Jim Cramer names companies and sectors poised to rally on the AI wave

KEY POINTS

• CNBC's Jim Cramer on Wednesday said artificial intelligence is going to be essential to big market rallies over the next few years.
• The computing power needed to run AI-enabled machines is "at the heart of the current re-industrial revolution," he said.

CNBC's Jim Cramer on Wednesday said artificial intelligence is going to be essential to big market rallies over the next few years.

"This technological revolution is crossing all barriers, even potentially becoming the heart of our national security apparatus, so we'd be like ostriches with our heads in the sand if we don't address it," he said. "I think it could potentially be the key to making the biggest money over the next half-decade."

Nvidia, which has graphics chips key to generative AI, has exploded over the past few months. But the computing power needed to run AI-enabled machines is "at the heart of the current re-industrial revolution," Cramer said, and will bring stocks from a variety of sectors with it.

The amount of construction needed to build new data centers is part of the reason stocks like Caterpillar are performing well, he said. And according to Cramer, power management company Eaton is also seeing gains because of the demand to help power grids deal with all of this excess electricity. Vertiv, which makes specialized power and cooling products for data centers, is doing well, he added.

Companies that parse and manage data like Salesforce and ServiceNow are also poised for success, he said. Cramer also pointed out that sustainable power generation utilities like Constellation Energy are crucial for the new technology, as well as natural gas companies like Enbridge.

"The AI revolution is already producing some of the most investible themes of all time," he said. "We just need to look in the data center, peer into the cloud and harvest these incredible ideas, while being mindful of the geopolitical issues that could make this business vulnerable."

Clarification: This story has been updated to reflect a more complete description of Vertiv's services.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, Salesforce and Eaton.

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