Mad Money w/ Jim Cramer 10/13/25

Summary

Mad Money w/ Jim Cramer — October 13, 2025

Host: Jim Cramer (CNBC)
Episode Theme: Market Reversals, Speculation in Tech & Energy, Caution on Speculative Stocks, CEO Interviews

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Episode Overview

Jim Cramer guides listeners through an extraordinary trading day marked by a sharp rebound in the stock market following political volatility. He breaks down speculative surges, significant deals in AI and data centers, and offers caution (plus actionable advice) about chasing risky outperformers. The episode features major interviews with Broadcom's Hock Tan, Levi Strauss’s Michelle Gass, and Rubrik's Bipul Sinha — each providing insider takes on AI, consumer trends, and cybersecurity. Cramer's signature Lightning Round and closing commentary focus on the tension between speculation and disciplined investing.

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Key Discussion Points & Insights

1. Market "Do Over" and the Speculation Surge

• Market Context: A wild market reversal; after Friday’s panic over the U.S. threatening 100% tariffs on Chinese goods, rhetoric softened, and stocks rebounded dramatically on Monday ([01:39]).

  • Stats: Dow +588; S&P +1.56%; Nasdaq +2.21%.
  • Cramer’s Take: The rally left safer “tried-and-true” stocks underperforming, while speculative names soared.
  • Quote:

    “Today we got a do over... It almost never happens.” — Jim Cramer ([01:39])

• Tariff Threat & Rare Earth Minerals: China’s export data suggests it’s adapting without U.S. demand, further complicating the rare earth supply issue vital for technology manufacturing.

  • Implications: U.S. redoubles efforts to source domestic critical minerals.

2. Data Center & AI Boom, Big Tech Partnerships

• Broadcom-OpenAI Deal:

  • Third large AI chip/design deal for OpenAI (previous with Nvidia, AMD).
  • Broadcom leverages both its hardware and underrecognized software chops.
  • Quote: Cramer:

    “OpenAI is going to design chips made by Broadcom for the equivalent of 18 Hoover dams worth of electricity.” ([03:38])

• AI Skepticism vs. Real Demand:

  • Cramer confronts critics who see AI as a bubble, insisting on genuine end-user demand (ChatGPT, hyperscalers competing for computing power).

3. Winners and Warning Flags: Speculation vs. Fundamentals

• Biggest Winners:

  • Highly speculative: Bloom Energy (fuel cells), Oclo (nuclear), Rigetti/D-Wave (quantum computing), New Scale Power, MP Materials (rare earths).
  • Key Driver: Massive investments (e.g., $5B from Brookfield into Bloom), JP Morgan’s $1.5T push into cybersecurity, quantum, critical minerals.
  • Stocks with year’s worth of returns in a day; shorts squeezed.

• Cramer’s Warning:

  • Celebration of speculation is precarious.
  • He prefers rallies led by profitable, earning-backed stocks.
  • Quote:

    “I don’t love a day like today because the speculative stocks make for bad leadership.” ([06:35])

4. Lightning Round: Stock Calls & Advice

Notable Q&A:

• Dutch Bros (BROS):
  • “High PE, but has growth opportunity. Buy small now, add if it dips to the 40s.” ([07:48])
• Southern Company (SO):
  • "Take some profits, utility’s run is overdone." ([08:30])
• Freeport-McMoRan (FCX):
  • “I think you’re fine in the stock. The concern about Indonesia expropriating your mine seems overblown.” ([43:23])

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Memorable Interviews

Broadcom CEO Hock Tan — The AI Infrastructure Arms Race

Timestamps: 11:50–23:56

• Deal Details: OpenAI deal is only for select, high-demand customers; custom silicon; focus on margin/ROI discipline.
• Power Supply Reality:
  • “There is a lot of power out there… you want it distributed… find locations on the grid for 50, 100, 200 megawatts… they’re very available now.” — Hock Tan ([13:29])
• Investment Rationale:
  • OpenAI’s private valuation >$500B, surging revenues.
  • Only select handful (about 7) of AI companies are worthy of Broadcom’s custom chips; only those with real purchase orders are prioritized.
• Outlook:
  • Generative AI is a secular (not cyclical) shift, likened to a "fourth industrial revolution."
  • Quote:

    “It is a phenomenon I’ve never seen before… not cyclical. Secular.” — Hock Tan ([22:23])

  • AI/knowledge work could grow to 40% of global GDP by 2030.

Levi Strauss CEO Michelle Gass — Reinventing the Denim Icon

Timestamps: 24:48–34:13

• Store Redesign & Strategy: Expanding beyond jeans to tops, womenswear, and “denim lifestyle”; significant growth potential.
  • “Women's is only 37%... should be 50% easily. Big upside in tops: only 22% of business.” ([25:50])
• Beyoncé Effect:
  • “Her [Beyoncé’s] song named after us… exceeded expectations… propelled the women’s business and overall brand equity.” ([27:03])
• International Growth:
  • Asia and Europe, especially strong; Japan DTC now 75% of sales, up 50% in recent years.
• Direct-to-Consumer vs. Wholesale:
  • Both models essential and complementary, not an "either/or.” Digital traction rising, aiming for $10B+ annual revenue.
• Price Strategy Amid Tariffs:
  • Diverse product tiers (core, elevated, value) allow flexibility; being "surgical" with price adjustments, maintaining value.
  • “We have always... stood for value: amazing quality, durability and the right price point.” ([31:08])

Rubrik CEO Bipul Sinha — Cybersecurity Realities in an AI Era

Timestamps: 34:35–40:42

• Big Picture:

  • “Cyber attacks are inevitable. Prevention and detection are not enough. Cyber resilience is required.” ([35:31])

• Attacker Tactics:

  • Credential theft (logging in, not hacking in) now the #1 threat vector.
  • AI enables attackers to know more about your business than you do.
  • Quote:

    “They are not hacking in anymore, they're logging in.” — Bipul Sinha ([36:02])

• Rubrik’s Solution:

  • Focuses on post-attack recovery: “resilience.”
  • “Our job is to give businesses the confidence that do not pay ransom. Keep your business up and running.” ([38:15])
  • New “rewind button” to undo malicious or accidental AI-based changes.

