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Jim Cramer
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cramerica. Other People wanted friends I'm just trying to make you a little bit of money. My job is not just to entertain, but to educate, to teach. So call me at 1-900-743, CNBC or tweet. MeyimKramer look out. The year of magical investing may be drawing to a close. All of this year, pretty much anybody who bought stocks connected to AI in the data center. Well, you know you made money, you really need to think about it. But now looking at the market with Dow surging 559 points, S&P advancing 0.21% and the Nasdaq dipping 0.25%. It seems like the easy money may have been made. Maybe the magic starting to fade away. It's not. 1999 goes to 2000 where there was only one unlikely winner out of the 350.coms Amazon. Google wasn't even public yet. It's just that things have gotten out of hand for the moment and we have to accept that you could be missing out on some terrific ideas away from the AI data center space. When's that happened? How telling is it? The Dow Jones Industrial average could skyrocket like this and you didn't make much money at all if you were in the AI ghetto or the formerly red hot speculative stock stocks. It's a new pattern. It's a new pattern worth heating. What happened? What's making me rethink the greatest story of the past three years? Well, there are three separate events, three separate incidents that have me quite concerned that the data center winners will grow more narrow. But that unlike 2000 when there was only one winner, we could have a half dozen winners, maybe a few more. Which still means there'll be a ton of underperformers among the previous AI ones that we all wanted to be in so badly. Think like shot, get shot first. We had some tremendous Companies with visionary CEOs and tremendous balance sheets that see this incredible potential of artificial intelligence. Amazon saw it as a Google Microsoft. We know that Elon Musk was early in he took a part in a whole host of angles including robots, self driving cars matter saw how social media franchise could be TurboTS Nvidia powered the entire movement. But there was one other company that led the way, a private one, Open air with the one pioneer chatbot ChatGPT that's got more than 800 million weekly average users. Now that is a tremendous amount of interest and a natural customer base that's apparently given the company a $20 billion run rate. $20 billion run rate, that's a lot. Sam Altman, co founder and CEO hasn't been content to just go at warp speed to create a supernova AI play. He wants to go even faster than that to the point where OpenAI might need to borrow hundreds of billions of dollars to fulfill its commitments. Okay, that's landmine number one until now. This data center build out was done with cash, not debt. So as was funded by cash. There's not that much to worry about even if the whole industry falls apart. But once you see tons of debt getting involved, debt financing, that's a different story. Everything's more risky, everyone's more vulnerable. That's just etched in stone that, that's like that. On September 9, we found out how big OpenAI's ambitions might be when Oracle announced that the remaining performance performance obligations, obligations of $455 billion. Amazon and Google were mentioned as clients. But the biggest one, not singled out by name, was rumored to be open air with $300 billion commitment. And given that Oracle put that $300 billion in its RPO, you know, it's ironclad. The problem is open. I just doesn't have that kind of money. Which means it has to find a way to give it to someone, give it to Oracle, because Circle is ironclad. They'll either borrow massive amounts of money or try to come public and sell a ton of stock. That's certainly a possibility and it could allow the year of magical investing to continue. But I bet they do the former, not the latter. Which brings me to landmine number two. There are so many companies involved in working with OpenAI that it may turn out to be a huge fiasco if something goes wrong with all that money they need to borrow. Like the dot com revolution or the rail revolution. 1800s railroads changed the world. Absolutely. But I got to tell you something, they borrowed certain amount of money and most of them went for old. I'm not saying that will happen to AI, but I wish these guys would just slow down. What is the quarter we just got from Core Weave? That's a key data center operator that had to cut its full year outlook today because it is contracted with an outfit called Core Scientific that failed to deliver its part of several data centers on time. It's a huge piece of business that didn't get done. The misquoter shocked people and it was a wake up call that you can't build these data centers overnight. There could be even more cost than we thought. Finally, there's landmine number three. And it's the biggest conversation that Sarah Fryer, the CFO of OpenAI had at the Wall Street Journal Tech Live conference six days ago where she floated the idea of a government backstop for all these companies building data center capacity. She was talking about federal loan guarantees. Kind of made it sound like they're, they could be in the works. Well, that freaked everybody out because first, Sarah Friar is a hitter with heavy Wall street and Silicon Valley credentials. Second, the forum could have been more high profile and obviously public. Third, she was given a chance to take the statement back almost immediately, but she Doubled down. Suddenly, instead of OpenAI being the invincible godfather of AI, it joined the ranks of Humpty Dumpty. She did try to correct her musings not long after saying that she muddled things. But Sarah Fryer is the real deal. She's a serious individual doing serious things. She didn't say anything off the cuff, and she's a total pro who perhaps should have known better. Now, as long as Humpty Dumpty sits on the wall, we don't got to worry about the possible need for a government backstop. We don't have to fret about President Trump and his minions trying to put Open Eye back together again. But I don't