Mad Money w/ Jim Cramer 04/24/25

Summary

Mad Money with Jim Cramer – April 24, 2025 Episode Summary

Release Date: April 24, 2025

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1. Market Overview and Wall Street Dynamics

Jim Cramer opens the episode with a vibrant analysis of recent market movements, drawing parallels to a bowling alley where stocks are the pins and his commentary is the bowling ball. He emphasizes the resilience of the market despite political turbulence and economic uncertainties.

• Market Rally: Cramer highlights a significant rally with the S&P 500 climbing 2.03% and the Nasdaq 2.74%. He attributes this surge to a combination of market despair used as a launching pad and positive corporate earnings that defied recession fears.

  "You made a killing today because we had some of the best pin action off earnings that I've seen in ages." — Jim Cramer [02:30]

• Jerome Powell’s Influence: A central theme is the role of Jerome Powell, Chairman of the Federal Reserve. Cramer praises Powell's leadership, contrasting it with the President's public criticisms.

  "Powell is a symbol of effective independent leadership. We don't have many examples of that." — Jim Cramer [04:15]

• Political Tensions: Cramer discusses the tension between Powell and the President, emphasizing the importance of maintaining an independent Federal Reserve to prevent long-term inflation issues.

  "If the President could just fire the Fed chief, rates will always be kept low, will develop a serious long term inflation problem." — Jim Cramer [05:10]

2. Equity Corporation Interview: Navigating the Natural Gas Sector

Cramer brings Toby Rice, President and CEO of Equity Corporation, to delve into the natural gas industry amidst fluctuating commodity prices and geopolitical challenges.

• Consistent Free Cash Flow: Rice highlights Equity’s ability to maintain steady free cash flow despite industry volatility, attributing this to a low-cost structure and strategic operational controls.

  "Our North Star is to have a low-cost structure, allowing us to create a business that provides the best risk-adjusted exposure to natural gas prices." — Toby Rice [13:11]

• Strategic Geographical Positioning: The discussion underscores Equity's advantageous location near data centers in Appalachia, capitalizing on increased demand from the tech sector.

  "We are right next to data center alley in Appalachia. Our pipeline asset, Mountain Valley Pipeline, is crucial for delivering 2 BCF a day of gas into this corridor." — Toby Rice [14:53]

• Olympus Acquisition: Rice elaborates on Equity's recent acquisition of Olympus, emphasizing the value addition through high-quality assets and enhanced shareholder returns.

  "The Olympus deal wasn't just a great valuation; it brought high-quality assets with a superior cost structure." — Toby Rice [17:37]

3. AI Infrastructure and Semiconductor Market Insights

Cramer shifts focus to the booming AI infrastructure sector, analyzing the performance of semiconductor and data center-related stocks amidst regulatory challenges and market skepticism.

• Data Center Resilience: Despite concerns about a slowdown, executives from Amazon and Nvidia report no decrease in data center demand, supporting the bullish outlook on the AI infrastructure theme.

  "There’s been zero evidence of a slowdown in data center demand. Executives are maintaining massive capital expenditure plans." — Jim Cramer [24:00]

• Stock Opportunities: Cramer identifies several undervalued stocks in the semiconductor and data center sectors, including Nvidia, Broadcom, Marvell Technologies, and ARM Holdings, citing their strong fundamentals and growth prospects.

  "Nvidia is down more than 30% from its January highs, but it still looks pretty cheap at 24 times this year's earnings estimates." — Jim Cramer [25:30]

• Utility Stocks with Nuclear Exposure: Companies like Constellation Energy and Vista Energy are spotlighted for their potential rebounds driven by increasing demand from data centers and renewable energy projects.

  "These utilities are selling for barely more than 20 times this year's earnings estimates, presenting a compelling investment opportunity." — Jim Cramer [27:10]

4. Housing Market Analysis: A Potential Thaw Ahead

Cramer presents an in-depth analysis of the housing market, drawing historical parallels to suggest that current declines in existing home sales may signal the onset of a market turnaround.

• Current Declines: Existing home sales have plummeted 5.9% month-over-month, marking the slowest pace since March 2009. Cramer interprets this as a precursor to a potential market reset.

  "Existing home sales fell 5.9% month over month, the biggest decline since March 2009. This could be the darkest before dawn moment for housing." — Jim Cramer [43:20]

• Historical Cycle: Using historical cycles, Cramer outlines a potential path where declining sales lead to Fed rate cuts, increased buyer activity, and ultimately a robust market resurgence.

  "If history is any guide, that's exactly what could happen over the next few months, bringing a Godsend to most families." — Jim Cramer [44:50]

• Future Projections: Cramer anticipates that rate reductions by the Fed will stimulate buyer interest, leading to increased home construction and eventually stabilizing prices.

  "Maybe these numbers will bring about the great housing thaw that we've all been waiting for." — Jim Cramer [45:30]

5. Lightning Round Highlights

In the rapid-fire Lightning Round, Cramer addresses listener questions, providing actionable stock tips and market insights.

• Taiwan Semiconductor: A listener inquired about Taiwan Semiconductor (TSM). Cramer expresses strong confidence in TSM's role in the AI revolution despite geopolitical tensions.

  "Taiwan Semi is one of the greatest manufacturers in the world. Anyone who thinks it should be this low just isn’t a believer in AI." — Toby Rice [38:56]

• Walmart Investment Strategy: For Walmart, Cramer advises buying the stock incrementally, watching for tariff-related developments to optimize entry points.

  "If I wanted to buy the stock, I’d put a little on here, wait for some tariff news, let it dip, and then buy more." — Toby Rice [41:10]

• Brookfield Asset Management: Highlighted as a strong performer with a modest yield, suggesting it as a reliable investment.