• Financials:

  • Rapid growth (+50% top line), newly free cash flow positive.
  • Emphasizes profitability and engineering-driven leadership.

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Cramer's Closing Commentary: The Dangers of Speculation

Timestamps: 43:57–47:16

• Warns against the current “tsunami of speculation” reminiscent of the dot-com era.
• Fundamentals matter—investors should “ring the register” on speculative winners.
• “This is a very challenging moment for disciplined investors who are trying to invest long term.”
• “I was hoping speculation could peak… We ran into the biggest tsunami yet… led by chimerical nuclear power stocks, quantum computing stocks, and the rare… earth minerals.”
• “At the end of the day, it’s hard to believe that greed’s been repealed, and greed is the root of almost all speculation.” ([46:08])

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Notable Quotes & Timestamps

• Cramer on Today’s Rally:

  "It was just another day in what I call the year of magical investing." ([06:00])

• Broadcom CEO Hock Tan:

  "The market for compute capacity is large and growing much faster than any one of us can handle." ([20:14])

• Levi's CEO Michelle Gass:

  “As we sit here today, the Levi’s brand has never been stronger. And it’s something I don’t say lightly…” ([27:13])

• Rubrik CEO Bipul Sinha:

  “You can’t prevent the unpreventable… That's why resilience is so fundamental to every business.” ([35:31])

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Key Timestamps for Major Segments

• [01:39] – Main market commentary begins
• [11:50] – Broadcom / Hock Tan interview
• [24:48] – Levi Strauss / Michelle Gass interview
• [34:35] – Rubrik / Bipul Sinha interview
• [41:01] – Lightning Round (stock Q&A)
• [43:57] – Cramer's End-of-Show Market Commentary

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Episode Takeaways

• Cramer’s Advice: Beware speculative rallies and don't expect them to continue indefinitely; focus on companies with strong fundamentals, profitability, and real demand.
• Tech & AI: Massive, secular investments ongoing, with high selectivity at corporate level (Broadcom, OpenAI).
• Consumer Shift: Even legacy brands (Levi’s) are successfully diversifying and adapting to changing markets, but must manage pricing/tariffs wisely.
• Security Mandate: In a world where prevention is no longer enough, companies must invest in cyber resilience (Rubrik).
• Investors: Remember the lessons of past bubbles and maintain discipline—even when speculative FOMO is strongest.

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For listeners: This episode packs both timely market context and timeless investment wisdom, balanced by fascinating CEO insights into the bleeding edge of tech, retail, and cybersecurity.

Transcript

[Jim Cramer]

