Jim Cramer said Seagate Technology is currently grappling with supply constraints driven by demand that continues to outpace production capacity, signaling strong market interest in the company’s products.

Speaking on CNBC, Cramer explained that Seagate is facing a situation where customer demand is exceeding what the company can immediately deliver. Rather than reflecting weakness, he characterized the shortage as a sign of robust momentum, particularly in areas tied to artificial intelligence infrastructure and data-center expansion.

According to Cramer, Seagate’s hard-disk drives are seeing heightened demand as cloud providers and enterprise customers ramp up investments in storage to support AI workloads. These systems require massive amounts of reliable, high-capacity data storage, positioning Seagate as a key beneficiary of the ongoing AI buildout.

He added that while the company is working to increase production, supply limitations cannot be resolved overnight due to manufacturing lead times and the complexity of scaling advanced storage technologies. As a result, Seagate is operating in a tight supply environment that may persist in the near term.

Cramer also noted that Seagate’s pricing power could improve under these conditions, as constrained supply combined with strong demand typically supports higher margins. He emphasized that investors should view the current shortage as a reflection of industry growth rather than operational trouble.

The broader backdrop includes accelerating investments by hyperscale cloud companies and enterprises seeking to expand data capacity, which continues to drive demand for storage hardware. Cramer suggested that Seagate stands to benefit as these trends unfold, even as the company navigates near-term supply challenges.