Mad Money w/ Jim Cramer 04/23/25

Summary

Mad Money w/ Jim Cramer – Episode Summary (04/23/25)

Release Date: April 23, 2025

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1. Opening Remarks and Market Overview

Jim Cramer kicks off the episode by expressing his mission to "make you money" and positioning himself as a guide through the complexities of Wall Street. He emphasizes his dual role of entertaining and educating his audience, encouraging listeners to engage via calls and social media.

Cramer remarks at [01:03]:
"My mission is simple to make you money. I'm here to level the playing field for all investors."

2. The Trump Effect on Wall Street

Cramer delves into the unprecedented influence of President Trump on the stock market, particularly focusing on Trump's interactions with Fed Chief Jay Powell. He highlights how Trump's rhetoric and actions have a direct and often immediate impact on market sentiments.

At [02:30]:
"I've never ever seen the market bend so readily to the wishes of one man. It's extraordinary."

He discusses Trump's fluctuating stance on Powell, labeling him "Mr. Too Late", and observes the market's strong reaction to Trump's decisions not to fire Powell. This dynamic, Cramer suggests, creates volatility but also opportunities for savvy investors.

At [05:15]:
"It's almost as if this is a TV show. You can see Powell walk into the boardroom, calm, cool character, and then the NASDAQ goes up 2%."

3. Interview with Bill McDermott – ServiceNow

Bill McDermott, Chairman and CEO of ServiceNow, joins the show to discuss the company's stellar quarterly performance. McDermott attributes the success to "elite level execution" and highlights significant growth in the public sector, especially within government entities.

At [12:30]:
"ServiceNow is the platinum standard of enterprise grade AI. We're helping to automate IT and back-office jobs, transforming how businesses operate."

Cramer probes into how ServiceNow navigates the current tariff environment, to which McDermott emphasizes the importance of leadership and trust, advocating for a "tech-first" approach to sustain growth amidst economic uncertainties.

At [17:51]:
"Bring technology in service to people and change fundamentally the way you run. Everybody should be thinking now how I can be a tech first company because it's the only way forward."

4. Interview with Scott Strazik – GE Vernova

Scott Strazik, CEO of GE Vernova, discusses the company's robust pipeline and readiness to meet future demand, particularly in the gas turbine sector. Strazik underscores GE Vernova’s strategic positioning to address trade imbalances through domestic production and global opportunities.

At [22:11]:
"We are filling out for 2028, taking orders for 2029, and having commercial discussions for 2030. We're a solution to the tariff problem, not part of it."

He highlights the critical role of natural gas in decarbonizing the electric grid and supporting the rise of AI and renewable energy initiatives, portraying GE Vernova as a pivotal player in the nation's energy transition.

At [26:39]:
"We've decarbonized the electric grid in the US with coal to gas switching, and gas is the force multiplier for more wind and solar to get built."

5. Interview with Gio Albertus – Vertiv

Gio Albertus, CEO of Vertiv, elaborates on the company’s focus on digital critical infrastructure and data centers. He asserts that data traffic will continue to grow, underscoring Vertiv’s strategic investments in supply chain resilience amidst geopolitical challenges.

At [35:02]:
"We've strengthened our supply chains, building resilience that's serving us well. We're working closely with customers on order repricing and adapting to tariff impacts."

Albertus dismisses the notion that Vertiv's focus is limited to a handful of hyperscalers, revealing a diverse customer base that extends to telecom and enterprise markets. He defends the significance of AI-driven infrastructure, emphasizing its role in future technological advancements.

At [36:40]:
"Our customer base is quite broad, from big hyperscalers to a large number of correlators serving the broader enterprise market, especially those focused on AI and sovereign AI."

6. Lightning Round: Stock Recommendations

Cramer transitions to his Lightning Round, where listeners call in with their stock-related queries. He offers insights and recommendations on various stocks, showcasing his rapid-fire analysis style.

• Rakesh from California inquires about Oracle Stock.
  Cramer responds at [08:44]:
  "Oracle is way beaten down. It's an inexpensive stock due to multiple compression. It’s a good buy right now."

• Mary Jo from Florida shares her success story from 2008 and seeks advice on Caterpillar (CAT).
  At [10:23]:
  "It may not be the time to own Caterpillar. There may be a better season coming."

• Gary from Alabama wants Cramer's thoughts on Uber.
  Cramer advises:
  "Hold it for multiple years; I think it goes higher."

• Gio Albertus, representing Vertiv, briefly discusses Paycom and Perplexity, emphasizing their roles in human capital and AI-driven solutions.

7. Focus on AI and Data Centers

In his closing remarks, Cramer reflects on the burgeoning AI industry and its symbiotic relationship with data centers. He underscores that the success of generative AI models hinges on the robustness of data center infrastructure, urging continual investment in this sector.

At [38:09]:
"These AI models need flawless data centers to thrive. Whoever can pull this off will dominate the entire category. Data center build-out is far from done."

Cramer advocates for sustained investment in video chips and data centers, asserting that they are critical for the future of AI and overall economic growth.

At [43:30]:
"If we're seriously going to rely on AI, we need more data centers. No company can afford to be left behind."