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[Jim Cramer]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to CNBC's 1 Market in San Francisco. Other people make friends. I'm just trying to make a little money. My job is not just entertainment to educate teacher. So call me 1-873CBC. Tweet me Jim Cramer. Do over. Yeah, today we got a do over. Do you know how many times in my I've seen anything like this in my 42 years on wall street where we get an event that kills the market and then a few days later it's totally undone? It almost never happens. It occurred after the misery of Liberation Day. And now we just got our second do over in one year. That's right. On Friday, the president ICE threatened to stop 100% tariff on Chinese goods. No need to even talk to them. But then yesterday said, no worries, the relationship is fine. Talks are back on. So the market that plummeted Friday came roaring back today. Dow gaining 588 points. S&P climbing 1.56. Nasdaq jumping 2.21%. There's just one problem. As tremendous as today's rally was, the market didn't come all the way back, not nearly. And the stocks that did come roaring back were the most speculative ones, the names that I'm most worried about. More on that later. For now, let me break down what happened on Friday. The president, disturbed by China's move to tighten the supply of rare earth minerals, decided that enough was enough. Dealing with the Chinese. Trying to talk with the Chinese simply doesn't work better just to raise the tariffs on China to 100%. It was a calculated bet that China couldn't afford to lose our markets, even though the core issue here is that we can't afford to lose their rare minerals. China believes they got the cards. This weekend. We got some numbers that support their view. China's total exports to destinations other than the United states grew nearly 15%, while their exports us plunged 27%. Even with that gigantic fall off, China's total Exports in September rose 8%, the highest of the year. Which just maybe they're learning to live without us. Normally, I'm not a big believer in statistics from the Chinese Communist Party, but there's no point in lying about these trade numbers because we'll get numbers from the trading partners, too. Maybe it's no coincidence that this weekend President Trump softened his rhetoric to the point where things sound a lot better. As he posted on True Social quote, don't worry about China. It'll all be fine. End quote. I don't know what the fine really means, frankly, but I assume it doesn't include 100% tariff. Hence today's snapback. But leadership tech again. We got this gigantic deal between semiconductor Kingpin Broadcom and OpenAI. To put in plain English, opening is going to design chips made by Broadcom for the equivalent of 18 Hoover dams worth of electricity. That's how they measure these things these days. Okay? Stupendous. The third huge deal that OpenAI announced. First with Nvidia, then with AMD, now Broadcom. Broadcom is a $1.7 trillion semiconductor networking company with a software cooker. Cook kicker. No one ever talks about it. It rarely gets the attention it deserves. We happen to have the Creat. Com President and CEO Hock Tan on tonight to explain the remarkable deal who just negotiated with OpenAI. I know many of you think the whole AI story is pie in the sky, pure bubble. I got bad news for you. OpenAI needs all this computing power because there's tremendous demand for chat CBT in all its different phases. They want to defeat all the other hyperscalers using all the compute they can get. And they may need to make chat CBT much stronger and better away from the data center complex. The rest of Today's big winners were some of the most speculative stocks out there. The leader, Bloom Energy. That's an extraordinary company that can convert fuels like hydrogen or natural gas into energy without combustion. There've been a great deal of skepticism about this one, and Bloom has been working on it for the better part of a quarter of a century. It seems to have come into its own given that Brookfield, a very talented investor in energy and infrastructure, just announced a $5 billion partnership with Bloom to provide energy to. You guessed it, the data center. I mean, wow. This fuel cell verification took the heads of the myriad short sales. 18% of this float was short. Ouch. And cut their heads off. Encouraged a host of chasing investors to go back to the speculative favors. That's how nuclear power plant like Oclo, I mean, what is this thing? Shot up 16% while monolithic power Systems. I haven't heard of them in a long time. Gained 8%. New scale power jumps almost 15%. As usual, these spurred rallies and speculative fellow travelers like the quantum computer specialists like Rigetti. D Wave Quantum, we've had them on. Which rallied 25 and 23% respectively. The last two were boosted by JP Morgan announcement of a $1.5 trillion security and resiliency Initia initiative that identified quantum computing as part of a frontier and strategic technologies imperative. We know this rare earth mineral situation isn't going away. So our government's redoubling its efforts to exploit ones that can be found here in America. Hence why MP materials duped another 21%. Others like USA Rare Earth Critical Metals and Ramaco Resources, which I profiled just 10 days ago, soared 18%. 55%. 11%. It didn't hurt that the same JP Morgan initiative that backs quantum computing singled out to critical minerals too. These stocks are experiencing gains that you couldn't make in a year in many, many of the staid S&P 500 stocks left way behind. It was just another day in what I call the year of magical investing. Thank you to the late Joan Didion, my favorite writer for the inspiration. A day where the specs outshone the regular stocks that let us down when the President first clubbed the market with that 100% tariff. Came on Friday. The bottom line? I don't love a day like today because the speculative stocks make for bad leadership. It's much more encouraging when the tried and true do the leading. Even if the tried and true means the Magnificent Seven and their fellow travelers. Let's take calls. Let's start with Dustin in Oklahoma. Dustin, Booyah.

[Caller]

Jimbo, good to talk to you again, my friend. Hey, I am in chapter 10 of your book right now. I'm loving the book right now on figuring out what a stock is worth. I'm really enjoying that chapter. I appreciate it. I called today to ask you about one of my speculative stocks. I call it a speculative stock because it doesn't have it's a really high PE ratio right now which I'm learning more about your book, your book right now and wanting to know more about Dutch Bros. Do you think that's still a good investment moving forward?

[Jim Cramer]

I think Dutch Bros. The decline is actually creating that opportunity now. It does have very high price earnings multiple. At the same time, I do feel that this is a growth company. It's going regional, national and therefore it can be bought right here. You buy some and then you wait till the 40s if it goes down there. That's the way I'd play it. Jim in Texas. Jim.

[Caller]

Hey Jim, how you doing?

[Jim Cramer]

I am doing well. How about you buddy?

[Caller]

I'm good. I'm enjoying your new book, man.

[Jim Cramer]

Thank you. Thank you very much. I appreciate that. How can I help you?

[Caller]

Hey, listen, I got about 1,000 shares of a stock that's rock and rolled over the last five years and I just want to take some of the profits, not all of them. The stock I'm referring that I had is Southern.

[Jim Cramer]

So you got to take some Southern off the table. Why? Because Southern is a utility stock that is just as shut up as much as Commonwealth and Southern in the in the 30s. My tip of the hat by the way to my friend Andrew Sorkin whose book 1929 is coming out. And that's when you would find out how big Commonwealth and Southern was at one point. All right. Even though we rallied today, I much prefer a day where speculative stocks aren't the leaders. But the tried and true are on my money tonight I'm taking advantage of my time out in San Francisco by sitting down with some of the top minds in the business. First, I'm hearing directly from the CEO of chip legend Broadcom on the heels of that company's collaboration with that with OpenAI. Then how is the apparel sector really doing? I'm going to see CEO of Levi's to get a read on the consumer and AI and cybersecurity are front and center here in Silicon Valley. So I'm going to take a look with CEO the CEO of Rubrik. What a company. Stay with Raymond.

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[Jim Cramer]

Look at the stock of Broadcom Go this morning. This big time maker of chips, network equipment and infrastructure software. That's a major deal with OpenAI and the stock shot nearly 10% in response. This is just the latest in a string of big data center deals that make me real glad we own Broadcom for the Chapel Trust. Luckily we're here in San Francisco so I got a chance to speak with the one and only Hak Tan, the President CEO of Broadcom earlier today. Take a look. It's an honor to have you on the show in a very big day for your company.

[Hock Tan]

Jim, thank you for saying that. It's a privilege to be here.

[Jim Cramer]

Oh, thank you. Now one of the things that people I'm going to dispel something immediately. There are a lot of people, they make these criticisms about what's really going on here. I know you, as you say, I am not a cheerleader. As you said in the Goldman Sachs Communicopia conference recently. You're not a cheerleader, you're a hard nosed businessman. You're not doing this because you hope something will happen. You're doing this out of necessity. It's needed.

