Jim Cramer flagged one stock quietly concentrating portfolios
On August 27, 2026, Jim Cramer flagged a shift in Caterpillar Inc.'s revenue, causing it to be reclassified as a data center stock. Cramer noted that four of Jeff's five holdings – Alphabet, NVIDIA, Apple, and Caterpillar – derive revenue from AI infrastructure spending, making the portfolio increasingly concentrated in AI. Caterpillar reported a record backlog of $72 billion and a 29% increase in power generation revenue, driven by demand for data center applications.
Cramer replaced Caterpillar with TJX Companies, a regional banking stock, and Wells Fargo, showcasing his commitment to fixing the concentration risk in portfolios caused by AI-linked stocks. Morningstar strategist Dan Lefkovitz warned of the unintended active sector bet created by the shift to AI-linked mega-cap stocks, emphasizing that investors need to understand how sector classifications can obscure revenue growth origins.
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