8. Notable Quotes

• “My mission is simple to make you money.” – Jim Cramer [01:03]

• “It's almost as if this is a TV show.” – Jim Cramer [05:15]

• “We are helping to automate IT and back-office jobs, transforming how businesses operate.” – Bill McDermott [13:10]

• “Gas is the force multiplier for more wind and solar to get built.” – Scott Strazik [26:39]

• “Our customer base is quite broad… especially those focused on AI and sovereign AI.” – Gio Albertus [36:40]

• “Data center build-out is far from done.” – Jim Cramer [43:30]

9. Conclusion

Jim Cramer wraps up the episode by reiterating the critical connection between AI advancements and data center infrastructure, emphasizing that sustained investment in these areas is indispensable for future economic prosperity and technological innovation. He encourages listeners to stay informed and seize opportunities within these dynamic markets.

Final thoughts at [44:38]:
"They deserve to know the difference. Whoever can pull this off will be worth every penny. They better keep spending."

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Disclaimer: All opinions expressed by Jim Cramer on this podcast are solely his own and do not reflect the opinions of CNBC, NBCUniversal, or their affiliates. Listeners should conduct their own research before making investment decisions.

Transcript

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[Jim Cramer]

My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Crame America. I build my friends. I'm just trying to make you a little money. My job is not just to entertain, it's to teach you. So call me at 1-874th BC or tweet me Jim Cramer when you see a grizzly bear in Yellowstone national park, you call a park ranger because these bears are dangerous. They think nothing of mauling your face off. But the grizzlies turn into teddy bears when the rangers come and you can't even remember what you were so afraid of. After a day where The Dow gained 420 points, the S&P climb 1.6%, and the Nasdaq pole to 2.5%, we can only presume that the President can turn the grizzlies on Wall street into teddy bears with the stroke of a pen or even just a post on the social media platform he owns. I've never ever seen the market bend so readily to the wishes of one man. It's extraordinary. The park ranger seems to have a way with bear. It's not clear if you scaring it down or calming it down, but there's real effort involved. Of course, there's almost no effort involved with President Trump when it comes to decoying the bears on Wall Street. He only needs to walk back Some previous comments and the market catches fire. After spending days mercilessly calling how about chiding Fed Chief Jay Powell, a major loser whose termination couldn't come fast enough. Last night, the President made it clear that he had no intention of firing Powell. Never mind. Hey, never mind that he kept calling him. Our Fed Chief is called Mr. Too Late. He now says it was the press that ran away with things. The whole notion of firing power now seems to be off the table. And the name calling. And what happens today when that name calling is over and Powell's job is not in danger? Not that it ever should have been, either legally or professionally. Well, I'll tell you what happens. The stock market explodes higher. That's because Wall street was terrified Trump would cause a constitutional crisis by trying to fire the Fed chief. What's really amazing is, is that the market had just rallied yesterday merely because the President didn't trash Powell. Now, I want to say something. I think it is actually, it's beyond belief how easy it is for this one man to tame a bear, even if it's a bear that he released on us in the first place. All Trump had to do to cause the two day rally was not repeat that Powell was a major loser and then say he wouldn't try to fire the guy. It certainly helped that President Trump indicated there could be a deal with the Chinese, even though from what anyone can tell, there's not a lot of discussion with China. The President also conceded that the tariff rate on China won't be 145%. Oh, but it won't be zero either. Again, not as precise as we'd like, but it's improvement. More importantly, it worked. If you wanted higher stock prices like I do, it worked. Now, I don't know if people realize how extraordinary all this is. You called the Fed chiefs some funny names. The kind that would make most of us feel somewhat remorseful given how Powell's kind of a pretty dignified guy. You tell your lieutenants to see if you're allowed to fire him. Then you say it was really drummed up by the press. And the market rallies like nothing ever happened. It's almost as if there's a whole exercise is it's a TV show. I mean, you can see Powell walk into the boardroom, seems calm, cool character, sits down, president consults with his other judges. He then turns to look right at the Fed chief and he says, Listen, Mr. Major Loser, you may be too late, but you know what? You're not fired. And then The NASDAQ goes up 2%. Whoa. Now we're almost back to where we were about A week ago, before the press began to jit up those stories about the president. Bash power. All right, what's really going on here? Look, the president is very powerful, especially when he's fixing problems of his own creation. But something else is going on here too. The companies that reported yesterday and today gave you amazing numbers with excellent forecasts even if the tariffs stay on. The CEOs of these companies, one by one commonly talked about other businesses. Terrific and could even get better. Not the stuff that you expect when you think they were supposed to have a recession. Just take tonight's show. You're going to hear from the CEOs of some of the largest, most important businesses on earth. You listen to the CEO of Vertiv, perhaps the most important company, that red hot data center business. And their business is incredibly strong. No cessation in sight. In fact, I think it's accelerating. You're getting that acceleration for free with that down. Now stock, you'll listen to an interview with Bill McDermott, the CEO of ServiceNow, huge enterprise software company. They reported arguably the best enterprise software quarter we've seen all year. ServiceNow is a hero stock putting up insanely good numbers when stocks seem to indicate that we get a shortfall. Totally wrong. You're going to get to meet the CMG Vernovo companies furiously trying to meet the demand for more electricity in this country. And it can't meet that demand. It has too much business. I'm calling it a high quality problem. These are companies with stocks that were seething to go higher. They wanted to launch, but they never would be able to get off the ground as long as the president was rolling out new nicknames for Jay Powell, maybe Cherry Garcia, talking about how Powell's favorite group, the dead and company should file for chapter 11. I say that with some mirth as Powell's the epitome of a distinguished banker, economist, historian and yes, deadhead. These three stock stories come on top. I, GE Aerospace, which just shot the lights out, 3M which is in the midst of a major turnaround. These are big American companies. Given that the whole world's thinking we're about to have recession here because of the extreme tariff turmoil. These are the kinds of companies that should be slashing the numbers, but they're not. The raise of the numbers. Oh, and just tonight, the story Texas Instruments, which have been struggling mighty of late, shed the weaknesses, put up terrific numbers that might be enough to ignite what had been a moral burn chip cohort. Now here's the real kicker and the difference Between Yellowstone and Wall street, the ranger can't really make the grizzly on get on his hind legs and dance. But the President, he got the bear doing a kick line, which is Tesla. Here's a company that reported one of the worst quarters of the years. I mean, it's really terrible. It just dismal. But the stock soars more than 5%. Why? Because CEO Elon Musk is getting out of Doge. He's spending more time with Tesla. That's enough. Now, this were one of those days where President Trump pokes fun at major world leaders and doubles the tariffs on the spot. Tesla stock would have taken on the chin. But when the President backs away from his high risk demands, the market suddenly very forgiving. And when he talks positively about exempting some companies like the autos from some tariffs, well, you know what happens. House of pleasure. Yeah. We need these companies to do well if we're going to avoid a downturn. Let me give you one last thought about this. If the President were to use his power to be constructive, to not call people names, to lighten up on true social and to say it's time we roll up our sleeves and make some trade deals, then I think the market would really roar. And if he simply said, you know what, I want to go back to the way I was last time in the White House where everybody wins, then the grizzlies would go into hibernation for four years. We wouldn't be talking about a bear market rally. We'd be talking about the best ways to serve bear meat. It's a cookbook, bottom line. That's how powerful Trump has become on Wall Street. On days like today, it's helpful. But for most of the year, it's going the other way. Of course, you never know who he'll target next. We don't want any of the big CEOs to be trash. That could hurt the market. Doesn't care if he goes after law firms or colleges, but going after central bank, different story. Right now Trump owns Wall street and only he can decide if that's going to be good thing or a bad thing. I think it's time to go all in on good. Let's go to Rakesh in California. Rakesh, Hi, Jim. I love your show and your advice. I watch your show. What do you think if it's a.

