Copyright CNBC
After the Dow Jones Industrial Average notched a new record on Wednesday, CNBC's Jim Cramer explained why it's a good time to invest outside of tech and named several stocks to keep an eye on. "It's starting to dawn on people: a market that only goes higher because of data center spending is a perilous market, and we don't like that," he said. "Increasingly, I feel like there are better places to hunt for winners than the AI space." Wednesday's session saw the 30-stock Dow add 0.68%, , while the S&P 500 inched up 0.06% and the tech-heavy Nasdaq Composite dipped 0.26%. Cramer expressed optimism about the strength of the broader market because stocks were able to rally despite weakness in the tech giants. There are a number of undervalued companies that could "catch fire" now that it seems the government shutdown is coming to an end, he continued. Cramer pointed to promising stocks in sectors like retail, travel, restaurants, aerospace and pharmaceuticals. He suggested major travel stocks are starting to come back — such as United Airlines , Delta and Expedia — which spells good news for cruise lines and hotels, noting that Marriott just reported a good quarter. Cramer said the "second day thesis for travel" includes aircraft makers GE Aerospace and Boeing . Three restaurants that have been lagging are starting to make "nascent" moves, Cramer said, naming Chili's parent Brinker International , Texas Roadhouse and Chipotle . An end to the shutdown could boost retail stocks, Cramer indicated, noting that shoemaker On just reported a solid quarter that saw strong demand for products. He also pointed to Urban Outfitters , Macy's and Costco , which he said were doing well before the shutdown. "Welcome back to growth investing, non-tech style. We missed you," Cramer said. "And thank heavens nothing needs to be built out for these stocks to run. The building's already done."
