Enterprise software shares that had been overlooked on Wall Street have rebounded quickly on the back of earnings, prompting a view that battered AI infrastructure stocks could be the next candidates for a rally.

On July 29, CNBC reported that Jim Cramer (짐 크레이머) said the recent surge in the software sector showed how quickly Wall Street’s view can change.

Cramer said enterprise software shares have shown a clear recovery this month, while data centre-related stocks have fallen sharply. "Enterprise software, once hated, has come back in a noticeable way, and data centre-related stocks have completely collapsed," he said. "The more the stock price falls, the more attractive it becomes, and if earnings are good just once, the whole sector’s direction can turn."

Enterprise software shares had been under pressure in the first half of this year amid concerns that artificial intelligence models could disrupt the software-as-a-service business structure. But Cramer said investor sentiment began to shift after ServiceNow’s recent results, released on July 22. Since then, ServiceNow and Salesforce have risen about 22 percent and 15 percent, respectively, but both remain down sharply on a yearly basis.

He said the rebound showed how quickly investors can change their stance when good news emerges from a depressed sector. "Until recently, I strongly criticised enterprise software," Cramer said. "But when a sector stops going down any further, you should pay attention."

He said the same view could apply to AI infrastructure shares. Cramer noted that many AI infrastructure-related stocks that rose sharply earlier this year have recently plunged, and said a similar shift in sentiment could eventually appear in data centre shares as well.

He pointed in particular to Vertiv as an example. Vertiv is down about 40 percent from its May 14 peak. Cramer said Vertiv may not yet look cheap by traditional measures, but further declines could increase its valuation appeal.

Cramer also said the forces that drove the rebound in ServiceNow, Salesforce and Adobe could ultimately shift back to data centre shares. "The factors that pushed up the rebound in ServiceNow, Salesforce and Adobe can return to data centre stocks," he said. "It is possible if the fundamentals are in place."

Earnings are the key point to watch. Cramer’s remarks put weight on the idea that, in a situation where sector preferences are changing sharply in a short period, battered AI infrastructure shares could be revalued if earnings improve or unexpected positive news emerges. Whether the recent momentum in software shares spreads to data centre shares depends on each company’s next results and shifts in investor sentiment.