[Bill McDermott]

Good time to buy Oracle stock?

[Jim Cramer]

Now, the stock is pretty beat down right now and Oracle is way beaten down. It's another one of those stocks that be hurt because it's got into the data center. Look, it's up for today. I never counsel buying a stock up 4, but I will say this. Oracle has multiple is compressed to the point where it's now an inexpensive stock and that's what matters. How about we go to Mary Jo in Florida? Mary Jo. Hi, Jim. Mary Jo, how are you?

[Mary Jo]

I'm great. Hey, I'm club member. Long time. First time, yes. And I just want you to know I really appreciate you. In 2008. In 2008, I sold half my portfolio with the rent in October. In March I started buying again and by September I was back to even. I mean, that saved my bacon as far as my retirement account is concerned anyway. And I'm retired now and disabled, so it's really important. Anyway, I'm a club member.

[Jim Cramer]

I have Mary. Jeff, first of all, thank you. I know that that was heartfelt and that I did that is the kind of thing I'll call my wife after the show and say, look, I did good and she needs to hear it and I need to hear it. So thank you. Thank you.

[Mary Jo]

You did really good. Really good.

[Jim Cramer]

Thank you.

[Mary Jo]

So, yeah, I'm calling about Cat. I'm a club member, but I didn't liquidate it completely when the club sold out a few a while back and now it just seems like it's not an environment for construction.

[Jim Cramer]

You're right, it's not. Mary Jo. And boy, Jim Appleby's retiring. Oh, man, is he good. He's the guy who really turned the company into. Into what I call a secular grower. That said, it's not expensive, but you're right, it may not be the time to own Caterpillar. It is a better. There may be a better season coming. And again, thank you for your kind words. And remember, you know, sometimes I got lucky too. I've Mark Haynes, the late Marc Haines really helped me try to find the bottom. So I can't. You know, I got to give him credit because he really helped me a great deal. Anyway, look, right now Trump is run street and only he can decide if that will be a good thing or bad thing. I'm hoping for some good, ma'am. I tell you, don't miss this lineup of post earnings exclusives. Next service now is on the move after top and bottom line beat today. Wow. I got to see how to hear what's ahead for software in the midst of macro uncertainty and its platinum then GE Vernova slid alongside the market during the recent sell off, but we gained some traction today. I'm checking with top brass get a better reading. And later verdict blew higher after its quarter across the tape this morning. I'm digging in the data center industry with the company's top brass, so stay with Kramer.