like the things that are happening in this industry now, and I certainly don't want Open Air on the wall. I say own in video, don't trade it. But we just learned that SoftBank, an outfit so rich I thought it could be meaningful to the buildup, had to sell its entire Nvidia stake at Big Point. But it was big profit to perhaps use that money for more investment. However, if you really believe the buildup will continue, then there could be no better investment than in video, which makes the chips that power all the stuff. Therefore the softbank sale worries me because maybe they need to make big may they made big commitments. They build out commitments that are too expensive and now require them to ring the register on Nvidia to cover the cost. Is that good money after bad? So many stocks with so many sectors are involved in this build out and and so many speculative stocks are connected to it, whether they be part of the huge power build out or part of the data center and its inners, or part of the quantum computing to accelerate data even faster, or nuclear, what would set things right? First, if OpenAI takes advantage of the bountiful IPO market and raises hundreds of billions of dollars to unbody the waters. Second, if things just slow. So we know we see some problems, that we see profits from the miners, not just from those who made the Nvidia picks or the AMD shovels. AMD had a great analyst meeting today. And third, that we see the end to the silliness, the ever rising stocks of companies that literally have no hope of ever making money, but have share prices that indicate they're on the verge of doing so. Am I declaring an end to the era of magical investing? How about this? I'm proclaiming that for the rest of the year it's the era of investing. Not as if by magic, but as if by profits and for that to happen, there's going to be far fewer winners and a lot more losers. Bottom line, in this kind of environment, you need to start diversifying into other growth areas. Perhaps in time to keep all the king's horses and all the king's men sidelined. Maybe OpenAI can come public and Humpty Dumpty won't have a great fall. But in the meantime, it's something you need to keep an eye on. I know I am. And the I. Let's just say it's growing jaundiced. Let's go to Buddy in Rhode Island. Buddy.
Caller/Viewer
Hi, Jim.
Jim Cramer
How are you? Booyah, Buddy. What's chaegan.
Caller/Viewer
I'm just curious what your thoughts are on elf beauty right now that has taken such a big hit.
Jim Cramer
Boy, you know, I was shocked at that. I'm such a big believer in elf and it just keeps getting hit and hit and hit and I don't know. It's only $4.6 billion now. That seems very, very low. I know that it did make some mistakes in terms of cost structure, but I'm willing to say that I think. I think it's a buy. I know that's contrary to this. I think it's a buy. Hey, let's go to BK in Massachusetts. Bk, have it your way. What's up?
Caller/Viewer
Hello, Professor Kramer, this is BK from Boston. It's a pleasure speaking with you this evening. I'm doing well. It's an absolute pleasure finally to speak with you in person. I'm an investing club member and I want to express my gratitude for your wisdom and for sharing your wealth of knowledge with us individuals. I appreciate.
Jim Cramer
I wish you would come down I wish you would come down to Brooklyn tomorrow at Barnes and Noble. 6:30. Come and see and get your book signed.
Caller/Viewer
I wish. You need to come back to Boston to one of these Barnes and Noble.
Jim Cramer
I was in Boston last week. I loved it. I was imitating Reese Witherspoon like you know the scene at the Harvard Law School. No, business school. We'll go back to the law hard. What's so hard about that place? Okay, let's go. Let's go. What's up? All right.
Caller/Viewer
So, Jim, I currently hold a position in Applovin with an average cost basis of around 650. Given today's near 9% drop, would you recommend I sell, hold or add to my position?
Jim Cramer
Okay. I think App Lovement is an amazing company that is just making a ton of money and I like it very much. That makes me. I'm in a minority of the so called professionals. But I think it's a very, very good company and people don't understand it. Knows how to make money better than almost any company on earth. All right, look. I'm officially proclaiming that we're no long in the era of magical investing. We've now entered the era of investing by profits. Not fun, I know, but maybe that's, well, correct and it will mean fewer winners. So it may be time to diversify on Mad Money. Tonight I'm honoring Veterans Day. I'm going one on one with the CEO of Lockheed Martin, a powerful vet, and a powerful American defense company to learn more about how hiring veterans is one of the smartest investments a company can make. Then is the stock of Starbucks brewing up a turnaround? I'm going off the charts to find out. And you called in. You stopped me on this GSI technology small company did the homework. Ready to turn in my thesis. Not. Let's put it this way, it ain't summa. Stay with Kramer. Don't miss a second of Mad Money. Follow Im Kramer on X. Have a question? Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.
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Jim Cramer
Today we're celebrating Veterans Day the mad money way by highlighting companies that honor our vets the best way possible, and that's by hiring them. Take Lockheed Martin, the nation's largest defense contractor by revenue, 20% of the workforce are veterans or even active service members. They've won countless awards for this and it goes all the way to the top. Jim Tanklin is a graduate of the Air Force Academy. Went out there. What an amazing place place. He served during the Gulf war logging over 5,000 flying hours, mostly in a Lockheed C141B Starlifter. So why is veteran hiring so important to Lockheed? And how important is this company to our national defense? Let's take a closer look with Jim. Takeley is the chairman, president, CEO of Lockheed Martin. Jim, it's really great to have you back on the show.
Jim Tanklin (Lockheed Martin CEO)
Hey, good afternoon, Jim. Always great to be with you.
