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- CNBC’s Jim Cramer said Ford’s new battery storage business gives the automaker a credible way to capitalize on the AI infrastructure boom.
- While Cramer does not expect Ford Energy to meaningfully impact earnings for several years, he said the initiative makes Ford a more attractive long-term investment.
CNBC’s Jim Cramer said Ford’s new battery storage business gives the automaker a credible way to benefit from one of the market’s hottest trends: the rapid buildout of artificial intelligence infrastructure.
“I love what Ford is doing with this battery business,” the “Mad Money” host said Wednesday.
Last month, Ford formally launched Ford Energy, a subsidiary focused on supplying large-scale battery storage systems for data centers and the electric grid. Investors initially embraced the move, sending Ford shares to a multi-year high above $17, from below $14 before the announcement. The stock has since retreated to around $14 as of Wednesday’s close.
“I didn’t want to recommend the stock when it was screaming higher last month in response to the news, but now that it’s drifted back down to $13.96, that’s a different story,” Cramer said. “If you believe oil and interest rates are coming down, then you’ve got my blessing to buy Ford Motor.”
Cramer said the opportunity comes as demand for battery storage accelerates alongside the construction of new AI data centers. At the same time, he noted that renewable energy projects also depend on storage systems to supply electricity when solar and wind generation falls short.
“We know that demand for these big backup batteries is growing like crazy because all the new data centers really can’t afford to go offline,” he said.
Ford plans to produce at least 20 gigawatts of battery storage capacity annually, with its first customer deliveries expected in late 2027.
While Cramer thinks Ford Energy could eventually become a meaningful business, he cautioned that investors should view it as a long-term opportunity rather than an immediate earnings driver. For now, its revenues and profits will still come from selling trucks and cars.
“If you’re thinking long-term, though, I think this makes Ford a more attractive investment,” Cramer said.
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