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American Express Representative (0:00)
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Jim Cramer (1:03)
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 Kramer. People make friends. I'm just trying to make you a little money. My job, not just entertain, but to explain. So call me 1-800-743- CNBC or tweet me at Jim Cramer. There's a reason, the reason I have this button on my sound board. It's the sound of a strike of a ball hitting the head pin sending the rest of the pins flying. Oh, it's a beautiful sound. It always surprises and it always delights. Last night Nvidia bowled a strike and today stops of all kinds. Careened and skidded and vibrated and rocked in a symphony of glory. Is sound the sent the average is soaring with the Dow jumping 462 points, SB gaining 0.53% and the Nasdaq advancing 0.03%. Inventory has been duking out with Apple Microsoft. The lanes fighting over who gets to be the largest company on earth. Right now it's head to head with Apple. 3.5 trillion for video versus 3.45 trillion Apple. Yes, that's right. Nosing out. Apple is the champ. Microsoft has suddenly fallen Way behind the leaderboard drops off even bigger than what who. Make no mistake about Nvidia Strike last night is opening some distance between it and the rest of the field. The numbers are staggering for a company just few of you heard of, say recently as two years ago when its market cap was just 500 billion and video booked 35 billion in revenues last quarter with a net income of 20 billion, 75% gross margins. Those numbers are preposterously great. Preposterously. Just a spectacular, spectacular ramp up. Now, a year ago, so many critics were claiming videos absurdly expensive trading at 50 times forward earnings. People laughed at me for championing the seemingly overvalued semiconductor stock. Well, when we see the actual numbers, it turns out that a year ago Nvidia was really only trading at 20 times forward earnings. That's how incredible these results, these results were. In retrospect, it was cheap, cheap, cheap. That's what happens when a company outruns the estimates. And as I've told you repeatedly, Nvidia has been outrunning the estimates for a decade. Super expensive now. Perfectly reasonable. That's the stock that is in video. It's why I've loved it for so long. How do they do it? Oh, Nvidia is rolling not one, but two balls down the lane. One being accelerated computing and the other being artificial intelligence. It's all happening because CEO Jensen Wong and his team may be the best bowlers of all time. Figuratively speaking, of course. This morning I squawk in the street. My fabulous partner Carl continues started off the show by asking me what I thought about in videos quarter. At the time the stock was down a buck or two and I was muted. I was clinical. I wanted to hype a stock I've championed to the point of ridicule. But then I sat back and I paused for a moment. Not my strong suit. And I said that frankly, I've never seen anything like what's happening at Nvidia. Never. Just never. And even though the stock was down despite 19 firms raising their price targets this morning I said this stock simply not capturing the seismic shift that's happening here. See? Invidious. Disrupting everything we know about business. There are only so many superlatives when it comes to the demand for their technology. We've heard it called insane. We've heard it called enormous. Last night the operative word was staggering. I think even Jensen struggling for analogies at this point. Like when he was talking about how one use, one use for the latest and greatest chip. Blackwell is open AI which he said is something completely new like the iPhone. The iPhone. He compared it to. We think of the iPhone as this once in a lifetime invention. But when you go through the Nvidia call, you realize that the iPhone may be smaller by comparison, small. In the end that was just a single device. No matter how revolutionary in various chips, the they're remaking the world as we know it. There's $1 trillion worth of computing power that needs to be replaced by Nvidia. There's trillions of dollars in factories that need to be built with the Nvidia Omniverse. There's trillions that can be saved in legal work, forecasting, supply chain management, engineering and most of all coding where you can just speak to the machine and tell it what to do in plain English rather than a programming language. Trillions to be made in humanoids. And Elon Musk plan to give everybody a human like robot to do the dirty work. The drone stuff, it's positively Shakespearean. I've been thinking maybe it's Jensen's world and all the men and women are merely players. Or going back to the more prosaic bowling analogy, this quarter was so earth shaking that it caused whole sectors to fly in different directions. First the positive. Jensen made it clear that we don't have enough power now to handle all the demand from these machines. So that causes power producers like Constellation Energy and Vista to fly. It bolsters the case for the data center place meaning verdict. Dover and Eaton, the picks and shovels of the data center. They can soar. Jensen dropped that there are some memory shortages perhaps related to high bandwidth chips. Oh, that's micron symbol mu. Been waiting for that to roar. Optical product which is backbone plumbing. Oh that's Marvell Tech Amphenol connector company gets a shout out so its stock jumps. These are all classic in action. And then I want you to write this down because it's something that you're going to be hearing over and over again. I want you to be ready. It's called Agentix A G E N T. I see new word Agent X for a whole new form of computing where you have agents in your organization powered by Nvidia with say Salesforce among others getting a big shout out. Mark Benny of CEO of Salesforce has been talking about his Agent Force, a product capable of creating billions of agents agenda. What does it mean? Let me give you an example. Today I wanted to speak to a doctor about the results of a test I took Monday. I called and I got the usual automated recorded idiot who knows nothing about me with four different choices which I needed to have repeated because they went so fast. Then I pressed 2 in order to speak to someone who might be remotely related to the person I wanted to speak, but they weren't. So then I got back in the queue and all I pressed three. There I got to a human, but it was the wrong woman who transferred me to the right person who wrote my number down but didn't get my name. And I never got a call back. Anyway, in the agentix world, I call an agent, answers. It knows my name because it recognizes my number. It calls up my record and asks me if I wanted to speak to the doctor I saw earlier in the week. I would say yes, and then it would ask me for a detailed message which would be given to the doctor if you could answer the question by itself though, because it has all the information you need to handle frequently asked questions. That's Agent X, conversational non existent Agent, all powered by Nvidia. You get a human. I say, I don't want the human, I want the agent. So Salesforce goes flying along with Accenture and ServiceNow. Some companies, some goes for companies that aided the process. Cadence, NetApp, Nutanix. Oh, but let me get a little downside because it's kind of amusing. On a huge update, Microsoft stocks down $1.79, MET is down $2.43, Amazon falls $4.50 and Tesla loses $2.39. Why? Because these are Nvidia's biggest customers. For almost a year, we've been hearing the canard that the spending on video chips couldn't last, that they couldn't continue. Demand can't continue to overwhelm supply. But those are a pack of lies. The demand is accelerating because the payoff is so great. According to Jensen, for every dollar their customers put in, they're making five smackers. That means they have no choice but to buy Nvidia's chips because they need to be relevant in Jensen's world or else. So forget about the idea that Nvidia stock is all about to hit a wall. Me, I think the strikes we saw rolled last night are just the early frames we may be witnessing. Nothing short of a turkey, a hamburger, a brat, or even a six. Badger. That's right, a three, four, five, or even six strikes. A lot of frames, a lot of game. Here's the bottom line. I never thought I'd say this, but I too am out of super. What's happening in video so positive that it defies Description. Our minds can't comprehend it. Fortunately, we don't have to. Jensen has the technology and the smarts to do it for us. I'm going to Robert in New York. Robert.