Jim Cramer
Thank you. So, Jim, you got a big opening at a comp on your, your top staff. You're trying to figure out who to pick. Do you first say, you know, we want the best and therefore the best means we got to look for vets?
Jim Tanklin (Lockheed Martin CEO)
Yeah. Veterans have great attributes, Jim, that translate directly into success in business, especially operational businesses like here at Lockheed Martin. You can see behind me, I'm at the aircraft factory here in Marietta, Georgia today. And in our company, we've got 23,000 veterans. That's over 20% of our workforce. We're always welcoming to them. We support veterans in hiring, we support them in partnerships. We've been donating about $8 million last year for nonprofits that support vets. So we always welcome them anytime we can get them.
Jim Cramer
All right, so tell me the term vets, pretty broad. What are the different that say jobs that these people were doing in the military that actually makes sense and translates to good jobs at Lockheed Martin?
Jim Tanklin (Lockheed Martin CEO)
Well, Jim, it goes all the way from frontline mechanic on aircraft to managers of people. There's some attributes, there's three of them I think are really important for almost anyone in the military, all the way up to generals. We hire generals too, once they retire and they're eligible to work with us. And those attributes are one, teamwork. Everything in the military is done as part of a team, whether it's an industry, you know, infantry squad. It could be a formation of fighter jets that you're part of, or it could be a submarine crew that you're on. Everything's done on teamwork basis and people learn to work together every day as part of a team and contribute. The second big attribute is they got responsibility and accountability. They come to us with those attributes already because you've got to be accountable as a military officer, non commissioned officer or enlisted person because everyone else is relying on you, on your judgment, on you performing your job. There's no excuses, no whining. You just got to get it done. And then the last thing is leadership. And leadership is not a rank someone puts on their, on their jacket. It's not having a certain position. It's earning that leadership role by how you treat people and treat them right. You'll get great results out of them and you can build your leadership skills. So those are the attributes we look at all the way from line mechanic all the way up to four star general.
Jim Cramer
All right, I'm going to ask you to do something that may not be fair, but I'm going to do. Because you're also in the Air Force. Everything you just listed is something, every single point was something that I felt in all the articles in the book I read about Boeing, they had none of that. Boeing was out for yourself, complaining, looking the other way. Now, I'm sure there's a lot of people, Boeing obviously didn't do that, but that was the narrative. Did they not have enough vets?
Jim Tanklin (Lockheed Martin CEO)
Well, Jim, look, Boeing's a great company. It's got a lot of great people. And I'm sure they hire plenty of veterans because they look for the same attributes we do. We're all out. Especially, you know, look at Boeing, at Defense in Space, Lockheed Martin. We all want to do what's best for our frontline men and women. So I'm sure that's happening at Boeing too.
Jim Cramer
All right, I'm glad to hear that. Now, when you look at a plane and it costs so much money and the big overruns for F35 were before you, do you ever think, you know what, we maybe we shouldn't put people in these planes. Maybe we have so many redundancies, these planes, because we don't want our pilots to whom we spent a lot of money to, to train to be at risk. Is there, do you ever go in and say, you know what guys, maybe we got to rethink. There are places like Palantir that are saying we should rethink.
Jim Tanklin (Lockheed Martin CEO)
We'Re rethinking our mission sets all the time, and we're doing it with our customers. The optimal view that I have, and I think our senior customers have, is that there's a mix, an optimal mix of changes over time of manned aircraft and drones or unmanned aircraft or air vehicles. And that mix right now is something that we've been participating in for decades. There's a vehicle we can finally talk about, a drone called the RQ170. That's a stealth drone. Really significant capabilities on a number of missions. It's been flying for years and years and hardly anybody knows about it because most of the drone work that we do here at Lockheed Martin is classified. This is one we can finally talk about. But we do everything from quadcopter drones to drones as big as an F16. We've got an F16 that we're working with the Air Force at Edwards Air Force Base that flies by AI. There's a safety pilot in the jet, but that plane can be flown autonomously. The other thing we've done at the high end, Jim, is we've taken the Blackhawk helicopter, everybody knows the Blackhawk, and we've modified it with fly by wire systems and artificial intelligence where it is pilot optional. We can fly this helicopter off a tablet. You could be sitting on your couch at home and fly this aircraft fully capable. It can take firefighting missions, it can go rescue injured people in dangerous situations and bad weather. We got an autonomous Black Hawk. So we're in the business constantly of doing the manned unmanned mix that's optimal for the mission and that goes all the way from, again, a quadcopter drone up to a F16 or a Blackhawk helicopter.
Jim Cramer
What have you learned from Ukraine? What have you learned from our ally Ukraine that we can use to make Lockheed Martin better and our country safer?