  "Those guys are real good. The yield is only three, but the stock doesn’t come in like many others. I like the stock." — Toby Rice [42:03]

6. Final Thoughts and Market Outlook

Cramer concludes the episode by reiterating his bullish stance on the market's resilience and the continuous opportunities available for investors willing to navigate the current economic landscape.

• Bull Market Summer: Emphasizing optimism, Cramer assures listeners of ongoing bull market opportunities, promising to identify and capitalize on them.

  "I like to say there's always a bull market summer. I promise I'd find it just for you right here on Mad Money." — Jim Cramer [46:20]

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Notable Quotes:

• "Powell is a symbol of effective independent leadership. We don't have many examples of that." — Jim Cramer [04:15]
• "Our North Star is to have a low-cost structure, allowing us to create a business that provides the best risk-adjusted exposure to natural gas prices." — Toby Rice [13:11]
• "Nvidia is down more than 30% from its January highs, but it still looks pretty cheap at 24 times this year's earnings estimates." — Jim Cramer [25:30]
• "Maybe these numbers will bring about the great housing thaw that we've all been waiting for." — Jim Cramer [45:30]

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Conclusion

This episode of Mad Money provides a comprehensive analysis of current market trends, focusing on the natural gas sector, AI infrastructure, and the housing market. Jim Cramer, along with industry expert Toby Rice, offers actionable insights and bullish perspectives, encouraging investors to seize opportunities amidst market volatility. The discussion underscores the importance of strategic investments in resilient sectors and highlights potential rebounds in traditionally cyclical industries.

Transcript

[Jim Cramer]

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[Toby Rice]

With $215 billion in business loans and over 3,700 business specialists across the nation, we help businesses thrive so communities prosper.

[Jim Cramer]

What would you like the power to do? Learn [e-mail] LOCALBUSINESS bank of America Official bank of FIFA Club World Cup 2025 Copyright 2025 bank of America Corporation. All rights reserved.

[Rich Tobin]

Our state has changed a lot in.

[Jim Cramer]

The last 140 years.

[Toby Rice]

We know because MultiCare has been here guided by a single making our communities healthier.

[Jim Cramer]

That comes from making courageous decisions, partnering.

[Toby Rice]

With local communities to grow programs and.

[Rich Tobin]

Services, and expanding healthcare access to those who need it most.

[Jim Cramer]

Together, we're building a healthier future.

[Toby Rice]

Learn [e-mail] 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 Man Money. Welcome to Kramerica, friends. I'm trying to make you a little money. My job to explain to you what happens. To educate, to teach. Call 1-800-73-CBC. Tweet me at you Craver if you know how to bowl. You made a killing today because we had some of the best pin action off earnings that I've seen in ages. It was pure joy as we watch one lead pin after another, slash and slam the sticks behind it. Kaboom. Strike after strike after strike, throwing total radio songs from the White House on anything business related and you end up with a nice Powerful rally down getting 48 inputs S&P climbing 2.03%, Nasdaq poll voting 2.74% now there's a lot that goes into a meaningful multi day rally like this one. For example. You need a certain level of despair as a launching plan. On Monday, if you recall, the White House hit a new low as the President attacked the one person who's universally respected on Wall Street, Jerome Powell, the chairman of the Federal Reserve. Keep in mind, Powell was originally appointed by Trump in his first term. In his time on the job, he's done many things right, almost single handedly saving the economy from the pandemic with a strong assist from former Trump Treasury Secretary Steve Mnuchin. Sure, Powell's gotten some things wrong. We all do. Arguably, he waited too long to raise interest rates as Covid wanes, spurring inflation. But overall, his record is about as good as it gets One point though. Powell's a symbol of effective independent leadership. We don't have many examples of that. These. In a world where every branch of government seems tarnished, where we have less respect for politicians than ever, there was this one man who actually had the respect of almost everyone. Federal Chief Jay Powell. He truly is beyond reproach. An imperturbable, implacable man who diligently comes to work every day and tries to get it right. He cares more about the working person in this country than any Fed chief I've ever seen. And the President chose to mock him while very publicly debating whether to fire the guy, even though that's technically illegal. The President can only fire the Fed chief for cause. But there was absolutely no cause whatsoever. Powell's upright as Mr. Smith, the one who went to Washington. He'd be right at home in a Frank Capra movie that was, in short, a trashing too far as Wall street sees it, if Trump really fired Powell, that would put us on the course to become a true banana republic. And I don't mean the one that's two steps above Old Navy and the gap pecking order. Nobody in this industry trusts elected politicians to control interest rates. If the President could just fire the Fed chief, rates will always be kept low, will develop a serious long term inflation problem. That's why when Trump went after Powell, even the wolves of Wall street were terrified. So when the President did the unthinkable, at least for him, and he backed off, saying he had no plans to fire Powell, he gave us the fuel we needed for a spicy, spectacular rattle pleasure. All the boy was easy. The market had something else going for it that was a little less dignified. A series of charts that seemed to mock any possibility of a positive push higher. Everything was breaking down except for a handful of recession stocks. And the worst were the bedraggled, tortured, spindle, spindled and defense defenestrated. Magnificent Seven. In this version of the movie, Brooklyn's own Eli Wallach, AKA Calvera, actually wins. Or Sergio Leone terms. That's Tuco Ramirez sending an invitation to Blondie's funeral. Literally every chart is telling you the sky's falling. There's the maximum surprise factor, the moment anything good happens. Oh, and a deal with China. We heard rumors of peace from the White House and the prc. Suddenly through the best part of the Yangtze river on anything positive. And that cesspool of negativity, a vertical goddess canal pessimism. We got some good news from the most unlikely of places. Corporations. Earnings prepped by Endless talk of recession. Mostly from the pompous usual hedge fund managers, the Bears, who could care less about leading you astray. They what they don't care about. You see, they've already made theirs. We figured they said these companies would show us the true blood drenched colors when they started reporting. Now actually we've had the opposite. Hence the bowling alley, the lucky strike where the pins begin to fly. Consider just the guests on last night's show. The markets like Dante's Divine Comedy or nine circles of Hell. The ninth and worst being where Satan AKA the Enterprise software cohort resides. The most dazed and confused surface. Now I know. Previously one of the best performers out there. That is until the last quarter which put actual flaws from the Bears and Bulls alike. Then last night ServiceNow reported a quarter that showed why you should Never count out CEO Bill McDermott. This company picked up more major contracts in one quarter than most get in a year. It was a blockbuster and you know that. That stock roared 4 15% today in response. Then there's Vertif at one point Vertif the earth as you'd expect from a company that makes the guts of the data center. Then some Chinese outfit claims that they can build AI models using far less software, less hardware and the whole data center complex collapses. Suddenly Vert reminds us something out of Jurassic park until yesterday when we learned the business accelerated quarter to quarter. Something that was confirmed reaffirmed today by executives from both in video and more important, Amazon. I'll go into more detail in the data center later. And by the way, tonight. Tonight Alphabet also reaffirmed its spend. Vertif closed below $72 on Tuesday. Now it's at 83 and change. Finally pulling up the rear. We heard from GE Vernova verifying the greatest story ever told. The reinvention of the national electric grid. Something that could employ hundreds of thousands of people. Vertical WPA worth of work roles. These guys make the best turbines in the world and they make them right here in the United States. Of course, it wasn't just the quarters fleshed out in last night's show that spread the bullish gospel. The once and future analog semiconductor king Texas Instruments fondly called the bottom and industrial semiconductors at the exact same time that Lamb Research, the best semiconductor equipment maker gave us a pristine upside surprise. The semis. Until last night we preferred semis of the tractor trailer variety because at least they didn't blow up every quarter. Hey, now they're back. Never forget that a real industrial and tech rally requires that safety be Last that safety, never known to take time off, actually goes on vacation. Today was that day Proctor gave him. Put up a series of sad numbers, frankly blasted more flaccid than a. Than a Tide pod with a stench that Febreze couldn't mask. PepsiCo flat with the existential threat of a Health and Human Services secretary who appears to want to take the blue, the red and the orange alligator, the yellow out of nacho cheese tortilla chips, and yes, the brown out of Pepsi Cola itself. So you have to the dangerous safety stocks pulling back and the most aggressive stocks in the room. Rory, can we draw some conclusions? Here's the bottom line. When the White House is dignified or at least silent at the same time that the PRC goes all WWE while our Jimmy Stewart of the Fed chief gets back to being unsoiled. Well, ladies and gentlemen, that's a bowler's bull market. Beware of flying pins, everybody, because the balls are rolling fast and. And I don't see anything that could be left standing. Charlie in California. Charlie. Hey, Jim.

