Mad Money w/ Jim Cramer 11/18/24

Summary

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.

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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])

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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])

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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])

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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])

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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])

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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])

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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])

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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])

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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.

Transcript

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[Jim Cramer]

My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Other Premier Friends. I'm just trying to make you a little money. My job is not just to entertain, but to educate and teach you. So call me 107 for 3 CNBC tweet meet Jim Kramer Minutia Minutia can shake you out of tremendous investments every time. Today's minutia on a day with a Dow dip 55 points. SB advanced point 3. 9% NASDAQ gained point 6% let's talk about what happened to the world's largest chip maker. Let's talk about in video, which reports on Wednesday now. Videos normally pretty open about its business, but like all companies, it has what's known as a quiet period that starts four weeks before the company reports its earnings. If there's something that very much impacts the earnings, management is not supposed to answer any questions about it during the quiet period. Even if it knows the answer, it is always respectful respectful of it. And you need to know that now in video reports this week. So it's in the final days of this quiet period. That means any news disseminated this week that could impact the company would put squarely, squarely behind the eight ball. Everyone knows that you can really throw off any company and its shareholders by injecting uncertainty. Sure enough this weekend a publication called the Information said that invidious grappling with what it called quote new problems related to its much anticipated Blackwell graphics unit for artificial intelligence. End quote. The machines are big, they are powerful and by invaders own admission they run hot. The problem occurs when they are connected together in a customized service rack server act now this is serious business. These server racks. The type of story I'd love to get a response to you about. But when I try to get a response from Nvidia I got. Listen Jim, we're in quiet period, we can't help you. So this nor this really noisy, not great story comes out. I try to find out what's going on and I can't. That means I have no idea if there's something that could delay large scale implementation of Blackwell that's their latest and greatest chip. Perhaps it'll be delayed until January when management on record saying that the new product line could be humming. Maybe there's a problem beyond that. Or perhaps, perhaps there's no real issue at all because the key company that installs invidious chips known as Dell announced today in a tweet quote the first in the world in video GB, the Grace Blackwell 200 NPL 72 server racks are now shipping. The server racks that we were told weren't shipping as Michael Dell went on in his tweet quote. We are thrilled to deliver our liquid cooled Power Edge X 9712 to corweave the air rocket just got a massive boost, end quote. Core is a new cloud computing provider that's been a voracious user of Nvidia chips. Of course the Information updated the piece for that info which pretty much called a whole exercise that in that the information had issued into question. Oh boy, was the damage ever done. So then the question becomes who's telling the truth here? The information which says there are real issues involving delays or Michael Dell who's telling you there is no delay. Here it is. I have known Michael Dell for years. He has not impressed me as anything other than a scrupulous businessperson ever since Dell came public for the first time in 1988. The information. I first chronicled their activities back on August 2nd, just when they broke the story that Blackwell was running late. Funny, when I called Nvidia back then about the information story of Blackwell back then the company had Just entered quiet period, so they weren't allowed to talk to me. Sensing a pattern here. Quiet period. Quiet period. Just like this. Quiet period. I could only sit on my hands and let the negative story wash over me. Funny, when that story broke, the Stock was at 107. Five days later, I was at 98 with Nvidia back up to 149. Earlier this month, you left a huge amount of money on the table if you took your cue from the information's information. Now, I'm not guaranteeing a good quarter from Nvidia Wednesday at all. Far from it. I've been watchfully waiting for full Blackwell shipments, even as the company's been saying for months that these chips wouldn't start shipping in volume until January. I was thinking maybe they were practicing underperform and over deliver. Now I don't know. In fact, I can argue that the information news isn't news at all, though. The machines are complicated. They run real hot. I said that when I interviewed Dover CEO Rich Tobin here on Friday. Dover makes some of the equipment that keeps these data centers cool. Liquid cooling. Before Blackwell, there were chips that could be cooled by air. Tobin says it's possible one day that Dover's cryogenic solution might be needed to put into play. Could happen. Why do I go into all these details? Well, there are several reasons. One is that Nvidia stock is arguably the greatest of all time. It's had a concentrated burst of strength that's almost unprecedented. Buy.

[State Street]

Buy.

[Jim Cramer]

Buy.

[State Street]

Buy.

[American Express]

Buy.

[State Street]

Buy. Buy.

[Jim Cramer]

Buy.

[American Express]

Buy.