Jim Tanklin (Lockheed Martin CEO)
We've got to iterate faster from the frontline soldier, airman, sailor to our factory back here where we can redesign, recode, write new software, improve our cybersecurity at a much faster pace than the feedback loop is today. And so we're working on that too. One great example I can give you, Jim, is in the Red Sea, there were Houthi missiles being fired, both cruise missiles, drones, ballistic missiles at our ships, US Navy ships, and commercial shipping. As you know, in the Red Sea, our ships were at risk because our Aegis radar system was designed to hit high altitude incoming missiles, not necessarily low flying drones and cruise missiles. What we did with that situation was we said, let's take all of the targeting data that we can get from all these new threats feed it back overnight over and over, day after day to our team in New Jersey. Redo the targeting codes on the Aegis system which was designed in the 1960s originally so that we can now target these low flying threats. And it actually changed the game overnight. Satellite download AI driven updates changed the game in the Red Sea for the US Navy and allowed them to stay in patrol safely there.
Jim Cramer
Well, you know what, I'm glad I hear this narrative. I read a ton of article about our military being expensive and and kind of clueless and not learning and then I know that Jim take what's there I'm seeing but that did they bother to talk to him? I mean the guy is pretty exacting business person. I've known you for a long time in many different phases. So look, I'm just thrilled you're there. I'm thrilled that you're hiring the vets, our country thrilled that you're doing that. And we also know the world kept safer because you do. Thank you, Jim. Take the chairman presidency of Lockheed Martin. Great to see you as always, Jim.
Jim Tanklin (Lockheed Martin CEO)
Thanks Jim. Same here. Take care.
Jim Cramer
Okay. May have money's back. Yeah, just break. Coming up after the nasdaq's worst week since April, the bulls came roaring back with big gains yesterday. So was that a one day wonder or proof the Bears are running out of gas? Kramer's checking the charts next.
Jim Tanklin (Lockheed Martin CEO)
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Justin Vineyards and Winery Representative
Known as the pioneer of Paso, Justin vineyards and winery produces exceptional wines perfect for enjoying this holiday season. Like Isosceles, their flagship Bordeaux style red blend. Justin Wines also offers unique and thoughtful gifts. Pick your wine, choose a box and add a personal message icon or logo. You'll also find curated gift sets, library wines, magnums, even custom etched bottles. Start gifting. Visit justinmind.com and use promo code MONEY20 to receive 20% off your order for a limited time.
Jim Cramer
We still haven't recovered from last week's horrendous action. NASDAQ having its worst week since April. In fact, many of the data center plays and the speculative stocks got hit again today. A lot of old blue chips did pretty well. As usual. The Bears keep coming out and telling us the sky is falling because that's what they always do after Tough weekend. I think they think it's their job. But I don't want you to take that stuff too seriously, which is why tonight we're going to go off the charts. It's going to be a little friend. Bob Lang, the founder of explosive options.net the author of know your options, she lang feels pretty sanguine about this market. When you look at the charts, he means well, I'll tell you, he likes a lot of stuff here. When you check out the weekly chart of The S&P 500, for instance, there's no disputing it's still in its uptrend. The S and P is making higher highs. Okay, higher lows. So the big blue arrow points higher is pretty simple. And you don't like to overcomplicate this current trend. No arguing with it. Second, Lang points out that small cap stocks, which have tended to lead the way lately, are looking a lot better than many people might think given the recent small cap carnage over the last few weeks. Again, when you look at the weekly chart of the Russell 2000, okay, a small cap index, you only see a modest pullback. The longer term uptrend, which started in April, well, let me just tell you, it's still very much on track. There have been a few other weeks this week this year that were as bad as last week. But you know, the small caps, they keep bouncing back after every single one of these. This was ugly, but it bounced. Third, Lang's got a new angle for us. He thinks that the stock market has been supported by. This was a stretch for me. Junk bonds, also known as high yield bonds, even though these are fixed income junk bonds tend to move more like stocks. When you check out the weekly chart of the H, Y G, the shares junk bond etf. It's an ETF that a lot of people have on the screen to try to measure these things. It's been mirroring the S&P 500 pretty much all year, just like it did in 2024. When the jump bond index falls, both stock and bond investors, they tend to get nervous. Credit spreads widen and you start to hear more and more people worrying that we're headed for a recession. Why? Because junk bonds are the most cyclical bonds. They thrive in a strong economy. You don't want to go near near them in recession. Hygie really plummets in one of those. And when you look at the weekly chart of the hygie, it's been making higher highs. Okay, look at this once again. Higher highs and higher lows. Nice Uptrend. Nothing wrong here. And that's why he thinks the recent pullback will turn out to be brief and shallow. And it's why Lang wants to go bargain hunting looking for stocks that have been pounded. Proverbial babies have been thrown out with the best water. Right now he likes two out of these. Three of them are all in. He likes metal platforms. Yes. Starbucks. I be the Champion. And International Exchange. The latter part being the parent company of nyse. Basically, they are our landlord. All three of these stocks have experienced sharp pullbacks in their charts. Aren't exactly pretty here yet. But Lang still likes what he sees. Let's go over them because the fundamentals are really positive. Let's start with Meta. Okay. Which got killed after reported great quarter because its capital expenditure guidance to spend too much money was sky high. Just look at this daily