Detailed Summary of Mad Money w/ Jim Cramer – Episode 11/18/24

Podcast Information:

• Title: Mad Money w/ Jim Cramer
• Host: CNBC
• Release Date: November 19, 2024
• Episode: 11/18/24

Jim Cramer dives deep into the latest stock market trends, providing insights, recommendations, and engaging with callers to navigate the complexities of Wall Street. This episode covers major topics such as Nvidia's chip delays, Bristol Myers' strategic moves, semiconductor industry challenges, and innovative technologies in AI connectivity.

1. Analyzing Nvidia's Blackwell Chip Delays

Timestamp: [01:03] – [06:15]

Cramer opens the episode by discussing recent developments regarding Nvidia, highlighting the company's challenges and potential buying opportunities.

• Quiet Period Concerns: Nvidia is in its quiet period leading up to earnings, restricting management from discussing potential issues. Cramer notes, “Videos normally pretty open about its business, but… they have a quiet period that starts four weeks before the company reports its earnings” ([02:15]).

• The Information’s Report: A publication named The Information reported that Nvidia is facing overheating problems with its Blackwell graphics unit for AI, causing uncertainty about large-scale implementations. “The problem occurs when they are connected together in a customized service rack server” ([04:30]).

• Michael Dell’s Reassurance: Contrasting the negative report, Michael Dell announced shipments of Nvidia’s chips, suggesting no delays. Cramer trusts Dell’s credibility: “I have known Michael Dell for years. He has not impressed me as anything other than a scrupulous businessperson” ([05:00]).

• Buying Opportunity: Despite the rumors, Cramer maintains a bullish stance on Nvidia, emphasizing its market dominance and lack of competition. “Nvidia stock is arguably the greatest of all time. It’s a sprinter and a workhorse at the same time” ([06:14]).

Notable Quote:

“Nvidia stock is arguably the greatest of all time. It's had a concentrated burst of strength that's almost unprecedented. Buy.” – Jim Cramer ([06:14])

2. Interactive Caller Segment

Cramer engages with several callers, providing tailored advice on their stock concerns.

a. Ulta Beauty and Berkshire Hathaway

Timestamp: [09:45] – [10:40]

A club member expresses concern over Ulta Beauty’s forward PE ratio and earnings decline. Cramer reassures by highlighting Berkshire Hathaway’s confidence in the stock.

Notable Quote:

“I think you hold on. I feel great about the stock. It's up 32% for your Berkshire B is a great situation” – Jim Cramer ([10:11])

b. FICO’s Strong Performance

Timestamp: [10:40] – [11:26]

Caller Clark and Marilyn discuss FICO’s impressive stock gains. Cramer praises the company’s leadership and growth prospects.

Notable Quote:

“I think it’s a great stock. Congratulations for being long and maybe the story published by the information about videos true or maybe it'll turn out to be another buying opportunity for one of the greatest stocks of all time” – Jim Cramer ([11:47])

c. Motorola Solutions

Timestamp: [11:26] – [11:47]

A first-time caller inquires about Motorola Solutions. Cramer strongly endorses holding the stock, citing its competitive edge in the public safety sector.

Notable Quote:

“So that stock is incredible and I should have profiled a long time ago. I kept waiting for it to pull back and it just hasn't” – Jim Cramer ([11:47])

3. In-Depth Analysis of Bristol Myers

Timestamp: [15:19] – [21:30]

Cramer shifts focus to Bristol Myers, exploring its strategic initiatives and market position amidst political uncertainties.

• Impact of RFK Jr. Nomination: President-elect Trump’s nomination of RFK Jr. as Health and Human Services Secretary caused a sell-off in big pharma stocks. Cramer discusses potential headwinds but remains optimistic about Bristol Myers' resilience.

• Strategic Acquisitions: Under new CEO Chris Werner, Bristol Myers has made significant acquisitions to bolster its drug pipeline, including the $14 billion takeover of Corona Therapeutics. “Under his leadership, the company made a series of multibillion-dollar acquisitions to bulk up its pipeline” ([16:53]).