[Jim Cramer]

This thing is no war horse. You know what it is? It's a sprinter and a workhorse at the same time. Its Secretariat, a marvel of a horse that won the Belmont Stakes by an astronomical 31 lengths in 1973, a record that I don't think will ever be broken. Just like Nvidia. Second, I meet Nvidia millionaires who. Who thank me wherever I go. And I go to quite a few places. These people typically tell me how many times they've been freaked out or told to freak out by people who should have known better. And because I said, own it, don't trade it, they stayed the course. Many of these people bought this stock because I renamed my rescue mutt Nvidia back in June 20th. In 2017, in a desperate gambit for you to understand that this was a big, big stock, Everest was rechristened on a day when the stock traded at $3.88. The stock's now 140. In that time. I've realized that we've all become way too trading oriented around here. Now we're in video at the beginning of August this year at 107 when the devastating information story broke about the delay. The one that Nvidia couldn't respond to. A hopeless pinata revived by the short sellers and allegedly by the customers. Although I couldn't find a single one who was truly aggrieved. Given the newfound trading proclivity, I have to wonder how many people had the armor of the dog and Video and how many had it wear off? It wore off. If it wore off. You forgot the amazing thing about Nvidia, which is that it has really no competitors. Now here we go again. Maybe in video mentions the information delay story on Wednesday conference call. Maybe we'll mention Michael Dell shipment of Iraq Blackwell suggesting. I think it suggests that they'll still have the opportunity to ship these chips in volume in January, which is what I've been led to expect. However, the trading obsession might have shaken you out today, especially because you couldn't hear a response from video because of the information to the story during the quiet period. But let me ask you, what if Blackwell really is delayed until January? What that mean? Big wins for the people who paid Boku Bucks to buy competitor AMG up for today. We own AMD for our travel trust. Like it very much. We own it right along with Nvidia and we know it doesn't have product that's as good as Blackwell. If I weren't so against trading, I guess maybe I would have sold AMD up 5 and then buy it back lower when the erroneous data is washed out of the stock. I didn't do that. I don't play that game. Maybe you think invidious customers are all hopping mad and willing to hold back money. That would be wrong too. They have nowhere else to go for this kind of chip. So what then is this story about from the information? Is it much ado about nothing? Well, not if you work at the Information. The information shops sell subscriptions. This is a noble goal. I did it for years. This story likely did that in spades for them. And Nvidia actually reports a shortfall. The new subscription will be endless. After all, Jensen Wong starts out by saying, you know what? We blew it. The servers can't handle the heat and Colette Kress the CFO quantifies all that business is loss and all the upset clients. Then the Information may have gotten a huge scoop. Maybe this time really is the top and it's all because of the server meltdowns. But the bottom line, I actually am more inclined to think that you're getting a buying opportunity in video thanks to the information publishing a story that may simply not be that unless you didn't know all that much and you parted with the video as soon as the news came out in Indiana and hey.

[Caller]

Jimbo, thanks a lot. I'm a really happy club member. Oh Berkshire be because forward earnings or sorry the forward PE is a lot higher. So like what what are people worried about with their decline in earnings and then when they bought and sold also within a quarter that sounds like some boneheaded thing I would have done because I didn't have conviction.

[Jim Cramer]

Well look these are big issues and one is let's dispel the first the latter. I would say that Ulta was a position that was wasn't Warren Buffett somebody who works there sold in and out the Ford P they have a lot of cash. You can't really judge that P because of the cash. I think you hold on. I feel great about the stock. It's up 32% for your Berkshire B is a great situation and I thank you for joining the club. Let's go to Clark and Marilyn Clark.

[Caller]

Come on Clark. Booyah. Yeah a couple months ago you have recommended it but my dad bought it and it's up 30%. Is it time to rain Because.

[Jim Cramer]

I had the pleasure of speaking Will Lansing actually this the who's the CEO was on our network last week. He told a great story. I happen to talk to him again this summer and you know he's been on the show and FICO has been one of our big big winners called Fair Isaac but it's you know as FICO and I continue to think it is a great great situation Kids got horse and stays in the picture and that New York Annette Hi Jim, I'm.

[Caller]

A first time caller long term listener excellent stock that I have I currently hold have it for quite a while. It's up a lot since I bought it and I just wanted to know if there's room to go higher should I buy more?

[State Street]

Should I hold?

[Caller]

Should I sell the stock is Motorola solution.

[Jim Cramer]

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. You know they have like no competitors in this public safety space that they're in. 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 and still be true on everybody tonight. Bristol Myers got a boost from a competitor's failed drug trial, but could Trump's pick that the helm to take the helm of HHS bring some headwinds? Bobby Jr. I'm breaking down the story. Plus after last week's semi sell off, I'm digging deeper into what's holding back Applied Materials and if long term growth could still be on the horizon. And speaking of tech, I'm going off the tape with AI Player Light Matter, so stay with Kramer.