[Hock Tan]

Absolutely. There's a real hard business case for doing what we are doing which is investing and enabling those select few customers that we chose to work with in enabling them to run their LLMs. And the biggest thing they're short of is compute, compute capacity.

[Jim Cramer]

Now one thing that did concern me is that to put in perspective how much power you need, you're Talking about nearly 18 Hoover dams worth of power. Who's doing the back end for you? Who making sure that the power is available. I know you wouldn't just dream it up.

[Hock Tan]

No, actually there is a lot of power out there. Even in America there still is. It's just that you need time to get that known. There's available power, we hear a lot about it. But what's needed at the end of the day is usable power and that comes. There's a lot of available power. We've seen that, we've seen the announcements that Oracle made right on finding power and making deals with open air more quietly when I know for a fact people like Google, people like Meta has and Microsoft has access to available power. The key now is to make these sites usable. And a lot of it comes not just one big. We hear a lot of news about 1 gigawatt, 2 gigawatt sure is you great to have that but you don't need that for generative AI especially in the case of inference. You want it distributed so you can find lots of location on the power grid for 50 megawatts, 100 megahertz, 200 megawatts and they're very available now, less and less so no doubt but with time this becomes available and becomes usable power.

[Jim Cramer]

Right. I know as always you are thinking ahead about what will happen. I don't think people realize you people say oh they play this guessing game, oh is it going to be this company? Is it going to be that company is. Maybe it's anthropic. Maybe people should be looking at it differently. How many companies can do customized silicon on scale, how many would you work with? And always you don't do anything where you sacrifice the margin for the shareholder.

[Hock Tan]

Absolutely, Jim. And we've been thinking about it for a while now and we've been learning, especially the learning experience for the last seven, eight years with Google who is the first, the first player we have engaged with on creating custom accelerators. And it was back eight years now and we still engage very deeply and both of us learn as we progress during that journey. And what we have chosen to do is we look at the market, the players in it and we chose to really address and select a group of players who are creating, really creating super intelligence. I call it all generative. Generative AI. Another way of putting it is these are the guys the source of intelligence come from creating a better and better generation of models, foundation models called LLM. You don't do, you're not in this game right now.

[Jim Cramer]

No one else is in this game at this scale you are. I am concerned what you've always been a purchase order outfit. In other words, no work until you get a purchase order because you are a business person, not a dreamer with this deal. We don't really know the economics with Open Air but I know you wouldn't go into a deal unless you're satisfied that they will work. OpenAI is a private company. Can you give us some assurance of what you see that makes it so that they're definitely worth working with?

[Hock Tan]

Well, for one, Jim, I mean they are one, they are one of those few players in the forefront of creating foundation models and best. I mean they are private but I think there's a sense of their choice of in private. But they are, they are valued the last valuation even as a private over $500 billion and their revenue is growing at very strong rate. And as I said, the first step you want to look at this whole game is how real is Generative. I think that's where it begins. Then you look at the key players in it who are going to be there over the next three, five years and these are the people we select, elect and they select us too to be fair. And we are privileged to be that way where we invest in technology with those guys and you say we're very high nosed business and yes we are. We look at it very hard, we calculated but that doesn't stop us from looking out three to five years and, and looking at this phenomenon, this wave called generative AI and what it is, is trying to create intelligence through foundation models which by the way in a lot of cases is a bunch of equation algorithms on a whiteboard which until more recently a few years ago, back when the Chad GPD moment happened where you're saying you can translate what is in theory on whiteboards into actual intelligence through models by run creating compute capacity that can actually drive, train and create basically intelligence information through this whole process. So we believe then we picked about seven players today that we are working very closely with and four of them are now real customers. And we define customers in a hot nose manner. You indicate Jim, as those guys who have given us production purchase orders at scale.

[Jim Cramer]

Now I have to believe that the others have the ability to give you a purchase order. It's just that I can't ask you to ask customers who haven't been finished yet. That's not, that's unfair. But your confidence in this narrow group of customers is incredibly high.

[Hock Tan]

Yes, we are, we feel very good about it because each of these guys need a lot of compute capacity for them to basically play in this game and eventually win this game of creating the best foundation model in the world.

[Jim Cramer]

Right. I know you say and from outside on hardware compute capacity to some extent rubber hits the road on this. It's really incumbent on us to keep optimizing pushing the envelope on leading edge technology. So you have to stay ahead of the other guys. Well.

[Hock Tan]

To be honest with you, the main competitor we have is Merchant Silicon because they were there first outside of Google. They were deaf earlier.

[Jim Cramer]

I don't want to get a cage match between you and Jensen. That's, that's not paying off.

[Hock Tan]

He's a good friend.

[Jim Cramer]

I know you are not a slick a better. You keep telling saying you need many different partners to get this done including companies you've competed with.

[Hock Tan]

The market for compute capacity is large and growing much faster than any one of us can handle. Even though the path towards for these few LM players they want to create a platform. You know Charlie mentioned the trifecta.

[Jim Cramer]

Yes.

[Hock Tan]

Of not just an accelerator for compute accelerator networking them together into cluster and the software stack that engages that allows models to run on the chips. Essentially you're trying to create a platform because that platform if you are large enough player line like foundation model developer is what's enabled you to generate the best performance per one and best performance per dollar both in tourism. In tourism. So that's inevitable. But having said that the journey towards that while we're going through this wave the requirements for capacity and compute as they as you deploy as you push the envelope on foundation model is more than doubling every year. So that's enough to, for all of us to participate.