• Innovative Drug Developments: Bristol Myers’ new drug, Cobainfi, is the first novel treatment for schizophrenia in over 30 years, offering fewer side effects compared to existing treatments. “With COBAINFI, Bristol Myers created a whole new class of schizophrenia drugs” ([20:00]).

• Market Reaction and Buy Opportunity: Despite initial stock declines due to political fears, Cramer views the drop as a prime buying opportunity. “I think the failure of AB schizophrenia drug… is worth a lot more to Bristol Myers than any damage is likely to take from the Department of Health and Human services” ([20:30]).

Notable Quote:

“I think the failure of AB schizophrenia drug… is worth a lot more to Bristol Myers than any damage is likely to take from the Department of Health and Human services” – Jim Cramer ([20:30])

4. Semiconductor Industry and Applied Materials Update

Timestamp: [21:30] – [29:22]

Cramer examines the recent downturn in semiconductor stocks, focusing on Applied Materials’ performance and sector-wide challenges.

• Stock Performance: Applied Materials reported solid sales and earnings but saw its stock plunge due to weaknesses in legacy markets and reduced Chinese demand. “Applied Materials is largely hostage to economic weakness, especially in China” ([28:00]).

• Market Challenges: The company faces declines in DRAM sales and Flash, attributed to previously high Chinese purchases. While their leading-edge technology shows promise, the legacy segments suffer from economic slowdowns in China.

• Long-Term Outlook: Despite short-term setbacks, Cramer maintains a positive long-term view, noting the company’s significant exposure to AI and advanced chip manufacturing. “If you have a long-term investment horizon, I actually think Applied Materials still looks good” ([28:10]).

Notable Quote:

“Applied Materials is largely hostage to economic weakness, especially in China” – Jim Cramer ([28:00])

5. Spotlight on Light Matter and AI Connectivity

Timestamp: [32:00] – [38:35]

Cramer interviews Simona Jankowski, CFO of Light Matter, a company innovating in photonics to enhance AI chip performance.

• Technology Overview: Light Matter replaces traditional copper interconnects with photonic solutions, significantly reducing energy consumption and increasing data transmission speeds in data centers. “Light Matter is going to be able to do end-to-end connectivity that is over fiber… which should save energy by a few factors” ([35:00]).

• Market Needs: With AI driving demand for faster and more efficient data centers, Light Matter addresses the critical bottleneck of electronic interconnects. “We’re approaching the end of Moore's Law… how can we interconnect them to each other at really, really high speeds” ([33:28]).

• Future Prospects: The company is preparing for mass production following a significant fundraising round, aiming to partner with major semiconductor manufacturers focused on AI accelerators and switch chips.

Notable Quote:

“We are going to be moving that all to photonics, all to fiber. And that should save energy by a few factors, you know, three, four or five factors or more” – Simona Jankowski ([35:00])

6. Lightning Round: Rapid-Fire Stock Recommendations

Timestamp: [38:42] – [43:47]

In the Lightning Round, Cramer addresses multiple callers with quick buy, sell, or hold recommendations on various stocks.

a. Zazzle

Timestamp: [39:08] – [39:32]

• Caller’s Concern: Zazzle's stock surged 1800% year-to-date.
• Cramer’s Advice: Recommend taking out the cost basis due to the parabolic rise, signaling caution despite strong performance.

Notable Quote:

“I would take my cost basis out. So I play with houses, money, I look at the stock. It's a straight up payments play that reported so much better than expected quarters” – Jim Cramer ([39:25])

b. Eli Lilly

Timestamp: [39:35] – [40:28]

• Caller’s Inquiry: Concerns about Eli Lilly’s stock volatility.
• Cramer’s Advice: Strong buy recommendation, emphasizing the stock's potential and recent strategic moves.

Notable Quote:

“I think that it is a buy plain out and simple. We almost bought some today for the trust we were restricted” – Jim Cramer ([40:28])

c. Semtech and American Superconductor

Timestamp: [41:31] – [42:19]

• Caller’s Query: Thoughts on Semtech and American Superconductor.
• Cramer’s Advice: Prefers Texas Instruments over Semtech and advises against American Superconductor due to lackluster performance.