[SSGA]

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[Jim Cramer]

Last week, after we learned that President elect Trump wants RFK Jr as his health and Human Services secretary, the whole pharmaceutical complex just got sell, sell, sell, sell. And I think that's created some pretty great buying opportunities here. Don't get me wrong, RFK, let's call him Bobby Jr. For some Sopranos flavor. Bobby Jr. Is incredibly hostile to the big pharma, but there's a whole federal bureaucracy at HHS and frankly, I don't think Trump will let him wreck a pretty important sector of the stock market. That's why I feel comfortable recommending some of the higher quality drug stocks here. I mentioned the other day, I like Bristol Myers, which now sells for just eight times next year's earnings estimates and it's got a 4.2% dividend yield. Bristol Myers become one of the great turnaround stories of our year from December 2020. This past July, the stock was more than cut in half thanks to worries about big name patent expirations. Their major blood cancer drug Revlimid already facing generic competition, while their big blood thinner Eliquis and the revolutionary cancer drug Optivo both go off patent in the next few years. Now, fortunately, a little over a year ago, Bristol Myers bought in Chris Werner, that's Bor and ER as the new CEO and burners of Man With Plant. Under his leadership, the company made a series of multibillion dollar acquisitions to bulk up its pipeline, including a really Special one, the $14 billion takeover of Corona Therapeutics. That's an exciting neuroscience play. Very hard to crack into that business. The new Bristol Myers wants to build a new lineup of drugs focused on oncology, neuroscience, immunology and cardiology. I like this plan, which why I've been recommending the stock repeatedly on weakness. When it pulled back along with the rest of the market in early August, I told you to pounce. Since then, it's up more than 19%. We had the new CEO on the show in September right after Bristol Myers got approval for Cobain Fee. That's the first novel treatment for schizophrenia over 30 years. This is something they picked up from Queer Therapeutics. Now that would have been just, just great. Another great buying opportunity. Stocks up almost 10% since that interview, trouncing the 2.4% gain in the S&P 500 of the same period. That's very special. Now look, I think of Memphis a game changer. Schizophrenia drugs, well they're gigantic business but the current standard of care causes so many horrific side effects that it's very hard for people to stay on their meds. Most of these antipsychotics are like reverse Ozempic. They cause massive weight gain, almost inevitably resulting in type 2 diabetes. They can cause permanent facial tics, make you lose control of your tongue, sexual dysfunction. If schizophrenia wasn't such a terrible disease, no one would be willing to take these things. With Kobenfi, Bristol Myers created a whole new class of schizophrenia drugs. It has a different mechanism of action so it causes far fewer side effects and certainly not severe ones than these antipsychotics that we currently use. They also studying this thing for Alzheimer's related psychosis. And if it works for schizophrenia, it probably could work for extreme cases of bipolar disorder too. I think it would also help a lot of people and also make Dixel Myers a fortune of course and its shareholders. Now I bring this up because last week before Wall street got freaked out by Bobby Jr. We got some major pauses here, at least from Bristol Myers perspective. First on Monday we learned that Abbvie's competing schizophrenia drug had just failed two phase 2 clinical trials. They didn't show a statistically different psychotic system decline. In short, a potential rival treatment to go benefit failed. Suddenly it looks like Bristol Myers has a big lead in schizophrenia treatment. Might even have the space to itself. In response to stock jump it jumped 10.5%. I thought it maybe should have gone higher. The next day an analyst at the Ring Partners, that's a health care focused Wall street research firm upgraded Bristol Myers to outperform arguing that could benefit do more than 10 billion in peak sales if it gains approval for additional indications. That makes sense to me. I actually told management at Bristol market I thought it could do 14, 15 billion. The LARIC analyst also feels good about Milvexion which is a cardiology drug that's currently in phase three trials for atrial fibrillation, acute coronary syndrome and secondary stroke prevention. Now remember, in the not too distant future Bristol Mars will lose patent protection for Eliquis. That's that blood thinner that's going to do 13 billion in sales this year. By 2020, 28 it is going to start facing generic competition here in America and there might be competition in Europe as soon as 26. But with Novexian also blood thinner, maybe Bristol Mars has something that could fill in the hole. But an interesting thing happened this after the stocks began on Monday it stopped Going up. Even after the upgrade from the rig last Tuesday morning, Bristol Myers pulled back a little over 1% on Tuesday before falling another 1% on Wednesday. After a flat day Thursday, the stock lost almost 4% on Friday. That's thanks to the Bobby Jr nomination. Now we can debate whether or not Bobby Jr will even be confused confirmed by the Senate as the next Secretary of Health and Human Services and if he is, whether or not he'll be able to enforce his anti vaccine anti pharmagent in the health care industry. My gut says he'll be approved, but he won't be able to do all that much damage to the industry. For now though, the selling was so bad the Bristol Mars only finished the week up less than 4% despite that monster 10% gain on Monday. Now I think that's nuts. These guys have a treatment for schizophrenia that doesn't cause morbid obesity and that is the holy grail of mental health. So let me give you the bottom line of this incredibly important story. I think the failure of AB schizophrenia drug which could have been a major potential competitor is worth a lot more to Bristol Myers than any damage is likely to take from the Department of Health and Human services run by RFK Jr. Aka Bobby Jr. Well, I don't want to dismiss the threat the secretary Bobby Jr. Could pose to the industry. I think this specific set of circumstances is giving you a fantastic chance to buy Bristol Mars. And weakness. Although the stock's still up nearly 20% since I first pushed it in August, it's Now trading at 8 times earnings. For heaven's sake, I don't think you've missed this one at all. Especially after the stock came off the boil late last week. That money is back after the break.

