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We’re buying more shares of a company that makes a key part of AI data centers

Robert Frost by Robert Frost
December 10, 2024
in Industries
We’re buying more shares of a company that makes a key part of AI data centers
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We’re buying 40 shares of Dover at roughly $200 each. Following Tuesday’s trade, Jim Cramer’s Charitable Trust will own 540 shares of DOV, increasing its weighting to 3% from 2.8%. We’re using some of the proceeds from Tuesday morning’s Alphabet sale to pick up more shares in Dover. Shares of this industrial conglomerate have consolidated over the past month. After jumping more than 5% to $202.56 per share on Nov. 6 in reaction to Donald Trump’s presidential election win, the stock closed at a record high of $206.51 on Nov 27. Since then, it has drifted back down to around $200 due to seven negative sessions in the past eight, including Tuesday’s trading. This dip back to a level below the Trump bump is an opportunity to get a little bigger in this position. DOV YTD mountain Dover YTD Last month, we raised our price target to $215 after CEO Richard Tobin appeared on CNBC’s “Mad Money.” Our number one takeaway from Jim’s interview was a new appreciation of Dover’s push in cryogenics. It became a leader in the field after two acquisitions this summer. Dover is excited about cryogenics for its applications in energy-intensive, next-generation artificial intelligence data centers. It already has a presence in data centers through its thermal connectors, which are used in the liquid cooling of Nvidia -based artificial intelligence servers. Liquid cooling is replacing air cooling as the method of choice because it’s more efficient and quieter. But what if the supercomputers of the future burn more heat? Cryogenic chip cooling could be the solution. Outside the data center, Dover is positioned to have a strong 2025 as about $300 million worth of revenue headwinds from 2024 abate — largely in its beverage can production, European residential heat pump operations, and plastics business. Analysts at Citi said in a note Monday that lapping those year-ago drags should support a reacceleration in organic growth. Lastly, we like the $3 billion of dry powder that management has at its disposal to make acquisitions in fast-growing, high-margin industries that will improve the secular growth makeup of the company. (Jim Cramer’s Charitable Trust is long DOV, GOOGL, NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.



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