[Jim Cramer]

So I've been looking into REITs again, specifically realty Income. Is it too early to start getting.

[Toby Rice]

Back in the reit? No, absolutely not. I went over that quarter with a 5:2 comb. I know the stock dropped down to the low 50s when they reported. I felt that there was an overreaction. I actually like the quarter and I am still a buyer. Don't forget you get monthly dividend checks when you buy letter O, which is one of the reasons why I stand by it so so much. Somehow the sectors in the White House and the Fed in the earnings season are aligned to create a bowler's bull market. Watch out. There are pins everywhere on my money tonight. Where do natural gas players stand as the commodities price is down big? I'm checking in with Equity after its excellent report earlier this week. That is more power ahead. For the infrastructure theme that I just talked about, I'm reviewing the stocks I think could be standout. So you'll get them and you'll write them down and you'll buy it. And then after the markets whipsaw reaction to Dover's guidance today, I'm breaking down the quarter with the industrial top breast. Who knows? Seems cheap to me, so stay with Kramer.

[Jim Cramer]

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[Rich Tobin]

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[Toby Rice]

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[Jim Cramer]

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[Toby Rice]

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[Rich Tobin]

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[Toby Rice]

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[Jim Cramer]

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[Jim Cramer]

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[Jim Cramer]

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[Toby Rice]

This year. Before we got caught up in the President's tariff crusade, the price of natural gas was soaring up 35% year to date. Its highs in early March since that is pulled back hard now down almost 20% for the year, a victim of recession worries, retaliatory tariffs from our trading partners. So what does that mean for the industry? Take Equity, one of the largest natural gas producers in America. They reported a solidly better than expected quarter on Tuesday, even slightly raising their full year production forecast. Stock barely reacted though, because everyone's so worried about the underlying commodity. And that's why I want to dig deeper with Toby Rice. He's the President CEO of Equity Corp. Yet more insight on where the industry is headed. Mr. Rice, welcome back to Money.

[Jim Cramer]

Hey Jim, how you been?

[Toby Rice]

All right, Toby, First, I want people to understand that you had incredible free cash flow record. Setting free cash flow. But maybe more important, you And I've been around a long time. I'm not used to natural gas companies have consistent free cash flow. I'm used to epicenters sodic which means therefore dangerous. In terms of a portfolio manager. How are you able to have consistent free cash flow growth in an industry not known for that?