[SSGA]

Coming up, chip stocks have dipped underperforming the broader market decline in the last week. Kramer's looking closer at one name to get a read on Watson ailing the space. Next.

[Jim Cramer]

When work gets crazy, I like to stop by the bar after have a few cold ones.

[American Express]

I don't drink at all until 4:00.

[SSGA]

We limit ourselves to one bottle of wine a night. Excessive drinking has a way of sneaking up on us. A few drinks a few nights a week, it can add up. And suddenly we're at greater risk for long term problems like heart disease, cancer and depression. Reason enough to rethink the Drink. [e-mail] An OHA initiative.

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[Jim Cramer]

After the initial Trump rally euphoria in the wake of the election, we quickly transitioned to a Trump rally hangover last week where the averages get clobbered. Now some of the worst performers the semiconductors. Now some of that's because tech tends to sell off when bond yields a spike like they did last week. Now some of its company specific though, like the ongoing accounting irregularities at Supermicro. But tonight I want to talk about the key reason for last week's semiconductor sell off. And that was a really good company called Applied Materials, one of the major semiconductor capital equipment makers, long a favorite of mine, which report a seemingly alarming quarter on Thursday night. Then the stock plunged more than 9% on Friday. Rather stark of course. This breakdown didn't come out of nowhere. Earlier this year Wall street was pretty bullish on the semiconductor equipment stocks, betting that the chip industry was bottoming and we were headed for a new up cycle. In the second half though, the whole group's been obliterated with asml, big Dutch company LAM Research, really quality company now down double digits for the year and that's extraordinary. Remember back in mid October ASML reported OK quarter but truly hideous guides, explaining that while equipment for AI chips was strong, the rest of its end markets were still pretty weak. Last Thursday though, ASML held an analyst day where they reaffirmed their previously issued long term revenue target, which would have been helpful except a few hours later Applied Materials reported after the close it wasn't helpful. Now full disclosure, Plaid Materials has a tendency to report solid numbers and not get any credit for it, in part because some of its rivals are struggling. This time the company posted another solid top and bottom line beat and record sales and earnings coming in comfortably higher than expected. I thought when I saw the numbers. This is good news. The guidance for the current quarter basically in line with expectations, though the revenue outlook was a little bit light. Materials guided for Net revenue of 7.15 billion/ or -400. When you when the analysts were looking for 7.24 billion, their earnings outlook on the other hand was slightly better than Wall street was expecting. Those were the overall numbers, but when you check under the hood you can See that some parts of materials are doing much better than others. Their core semiconductor capital equipment business at 73% total sales, basically in line with expectations. But within that business, Applied Materials, three different divisions going in totally different directions. The dram sales declined 10% year over year, most because of elevated purchases from China the year before. Flash sales, a small part of the business were flying flat year over year. And Foundry logic was the main Machinery saw strong 12% sales growth. Even within the foundry logic bucket though, there were some interesting, maybe disturbing disparities. Materials called out robust growth at the leading edge, including a lot more spending from customers on so called gate all around GAA nodes which are essential to putting more transistors on a chip. Also throttling back as power consumption. That's a big theme of ours, making them particularly useful for the newest chips. This past year the leading logic companies started moving their first GAA nodes from the R and D stage into high volume production. And applied materials generated 2.5 billion of revenue from this business that they expect that to roughly double in the 2025 fiscal year. So just like ASML, applied materials made it crystal clear that the air related part of the business is absolutely on fire. But on the other hand, there's this Internet of things communications, automotive power sensors business. Now it's called icaps for short. These are the machines that help manufacture all sorts of established legacy chips that are more vulnerable to ships to swings in the broader economy. Sales for ICAPs NOS were down year over year, which management attributed to high demand in the year ago period. Again, that's mostly China where demand is down big year over year. It's hurting all these guys. Ultimately China was all over. The conference call management touted the fact that the China mix came down to 30% of sales