Notable Quote:

“I do prefer Texas Instruments to that one [Semtech]. I do think Semtech is just a traditional kind of semiconductor company” – Jim Cramer ([41:47])

d. Cameco

Timestamp: [42:15] – [42:41]

• Caller’s Concern: Interest in Cameco’s uranium stocks.
• Cramer’s Advice: Skeptical, labeling Cameco as an expensive stock with limited potential compared to others.

Notable Quote:

“Cameco is not expensive, I understand why you want to be in it… but it is an incredibly expensive stock versus the rest of the market” – Jim Cramer ([42:19])

e. Marvell Tech and CrowdStrike

Timestamp: [42:46] – [43:29]

• Caller’s Inquiry: Recommendations on Marvell Tech and CrowdStrike.
• Cramer’s Advice: Likes Marvell for its data center and optical components, indicating a buy signal.

Notable Quote:

“I happen to like Marvell… I like Marvel” – Jim Cramer ([42:53])

f. Apple

Timestamp: [43:29] – [43:47]

• Caller’s Concern: Apple's current evaluation and entry points.
• Cramer’s Advice: Encourages holding and strategic buying during dips, advising patience amidst market bearishness.

Notable Quote:

“If I had no stock when I buy it right here, I would wait for a dip because the bears are all over it every minute of the day” – Jim Cramer ([43:29])

7. Discussion on Tesla and Self-Driving Cars Policy

Timestamp: [43:55] – [47:49]

Cramer discusses the speculative potential of nationwide self-driving car rollouts under President-elect Trump, focusing on Tesla’s position.

• Policy Skepticism: Cramer doubts the feasibility of federal mandates enabling a nationwide rollout, citing state and local government powers. “The idea that the White House can somehow allow self driving cars everywhere with the stroke of a pen, that's just plain fanciful” ([44:20]).

• Tesla’s Premium: Despite policy uncertainties, Tesla maintains a strong market premium due to Elon Musk’s influence and technological advancements. “I do think that there's a Elon premium. To me, Tesla deserves the premium” ([44:55]).

• Long-Term Outlook: Cramer remains bullish on Tesla, emphasizing its status as a tech company allowing for high valuation multiples. “Nothing truly dulls the case for owning Tesla” ([43:29]).

Notable Quote:

“Nothing truly dulls the case for owning Tesla. The Musk premium will work its magic in other ways” – Jim Cramer ([46:30])

8. Conclusion

Cramer wraps up the episode by reinforcing patience and strategic investment approaches. He highlights key buy recommendations like Nvidia and Bristol Myers, while advising caution on overextended stocks exhibited in the Lightning Round. Emphasizing long-term perspectives, Cramer encourages listeners to stay informed and seize opportunities amidst market fluctuations.

Final Notable Quote:

“Always remember that Tesla's a tech company, the others are automakers. And a tech company can get an insanely high price-to-earnings multiple with no one blinking so much as an eye about it” – Jim Cramer ([43:29])

Overall Takeaways:

• Nvidia’s Position: Despite recent challenges, Nvidia remains a top buy due to its market dominance and strategic advantages in AI chip manufacturing.

• Bristol Myers’ Growth: Positive developments in drug pipeline and strategic acquisitions present significant growth opportunities despite political uncertainties.

• Semiconductor Sector: Applied Materials and the broader semiconductor industry face short-term challenges, particularly due to economic weaknesses in China, but hold long-term potential tied to AI advancements.

• Innovative Technologies: Companies like Light Matter, focusing on photonics for AI connectivity, represent the next frontier in technology enhancements.

• Strategic Investing: Cramer emphasizes holding strong stocks during downturns and being cautious with overextended or speculative plays.

This episode provides listeners with valuable insights into high-performing stocks, sector-specific challenges, and emerging technologies, empowering them to make informed investment decisions.