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[Jim Cramer]

After the close, we got a rock solid quarter from ServiceNow. The enterprise software leader helps automate all sorts of IT and back office jobs. More important, they reiterate their full year forecast offered in line guidance for current core despite the tumultuous environment. Well, is that enough to turn the stock around? I think it is. But let's dig deeper with Bill McDermott. He's the chairman and CEO of Service now to learn more. Mr. McDermott, welcome back to Mad Money.

[Bill McDermott]

Jim. Thank you for having me. Great to be back.

[Jim Cramer]

Okay, so Bill, I thought that this, when I looked at the quarter, I was thinking I'm going to get the gold standard. I think this one's really the platinum standard of enterprise grade AI. And it's about time that someone came through with enterprise numbers because holy cow, it's been, we've been deficient of good quarters.

[Bill McDermott]

Well done, Jim. Thank you so much. I have to credit so many of our employees. They did a great job. I call this elite level execution. And you're right, acceleration delivered another outstanding quarter. In fact, it quadrupled in the quarter. So we're really excited.

[Jim Cramer]

Now one of the things that people would tell me is that you know this the Doge committee, Elon Musk going to come in, get rid of all the companies that are helping to automate things. You've got this US Federal government priority of transparency, accountability and efficiency, which is this government transformation suite. I think you must have been called in to try to make sure everything's done right.

[Bill McDermott]

Well, thank you, Jim. You know, we're laser focused on modernizing the government and Elevating how it serves the American people. And I think that's probably why our public sector business grew 30% year over year. This quarter we had six new public sector logos net new business, including a huge US federal agency. And there were 11 federal deals that were greater than a million and a couple that were greater than 5 million. And I'll tell you what I see, Jim. I see the whole software industrial complex consolidating onto service now in the public sector. And this is also happening in commercial entities. You know, they're still running COBOL systems from 1959. And if you think about the legacy systems that were structured by department that, you know, built over many decades, ServiceNow is helping streamline all that. So we're excited, we're very happy to team up with the public sector entities and very proud of our business there.

[Jim Cramer]

Well, I don't think you're just teaming up with the public sector entities. I'm looking at your pre configured agents and what that says to me is what I saw out at gtc. It says to me that you are partners within video to do the First Real AgentIX that is saving money for people. And also of course, making, making the people, not laying people up necessarily, making them more productive.

[Bill McDermott]

Absolutely. And you know the story well, Jim, how we teamed up with my great friend and yours too, Jensen Huang, and we started buildings with him six years ago. And now the Pro plus version of the ServiceNow platform is literally the platinum standard for enterprise grade AI. And you can run all functions, all corners of your office on ServiceNow. Take the cost out, improve your margin profile even in an uncertain revenue environment and then really rethink your business processes. And you could do that by industry. I mean, just think about an auto manufacturer in a tariff centric environment. There's 30,000 parts that go into building a car. And if you can't automate your supply chain in real time on ServiceNow, you actually can't get to tier two and three suppliers and sign up new ones. And you'll have to pass on a $10,000 on average cost to the customer, which they may not pay. So we're more relevant now than ever, Jim.

[Jim Cramer]

Well, I want people to understand that at a time when most of the enterprise software companies are not as relevant you and by the way, uncertain revenue growth, you had 20% revenue growth and better than 30% non GAAP operating margin, which I want people to understand means that you are achieved a rule of 50, not 40, which is an elite group of companies that's done that.

[Bill McDermott]

Thank you very much for saying that, Jim. We're very, very appreciative of it. You know, we have to keep our company operating at the rule of 50 plus. You know, this quarter we had 48% free cash flow and 20% sub revenue for 68. But as a full year guide we actually opted in an environment where I think we're one of one where you're growing above the rule of 50, upping the guide and very confident about our global position across all industries in the global economy. And I think about AI, you know, this is the only $20 trillion GDP impact market over the next five years that ever existed and 4 trillion in global opex will come out with AI. And to have the leading enterprise platform doing that for our customers in the public and the private sector is humbling. We're very excited.

[Jim Cramer]

Okay, I know you is not just the CEO of ServiceNow. You're someone who people go to to see what to do. What are you telling people who do have these different tariff situations so that they can stay even keel and not miss their numbers and frankly not be petrified of the situation.

[Bill McDermott]

We have to be strong. Leadership is in high demand and trust is the only human currency. So this is a moment in time where you really have to build people up, keep steady on your strategy and don't just change your strategy because you think something is going to change that's going to change your business model entirely without thinking about technology first. Because if you really do deploy technology, I'm looking at situations in the government where we can take out billions in cost. So while things might look complex at the moment, if you think about technology and how it can transform business, it can lead you to new business model innovation and outcomes you never even dreamed of. So lead the people and use AI for people. You know Jim, we run ServiceNow, we drink our own champagne before we bring it to market. I've got an 86% deflection rate now. Soul crushing work our people used to have to do. It's now getting done by agents. I can take a lead conversion and improve it by 16x by using AI. And finally yesterday I had a sales representative come up to me and said Bill, I used to take four days to figure out when I made a sale what my bonus and commission would be. I did it in four seconds now with my AI agent by my side. So bring technology in service to people and change fundamentally the way you run. And everybody should be thinking now how I can be a tech first company because it's the only way forward.

[Jim Cramer]

Is that the way in my last question, I'm sorry I've got truncated, but is that the way to deal with the uncertainty that some people feel the president generates when he goes back and forth and vacillates a bit on some of his issues?