after being higher than that for a few quarters. But 30% still pretty darn high. And it only came down because the Chinese economy is doing so badly. Long story short, a year ago strong Chinese orders boosted the legacy part of Applied Materials business. Now those areas are suffering because they're exposed to the weak Chinese economy and management has no idea when things will get better in the rest of the world. Applied Materials can make more, make, you know, more than that, make up of that business from China by selling tons of cutting edge equipment for AI related chip making. But they can't do that in China because our governments ban them from selling the best stuff to the Chinese. At the end of the day, Plaid Materials told a story that was very similar to what we heard from asml. Last month. The leading edge part of the business is doing very well and it should keep doing well through next year. But some of their legacy end markets with more exposure to swings in the economy are suffering and there's just not much visibility into when things will get better. Applied Materials added some more China specific color to that general narrative, but they basically confirmed what ASML was saying, which is not what we wanted to hear. Plus, with the election results from earlier this month and the second Trump administration coming in about two months, I am very worried about companies that are hostage to the Chinese economy. That will be a theme for me for some time. If you need a turn in China, let's just say I'm much less optimistic about that under Trump. Now, all that said, if you have a long term investment horizon, I actually think a mat still looks good. Actually pretty darn good. Like asml, which confirmed its long term revenue target its investor day last week, Applied Materials gave us some positive commentary about the long term industry outlook, saying it still expected the industry to reach $1 trillion in sales by 2030. That's up roughly 600 billion this year. Now, due to the company's focus on helping to manufacture powerful chips that use less power, plant materials has a ton of exposure to AI and accelerated computing and they are doing great. But if you look at the next couple of quarters, next couple of weeks, let's just say stock become very noisy. So here's the bottom line about a company that I really like that is not working out the end of the day. Applied Materials is largely hostage to economic weakness, especially in China, for the bulk of its simpler equipment that's used to make all sorts of basic chips that go into everything at big gross margins. That was the discouraging new information we got on Friday and it's why Applied Materials saw its stock get annihilated. Unfortunately, it's just not clear when things will get better or at least when the rest of the world will pick up enough to offset the Chinese weakness. Even if you like this one for the long haul, I say you got to be patient because you're likely to get a better entry point going forward. How disappointing. I really expected more. Let's take some calls. Let's go to Robert, Massachusetts.

[Caller]

Robert, hi, Mr. Kramer.

[Jim Cramer]

Hi.

[Caller]

Thank you for taking my call tonight.

[Jim Cramer]

Same.

[Caller]

I recently bought some Arista Networks just after they reported last week.

[Jim Cramer]

Yes.

[Caller]

Then the stock dropped and I said this isn't right. I says, then the next day I bought some more when the stock dropped.

[Jim Cramer]

Okay.

[Caller]

And thinking that they're Going to split, you know, next month, four for one. I thought, you know, it performed better than what it has been.

[Jim Cramer]

Well, Robert, let's take it from here. See, J. Sri Lal is the CEO and she's done a masterful job. Now interest rates went up and that stock is really correlated with rates going up. It wasn't anything she said or did. The business is solid. Therefore I would encourage you to stick with a net. Let's go to Melissa in Texas. Melissa, yes.

[Caller]

Hi, Jim. I want to thank you for all that you do for me.

[Jim Cramer]

Oh, thank you.

[Caller]

Okay. And I'll get right to it. I am wondering if this company has a future because it seems to be beating Palantir. It's a sterile lab and I know the hot debate at 2.67 is out crazy, but is this a promising company like for the future with all the AI connectivity that the company says it's doing?

[Jim Cramer]

And what's the name of the company?

[Caller]

Astera Labs.

[Jim Cramer]

Oh my. They are very good. That was a fantastic conference call. I thought it was a great quarter. You got to stick with that one. Most definitely. All right, let's go to Dimitri in North Carolina. Dimitri, booyah.

[Caller]

Jim, longtime listener, first time caller, excellent calling in. I'm curious your thoughts with with all of the movement towards ASTs and just space in general. Just curious your thoughts on the upside of ASTs and then just generally what are your thoughts on the competition with Starlink? Just coming in from SpaceX and Tesla.