chart. Look at this. Okay. Meta stock collapsed a couple of weeks ago. That's it. Is a real collapse. It's been moving lower ever since. Not good. Lang points out that it's now falling below its 200 day moving average. Really bad. Typically. Right. Met has been hit hard to the point where it's now filling in the gap from a big rally in May. Right. That's important. See, it's filling in this gap. If it fills in the gap, the stock will go all the way back down to 591. But if it gets that level, Lang says you should back up the truck again. Not a pretty chart. Meta sold off on heavy vibe. Then there's the on balance volume line down at the bottom. This is a volume based technical indicator that uses a running total of trading volume to predict price changes. Basically, it adds volume on updates and subtracts volume on down days to gauge buy and selling pressure. In Meta's case, the on balance volume has fallen through the floor. It's back down to Liberation Day levels, which is really rather amazing. But check out the relative strength index. That's the rsi. This is a momentum indicator that helps show why a stock's gotten overbought or oversold. Right now Meta is in extremely oversold territory. As you can imagine after what I just showed you. Right. Lang thinks the stock's already started to find its footing. On Friday, Meta plunged from 618 down to 601 in its intraday lows before rebounding crazily all the way back to 621. When the stock got eviscerated this time, buyers stepped in and it bounced right back. That's why Lang thinks Metta has room to run past 700 by the end of the year. I will say that this was the only chart that to me made me feel like that there was any hope to it. And we are long meta for the Travel Trust. All right, next, maybe the most controversial stock in the 500. It's called Starbucks. This is an early stage turnaround story under the leadership of the fantastic Brian Nicholas. But many investors may have gotten impatient because they don't recognize that these turnarounds usually take a long time. As I said this morning in my mad dash look at the daily chart. Starbucks has basically been range bound for weeks. But lately the stocks rebounded off its lows and it's back above the 50 day moving average. You take a look at this, okay. And then you measure this and you see that it's above. Lang thinks Starbucks could keep trading sideways for weeks to come. But at this point we know the stock was able to bottom in the high 70s last week. When you look at the moving average, convergence divergence or the MACD line. This is really important, okay. Is that this is a key momentum indicator that can detect changes. Remember, we want to get predict things. Starbucks is about to make a bullish crossover. That is the most bullish thing in the chartbook. It's the one of the most reliable positive patterns. I think this is amazing. Then Chaikin money flow which measures buying and selling pressure. It has started to turn up really bullish again. What else? Lang points out the Starbucks is known and this is a new one for me. What's known as a bullish Morningstar pattern. That's where you get a down day followed by an up. Day by day it's only flat. I'm sorry, so down and flat. Down and flat. It followed by an update. You can see those in the blue box. I know it's really small, but it looks like that. Okay, like a hook. There's more here too. See the green dots? This is a technical inner here called the parabolic stop and reverse. It's used to identify good entry and exit points. Right now it too has a positive reading as lang season. Starbucks is building a nice base here. And if the stock can break out above 90 and that's up less than four bucks from where it is currently trading now you think this thing could roar? We've been telling investors that Nichols getting his arms around how poorly run Starbucks was before he took over. He's not blaming him, just saying it. He's now attacking the basics of staffing and throughput as he gets the company back on track. We're believers. Finally, check out the other chart of Internet the Intercontinental Exchange which shows a bunch of major exchanges including the mic. This stock has been steadily collapsing since mid August. Is ugly. But Lang thinks the heavy selling has finally stopped given that ICE seems to have stabilized over the past year. I'm sorry, the past week after tagging the April low. So let's just go over this. So April low, okay, Boom. All right. At the same time, the relative strength index, the rsi See this is just coming off extremely sold oversold levels. Very bullish. The MACD looks like it's ready to cross over right here. He thinks it goes like that. As Lang sees it in and out, the Intercontinental Exchange is giving you a low risk entry point here if the Stock is currently $0.01 below 152. But if it can break out above this level, he's betting that will attract more buyers. Although this, this is a 2026 story, I agree with that. Here's the bottom line. The charts is interpreted by Bob Lang suggest that Metta, Starbucks and Intercontinental Exchange have all gotten too cheap to ignore. You know what? We own Metta, I think is it dead right. Starbucks, I think is about to get a breakout. And when I looked at ice, I said I got to get to work on this thing. I mean maybe this is one month from now the right place to be. Let's go to Mike in New York.
Caller/Viewer
Mike, booyah. Thanks for having me back after two years. I have a nice.
Jim Cramer
What you got?
Caller/Viewer
The last record flag I gave you was Carvana two years ago. It went from $4 to $400. Now. Now I want to talk about it first. With nearly 45% of its float with high short interest, it's a nice gamma squeeze candidate. Besides that, 95 of all of its shares is owned by insiders, hedge funds and institutions. The top two are Knight Capital at 58% and Bill Ackman at 19%. They just reported their first positive EPS in nearly two years. They just signed a partnership deal with Amazon to sell nearly their 250,000 car fleet yearly on Amazon Autos. And just selling on that website for three weeks, they're able to increase their basis point by 570 points this holiday season. People don't want to deal with the heads of flying people.
Jim Cramer
Let me ask you. Mike, let me. Mike, let me ask you. Why isn't it moving up with all that great stuff? I mean it makes it sound like.