[Bill McDermott]

Well, I really take a positive approach to everything, as you know, JIM yes, you do. And I think, and I think, you know, we're in a moment in time where we're rethinking a lot of policy matters on global scale. But I also have very high confidence in the administration and in the country that in the end we'll figure out the proper equilibrium where everybody can understand the new rules of the road. They'll be highly reasonable with bilateral global trade and we'll prosper like we always do and we always get through tough times and they never last, but tough people do. And as you know better than anybody, because you are a winner. Winners see opportunities in the challenges life brings. And that's what we got now.

[Jim Cramer]

Well, I'm leaving. You've got a message that everybody needs to hear and you've got the numbers that everybody wants. I want to thank Bill McDermott who is the chairman and CEO of ServiceNow. And this stock will be up big and it's not done at these levels. Thank you, Bill.

[Bill McDermott]

Thank you, Jim. Thank you so much.

[Jim Cramer]

Mad money's back after the break.

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[Jim Cramer]

Well you look at G Vernova run. G's old power division caught fire last year but its stock sold off the rest of the market in recent months. Do you think it's fell from 40, 40% from January highs was lows over this month for recovering a bit in recent weeks. This morning though the company put a strong quarter positive full year forecast in spite of all the tariff turmoil and that's why the stock rallied over 3% today. So are you getting a good entry point down here? Let's take a closer look at Scott strasik. He's the CEO of GE Vernova to find out. Mr. Tracyk, welcome back to Money.

[Scott Strazik]

Jim, thanks for having me.

[Jim Cramer]

Okay. Full year. Full year. And it looks like things are coming pretty good.

[Scott Strazik]

No question. Good first quarter print margin expansion in all three businesses, strong cash flow, returned over $1 billion of cash to our shareholders and real opportunities to grow from here. Backlog expansion across the business and more to come.

[Jim Cramer]

I read all the different reports of so many different companies that here's something I never see. We are sold out, largely sold out for 26 and 27. You really have that much to make gas turbines?

[Scott Strazik]

We most certainly do. We're sold out for 26 and 27. We're filling out for 28 right now and starting to take orders for 2029 and having commercial discussions for 2030.

[Jim Cramer]

Well, that's better than aerospace.

[Scott Strazik]

We've got a real opportunity to serve here.

[Jim Cramer]

Now one of the things that I know and you were very clear, you do have tariff exposure and 300, 400 billion and you're going to mitigate it. But what you also could be when I see that you say the most populous country in the world, India at 1.5 billion, but they need electric, they have coal. Saudi Arabia needs it. I started thinking that maybe you're a solution to the tariff problem. Not actually one of the things that's hurting us.

[Scott Strazik]

No question. At the heart of the tariff dynamic is trade imbalances. And as 70 countries come in and start negotiating with the US government, they can stop in Greenville, South Carolina and we can do a gas turbine transaction. They can stop in Wilmington, North Carolina and we can work through our smart business, Pittsburgh, Pennsylvania for our grid equipment and we'll help with that trade.

[Jim Cramer]

And it does seem like the old days what you would do. We know Larry Culp your space but the old is what you used to use to call Boeing or GD and say listen, we got to trade a balance. We're in a problem here with the United States. We want to give you some big orders and they would get it. It looks like these orders could go to Jeevanova.

[Scott Strazik]

We've got a real opportunity to serve these markets. I mean the US Is a priority for us in all of these markets. But we've got opportunities in other places in gas. Saudi Arabia is our second largest market today. You think about grid business. Europe is a big piece of the equation. But with wind we're excited with what we can do in India, what we can do in Romania. There's global opportunities here across the board.

[Jim Cramer]

All right. Now, Scott, one of the things that occurred to me when I first met you, I was very bullish on nuclear. You tried and you correctly said, listen, Jim, Jim, please don't get ahead of yourself. When I spoke to you this morning, it was the first time that I felt that you were ahead of me in terms of what could happen.

[Scott Strazik]

Nuclear things are moving fast. The reality in the last 90 days we've had a lot of productive conversations with both the hyperscalers on what it takes to move this to the left. The administration, they clearly care on moving nuclear in the right direction in the US we'll have multiple applications into the Nuclear Regulatory Commission in the next few months and then it's going to come down to how long does it take to get licenses to construct approved. If we can get that done in 12 to 18 months, we've got a real shot here.

[Jim Cramer]

If we have the Department of Interior, if we have the Department of Energy behind you, then I have to believe the nrc, which is, and look, we want them to be thorough but we don't necessarily need to be slow. Slow. You could be getting approvals and I understand for TVA it's happening right now.

[Scott Strazik]

Well, TVA will have their application into the NRC next month and then we're off to the races from there. I mean Secretary Wright, Secretary Burgum have been very available and accessible for us to partner on our steps forward. We're already in construction on the first plant. It's just in Canada. We need to get the first plant in construction in the US And I'm highly confident we're going to get there.

[Jim Cramer]

Now when I look at what you're doing with the. You mentioned the hyperscalers. I think that they, you're really kind of their hope. They're. Now look, we all want every. We want solar, right? We really, we love solar. We love when. But in the end they have to come back to you, don't they?