[Jim Cramer]

I think that ast, I wrote a piece this weekend for all members of the club and I singled out AST Space Mobile as one of the most dangerous companies in the market up against really good competition. Don't feel like it has anything proprietary. I don't like that stock. Now even if you like long term story for plot materials as I do, I think you got to be patient on this one because you're going to likely get a better entry point going forward. This was surprising to me. Maybe Lamb's better, I don't know. Now much more mad money ahead, including my look at photonic tech company Light Matter. It's private, it's real interesting. Plus, what's the road ahead for Tesla with recording of Trump's self driving policy plans. I'm going to tell you where I stand and it's a little controversial. And of course Euler calls rapid fire in tonight's edition of the Lightning round. So stay with Kramer. We spend a lot of time talking about artificial intelligence and the chips that make it possible. But you rarely hear anyone Go into the nitty gritty of what makes the tech technology possible. For example, what's the biggest constraint on these fancy super high end semiconductors? It is the electronic interconnects on each chip. Basically the wiring that connects all the transistors together. These have become a huge bottleneck because they can't keep up with the need for high bandwidth, low latency data movement that's essential for handling AI workloads. Which brings me to Light Matter. That's a privately held company that uses photonics to replace traditional electronic interconnects. They can use light signals to transmit data much faster than even the fanciest wiring, which could represent a major breakthrough and help these ultra fast chips reduce their power use. So let's take a closer look with Simona Jankowski. She's the CFO of Light Matter who came over from Nvidia back in July. Mission Cassie, welcome to Mad Money.

[State Street]

Hey Jim, thank you for having me on the show.

[Jim Cramer]

Okay, so I'm going to tell us about the opportunity that you're experiencing now, what you're doing and why you think it's so can be such a big thing.

[State Street]

Absolutely, Jim. And I think you summarized it really well. In a nutshell, we're at the intersection of 2 megatrends. The first one, as you outlined, is that AI is driving very significant demand for very fast datacenter infrastructure. And at the same time we have this interesting other trend, which is that we're approaching the end of Moore's Law. And so the Runway there is really quite diminished. Now, if you look at the last decade or so, it was all about how fast can we make the chips. And in fact, you look at what some of the companies like my former employer Nvidia, have been able to do, it's nothing short of astounding. Increasing the performance of single chips by as much as a thousand times. Now these chips are so fast that the next big bottleneck that we need to solve is how can we interconnect them to each other at really, really high speeds? And in addition to that, how, how can we interconnect many of them in the thousands or in the tens of thousands, to be interconnected in a single logical domain and be able to act as a giant single chip. And so that's where like Matter comes in with our photonic chips.

[Jim Cramer]

Okay, so we have tons of news constantly about how everything burns too hot. We had Dover on Friday. They talked about liquid cooling, Obviously. There's a news article today which says that Nvidia might be falling behind because the chips burn too hot. What can you do to make it so the data center doesn't burn itself up or spend so much of our electric grid and our electricity on their, on their business?

[State Street]

Great question. Absolutely. This is one of the key topics and deservedly so. Specifically our focus is on the network. So the network inside of these large data centers consumes less than about a quarter of the total power. And what light matter is going to be able to do is enable end to end connectivity that is over fiber. So a lot of what happens in data centers today is that the chips are interconnected over copper. And so we spend a lot of energy converting from electrical to optical, back to electrical at each layer of the switching network. And for a very large data center, when you try to get to hundreds of thousands of GPUs, you may have multiple, multiple layers of switching, each one of them undergoing that conversion from copper to fiber to copper. 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. The larger the network, the more the power savings will be able to contribute within the network.

[Jim Cramer]

So who's working with you? Who is trying sampling your product?

[State Street]

So our customers are going to be the large semiconductor customers. So anybody who is making a large AI accelerator or a switch chip, what these have in common is that they need to have a lot of bandwidth, very fast data transfer. We would be working with any one of these customers. I'm not able to share specific names at this point, but we did just have a significant fundraise and we are going to be using that to get ready for mass production.

[Jim Cramer]

What are we doing still using copper? I mean, everybody knows that copper is not the way that we even did it with Telco. How can we still use it in the data center?

[State Street]

It's a great question. You know, most of our neighborhoods now have long since moved from copper to fiber. And this is really the final frontier. It's the challenge of how do you bring the fiber to the chip? Which turns out is not easy to do. So our company was founded in 2017, spun out of MIT by a couple of absolutely brilliant scientists. You know, these are some of the most preeminent minds in the field, most highly cited, have an enormous number of patents to their name. And it's really kind of cracking this challenge of in that very tight, very constrained environment where you're pushing the limits of physics, how can you actually bring a very high density of fibers right up to the chip and get that signal off of that high performing accelerator or switch straight into fiber.

