amid Data Center Doubts

The iShares Semiconductor ETF (SOXX) fell 3% on Wednesday and 10% on Thursday, with GE Vernova down 7% and Sandisk down 22% on Thursday. The sell-off spread across chipmakers and companies supplying power and electrical equipment for data centers.

Why it matters

Investors worry that regulatory hurdles and local opposition to new data centers could slow the build-out that underpins AI demand. That uncertainty is making it harder to set fair prices for AI-linked stocks.

Nvidia trades at roughly 12 times next year's earnings while carrying an expected growth rate of 70%, a gap that reflects how sharply valuations have moved. The source does not establish how much of that growth depends on data center construction proceeding on schedule.

The players

Jim Cramer

Jim Cramer is a television financial commentator and host known for market commentary on CNBC's Mad Money.

Lisa Su

Lisa Su is the chief executive of Advanced Micro Devices and a prominent figure in the semiconductor industry.

The details

Cramer said AI stocks are increasingly difficult to value because uncertainty over the data center build-out has grown. The sell-off swept across chipmakers and companies supplying power and electrical equipment for data centers, including Sandisk and GE Vernova.

March: AMD stock was at $188.
Wednesday: SOXX fell 3%.
Thursday: SOXX fell 10%, GE Vernova fell 7%, and Sandisk fell 22%.

The Tech Race

Advanced Micro Devices CEO Lisa Su has projected the broader data center market could eventually reach $1 trillion, a forecast that now faces doubts over how quickly data centers can be built. Nvidia's earnings projections assume strong demand will persist for years, so the valuation debate centers on whether that timeline holds.

Investors holding AI-linked stocks face sharp short-term price swings tied to data center news. Shoppers and households are not directly affected by these market moves in the source.

The takeaway

AI stock prices now depend heavily on whether the physical data center build-out proceeds, not just on demand for AI. Investors tracking these stocks should watch regulatory and local-opposition developments alongside earnings reports.