[Scott Strazik]

There's going to be a lot of gas build that's going to be required. They need dispatchable baseload power. Gas is the most efficient economic answer that's going to help them. If you look at our gas backlog today, it's negligible the number of data center orders. But we oftentimes talk about what we call our slot reservation agreements. These are agreements we have with customers that have secured slots that aren't yet orders About a third of that pipeline which are contractual contracts where customers are paying directionally 20% their hyperscaler, data center oriented orders. So that's an illustration of where this market is going. And I think we're just getting going.

[Jim Cramer]

I think that people are unfairly, are very unfair about natural gas. Natural gas gets cleaner every year. The people know how to do it, they're doing a terrific job. And yet somehow it's still. People act like it's coal or fuel oil. It's not. It's much better than that.

[Scott Strazik]

We've decarbonized the electric grid in the US with coal to gas switching and ultimately gas is the force multiplier for more wind and solar to get built. Without gas you can't get to renewable penetration rates that the world is looking for.

[Jim Cramer]

Now, could you please tell us where we are, where you think we are in this cycle, knowing that a couple of years ago there was no cycle. Where are we now in what you think could be a multi year move for your company?

[Scott Strazik]

Well, when you really take a step back and look at it, there hasn't been a lot of investment since really 1975.

[Jim Cramer]

There was no need in the grid. There was no demand each year.

[Scott Strazik]

Let's think about why there wasn't load growth. Globalization in the 80s and 90s was moving jobs and manufacturing other countries in the 2000s and 2010s. Think about productivity from software and the Internet was mitigating demand. Where are we now? Now as globalization evolves and as the software and the hyperscalers need more electrons, the same dynamics in the last 40 years that have been tamping down demand for electricity are accelerators for demand. So the best indicator to me or the best proof point, you got to go back to 1940, 1945 and the end of World War II. That's the we're going to have. And what happened at that time, the economic growth, but also for national security.

[Jim Cramer]

Right.

[Scott Strazik]

We needed to build the electric power system for both reasons. We need to do it again now. And that's exactly what we're going to do.

[Jim Cramer]

All right, my last question is, if we wanted to go with you to see it, where would we go? Where would we see? Is it in your plant, one of your plants? I want to see this in action because this is really the great part of America right now.

[Scott Strazik]

Listen, I'm proud to represent 75,000 employees in the world, 18,000 in the US that are, that are making this a reality. Every day we talk about bringing new energy to the energy transition. We can do that in our factories. We can do that out at our project sites. We'd love to have you at any of the above, Jim.

[Jim Cramer]

Well, I've got to tell you, when I, when I think about what you're up to and you know, both international, domestic, when I think about nuclear, the smr, I come back, I don't even know which is the most exciting. Perhaps with the idea that I never thought in my lifetime that I would see 5% growth to the grid. What every year it's.

[Scott Strazik]

We got a real shot here. The last time you saw growth like that was after World War II.

[Jim Cramer]

Right.

[Scott Strazik]

And this is our prosperity that happened.

[Jim Cramer]

In this country after World War II. That's when we became one nation with just, with lots of, with the middle class.

[Scott Strazik]

Exactly, exactly. And I think that's what people are not really realizing today. For the last 20 to 40 years the basically technology shifts that have happened with electric, power grid always had winners and losers.

[Jim Cramer]

Right.

[Scott Strazik]

Coal was replacing gas. Wind and solar were trying to put.

[Jim Cramer]

Miners out of business who just were just going and doing their job every day.

[Scott Strazik]

But now this is what's going to enable the economic growth that this country needs and the national security dynamics, we need this for AI. This is purpose built work that we're.

[Jim Cramer]

Excited to do and it is something where we can have a trade, we can, we can change the trade. Trade deficits with many countries, not just, not just a handful.

[Scott Strazik]

Think about the LNG deal. The government references in Asia with Japan and Korea they're going to need a gas turbines. We'll make the gas turbines. And in Greenville, well I hope they start mentioning G.E.

[Jim Cramer]

Renova and building things in America. In Greenville, South Carolina where I want to go.

[Scott Strazik]

We'd love to have you. I look forward to it.

[Jim Cramer]

Thank you very much. That's Scott, CEO of G for Nova. Guys, this stocks come all the way down but this is not a one year thing. This probably lasts the rest of our lives. That money is back into the break. Can the unfairly beaten down data center stocks finally make a comeback? Take Vertiv, a company you know I like very much. It specializes in power and cooling equipment for these warehouses full of servers. This morning Verta reported clean top and bottom line beat with management even raising their full year sales forecast. And that's why the stock shot up more than 8% today. It was up a lot more at one point. Can it keep rebounding? Let's check in with Geo Advertising. Jim is the CEO of Berta. Get better read on the quarterback. Welcome back to Mad Money.

[Gio Albertus]

Hello and thank you for having me. Of course, being with you.

[Jim Cramer]

Of course, Joe. Now I was talking with your chairman, Dave Cody not that long ago up for a retreat on leadership and we were marveling that the data center is still the hottest area in the world when it comes to business, but somehow people have given up on it and think that it's slowing. Can you set the record straight for us, please?