[Jim Cramer]

Well, for us it really has been a focus on our North Star to have a low cost structure. What that has allowed us to do has to be able to create a business that is going to give investors the best risk adjusted exposure to natural gas prices. We highlight this in our, in our earnings deck you can see the earnings potential of equity in a high price scenario. And in a low price scenario we're going to, we're going to provide pretty consistent results in a volatile environment. But you know the volatility is a really important theme for natural gas. And one of the things that we want to emphasize is our company value of evolution is getting a business that's going to thrive in a volatile commodity price environment. And I think some of the things that we've proven what we can do in the field, operationally turning our chokes on and off to adjust to market pricing has been the key to getting better realized pricing and a solid part of our, of our free cash flow beat. Having that type of operational control on an asset base as large as equities is going to be a differentiated advantage that allows us to match our activity levels with the environment to meet the demands and capture the best pricing possible.

[Toby Rice]

And you also Toby, show great discipline in where the net, where your natural gas goes to. You're not a hog, you're not trying to ship everything to the Gulf of Mexico so it's gas it's exporting. You have limits, actual limits about where you send your net, your natural gas.

[Jim Cramer]

One of the biggest questions that we get is what price signal would it take for us to respond with higher activity levels. And what we remind people is that we are not the marginal producer of natural gas, we are the low cost producer of natural gas. And so we are not going to chase short term price signals to determine our activity levels. We are a large scale operator and what we are focused on doing is getting closer to our customers and being triggered by sustainable demand growth and being able to connect our low cost supply with demand. Those are the sustainable growth signals that we're looking to create. We think that's going to create an opportunity not only for us to grow but also create some margin enhancement enhancing opportunities. And that's where we're, that's where we're focusing with our asset base and all of the demand signals that are coming out in this country. There's going to be lots and shots, lots of shots on goal for us in this company to flex the power of the platform that we built.

[Toby Rice]

Well, I think that when I look at demand seals, I think that having been in your area, people don't seem to understand the data centers are not put in San Francisco. The data centers are put in areas that are stable, that are good, that don't have earthquakes with a consistent formula that includes low cost natural gas. You're in a corridor that I think has been terrific for you.

[Jim Cramer]

Yes, one of the challenges with being a producer in Appalachia is we've seen our basis get blown out a little bit and we've got, we basically sell our gas at a discount because gas has been wanting to move down to the Gulf Coast. But we've got this major demand center and we think our geographic location is going to be a big positive for us. And we can see this start to materialize in the pricing for the products that we sell because we are right next to data center alley in Appalachia. We have a pipeline asset, Mountain Valley Pipeline, the should be renamed the most valuable pipeline which is going to deliver 2 BCF a day of gas into datacenter ally. But Jim, understand this, this pipeline cancellation movement that's taking place over the last eight years has prevented pipelines that would move gas to these regions. And so what we're seeing is the demand has not stopped. It's going to continue. But without these pipelines we're seeing that demand move closer into our backyard up here in West Virginia, Pennsylvania and Ohio. That's going to create even more direct supply opportunities for us to service this new demand. But in total this could be pretty significant. We're seeing, you know, our estimates are there going to be between 6 to 7 bcf a day of local in basin demand. A couple of BCF a day of that is going to come up from replacing coal facilities. But another big part of the story is going to be new power demand generation to feed this AI boom. And so it's going to be a, a big opportunity for us and we're really excited about that opportunity.

[Toby Rice]

You know, we had Novo on yesterday and I was listening to my saying where are they going to get all the natural gas to put through these through their big turbines? And the answer is going to be from someone like you because you have the consistent supply and you just made an acquisition Olympus, which will make it. So if there is indeed more, more, if there are more turbines, you can make sure that they have the natural gas go through them.

[Jim Cramer]

Yeah, we were really excited to announce the Olympus deal the other day. You know that deal was one that stood on its own. I mean we bought that deal at a, at a very great valuation. 15% free cash flow yield is basically what the price we paid for it and when we use it, we pay for, for this asset. With a stock that's trading with a high single digit free cash flow yield, you can see really good accretion to our shareholders. But the real special part of the Olympus deal isn't just that we got a good value, it's the fact that we got a good value for a high quality asset. These are, these Olympus assets have good inventory but an even better cost structure similar to equities. We'll be able to continue to have a quality story. Like I said, we value our cost structure and the assets we're bringing in have got to be quality. But as you mentioned, there are some other big upsides to this Olympus transaction. Olympus is located in the industrial corridor next to Pittsburgh. And guess where a lot of people are looking to put these data centers in old industrial brownfield sites. And some of these locations are right in the middle of the Olympus asset position. So this is all upside. There's, there's still a lot of conversation that need to take place but with this asset base plus our midstream division, we'll be able to connect this low cost resource to these demand centers and create some, some, some hopefully exciting opportunities in the future.

[Toby Rice]

I do want to point out a note, we're running short of time, but you mentioned about what geographically can and can't be done. I saw a new firk head. We have an Interior department and we have an energy department very committed to natural gas. But we have a whole region called New England and that's the area that should be flooded with natural gas, but people won't let it. In the end, it's still a local business that's defeating a national trend, correct?

[Jim Cramer]

Yes. We should be looking at ways that American business can help parts of America. There's no better story where we could, we could show a great solution is to get more natural gas. New England, where they're burning oil in their basement. Over 25% of the residents up there are burning oil in their basement like we did 100 years ago. There's better ways. Natural gas pipeline projects have been proposed to get more gas in that area. It's exciting to see this administration, one of the first things they've done is breathe life and support into these pipeline projects like Constitution Pipeline. Now, Jim, just for perspective, how much natural gas would it take to replace the heating oil in Boston? And if you take it around the rest of New England, you're talking about additional natural gas demand of one and a quarter bcf a day. That's a big market opportunity that's going to be met from Appalachia. And Appalachia's natural gas champion Equity is going to be right there in the middle of it. We just need to get the support to get these more, more of these pipelines built where there's a lot of noise there right now. But to our leaders in D.C. permit reform is absolutely critical. We know there's some other priorities right now, but with permanent reform and this type of support from this administration, we can dominate bring energy dominance to this country, help lower energy bills for residents not just here in Appalachia, but also places in New England across the country. Well, something that's very important to do when we see, when we see American energy bills.