[Jim Cramer]

And just for people's edification, I know that that Jensen, your old boss, Jensen Huang, is always saying, moore's laws, Deborah's law is dead. You still referred to it as approaching to the end of it. Do you believe it's still alive?

[State Street]

You know, I share Jensen's view on this and we at White Matter are very much working toward trying to extend and pave the path to that next. What's next now that Moore's always largely behind us and you know, we really aim to do for this AI networking and connectivity space what Nvidia has been able to do on the computing side, we hope to be able to bring 100 times, even a thousand times speed up when it comes to the connectivity in the network.

[Jim Cramer]

Well, that would be huge, no latency. We all know that. We're all worried, by the way, about how much energy is being used by these. And we know that the grid has to be reinvented. You could really make it so we can go to the next level without that happening. I could see why you would take this opportunity, Simona. It does seem incredibly interesting. That's Simona Jankowski, CFO of Blood Matter, whom I met when she was at Nvidia. Thank you, Simona. Great to have you on.

[State Street]

Thank you, Jim.

[Jim Cramer]

Best of luck to you. Money's back here for the break.

[SSGA]

Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round.

[Jim Cramer]

Next it is time to talk to the white Rhone. You say bye, bye, bye. Sales. Don't know. The stock question might play this out and then the lightning round is over. Are you ready, Skeet daddy? Time for the light round craze. It might start with Ed in California.

[Caller]

Ed, how you doing, Jim?

[Jim Cramer]

I'm doing well. How about you, Ed?

[Caller]

Well, if I had a tail, it'd be wagging, sir. Calling you in reference to company called. I'm calling you in reference to a company called Zazzle.

[Jim Cramer]

I bought into this company in May.

[Caller]

It's up 18% year or 1800% year to date. And I just, you know, curious to know if you think this is.

[Jim Cramer]

First of all, I would take my, 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. I understand why it's straight up. I also did a piece this weekend for club members about parabolic moves, how I don't like them. Let's resolve this by doing a homework piece. I'm going to bring in my chief scientist and research director Ben Stoto and we're going to get to work on this one. Let's go to Sam in New York. Sam, hi, I'm calling about one of America's biggest medical companies. It's. They are. Their stock is going crazy right now. I'm talking about Eli Lilly. Lol. This stock is as hated now as it was loved not that long ago. It is rather amazing. I'm kind of blown away. I think that it is a buy plain out and simple. We almost bought some today for the trust we were restricted. I think it's enough is enough on the selling. Let's go to Reed in Maryland. Reed.

[Caller]

Hi Kramer. Shout out Mr. Marks. Shout out to Ethan Cronin. The stock I was interested in was Coinbase Taker Symbols.

[Jim Cramer]

When I call it up stock, it's just an upstock. You're not going to stop it. There are Palantir's an upstock. Coinbase is an upstock. Robin, it's an up stock. These are stocks that their buyers every time they pull back and there probably will be two year end. Coinbase is a winner. Let's go to Dean in Texas. Dean. Booyah.

[Caller]

JC from the state of Texas.

[Jim Cramer]

All right.

[Caller]

Hey, I've got one for you. I. E. They've had a good run this year. The numbers are out next month.

[Jim Cramer]

This is a terrific infrastructure play. We know it. And one of the things I didn't know about it is it's Jeff Gandell's company. He's a terrific money manager. He's really fabulous. He gets everything. This is a just fantastic stock. I really. You know when we did a profile of it we were not abusive enough for $264 stock. Let's go to Ford in New York. Ford.

[Caller]

Hey, how are you?

[Jim Cramer]

I'm good. How about you?

[Caller]

I'm okay. I'm wondering what your thoughts on Semtech, SMTC and then possibly you could tell me about American Superconductor.

[Jim Cramer]

Well, no mercy. But I don't like it. It's never. It's always surprised, may never bright. I do think that Semtech, it's just a traditional kind of semiconductor company. I do prefer Texas Instruments to that one. Let's go to Bob in Florida. Pop. Bob.

[Caller]

Hello, Mr. Kramer. Thank you so much for your efforts to level the playing field for us not employed in the stock market industry.

[Jim Cramer]

Thank you. Thank you. Let's go to work together.

[Caller]

My que. Okay. My question is on ccj.