[Jim Cramer]

Well, that means that you're just trying to meet the demand that's already out there.

[Hock Tan]

Yes.

[Jim Cramer]

Incredible. Now one of the things that your company became a trillion dollar company based on VMware by software, by not AI. What are we doing with all these other parts that we kind of get for free? Given what you're doing with AI did.

[Hock Tan]

All those parts are doing fine.

[Jim Cramer]

Right.

[Hock Tan]

VMware we, we acquired two years ago is doing extremely good. It's throwing off huge amount of cash, free cash flow while it's growing at the same time. It's a great asset and I'm so pleased I bought it.

[Jim Cramer]

All right. Now I'm never going to try to do the 25, 26 game. I'm not doing a model. Okay, but you do reference 2030 and how exciting it can be. So this is, I mean I've done hock 10 for many, many years. This is the most excited I've ever seen you about something.

[Hock Tan]

Well, it is. We are in a wave, in a phenomenon as I call it, I've never seen before that it's, it's not cyclical. It is as you put it, secular.

[Jim Cramer]

About railroads, you're talking about Internet, you're talking about this, you're talking about the fourth industrial revolution.

[Hock Tan]

I'm talking about critical utility for society, we're talking about generative. Now I don't try to sound a bit hype but you think about it logically. The GDP of globally it's about 110 billion, give or take. Trillion, sorry, hundred ten trillion. Fully 30% of it is valued from industries related to knowledge based technology, intensity. And you put in generative AI, you create intelligence in a lot of other aspects of society that 30% say will grow to 40% of all GDP. That's 10 trillion a year. What you spend a year that's growing.

[Jim Cramer]

Human intelligence is the biggest part of gdp. This augments human intelligence in a remarkable way. And for people who think that it's pie in the sky, goodbye to them.

[Hock Tan]

I don't think it is because yeah, if you're talking growing 10 trillion as the pot at the end, as a golden pot at the end of the rainbow, what's spending a trillion a year, which we are not, but you see.

[Jim Cramer]

The investment returns very well. I want to thank Hock Tan Brook on Presidencia on this very big day for your company. Thank you sir.

[Hock Tan]

Thanks to be here Jim.

[Mad Money Announcer]

Coming up, Cramer is keeping the west coast party going and catching up with the CEO of Levi Strauss, seeing if the stock is in fashion next.

[Jim Cramer]

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I have no fear of failure.

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Julia Boorstin hosts CNBC Changemakers and Power Players. New episodes every Tuesday, Tuesday, wherever you get your podcasts.

[Jim Cramer]

How worried should we be about the apparel business? Last Thursday, Levi Strauss put a solid top and bottom line beat, but his guidance is underwhelming. Stock plunged more than 12% on Friday. Wall Street's not inclined to stick its collective neck out for a power right now, but I got to wonder if that decline was excessive, if not outright wrong. Earlier today we got a chance to speak with Michelle Goss, the president and CEO of Levi Strauss, to find out what the story is. So take a look, Michelle, tell us where we are because it's pretty darn gorgeous.

[Michelle Gass]

Jim. So we are in our brand new store that we just opened here at our headquarters at Levi's Plaza. We had a store here back in 2019, pre pandemic and everybody was really excited that we, we could be back here. And it's one of our newer store concepts. We can talk about that, but we're really proud of it.

[Jim Cramer]

I am looking at things I never dreamed would be Levi's. These are the innovations that I always knew could happen happening under you. Tell us about the things that you never, ever expected to see here.

[Michelle Gass]

Well, one of the, one of the exciting moves we're making, Jim, is really moving from sort of being known as a denim bottoms or a jeans company to a head to toe apparel lifestyle company or we like to call denim lifestyle because it always has to start with the denim. You know, what this means is really going after the opportunity with women's. You know, women's is only 37% of our business. That should be 50% easily. And then this idea of like I said, being, being beyond the bottom. So everything thing that goes with denim has to always go through the Levi's esthetic. But tops, you know, I feel like we're just getting going on tops. And we started a big reset about 18 months ago. We had another big quarter and tops up 9% yet it's only 22% of our business. So much upside. And if you can see around the store, there's a lot more tops in the store than you would have seen a year ago. And especially it's not just T shirts or sweatshirts or truckers. You've got wovens, yes. You've got the classic western shirts, you've got blouses, you've got sweaters, outerwear, you name it. And the consumer is giving us the permission to go there because that's where we start all the time, is talking to our consumer.

[Jim Cramer]

And how much does Beyonce matter for reimagining?

[Michelle Gass]

Well, Beyonce, that was, that was just incredible. I mean, she is, as you know, one of the most celebrated artists of our generation. And for her to name her song after us. And we leaned into that opportunity and it's been tremendous. Exceeded our expectations, not only helped us to propel the women's business, but frankly drove brand equity overall. And as we sit here today, the Levi's brand has never been stronger. And it's something I don't say lightly because it's been an incredibly strong brand for many, many, many years.

[Jim Cramer]

Let's talk about where it's particularly strong. When I was going over the numbers, I was, was shocked. UK high mid teens, Germany high single digit. The international market is just huge for you.

[Michelle Gass]

It is, it is. Well, I mean, you know, coming off the quarter, we had another great quarter. I mean, this was our fourth consecutive quarter of high single digit growth. And what we're excited about is it was broad based, it was US international, it was men's and women's, it was DTC and even wholesale. So get back to the question around international. There's a ton of opportunity around the world. I mean, I've spent a lot of time in markets over the last few years, just recently in Asia. So let's talk Asia, double digit growth. I was in Japan, I was, I was in Japan, I was in Korea, I was in India. All of those markets have a lot of upside. You know, one kind of fun fact with Japan years ago, that was predominantly a whole wholesale market for us. It's now 75% DTC and the business has grown 50% 50 over the last few years. So it is a great success story, a playbook we can take elsewhere. Look at India, you know, over a billion consumers in that market. You know, the growing middle class, the youthfulness. I am beyond excited around what our opportunity is in India. Just as an upper example, okay, can.