[Toby Rice]

I'm with you. Especially this. For all we know, some of that is actually Russian oil, believe it or not, it could be. Toby Rice is the president CEO of Equity Corporation. I am with Toby on this issue. And Mad Money's back after the break. Thank you, Toby.

[Rich Tobin]

Introducing CNBC plus the new streaming platform from the number one source in business news.

[Toby Rice]

Watch live or on demand.

[Rich Tobin]

Access any market, anytime, anywhere.

[Jim Cramer]

Start Streaming.

[Toby Rice]

Go to cnbc.com streamnow over the past few months, the market has totally given up on AI infrastructure even for the time to sell off. This group's been rolling over ever since a Chinese firm announced that they come up with a cheaper way to create generative AI models at the end of January. Then we got the trade war worries. The recession fears caused Wall street to turn on many of the last year's biggest winners, including anything at all connected to AI. But you know what? We've seen zero evidence of a slowdown. The infrastructure build out. In fact, CNBC's own Spencer Kimbell in this terrific piece that I don't think many people talked about, noted that executives from both Amazon and Nvidia said at an industry event today that there've been no slowdown in a datacenter demand. None of the hyperscalers have said they plan to dial back on their massive capital expenditure plans with the possible exception of Microsoft. But you know what? Microsoft was building these data centers on behalf of its partner OpenAI. And now that they're going through a kind of a slow motion breakup, OpenAI is starting to cover more of these costs itself. They recently raised $40 billion. They can afford it. So I've been saying that I think that the Microsoft so called slowdown isn't as relevant as people think. Now Nvidia is certainly not having any problems selling its high end chips aside from government restrictions on which countries they can sell it to. That has been a bummer, but it's a regulatory issue, not a demand issue. In fact, now that earnings season is well underway, we've heard from a bunch of companies connected to the data center theme. And you know what? They've been putting up pretty darn good numbers. It's almost like there was never anything wrong with the infrastructure story in the first place. Bye bye, bye. Exhibit A came from yesterday. One of our guests on last night's show is called a company called Vertif. It's a company that makes power and cooling equipment for the data center. Now this stock can come down 54% from its January highs to where it was trading right before the Queen quarter on Tuesday night. Then Vernon reports excellent numbers with easy to easy top and bottom line beats and a 21% increase in orders just versus the previous quarter. The so called late quarter management raised their full year sales forecast too. So it's no wonder. The stock popped nearly 9% yesterday, another 7.5% today. It's one of the reasons why I talk about this stuff at the beginning of the show. Yet further still down 46% from its high, it trades at roughly 23 times this year's earnings estimates despite the fact the company's on track to grow earnings at a 25% clip. I mean to me that just is steal. Okay, I mean to me, you know what, all aboard Last night we also know on the show this is General Electrical Power division, big turbine maker for power plants. Management said that strong demand from data centers is driving medium term orders for gas turbines while generating plenty of interest in the company's nuclear business. This nuclear business is for real people. So look, if reports of the infrastructure team's death were widely overstated, what kind of stocks can we justify owning now that they've come down big? And people are not saying that there's, that there's any stability in the group. First are the chips that are at the heart of these data centers. You know I'm going to start with Nvidia. Now I have, yes, I have become less enthusiastic about this not because of Nvidia itself. But because of the political headwinds involved with Nvidia, we still got a sizable position in Nvidia for the Chapel Trust because I'm a believer in their technology. Nvidia stocks down more than 30% from its January highs, but it still looks pretty cheap. It's 24 times this year's earnings estimates. Keep in mind, those estimates have come down substantially after the effective federal ban on selling their AI chips to China, even the older ones. And that took my breath away. Just so you know. Of course, some other semiconductor stocks can get back on track if the infrastructure spending never really went away. I like Broadcom, which we own for the Chapel Trust, very big position, and Marvell Technologies because they make what are known as custom accelerators that provide additional computing power for these warehouses full of servers. Broadcom and Marvel stock are down 25 and 55% respectively from the recent highs. They're trading at very reasonable valuations now. Then there's ARM holdings, another one I really like. The company licenses its leading semiconductor architecture designs to chip makers, including Nvidia Cadence Design Systems. A nice move in that today synopsis. They both work. They make semiconductor design software. Oh yeah, and don't forget Core Weave, which makes its own AI data centers, essentially allowing customers to rent its clusters of Nvidia GPUs. This stock is basically back to where it was trading when it came public in late March. If the infrastructure theme remains alive and well, I think could be an absolute steal here. What else goes in the data center? Well, how about servers and networking equipment? This is a little trickier. Okay, the leading makers of servers are Dell Technologies and you'll Packard Enterprise. Sadly, both these companies have major tariff exposure, which is why their stocks, frankly have just been slaughtered. But now they suffer 10 and nine times this year's earnings estimates respectively. So I'm wondering if the bad news has already been priced in. By the way, the Sharp Activist fund, Elliott investor, Elliott Management. They just announced a 7% stake at HP Enterprise last week. HP Enterprise frankly, has not operated that well, but maybe Elliott shakes it up. Oh, by the way, and never bet against Michael Dell. If you do, I need you to do something. Please send me an invitation to your funeral. As for networking equipment, I'm a fan of Arista Networks, which is some of the best tech. But it's been hit extra hard because a lot of business with Microsoft, which has started to wobble with its data center investment plans. But as I told a quarter, we asked about Aristotle just last night. I think the stock has come down way too. I mean it's down 44% from shares. This is a fantastically run company. It looks interesting to me at these levels. Sales, you know what I'm calling out Cisco Systems too long the market leader. Network equipment though it's also made some big moves in software and by the way and also cybersecurity. Lately Cisco has been holding up much better than many of these other names. Only only down about 15% from its mid February highs 1 5. But it will roar once people get the memo. The infrastructure spending never went away. It's very inexpensive versus its accelerating growth rate since it made a recent acquisition. All right, now how about the utilities with nuclear exposure that roared last year because of the data center fuel rise in demand for electricity? All right here I'm talking about Constellation Energy, Vista. You might have heard about Vista during the stock draft earlier this afternoon. Now these stocks have both fallen nearly 40% from their highs. These two stocks got overheated during the run up but they're now selling for barely more than 20 times this year's earnings estimates. They're selling for less than a lot of the traditional utility companies. I think that sounds like an opportunity to me. Bye bye bye. The strength inverters earnings also. Also as we think about Carrier Global and Trane Technologies, these are two leading climate control plays that have seen major growth in data centers because you need to keep these servers cool. Now these two are far from pure plays. They also got exposure to construction with real tariff exposure too. But if Wall street embraces AI they can bounce. I cannot believe how low carriers fall. I feel the same way about a number of classic metal bending industrials with big infrastructure exposure. Think Cummins, where that stock's been just blister makes big backup power generators. You can't have a data center go down. Tonight's guest, Dover. All right. They make these liquid cooling products among many others or even another stock just being crushed. These are two that the trust owns. They make electrical power management, Hubble, Hubble Parker, Hannifin, Powell Industries. All good, all of them. Now again these are very much cyclical companies so you can't just buy them if you think we're headed into a recession. Most have seen their stocks get slaughtered because they think people think we are going to recession. But if we get a reprieve on some of the more tariff issue these tariff issues and investors return the trade I just gave you, everything is going to fly again. Bottom line, when it comes to infrastructure, Wall Street's become very skeptical And I don't think that's really changed. But looking at what we've seen so far this earnings season, I'm feeling much more sanguine about the story. Especially if we get some more trade war de escalators, de escalation, de escalation from the White House. And stocks stay as cheap as they are. And man, are they ever cheap. Let's get to Sonny in Illinois. Sonny. Hey, Jim. I'm a club member and a loyal follower. Thanks for all you son underdogs. Thank you. Yes. That's how I feel, son.