Caller/Viewer
Jim, Jim. No, but I'm saying $3. And now it's.
Jim Cramer
Here's what we're going to do. We're going to watch Hertz. We're going to watch it. I think that you have made a strong recommendation. I appreciate that coming on the show. It has been a contrary name. Maybe we got to be more open minded and I want to thank Mike for the idea. All right. The Bears keep saying that everything's going wrong, you know, I mean that kind of stuff. But the charts according to Bob, I suggest that there's still a lot of upside and some very well known names including Starbucks, including Ice and then Meta. You know what, I'm inclined to be with them. Not much more than money, including my take on the AI play that you stump me about this and this GSI technology is kind of really interesting. Then sometimes you have fear of missing out on a high flying stock. I'm starting to have a little FOMO about some stuff that you cannot believe. I'll reveal the names and sectors, of course. And yes, rapid fire tonight, lightning round. Stay. Okay. We have a protocol around here. Whenever you call with a stock that I don't know and we put, we just put the name to the side, then we do the homework and then we circle back with a more informed opinion for you, our viewers, our bosses. Back on October 23, Luke in Arizona asked about a thing called GSI technology. That's a tiny company, 282 million market capitalization, barely large enough for me to even mention on air. GSI makes memory chips for aerospace, satellite defense, end markets. And they're moving into more advanced chips for AI too. I think it's got an intriguing story, but it's also very, very speculative. I don't feel comfortable recommending it to you because it is that speculative. Why? Okay, GSI technology has actually been around for 30 years. Came public at $5.50 in 2007. Until very recently, the stock had never broken out of the single digits. Never. Every time it tried to mount a rally over the past 18 odd years, it was always followed by a serious pullback. And that's because GSI's core business is not a particularly good one. Company says it's the market leader in high performance SRAM chips, like a faster version of the ram in your PC. But man, these guys have never had more than $100 million in revenue in any of the years since GSI came public. In fact, their sales peaked way back in 2011. In the latest fiscal year, they only put up $20.5 million in revenue. That's down nearly 6% from the year before, by the way. The Company hasn't turned a profit in any of the last five full fiscal years. But maybe all of this is beside the point because a few years ago GSI announced it was pivoting toward a new type of chip, associative processing units. APU's. I don't want to get too bogged down into the details, but these chips do massively parallel data processing, which the company says makes them ideal for AI and inference. GSI has been toiling at this this thing for roughly a decade now and they now say that they're coming coming very close to having some really attractive products that should be market ready in the next couple of years. However, this new business hasn't showed up in the numbers yet. And until very recently, nobody on Wall street seemed to take it seriously. In fact, not a single sell side analyst even covers gsi. It seems like the company's been working on the APU thing for several years now and no one's really paying any attention. But that changed last month. On October 20, GSI announced the publication of a paper led by researchers at Cornell which showed that their APU architecture can match the performance of fancy GPUs from the likes of Nvidia with a dramatic reduction in energy consumption. Of course, they were testing the technology against various chips from five years ago. All right, less impressive. That said, we desperately need more energy efficient ways to run these AI data centers. So we've ginned up a lot of interest. And that's why on the day this paper came out from Cornell, GSI stock rocketed 155% climbing just under $5, just under 13. And they were actually up much more than that. Initially stocks had an all time high of $18.15 that day. The first time in over 18 years that GSI technology had reached double digits for coming Back to Earth $13. The next day GSI took advantage of the stock pop to raise $50 million through the issuance of common stocks and pre funded warrants. By the way, look in Arizona's call on GSI technology came just a couple days later. Since all this activity though, GSI has come back to earth, falling below $8 today. Still up from where it was trading before the paper came out, but already down 10 bucks from where it initially spiked on the news. I got to tell you, I really don't like how this whole thing played out. I can't blame GSI for taking advantage of this big spike to raise money. I'm sure they can use the cash, but it's a bad precedent. When you get good news and then immediately shareholders get hit with a secondary offering. And it's long suffering shareholders, I should say. Some in management must have considered that the move up was unsustainable. In the end, I simply can't bring myself to endorse GSI Technology for you. As far as I can tell, the only truly positive news out of this company in the past couple of years has been this one random paper from Cornell testing a previous generation APU from GSI against a several generations old GPU from Nvidia. And GSI immediately took the opportunity to raise money afterwards for me to get more receptive to the story. I'd like to see some evidence, any evidence that there's actual demand for this product which would justify all the work that GSI has put in for these on these APU's for the past decade. For the time being, what I see is a company with about $20 million in annual revenue in a semiconductor science project it's been working on for a decade without much to show for it. Yes, I did say science project. I have to figure all the money being thrown into space right now. If there was any serious breakthrough happening with GSI ships, these guys would have had a lot more to show for it. I'm talking announced customer commitments, bookings, revenue, even takeover interest for this bite sized company. But I don't see much evidence of that. On its conference call this week, GSI said its focus for calendar 2026 would be, and I quote, centered on converting proof of concept projects into commercial customers and expanding those relationships into large production programs. End quote. I wish them luck. And if we hear about any meaningful progress with customers at all, maybe run another segment on the company in the future, one that's a little more positive. For now though, the bottom line is I simply don't see enough in this GSI technology story to recommend you risking your money. In what may be a truly highly speculative story. There's a long list of AI related chip companies that have real businesses and real revenue and real earnings companies that are already benefiting from the rise of AI. There's Nvidia in GPUs, ARM and CPUs, Micron in memory. All these are safer bets in GSI technology. And don't forget of course amd and GPUs and CPUs if something changes here. Well, why don't I do this? I'll let you know. But for now I don't think it's worth sticking your neck out. At least not this time. Mail Bunny's back after the break. Wait a second. Only one sleep until Brooklyn. Tomorrow I'm headed to the Barnes and Noble on Atlantic Avenue in Brooklyn signing copies of my new book, how to make Money in any market. 6:30pm and I can't wait to see you there and sign your books and talk about this wacky market. But now it is time to talk to the light round pitch by Rabbit myself and then the lightning round is over. Are you ready skiing guys? Have a light round. I'm going to start with Alex in New York. Alex. James.