[Jim Cramer]

You help us understand the model? For instance, if you speak with Elliot Hill at Nike, I think involved with a multi year turnaround. He said, look, we emphasize direct to consumer too much. We have to go back to our old channel. Why is direct to consumer good for Levi, even if it really does not really work for Nike?

[Michelle Gass]

You know, we see it as an and not an or of DTC and wholesale. We actually believe the better we do in dtc, the more it's going to help us lift wholesale. And in fact we're seeing that right now. Again, another quarter where both channels are positive because we can get to the market quicker in dtc. We can learn things and then we can take those earnings over to wholesale. But you know, big, big picture, why does it matter? I mean it matters because we can have that direct engagement with our consumer being in the stores. A great example, right. I mean we have this head to toe expression. We have a faster go to market and we can merchandise it in a way that our consumer is kind of leading the way on. And so it's really exciting and the consumer is saying this is the, the top way we want to shop with Levi's and it should be the best expression. The other piece I would add, of course is in our stores. We have our people, we have our stylists and they know denim like nobody's business. And so when you're a consumer coming in, that stylus is going to help you navigate, you know, what's your next favorite pair of Levi's and what might go on top with it. E commerce is also another huge opportunity for us. You know, we've been gaining a lot of traction on that business and they're complementary but like I said, important for us. This isn't an either or, it's really both. And right now we're approaching about 50% DTC. I think that can get a little higher. But you know, we're not limiting ourselves. We got, we got a long road to 10 billion and 1. I'm confident, we're all confident we're going to get there would be big.

[Jim Cramer]

Yeah. One thing that I think people have to understand is that you have been committed to keeping prices low for the consumer. Even that despite tariffs. So what are you doing to make it so that the price point is real reasonable around the world?

[Michelle Gass]

Yes, that's a great question. Especially in the environment. Environment where we have tariffs. Well, first, you know, let's think about our portfolio of Levi's. So we have our core red tab Levi's. We have our new introduced, newly introduced elevated blue tab, amazing quality, premium beautiful aesthetic rooted in Japanese denim. As we're talking Japan. They have a very high bar for denim. And then we have a value product signature that you can find in the likes of, say, Wal Mart. And so we really can cut across all the consumer needs as it relates to our red tab product. I mean, we have always, for decades and decades stood for value and value in the spirit of amazing quality, durability and the right price point. You know, as tariffs enter the scene, I mean, we're being super thoughtful, right? We're taking a holistic approach. One of the things we've been approaching all year has been more full price selling, less promotion, promote where you need to be thoughtful about that. But that is helping our average, average unit, our aura is our average unit prices. And then pricing, when and how we take pricing, because there is a bit of tariff headwinds, will be very surgical on where and how we take that pricing. And the other piece, Jim, that we're doing is really looking at opportunities with innovative product. And consumers are saying we're going to pay a little bit more for that innovation. So all of those things are things we're examining to say, okay, with this new headwind of tariffs, how are we going to navigate? And that's on top of other levers that we are working through, working with our suppliers. We have long, deep history with our vendors that go back decades and, you know, they're doing their part too. And of course, our own cost efficiencies inside business. So, you know, it's complex, but we want to make sure we can do everything to make sure that at the end of the day we're doing right.

[Jim Cramer]

One of the things that I thought was terrific. I know we're almost out of time, but on the conference call, you made it clear that September was good, which makes me feel that perhaps you have a good feel for holiday season in positioning.

[Michelle Gass]

Yes, yes. I mean, where we're, we're optimistic. You know, our consumer has been resilient through whatever level of uncertainty is out there in the world right now. Our strategies are working. This DTC momentum that's going to carry on both in terms of the assortment resonating and how our teams are executing mean we have been rewiring this business to operate like a retailer. And you're seeing it, you're seeing it in the number both on the top line and margin expansion product, you know, denim lifestyle. We're still in the early chapters, but this holiday will be the broadest expression, most relevant expression we've had. And, you know, we'll be selling things that people can wear to cocktail events and go back to work and everything in between.

[Jim Cramer]

You'll get me a trucker outfit that I can, I will purchase.

[Michelle Gass]

Absolutely. With maybe a little bling for the holiday.

[Jim Cramer]

Why? Not to be new for me, but I'll go for it. Michelle Gossip as the Levi's president and CEO with a very good quarter and a very undervalued stock. Thank you so much, Michelle.

[Michelle Gass]

Thanks Jen.

[Mad Money Announcer]

Coming up from the heart of Silicon Valley, Kramer's catching up with the CEO of Rubrik and talking all things AI and cybersecurity Next.

[Jim Cramer]

While I'm out here in San Francisco, I want to address the weakness in these enterprise software space that I like so much. Even the cybersecurity stocks seem to have gone out of style lately. Take Rubrik. That's a data security play that's come down dramatically from its highs over the past month. Maybe I'm missing something here. I think they're doing well. Let's take a close look with Bibble Soonha. He's the co founder, chairman and CEO of Rubrik. We gotta learn more. So Mr. Soonha, welcome back to Man Money.

[Bibble Soonha]

Jim, so good to see you here in San Francisco.