[Rich Tobin]

Booyah, Jim.

[Toby Rice]

Oh, man. Familiar. Booyah. I miss those. We haven't had a lot of them lately. Thank you, Sonny.

[Jim Cramer]

So first of all, I think you need to give Regina, Jeff and the rest of the crew a raise. They're working really hard overtime in this economy again.

[Toby Rice]

What do I have? What I'm do. I have. I got. I have some money here. I know I had a couple of fives I think kicking around. Let me get back to you on that. All right, I got some.

[Jim Cramer]

Here's my question.

[Toby Rice]

So I have Apple and Nvidia. Can you give me some thoughts on Taiwan Semiconductor? Taiwan Semiconductor is so low, I have to tell you, I look at Taiwan Semi. What do people think? Look, I have tremendous conviction that we. It's very difficult politically to say that we will protect Taiwan Semi. I will say this. That is one of the greatest manufacturers in the world. And anybody who thinks the Taiwan semi should be this low, this cheap just is just not, not a believer in AI. And I am a believer in AI. There we go. And take a. Based on what we've seen so far from the earnings season, I'm feeling positive about the data center center build out theme. I think it's good. Look. Yeah, these stocks have just come down way too much. Much more made money, including one of the build outers. Dover, fresh off this morning's release. I think that sucks dirt cheap. Then after getting some tough home sales numbers today, I'm mapping out what I think could be on the horizon for the housing market. And all your calls, rapid fire in tonight's edition of the lightning round. So stay with Kramer. This morning we got results from Dover, the diversified industrial manufacturer that's made a big pivot toward the data center. Aerospace, clean energy. We own it for the Chapel Trust. Wow. Right? Dover trimmed their full year forecast which caused the stock to get slammed to pre market trading. Oh my God. It was down six bucks. However, on the conference call, management explained they were simply being conservative with their Forecast they're not seeing any actual weakness right now. They're being cautious, rational thinking. Immediately a stock started making a comeback going on to finish the session up 2%. So can it keep running or is this the kind of company we should genuinely be concerned about in such a tricky environment? Let's check in with Rich. Toby is the chairman, president, CEO of Global Corporation to find out. Mr. Tobin, welcome back to Money.

[Rich Tobin]

How you doing, Jim?

[Toby Rice]

Good, thank you. Now Rich, I got to tell you, you did give it kind of like my heart jump for a second because when I saw that, that you basically were, let's say, concerned, I figured, oh, you saw something. But what you really did see was what everybody seeing but no other CEO other than RTX really wants to say, which is there is a bit of a zeitgeist and things going on. Can you explain to people how you chose unilaterally to make a decision about what could happen going forward?

[Rich Tobin]

Sure. About three weeks ago, when the tariff tumult really started to pick up steam, we got the management group together and basically said, you know what, you're going to get all confused with all this. So let's go back to tactics here. Let's get a real clean Q2 forecast, let's look at our backlogs, let's get a Q2 that we can deliver and you know what, we'll wait to see how the smoke clears as we go through Q2. My experience tells me in times of uncertainty in corporate America, Capex tends to get delayed in these situations. And there's a good portion of our business that's levered towards CapEx projects. I don't think they're going away in our dialogue with our customers. They're all coming. But I think it's fair to say as long as this tariff tumult doesn't get sorted out relatively quickly, that there's going to be a little bit of drift to the right. So it was purely a mechanical move. I did it from the center. At the end of the day, I don't think it's any reason to be excited. It's approximately 100 million in revenue or 1% and 17 million of net income. I mean with the resulting we still double digit EPS forecast for the year, if I reran our numbers right now at spot F X it goes back the other way. But again effects volatility right now is a little bit too close to call. So we'd like to get some time before we rerun the numbers.