[Gio Albertus]

Yeah, I think there are multiple elements to that. This is certainly a long term trend. The air is changing the world. Everything is digital and becoming even more digital. So data, data traffic will continue to, to grow. So an, absolutely a secular trend. But when we look at that more in a short term and we look at it through the lenses of our orders, our strong trade for a month orders and particularly strong Q1 orders, when we look at it through the lenses of our opportunity pipeline, we see strength. We, we see an enduring strength. And the very encouraging thing for us is that enduring strength is very consistent with the, with the model and with the five years outlook that we gave in November at our investor day. So the, things are unfolding, things are unfolding in short and long term in a way that is consistent with what we shared with all our investors now. And it's.

[Jim Cramer]

People don't understand. I think that when you're in business, what you always hope for is you have this quarter, say the end, the fourth quarter and then you come in, in what's known as a linked quarter, the first quarter and it's even much better than a fourth quarter. I have almost no companies that I follow that had that. But you had it, sir?

[Gio Albertus]

Well, we like it a lot and must say that, you know, given there is a strength in our pipelines and it's, it's not necessarily a seasonal business. The business we're in, it really is a business in which, you know, big orders can come and go and can have a lumpiness that make a quarter absolutely great and another strong but not as phenomenal, let's say on a, on a quarter to quarter basis. So we should look at it really on a longer period and it's the longer period trajectory that matters. And we feel pretty good about the long term trajectory and the short term now.

[Jim Cramer]

At the same time you did have a tariff environment and mitigation actions page that, you know, I hesitate to see that at the deck because I just like to see it clean. But it's true that you have to make adjustments because of, of issues of tariffing that our country's doing.

[Gio Albertus]

Yeah, absolutely. I mean, not uniquely Avertive. But the good thing is twofold. On one hand we've been strengthening our supply chains, really building resilience in our supply chain and we are so much stronger now than we were say two and a half, three years ago. And that is serving us well very well. Now that supply chain strengthening was really targeted around geopolitics. Now there is a slightly different spin to that but, but it's a strength and an ability and a resilience that is serving us well. Having said that there are a lot of moving pieces and, and it's complicated but we feel good and I feel particularly good about the focus and the diligence and energy with which Team Vertiv is approaching that. There is also of course a price end to to tariffs and counter tariffs. So that's an area that we are also tackling on certainly on the price of new projects, new opportunity, new price lists, but also working very much together with our customers on sometimes when needed some element of order repricing.

[Jim Cramer]

I did want to mention your customers. A lot of people feel that the only customers that Vertiv has are these five hyperscalers. That's it. Now you're, you're a man of the world and I know that from talking with Dave. You, you. Could you please explain to people that there are more than just five customers that are interested in Vertiv's data center business.

[Gio Albertus]

Yeah, we said we, we are world leader in digital critical infrastructure, everything data center but also telecom and cni. Datacenter is by far our biggest part of the business. It was about 80% last year but, but again that's a large array from the big hyperscalers to a very large number of correlators that are of course serving the hyperscalers but also the broader enterprise market. There is a very interesting number of as they are called neo clouds focused on AI and growing very interestingly enterprise is, is. It starts to be focused and interesting AI but it's not just AI, it is also the traditional cloud. It is the generic enterprise type of, type of workloads. But also and we see that coming more and more to the full is everything around proprietary AI and sovereign AI that is becoming more, more of, of a general interest. So the customer base is quite broad.

[Jim Cramer]

Now I hear you say that. And yet I felt at one point during this quarter this stock simply just gave no credit whatsoever to AI. It was literally back to where it people thought that there was such a thing as artificial intelligence. Does that not mean that people felt that I was dead sir.

[Gio Albertus]

Look, I think there are cycles in the kind of a general feeling and sentiment out there. If we go back to what was it, July, August last year, we had a moment when I was dead as well, that need to resurrected and then it went really strong. And then now everyone is saying, oh, things are slowing down. No, we like the coherence that we have always shared with our investors and we see the market, we see it going in the right direction and we keep the consistency in our performance and the consistency in our outlook of the market. But again, it's corroborated by what we see.

[Jim Cramer]

Right.

[Gio Albertus]

What we see talking to our customers, what we see talking to with our partners, what we see talking with Nvidia amongst. Amongst others. But certainly very important.

[Jim Cramer]

Excellent. Okay. I now know that it was quite wrong that your company stock was selling as if there was no such thing as I when it clearly is. Jill Albertas is the CEO Verdict long one of our favorites. Thank you, Gio, for coming on the show.

[Gio Albertus]

Well, thank you very much.

[Jim Cramer]

Absolutely. Mad money's back after the break. It is time to come to the white world. Cruise brothers. We're golden. Barcelona Griffith, Brandon sale and then the lightning round is over. Are you ready? Ski Dag? The light round Christmas up for Gary in Alabama. Gary. Hey Jim, I want to know what your thoughts are on Uber. I have a small position in that. I like Uber very much. I think it goes higher, hold it for multiple years. Let's go to Todd in Illinois. Todd. Hey Jim, thanks for taking my call. You bet, Josh. My question is Vestas Corporation. We like Centos here. We're not Vestas people. We're Centos people. Let's go to Michael in New Jersey. Michael.

[Scott Strazik]

Hey Jim, I'm calling about a great.