[Jim Cramer]

Oh well thank you for having me. I know it's such a better city than it was last. It's nicer. It's nicer than you make comparisons to roadies. But let me ask you something. I've had a lot of cybersecurity people on since I've seen you last and you have something in your most recent PAC that I find very disturbing. And it says cyber attacks are inevitable. Prevention and detection are not enough. Cyber resilience is required. So are we accepting the fact that people are going to break in so we have to do something after they.

[Bibble Soonha]

Break in 100% because you can't prevent the unpreventable. Police can't stop all crimes. That's why you have judges and courts. And that's why resilience is so fundamental to every business. You need to understand what happens when you have cyber attack. What risks are you taking and then how are you going to remediate and recover because keeping your business up and running is paramount.

[Jim Cramer]

Well, I imagine the best way to get in is not necessarily to try to safe crack it, but just to imitate it and be somebody.

[Bibble Soonha]

That's precisely what is happening. Because attackers have figured out it's easy to steal credentials and credential based attacks are the number one attack vector. They are not logging in, hacking in anymore, they're logging in.

[Jim Cramer]

So if that's the case. And I looked at the last quarter and I thought, once again, I mean, we're talking about what I regard as spectacular number numbers. Okay. We're talking about net new subscription scripture revenue reached 71 million. You just, you went to cash flow positive. The profitability is something that I like. Profitability is something you like. Profitability seems to have stunned people. I guess they just wanted to keep having you lose money.

[Bibble Soonha]

We had a tremendous quarter. We grew top line more than 50% and generated 19% free cash flow margins. This combination of the top line and free cash flow margin at our scale is rare. So I will leave the market to experts. But we are delivering consistently at a very high growth rates. And you know what? Cyber resilience is the number one cyber security category and we are leading that category.

[Jim Cramer]

Well, that's one of the things that be. George Kurtz Krause is a good friend of the show.

[Bibble Soonha]

Great partner.

[Jim Cramer]

Yes, great partner. Because I don't think you got to have the full suite because once they're in, apparently you don't even yourself know what documents you have. And they do find out and they get what they want.

[Bibble Soonha]

They are getting everywhere. And now with AI assisted coding and AI assisted social engineering, they know more about your business than some of your own people do. So our defenses has to be AI. You have to go do more than the attackers so that you can keep your defenses up, keep your business up and running. And it has to be combination of prevention and detection leaders such as CrowdStrike plus cyber resilience with Rubrik. This combination really delivers end to end cybersecurity.

[Jim Cramer]

Well, what happens when they, when they're ransomed? What kind of ransomware is out there? How do you help the CEOs who are. Look, their job is not to be to fight these guys. Their job is to sell things and do things. What do you tell them about ransom?

[Bibble Soonha]

Cyber attacks have changed. It used to be Inokua's denial of service attack. Now they are trying to destroy your business. They're trying to encrypt your data.

[Jim Cramer]

Are they nihilist? I mean, they just wanted to. Aren't they asking for money or they're just trying to crush the capitalist system.

[Bibble Soonha]

They are trying to crush your business so that you are ready to give them ransomware. And that's what they are after. And our job is to give businesses the confidence that do not pay ransom. Keep your business up and running. Because at the end of the day, resilience is the only answer to cyber attacks such as ransomware.

[Jim Cramer]

It's very bad. Now one of the things that people look at the stock and drop and I think that the drop may have been you did have a comp change. But one of the things that I really like that you have said is I'm a capitalist. I love profitability and cash flow. That is a little unique for people who own some companies out here that don't seem to mind losing money.

[Bibble Soonha]

I am three things, Jim. I am an engineer, I am an investor and I'm also a founder CEO. And I bring all three things together in a unique way to build and scale businesses. And that's why I understand what it is means to spot a market like investor, how to build things and how do you scale as a founder CEO.

[Jim Cramer]

There you go. And one last thing. I'm out here to learn from Salesforce about how great Agentix are. But there's a downside to Agentix to these artificial intelligence agents. And you've been able to figure out a way to try to not let them take over your organization 100%.

[Bibble Soonha]

You know Jim, both of us have been in tech industry for very long time. Agentic Systems and these AI systems are 100 times more opportunity and 100 times more risk. I mean they can do 10x more damage in 1/10 of the time. So we really need a way to protect against this unwanted agentic action. And that's why Rubrik launched what we call a rewind button. That rewind button lets our customers undo undesirable change by agents. Whether these undesirable change could be hallucination by agents or they are compromised by a threat actor.

[Jim Cramer]

Well, I'm glad you're out there. I think people want so badly to save money that they just bring in agentix and think that there's no additional cost to it. I say thank heavens for Rubrik.

[Bibble Soonha]

Absolutely. We are here to give every customer the confidence to do a transformation without taking undue risk.

[Jim Cramer]

I like it. That is people Sinha and I've got it. The CEO of Rubrik. I've got to tell you I could not in a million years find out why this stock really went down. Because I think it's an opportunity. M Money's but back here.

[Hock Tan]

Coming up.

[Mad Money Announcer]

Kramer takes your calls and the sky's the limit. It's a fast fire lightning round.

[Jim Cramer]

Next it is time start for the white round Conventional Stockton. Bye bye. Of course better on my stamp where we have planet sale and then the lightning round is over. Are you ready, Steve? Dad, Time for the lightning round. Cameras and Bites with Richard New York Richards. Happy Monday. Better than a Freaky Friday. All right.

[Caller]

Anyway, I consider it. I consider an honor and a privilege to seek pearls of wisdom from one of the greatest in Wall street, the master Jimmy Choo.

[Jim Cramer]

Oh, you're very kind. Thank you very much. Thank you very much. What's up?