[Toby Rice]

Excellent. I'm glad you got that for for our people too. But I would say Rich, that the intra quarter trends are actually quite encouraging and we, if we want to say that's history or we could say that's the, that's how things could go if we get a little less crazy.

[Rich Tobin]

Yeah, look, we're really pleased with the margin performance in the quarter and you know, you know this, that margin performance is not, you know, what did we sell in Q1? It's all of the work that we did back in 23 and 24 and the roll forward effect of everything that we did on the portfolio, number one, all of the cost takeout that we, that we did last year in terms of SKU management or foot footprint rationalization. So look, we're in a time right now where predicting growth or revenue into the back half of the year is going to be a little bit difficult. But we're really pleased what we see in terms of the incremental margin performance that we saw in Q1 and we don't expect that to dilute going forward.

[Toby Rice]

Well, there are also some excellent growth here. Pumps and process was terrific. Imaging identification business I really like. These are businesses that we have the thermal connector business so strong because of data center. These seem to have a lot of tailwinds behind them.

[Rich Tobin]

Yeah, I mean I think the last time we got together we said that we had invested a significant portion of both of our organic and inorganic capital over the last several years into some priority growth platforms that make up 20% of our revenue right now. They've really begun to get some traction now number one in terms of the growth rate. But more importantly, if you think about something like thermal connectors, we built that purpose built facility two years ago. So not only you're getting the volume coming through, you're getting all of the fixed cost absorption that we've been carrying that we've been carrying in the previous period. So going the way we like it in terms of, in terms of margin.

[Toby Rice]

Now can you put more money behind those or so called things that you feel like at this very moment have momentum or if you can't find anything, do you just take your considerable cash pile and buy the stock now that it's down 40 points from where it was?

[Rich Tobin]

Good question. I think right now because we have a highly liquid balance sheet, we can do both. So there was a slide in presentation this morning where we outlined some capex that we were undertaking. Unlike some of our customers that may not have the balance sheet position that we have, we don't have to delay any capex. We can keep spending for what we believe that is a multi year Runway of terms of growth. So we've got a variety of different projects right now for organic capacity expansion that we highlighted in the presentation this morning. In terms of intervening on the share price, I think that what we said at the coming into the year with all the liquidity that we carried in, that we were carrying an insurance policy because of the presidential elections and a variety of other things going on right now, we're on the front foot. We'd rather deploy that in inorganic capital. But clearly if we think that there's a dislocation in the stock price, that we'd intervene as we've done in the past.

[Toby Rice]

You also did something in most CEOs don't do. You gave us a commentary on current tariff tumult which shows me frankly if it's $215 million annualized tariff estimate on a 24 basis, well, I got to tell you, you are going to be better off than a lot of your competitors and therefore you will also be similarly advantaged.

[Rich Tobin]

Yeah, look, I think that, you know, part of the reaction this morning was taking a look at those tariff numbers and not understanding what the calculation was. I mean, I have, I don't believe that the Chinese tariffs are going to be 145% for a calendar year. But we had to give some guidance in terms of the exposure from a cogs point of view. We are generally speaking a proximity manufacturer. And as part of the comments I made this morning on the call was we have a good understanding of where we are relative to our competitive base in terms of tariff exposure. So it's not all about let's go raise pricing to cover tariffs and is that margin dilution? That was a lot of the questions we got this morning. It's more a matter of if you have an advantage against somebody because they're more exposed, because they're bringing more finished product in from China, for example, then let's go and be a little bit careful in pricing. Let's grab some market share.

[Toby Rice]

Now I want to just point out that one of the people I talk well, you know, you're in our club, so to speak. We have a lot of club members and they, they send me things and one club member sent me something. It was kind of, he said why does he own some, some divisions that are down? Why doesn't he own all divisions that are up? Could, you know, and I tried to explain them. That's not the nature of the conglomerate. But maybe you can just speak to the Idea of look, they don't all go up at once.

[Rich Tobin]

Yeah, I think other than the real acceleration out of the COVID period, I don't think the portfolio has ever moved in tandem. Look, a lot of people like pure play. We would argue that the accordion effect of the portfolio is actually a strength at the end of the day. But having said that, we are stewards of capital. So we do have a clear eyed view of sum of parts and how that drives the stock price. You saw us do some divestitures last year. I think that that has been a result of our margin moving up over time and then we redeploy the capital into, you know, hopefully higher margin, higher growth businesses over time. You know our engineered products division used to be 12 months ago, 25% of revenue. Now it's down to 15 for example as we've proven the portfolio. So look, we drive for performance and we all want them to create value over time. But there is a semi cyclical nature to the different parts.

[Toby Rice]

Well, the consistent nature of Dover over multiple years would indicate it's not such a bad way to do business. I want to thank Rich Doban, Chairman President CEO of Dover. I also want people to go listen to his conference call because this conference call is different from most others. That's all I'm going to say other than it's a little. It's often fun to read. Thank you Rich for coming on Van Buddy. Thanks Jeff V Money back. It is time. Rolling chain with stocks. Bye bye bye. By sells with stock question Growth will be plenty and then the lighting round is over. Are you ready Ski? That's how you start with David of Pennsylvania. David, Jim, Jim, Jimbo banana fan of fomo. Jim, Jim, I am heavy in Reddit. Well, I'll tell you banana fat. Oh man, Reddit. I think Reddit is a very good stock. It came down way too much because there were. It was a short squeeze, then it evaporated. But I think management Hubson doing a great job. I would be a buyer. Let's go to Jim, Mississippi. Jim. Booyah. Jimmy.

