Jim Cramer on Nucor Corporation (NUE): A Steel Giant That Deserves the White House Spotlight

Jim Cramer, the outspoken host of Mad Money, has long championed Nucor Corporation (NYSE:NUE) as the “best steel maker” in North America. In 2025, his enthusiasm for the stock remains undimmed, particularly as the company positions itself to capitalize on White House infrastructure initiatives. Nucor’s strategic moves in utility structures, grid modernization, and alignment with federal policies make it a compelling investment for those betting on U.S. economic reshaping. Let’s dissect the case for NUE and why Cramer’s bullish stance holds water.

Nucor: The Steel Backbone of U.S. Infrastructure

Nucor’s dominance in the steel sector stems from its vertically integrated supply chain and focus on domestic production. Unlike rivals reliant on imported steel, Nucor’s electric arc furnaces (EAFs) use recycled scrap, reducing costs and carbon footprints. This model aligns perfectly with Biden’s $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), which prioritizes clean energy and grid modernization.

The company’s recent $200 million expansion of a utility structures facility in Utah highlights its strategic foresight. This plant will produce steel for electric transmission towers, EV charging stations, and data centers—projects central to the IIJA’s goals. CEO Leon Topalian emphasizes that Nucor’s low-carbon steel will be a cornerstone of distributed energy systems, ensuring it captures demand from renewables and grid-hardening initiatives.

Financial Fortitude Amid Volatility

Despite near-term headwinds, Nucor’s balance sheet remains a fortress. Key metrics include:
- Cash reserves: $4.1 billion at year-end 2024.
- Dividend track record: 50-year streak of annual increases.
- Debt-to-equity ratio: A robust 0.3x, faring better than peers.

However, Q1 2025 earnings guidance is muted, with EPS projected at $0.45–$0.55—down from $3.46 in Q1 2024—due to lower steel prices and one-time charges. Cramer acknowledges this short-term pain but argues that long-term demand will drive recovery.

Government Tailwinds and Hedge Fund Backing

Nucor’s alignment with federal policies is unmatched. The Inflation Reduction Act (IRA) and CHIPS Act further amplify its opportunities:
- Clean Energy: Nucor supplies steel for solar farms and wind turbines, benefiting from tax credits under the IRA.
- Semiconductors: The CHIPS Act’s $50 billion investment in U.S. chip plants creates demand for steel in factory construction.

Hedge funds are betting on this narrative. 51 funds held NUE stock as of Q4 2024, including top names like Point72 and Citadel, signaling institutional confidence.

Cramer’s Technical Case: Why NUE Could Soar

Cramer’s technical analysis, supported by Bob Lang’s research, paints a bullish picture:
- Chart patterns: NUE has formed a “higher lows” pattern, suggesting institutional buying despite Q1 softness.
- Price targets: Lang’s model suggests upside to $150–$175, a 25–45% premium from current levels (~$120).
- Valuation: NUE trades at a forward P/E of 11.28, below the broader market’s 21x multiple, despite its superior margins and balance sheet.

Cramer’s caution? Avoid buying at current highs. He urges investors to wait for a “lower entry”—perhaps after Q1 earnings are digested—but remains a long-term bull.

Risks to Consider

• Global steel oversupply: Low-cost imports could depress prices.
• Recession risks: Steel demand is cyclical; a downturn could hit margins.
• Regulatory hurdles: ESG regulations may increase compliance costs.

Conclusion: NUE as a Long-Term Infrastructure Play

Nucor’s strategic moves in utility infrastructure, its fortress balance sheet, and alignment with White House policies make it a standout bet for 2025 and beyond. While near-term earnings are clouded by pricing pressures, the company’s $450 million EBITDA target for downstream divisions and $2.5 billion West Virginia sheet mill (40% complete) position it to dominate in a reshaped U.S. economy.

With 51 hedge funds backing it, a forward P/E of 11.28, and a 50-year dividend growth streak, NUE offers a rare mix of value and growth. Cramer’s price targets of $150–$175 aren’t unrealistic if infrastructure spending accelerates—a scenario increasingly likely as the White House prioritizes grid modernization and clean energy.

In a world of geopolitical and economic uncertainty, Nucor’s steel is literally and figuratively the foundation of American progress. For investors willing to look past short-term noise, this is a stock to own for the next decade.

JR Research
Disclaimer: The analysis above is for informational purposes only and does not constitute financial advice.