[Jim Cramer]

All right, Cameco, we look all the uranium plays are up. I think that they're going to be amount to very little in the end. This is not expensive stock. I understand why you want to be in it. Not versus the others. But it is an incredibly expensive stock versus the rest of the market. That's what I care about. I am a kaching kaching when it comes to Cameco. Let's go to Young in Pennsylvania. Young.

[Caller]

What's up, Jim? Go Birds.

[Jim Cramer]

Go Birds. Go Eagles. What's up?

[Caller]

Two stocks buy, trim or hold. Marvell Tech CrowdStrike.

[Jim Cramer]

Okay. I happen to like Marvell. That's Matt Murphy. He bought a million dollars worth of stock not that long ago. Really important to note that it's really in the data center. It's got an optic component that's very important. I like Marvel. Wish we hadn't sold it, but we had. We did make a lot of money. Let's go to Johnny, North Carolina. Johnny.

[Caller]

Jim, thanks for taking my call.

[Jim Cramer]

Of course. What's happening?

[Caller]

Big, big fans of the color Kramer days.

[Jim Cramer]

Oh my. Yeah. Larson Grace. I'm not that old.

[Caller]

So Apple. My call is concerning Apple, its current evaluation. Is it too rich for an entry point here?

[Jim Cramer]

All right, now I say Apple, own it, don't trade it. 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. Keep that in mind and then pull the trigger. And that, ladies and gentlemen, is the conclusion of the Lightning Round.

[SSGA]

The Lightning Round is sponsored by Charles Schwab. Coming up, meet your next Uber driver.

[State Street]

No.

[SSGA]

1. After a push from the President elect towards self driving cars, Kramer's sussing out the potential for a nationwide rollout.

[Jim Cramer]

Next. Some stories are just too good to be true. And that's how I feel about the possibility of a federal proclamation that leads to a nationwide rollout of fully self driving cars. Tesla stock was up again because we're getting reports that President elect Trump, who is in a valid climate change scenario, has cast his lot with Elon Musk to develop national self driving vehicles. It's pretty clear that Trump doesn't see the need for electrics. In fact, he wants any subsidies, including tax credits for manufacture them. However, he did state, I'm going to quote here, I'm for electric cars. I have to be because you know, Elon endorsed me very strongly. End quote. Little transactional for me. Look, I'm not, I'm not against owning Tesla. You know that. I Just think that this is a bad reason. Elon Musk tells a very compelling story about full self driving as well as solar robots all wrapped up in the one stock of a company that happens to make vehicles. But the idea that the White House can somehow allow self driving cars everywhere with the stroke of a pen, that's just plain fanciful. First, our country simply doesn't work like that. We have state and local governments with tremendous power to block anything. I remember when I was going to be able to take a self driving taxi from downtown Phoenix to Glendale, the home of the Arizona Cardinals, a couple years ago for the Super Bowl. It seems so simple. Except Glendale didn't allow self driving vehicles. I was incredulous. But the municipal government of Glendale was able to block us. Second, you might think it's natural for Trump to just declare the federal Interstate Highway System itself driving zone. But you know what? That's meaningless to think about it. How do you get on the Interstate Highway System? Other than a few municipalities that may be designated on some map someday? It's catch as catch can. The Feds can't control state or local self driving laws. If they try it, those municipalities will sue the Federal Highway Administration and they're going to win. There was another time in this country when a president might have been able to do something about this. In the 1950s, President Eisenhower planned and executed the Interstate Highway System, but he did that for national defense reasons. In those days we had a Cold War with the Soviet Union as an overarching imperative in our nation, which made the Interstate Highway Act a much easier sell. Still, I like the concept that there's what Barclays calls an Elon premium. To me, Tesla deserves the premium. Musk has no doubt influenced the President elect to scrap the $7,500 clean vehicle credit, which will make it much harder for legacy automakers to ever compete with Tesla. We're going to hear from Ford GM CFO at a conference on Wednesday and we'll learn how their electric divisions can handle the end of those tax credits. I believe GM can handle it, but for. Well, they may be stuck in neutral waiting for the warranty issues to dissipate, if they ever can. And then, while I don't buy the national self driving mandate, I think nothing truly dulls the case for owning Tesla. The Musk premium will work its magic in other ways. Perhaps favorable municipalities and Tesla rentals next to federal highways. No matter what though, always remember that Tesla's a tech company, the others are automakers. And a tech company can get an insanely high price journey multiple with no one blinking so much as an eye about it. Like I said, there's always bull market summer and I promise you how to find it. Just for you. Right here on Mid Money, I'm Jim Cramer. See you tomorrow.

[American Express]

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

[Jim Cramer]

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[Jim Cramer]

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