[Rich Tobin]

Chill.

[Jim Cramer]

How are you doing buddy?

[Toby Rice]

I am doing well. How about you? Good, my man.

[Jim Cramer]

Can you talk to me about Walmart?

[Toby Rice]

Okay, Your stock's down 10 now admittedly it's up 10 from where it was just a couple of days ago. But I tell you, if I wanted to buy the stock, I put a little on here and then wait for some sign or someone to talk about tariffs, let it come down and then do some buy for the rest of it. Let's go to Bobby and Louisiana Bobby. Hey Jim, I want to give a shout out to Marcus and Dalton. Now Marcus, Dalton and I, Marcus Dalton and I are contractors in the pipeline industry and one of the pipeline companies that work for has been sold. The buyer appears to be a good company and the stock has held up well with this tariff commotion. What's your opinion on Brookfield Asset Management? Oh man, those guys are real good. You know the reason why it's you yield is only three is because the stocks actually not come in like so many of the others in the business. I like the stock. Let's go to James in Virginia. James.

[Jim Cramer]

Hey Jim, this is James from Chesapeake, Virginia.

[Toby Rice]

I currently own some shares in one main ticker symbol omf. Too risky, too risky. I want you to get out of that right now. And tomorrow I want you to go by Capital One also, which I tell you, it's got much better risk controls and it's going to have a nice buyback and I think it's going to 200. I told that to the club members. Let's go to Jeffrey in Massachusetts. Jeffrey. What's up, Jim? I don't. You tell me. I don't know. First off, I just pre ordered your new book. Looking forward to that. Oh my. I mean this guy wants to make money in any market. Thank you so much. Let's go to work. Now, with all the board shakeup and plunging performance, should I hang on for the ride or take my losses on hog? Harley, no, don't do it. Here sells at 7 times earnings, 3% yield. Look, I don't have great. It doesn't have the sales that I really like, but I think it can bounce from here. And that. Ladies and gentlemen, conclusion of the lightning round. Sometimes you wonder what a bottom in housing looks like. Could it be when existing home sales dropped to their slowest March pace since 2009? Which if you recall was the tail end of the financial crisis. A scourge that was precipitated by some of the worst home overbuilding in decades. These March numbers stink in so many ways. The ones we got this morning. Existing home sales fell 5.9% month over month. The biggest monthly decline since November 2022, when existing home sales fell 6.7%. Sales slumped in every region. They dropped more than 9%. The west heinous. To which I say perhaps, just perhaps, we're going to get what I've been anticipating for ages. Maybe these numbers will bring about the great housing thaw that we've all been waiting for. Like everything in business, housing as a cycle, it starts when home sales slow down. The Fed has to cut rates. Buyers come in eager to pick up a home with cheaper money or at least a teaser rate they can lock in. The home builders sense a better market and start to lose a little discipline, putting more of their land to work. The buyers get more aggressive. Then rates start climbing. Existing homeowners who've been waiting for better prices start offering their homes. Rates go higher still. The Fed is losing. At this point, the housing market gets real hot. The buyers can't resist fearing that they're going to miss out. We get to see multiple orders on most houses as rates go ever high. School rates go ever higher and home prices go ever higher. But that's the peak. Then the inventory dries up. Why bother to sell if you're going to get multiple offers? Might as well hang on to your property, hoping ultimately to get much higher prices. So the sellers then step to the sidelines. Buyers are flummox. There's no supply. We get stasis, nothing happening. Then people start worrying about a recession with higher interest rates tipping us into the abyss, just like some believe might be happening right now. The President's worried that Jay Powell will cause a recession by leaving short rates too high. Most business people think the tariffs will precipitate a freeze in commerce with the effect of embargo on China chilling everything. Although they're usually afraid to say it outright. When the fear becomes palpable, the sideline home sellers, they get antsy. They reappear. But the buyers, they're no fools. It's their turn to play the waiting game. The sellers grow fearful and flood the zone with homes. But the buyers are on strike. Only then does the Fed start cutting rates. And homebuilders realize that they're not going to make their course unless they start cutting price and do it. Some sell quickly. Inventory builds, the buyers step up, the sellers whack bids, and the cycle does its job. As more and more homes come out of the woodwork, prices keep coming down and the market works its magic. Can that happen now? You know what? I think this could be the darkest before dawn moment for housing. I mean, does anyone seriously believe that home is one of the most severe sources of inflation will ever give up their gains since before the pandemic? Most people don't think so. But you know, if history is any guide, that's exactly what could happen over the next few months. And I'll tell you something, for most families, it would be a godsend. I like to say there's always a bull market summer. I promise I'd find it just for you right here on My Money. I'm Jim Cramer. See you tomorrow. All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and.

[Rich Tobin]

Do not reflect the opinions of CNBC, NBCUniversal, or their parent company or affiliates.

[Toby Rice]

And may have been previously disseminated by.

[Rich Tobin]

Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed.

[Toby Rice]

By Jim Cramer as a specific inducement to make a particular investment 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.

[Rich Tobin]

Or accuracy, and it should not be relied upon as such.

[Toby Rice]

To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer Introducing CNBC, the new streaming platform from the number one.

[Rich Tobin]

Source in business news.

[Toby Rice]

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[Rich Tobin]

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[Jim Cramer]

Start Streaming.

[Toby Rice]

Go to cnbc.com stream now.