Caller/Viewer
How you doing, baby?
Jim Cramer
I am doing well, buddy. What's shaking?
Caller/Viewer
I want to thank you for getting me through a rough NFL season.
Jim Cramer
Your book and your insight has saved me.
Jim Tanklin (Lockheed Martin CEO)
I'm a huge Dolphins fan.
Caller/Viewer
Second favorite team.
Jim Cramer
Nice. Nice game. Nice game against the Bills. Nice game. Getting your. You're welcome for Jalen Phillips, by the way. Oh my God. Thank you very much.
Caller/Viewer
He's a.
Jim Cramer
All right. Well, let's go to work. What do we got? Let's go to work. ATS 8Amphenol. Oh my God. It's just such a great stock and it's still not even expensive versus its growth rate. You want to stay in that cable play? Let's go to Peter in New York. Peter.
Caller/Viewer
Hi, Jim. Just want to wish you and your family happy Thanksgiving and happy holiday.
Jim Cramer
Same to you.
Caller/Viewer
Thank you very much. Your staff is excellent as always.
Jim Cramer
They're amazing.
Caller/Viewer
And you look great also, sir. Very fit.
Jim Cramer
Thank you.
Caller/Viewer
Go ahead.
Jim Cramer
Well, thank you. You should see my nephew whose birthday. Cliff Mason. I'd like to wish a happy birthday too. I know he watches the show periodically. How can I help? Good. Beautiful. Beautiful. Okay.
Caller/Viewer
Equestive Therapeutics released earnings last week. Week and analysts lifted the price target to 10. $10.10. Results were mixed. Revenues were in line 13 million. But losses was about 6% down.
Jim Cramer
You know the problem. Let's not look at that. We look at the pipeline and we know that here's the problem. I'm in favor of investing in the spec of any company involving nervous system. Okay. Any company involving the brain. And they're there. And I think it's a very interesting spec. Let's go to David in New York. David.
Caller/Viewer
Hey, Professor.
Jim Cramer
Jim.
Caller/Viewer
How you doing?
Jim Cramer
I am doing well, David. How about you?
Caller/Viewer
I'm doing great. Listen, I love your book. I'm on chapter 18. Three more chapters to go.
Jim Cramer
Thank you, buddy.
Caller/Viewer
Hey, listen, I'm sorry I can't meet you at Barnes and Nobles tomorrow in Brooklyn. You know, it's a five hour car It's a five hour round trip car ride from the Hamptons. However, if I wouldn't be able to afford, let's just say I had the money to get on a vertical takeoff and lift aircraft, I could be there in 20 minutes. So my question is this company has about 23 million in revenues reported Q3. Although their earnings per share is negative $1 35 and they lost, their free cash flow is negative 3,44 million, they do have almost a billion in cash. The company is Joby Aviation.
