Allbirds, Inc. (NASDAQ:BIRD) was among Jim Cramer’s stock calls, as he discussed the rising market speculation. Cramer made a note of the stock’s gigantic recent rally, as he said:

Why am I so adamant that speculation is getting out of control again? Well, exhibit A has to be a company called Allbirds… Six weeks ago, Allbirds seemed to be headed into the dustbin of history… It doesn’t make any money. But rather than shut down, it did something I’m sure it thought was genius. Allbirds sold its shoe business to American Exchange Group, and it announced a definitive agreement with an institutional investor for a $50 million convertible bond, which, and I’m quoting from the release here, “will enable the company to pivot its business to AI compute infrastructure, with a long-term vision to become a fully integrated GPU-as-a-Service and AI-native cloud solutions provider.”

Yep, they pivoted from casual shoes to AI, and they’re changing the name to NewBird AI. The company sees a need for more compute and it’s going to bridge the gap. They say that NewBird AI will, and I quote, “initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service.” Oh, I got it. There’s a compute shortage and we know who to call, a casual shoemaker… Allbirds wasn’t even a successful shoe company, for heaven’s sake, yet the stock rallied nearly 600% yesterday on this… news story.

Photo by AlphaTradeZone

Before its recent pivot to become an AI infrastructure company, Allbirds, Inc. (NASDAQ:BIRD) produced a variety of lifestyle footwear and clothing, selling everyday shoes along with apparel staples like tees, sweats, and underwear. The brand marketed its products to both men and women.

While we acknowledge the potential of BIRD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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