[Caller]

Everything you've done for us. Listen, I've had a rough summer with this stock and I need direction for success.

[Jim Cramer]

The company is back.

[Caller]

Set.

[Jim Cramer]

FDS. Yeah. What the hell is this? It's a 15 mold. Well, I'm not going to tell you to sell the stock down a 15. I like it. Can't tell you to buy it, but holy cow, it's way too cheap. Let's go to Ned in Ohio. Ned?

[Caller]

Hey, Professor Kramer, good afternoon. It's good to talk to you again, sir. How's your day going?

[Jim Cramer]

It's a super day. They tell me I'm not smiling up. They're wrong. I'm smiling on the inside.

[Caller]

Well, I'm sorry, I didn't hear you.

[Jim Cramer]

I'm smiling on the inside.

[Bibble Soonha]

Well, good.

[Jim Cramer]

It's a joke.

[Caller]

It's happening for you, my friend. I wanted to talk to you today again about a major global integrated mining company.

[Hock Tan]

Metals.

[Caller]

Mining company. They have operations in the United States and in the Americas. They have one of the largest gold and copper mines in the world in Indonesia. And with the demand for copper and the rise in gold, you know, copper for the data centers and elsewhere, I think that mine in Indonesia is going to come back. I think it's a. It's a company that's going to.

[Jim Cramer]

Okay.

[Caller]

Rise on the market.

[Jim Cramer]

And which one are we talking about? We're talking about Freeport.

[Caller]

Freeport McMoRan.

[Jim Cramer]

Yeah. This. Look, the stock everyone's just seems to. Indonesia is going to expropriate to mine. I don't think so. I think you're fine in the stock. And that, ladies and gentlemen, conclusion of the Lightning Round.

[Mad Money Announcer]

The Lightning Round is sponsored by Charles Schwab. Coming up, wrapping up his first day in San Francisco, Kramer's breaking down the move in speculative stocks and seeing where the growth is in this market.

[Jim Cramer]

Next, Jim Cramer, the die hard of the dollar.

[Caller]

Hey, Jimmy.

[Jim Cramer]

Love the show.

[Caller]

My five year old grandson loves to watch your show. I have to thank you for making us money when it's there to be made.

[Jim Cramer]

Our world is a better place with you in it. Today was a strong day for the averages. But if you're traditional like I am, if you judge stocks purely on their earnings power and their valuations Then today was your worst nightmare yet. We saw an explosion in the speculative stocks, many of which are lossmakers that are so hopelessly overvalued that they'll never be able to grow into their current market capitalizations. Now we did get another round of what I regard as legitimate stock price increase from pretty much anything connected data center all the accoutrements that the hyperscalers need if they want to avoid falling behind their competitors. Like I've said before, I think many of the speculative stocks are in bubble mode. The stocks are much more legitimate. Why? Because they're backed up by earnings. But what about the so called regular stocks, the bread and butter members of the S&P 500? They're not doing much at all with the possible exception of the bank stocks. They rallied strongly today. Now most of them are due to report this week. We're going to see if this normal group can go above the speculative riptide and get to the promised land of decent returns without a lot of insane risk. This weekend I told investor club members that while I totally embrace speculation, something actually recommended how to make money in any market. I can't recall a market with this much speculative fervor since yes, the dot com era. I was hoping that could peak, if only because I don't want to see a dotcom style collapse. Instead, today we ran into the biggest tsunami of speculation yet, led by the chimerical nuclear power stocks, the futurist quantum computing stocks, and the rare or maybe not too rare earth minerals because, well, maybe they're not worth as much as we think. Of course gold and the far More speculative silver increased 3 and 7% respectively. Huge moves that weren't huge enough to catch much attention daily today. I got to tell you, this is a very challenging moment for disciplined investors who are trying to invest long term. What are you supposed to do? Stand by and let the yahoos, whoever they are, make all the money? Do you want to plot along in Cisco instead of blasting off Getty Computing? You think you can make big money with a creepy Microsoft or an Amazon that's running in place while owners of speculative stocks like Monet Power and Bloom Energy make more money a day than you may make in a year. I wish all stocks just coexist at once without the speculative stocks knocking everything else down? Perhaps they can. When a seasoned investor like Bluefield teams up with a Bloom Energy to power data centers, transforming a speculative overnight into a high grade enterprise, maybe there's hope. But in traditional cycle, the insiders who own these stocks start furiously dumping them at high levels. Hasn't happened yet until buyers are saturated and then ultimately their share prices drown from too much supply, taking the S and P down with them. Now, I want to believe that this time will be different. There's always a first time. It could be it, but I wouldn't put my money on it. Which is why you need to bring the register on some of these speculative stocks into strength. At the end of the day, it's hard to believe that greed's been repealed and greed is the root of almost all speculation, alex said. As always, bull market Summer. I promise I'd find just for you right here on My Money. I'm Jim Cramer. See you tomorrow from Dreamforce.

[Podcast Narrator]

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 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 or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer what made you.

[Jim Cramer]

Confident that you could do something that.

[Podcast Narrator]

Hadn'T been done before?

[Michelle Gass]

I have no fear of failure.

[Podcast Narrator]

Trailblazing women Changing the Game One of.

[Michelle Gass]

My favorite pieces of advice Think about what your boss's boss needs.

[Commercial Announcer]

Leadership can look in many, many different forms. It really does come down to just trusting yourself.

[Michelle Gass]

Life is short and you just gotta think big to accomplish big things.

[Podcast Narrator]

Julia Boorstin hosts CNBC Changemakers and Power Players New episodes every Tuesday. Wherever you get your podcasts.