Jim Cramer
Now they're losing too much money. Buddy, I absolutely love the idea, but they're losing too much money. And we already got a thing called helicopters and that does us just fine. And that, ladies and gentlemen, concludes of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up, hated, battered and ready to bounce from toilet paper to Tylenol. Kramer is revealing a potential comeback story you may not see coming next. Sometimes when stocks are doing badly, I get worried. Not because I want to get out, but because I wonder if I might be missing a once in a generational bottom. Those don't come around all that often, of course. And right now I'm concerned that we might be missing a bottom in a group of stocks that I haven't particularly cared for at all, especially in a long time, including in how to make money in any market, which by the way, I'm signing tomorrow night. 6:30pm Barnes and Noble on Atlantic in Brooklyn. Please come see me. The group that I'm talking about, the consumer packaged good stocks. Too much inflation, not enough growth. Growth being the magical licks that makes your investment winners and it doesn't have it. When you take a stock like Kimberly Clark or Procter Gamble, you're pretty much brace yourself for the house of pain. And the pain doesn't seem to end until the stocks fall to the point where their dividend yields become competitive with the bond market. Aha. Well, that means that we're there. Why bother with these? Because I keep thinking about what my writing partner Matt Horwin tells me. We may be looking at peak inflation and these are undervalued winners of their categories. Peak inflation would drive their costs down while their scale would normally prevent them from merging to dominate the industry. This administration doesn't seem to care too much about antitrust enforcement. That's why Kimberly Clark Kennedy deals all about. And if you can't find enough consumer packaged goods that are appealing, you can always expand your hunt cast the net to the big pharmaceuticals, where I also expect a ton of burgers to happen. What's a good example? I use Procter and Gamble on how to make money in any market because the company so rigorous and inventive. Right Now Procter yields 2.85% and you know it has the scale, the science to make things cheaper. You might want to consider Kimberly Clark too. It's been knocked down to a level where it sports a 4.89% yield because it's trying to buy 10 view which has fantastic brands but is tailored right now because of nonsense regulatory problems involving Tylenol. Right now the publicity is making people skittish, but the science is on canvas side. Its brands complement Kimberly Clark perfectly. I'm looking at Clorox. Oh boy, one of the worst stocks in the SB500 this year. It's subtracted brands here. Burt's Bees, Hidden Valley Ranch, British Filters, Kingsford Charcoal and of course Clorox itself got a 4.72% yield. Risk takers by what I consider General Mills, but only if you're betting on takeover because the food stocks are being eaten alive by those GOP Dash one weight loss drugs. If you want to venture beyond what we call the CPG super packaged goods world, I think you do very well with owning J and J or Amgen, who we talked to last night. JJ is getting out of everything non proprietary artificial choice for example, and really bearing down on on high growth pharma with cancer being a specialty. Amgen is working on cholesterol, this repath injection and it's doing something very different with weight loss that could lead to terrific outcomes. They both have yields more than 2.7%. How strongly do I feel about these former safety stocks? We have a monthly investment club meeting on Thursday and I've told Jeff Marks, my co portfolio manager, that we at least have to put one of these names in the bullpen. I don't want to wait to look back and say how did we miss that bottom Too much opportunity to pass up on given given that these are all currently among the most hated companies in the universe. Plus they got juicy dividends and they are ideal by the way for the older cohort who still watch the show. I like to say, as always, bull market summer, I promise. Just for you. Right here on Man Money. I'm Jim Cramer. See you tomorrow.
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All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of cnbc, NBC Universal or their 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 the holidays mean.
Jim Cramer
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In this episode (aired November 12, 2025) of Mad Money, Jim Cramer declares the end of the “era of magical investing” dominated by artificial intelligence and speculative data center plays, shifting focus to investments based on profits and sound fundamentals. Cramer shares insights on market patterns, explores the risks building in the AI sector, highlights alternative growth opportunities, and hosts a special Veterans Day interview with Jim Tanklin, CEO of Lockheed Martin, discussing the value of hiring veterans. Technical analyst Bob Lang joins for a chart-based strategy session, and Cramer fields caller questions in his signature Lightning Round.
Cramer on AI Euphoria:
“Maybe the magic’s starting to fade away. It’s not 1999 goes to 2000… but things have gotten out of hand for the moment.” (02:12)
Cramer on investing discipline:
“I’m proclaiming that for the rest of the year it’s the era of investing not as if by magic, but as if by profits.” (09:00)
Jim Tanklin (Lockheed) on hiring veterans:
“Everything in the military is done as part of a team... you just gotta get it done... Leadership is not a rank... it’s earning that leadership role by how you treat people.” (16:29)
Caller Mike on Carvana:
“The last record flag I gave you was Carvana two years ago. It went from $4 to $400. Now... with nearly 45% high short interest, it's a nice gamma squeeze candidate.” (32:54)
| Timestamp | Segment | |-----------|---------------------------------------------------------------------------| | 02:12 | Cramer opens on end of AI/data center “magical investing” | | 09:46 | First Lightning Round (ELF, Applovin) | | 14:39 | Veterans Day Segment – Jim Tanklin Interview (Lockheed Martin) | | 24:27 | Technical Analysis Market Check (w/ Bob Lang) | | 32:45 | Caller Mike on Carvana (deep-dive Q&A) | | 36:42 | Cramer revisits GSI Technology (speculative AI chip maker) | | 41:22+ | Lightning Round (Amphenol, Aquestive, Joby Aviation, others) | | 45:46 | CPG/Pharma sector bottom fishing advice |
Jim Cramer delivers a clear warning that the days of easy, “magical” returns in speculative AI and data center equities appear over; it’s time to focus on fundamentals and seek profits, not dreams. He spotlights the increasing risks hidden in the AI sector, advocates for diversification, and singles out undervalued areas like CPG, pharma, and established growth names. The episode’s dialogue with Lockheed Martin’s CEO underscores the real-world value of veterans in business. Technical analysis suggests bargains in select large caps (Meta, Starbucks, ICE), while the Lightning Round reinforces Cramer’s preference for quality and skepticism toward speculative hype. The overall message: Adapt strategies for a shifting market, pay attention to risk, and remember—not every hot sector will stay hot forever.