[Jim Cramer]

Company whose product that people seem to love. Seems like a wider growth area is open up to it, but I don't hear it mentioned much.

[Scott Strazik]

The company I'm calling about is paycm.

[Jim Cramer]

That's a great human capital software and you're absolutely right. I like pay court to remember that just got bought by paychecks. Yes, that's a good space. Let's go to Ryan in Ohio. Ryan, Jimbo. Hey, brother. Yo. I'm looking on brokers. I see they're raising their dividend. They're talking about a future stocks. What are your thoughts on ibk? Well, I think, I think it's good but I actually like Robin Hood and my travel trust owns Goldman. When I see Goldman this cheap and I know how good they are that worked there one time, I Gotta tell you, I think Goldman 11.8 times earnings is the way to go. Hey, how about we go to Harry in Florida? Harry. Booyah, Jim, booyah. I'd like to give a shout out to Gary and Eileen and the question is Arista Network. Okay, so Gary, Eileen and Harry listen and listen up. Arista Network is down way too much. J Sri Lal is a winner. This stock is being treated as if it's a loser. I want to buy it right here at 70. Let's go to Nathan in Oregon. Nathan. Hi Jim, how are you? I am good. Nathan, how about you? Good, thanks.

[Gio Albertus]

Member of the investing club and the longtime.

[Jim Cramer]

Thank you. I wanted to ask you get your opinion about crh. It's coming on quite a bit. Building materials right now is not the place to be. I'll tell you though, if you really want to be in near that that area, I would go with Martin Marietta Materials or even Vulcan Materials. Those are my two material stocks that I like. Let's go to Steve in Cowboy and.

[Bill McDermott]

Steve, Jim, thanks for having me on. Long time watcher.

[Jim Cramer]

I want to shout out to my.

[Bill McDermott]

My stock picking buddy Jeffrey who's getting married this week in Brooklyn. My stock is all right.

[Jim Cramer]

My stock is Venture Global. I can't do this is Jeffrey. Jeffrey's getting married very near my house in Brooklyn. I can't hurt him. You got to tell him not to get near Venture Global. It's only fair. He's a new. He'll be a newlywed. It'd just be vicious of you that sucker and that. Ladies and gentlemen, conclusion of the lightning round. People don't seem to understand what's at stake with the great data center build out. We have a whole bunch of generative AI models with similar interfaces and I think there's only room for a couple of winners. Maybe even just one. Why not? Back in the day there were many search engines vying with Google. But Google spent a fortune to dominate the entire industry. You know what turns be worth every penny right now there's tremendous ignorance about these AI chat models. People sample one, stick with it, not knowing what to do with the others. But you deserve to know the difference. So you know I did this. I asked the chats themselves. The chats. Most people use Claude, Gemini, Med, AI Perplexity, ChatGPT and Grok to explain themselves. Ask them what sets themselves apart from each other. I want to share the answers with you, starting with Claude from Anthropic, a company that Amazon has invested heavily in. How did it explain itself? Claude is known among other things, for its reasoning capabilities and conversational style with balanced responses and thoughtful engagement in complex topics. Google's Gemini holds itself out as a bot with, quote, an emphasis on collaboration and empowerment. It features warm and vibrant interactions and is open minded with the respective perspective. Not bad. Met AI may be the most different. It's not about answering frequently asked questions, providing customer support. Instead, it hails itself as a creative writing companion that summarizes content. I like media for what its insight into what younger people might be thinking. It's really good on pop culture. Lately, Perplexity has captured my fascination. The bot says it has fast, accurate and citation packed responses. True. I love it for what it calls the ability to deliver fast and comprehensive answers. Perplexity is no nonsense, no warmth, just the facts, please. It's the debt dragnet of generative AI models. ChatGPT is rather remarkable for remembering who you are and what you've done in the past platform. It doesn't just respond, it collaborates. I find that, as it says it is broad knowledge and real world intuition. Finally, there's my current personal favorite, Grok, which is owned by Elon Musk. X AI. It's been my experience that has the information for everything I'm looking for almost instantaneously. Only Perplexity can rival on that front. Grok, by its own acclaim, says it's designed to cut through dogma, avoid corporate jargon, give answers that are direct, witty and grounded in reason. It's got a real advantage from its tie in with X, formerly known as Twitter. Grok knows me. It acknowledged me with a booyah and I didn't know if it didn't know any better, I think it's a close watch of the show. Okay, that's how the chat bots see themselves. What about my view? I think every company in the general AI arms race needs to keep spinning. These sites will be the future. They'll be what you need when you talk to your robot when you need a true assistant. But if we're seriously going to rely on them, they need to be flawless. That means more in video chips. That means more data centers. Like we heard tonight, that means scraping from more sites. Whoever can pull this off wins the entire category. So for those of you who think that the data center build out is almost done, let's just say this. I just ran down the key sites. They're all terrific. And you know what they're really good at? Apologies for getting things wrong. I'm calling that suboptimal. I know getting general BI right will cost a fortune, but for whoever wins, it'll be worth it 10 times over. So they better keep spending. No company can afford to be left behind, Alex. There's always bull market summer. Promise I'd find it just for you right here on Man Money. I'm Jim Cramer. See you tomorrow.

[MultiCare Representative]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer trading@schwab is now.

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