Mad Money w/ Jim Cramer 1/15/25

Summary

Mad Money w/ Jim Cramer – Episode Summary (January 16, 2025)

Hosted by CNBC, this episode of "Mad Money" delves deep into the current state of the stock market, insightful interviews with industry leaders, and strategic investment advice, all aimed at empowering investors to make informed financial decisions.

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Market Overview and Insights

Jim Cramer opens the episode by analyzing recent market movements, highlighting a day of significant gains fueled by positive earnings reports and favorable inflation data. He emphasizes the importance of understanding macroeconomic factors and their impact on stock performance.

• Market Surge: Cramer notes, “You get some positive earnings, you get some good inflation numbers. Then suddenly you end up with a fantastic day for the bulls” ([07:00]).

• Inflation Analysis: He discusses the Consumer Price Index (CPI) figures, stating, “They were fine. Not perfect 3.2% core inflation. But there were so many people betting that the inflation numbers would be horrific” ([07:30]).

Cramer advises investors to focus on company fundamentals rather than being swayed by macroeconomic rhetoric. He underscores the importance of profits in driving stock prices and cautions against being intimidated by Fed policies or bond market fluctuations.

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Interview with Patty Poppy, CEO of PG&E

Cramer engages in an in-depth conversation with Patty Poppy, the CEO of Pacific Gas and Electric (PG&E), addressing the company's response to recent wildfires and its strategic initiatives to enhance safety and profitability.

• Wildfire Mitigation: Poppy explains, “We can make them stop with technology. We can make them stop with our layers of protection” ([13:31]). She highlights the use of AI-enabled cameras that have successfully identified and addressed potential fire hazards, preventing structures from burning.

• Financial Resilience: Discussing the company's financial strategies, Poppy mentions, “There is a wildfire fund that is designed to protect both victims and of the damage as well as investors” ([14:45]).

• Nuclear Power Advocacy: Poppy advocates for nuclear energy, stating, “Diablo Canyon provides essential power, carbon greenhouse gas free power for California” ([16:03]).

Cramer expresses confidence in PG&E’s leadership, concluding, “I think it's a buy, stable crib” ([17:59]).

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Discussion with Rene Haas, CEO of ARM Holdings

Cramer interviews Rene Haas, the CEO of ARM Holdings, focusing on the pivotal role of CPUs in the evolving technology landscape, particularly in AI and enterprise solutions.

• CPU Importance: Haas emphasizes, “There are no GPUs without CPUs” ([29:41]), highlighting the indispensability of ARM’s CPU technology across various devices and applications.

• Market Expansion: He discusses ARM’s expansion beyond mobile phones into data centers, automobiles, and IoT devices, noting, “We estimate that 70% of the world’s population uses ARM in some way, shape or form” ([30:21]).

• AI Integration: Cramer and Haas explore the integration of AI into enterprise security, where Haas asserts, “We're launching a product around safety and security to make sure that those guardrails are enforced” ([22:44]).

Cramer praises ARM’s strategic positioning, stating, “I think you're a great spokesperson for a terrific company” ([34:59]).

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Conversation with Daniel Laurie, Mayor of San Francisco

In a special segment, Cramer sits down with Daniel Laurie, the newly sworn-in Mayor of San Francisco, to discuss the city’s initiatives to enhance public safety, attract businesses, and revitalize the local economy.

• Public Safety Initiatives: Mayor Laurie outlines efforts to address the fentanyl crisis and homelessness, asserting, “We got to make sure people feel safe. We got to go after the fentanyl crisis” ([41:10]).

• Police Department Expansion: He commits to increasing police staffing, stating, “We should be at 2000 officers” ([42:09]).

• Economic Revitalization: Laurie emphasizes creating an environment conducive to business growth, saying, “It’s not my job to tell business leaders you have to be in the office five days a week. It’s my job to create the conditions so that they want to look at how beautiful it is” ([41:10]).

Cramer expresses optimism about San Francisco’s trajectory, remarking, “business is going to come flooding back” ([45:44]).

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Lightning Round

The episode concludes with the popular Lightning Round, where Cramer provides quick buy, sell, or hold recommendations based on callers' inquiries.

• Snapchat vs. Meta: Tyler from California inquires about Snapchat amid TikTok bans. Cramer advises, “I would even go with Meta” ([08:09]).

• Viking Therapeutics: Mark from New Jersey asks about Viking Therapeutics. Cramer humorously suggests selling the biotech stock and investing in Viking Holdings, a cruise line, highlighting the need for strategic portfolio adjustments ([36:20]).

• Dupont Portfolio: Grant from New Mexico seeks advice on managing a diversified portfolio. Cramer recommends holding onto Dupont, citing its value and recent strategic spin-offs ([40:03]).

Lively interactions with callers illustrate Cramer’s dynamic approach to real-time investment advice, blending humor with financial acumen.

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Key Takeaways

• Focus on Fundamentals: Cramer consistently advises investors to prioritize company profits and management performance over macroeconomic noise.

• Technological Advancements: Interviews with industry leaders like Patty Poppy and Rene Haas underscore the critical role of technology and innovation in driving business resilience and growth.

• Economic Optimism: Conversations with the Mayor of San Francisco reflect a broader optimism about economic recovery and the potential for business revitalization through strategic public policies.

• Strategic Investments: The Lightning Round segments provide actionable insights, encouraging investors to make informed and strategic portfolio decisions.

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Notable Quotes

• Jim Cramer: “My mission is simple. To make you money. I'm here to level the playing field for all investors.” ([01:21])

• Patty Poppy: “Our wildfire risk has been reduced over 90%. And that's because we do inspections, restorations, rebuilding, hardening of our lines.” ([14:45])

• Rene Haas: “There are only going to be two kinds of companies in the future in the world, Jim. The one is folks that are going to be really good at AI and know how to take good, may make good use of it.” ([20:42])

• Daniel Laurie: “We have to fully staff our police department. You're right. It's around 1400. We should be at 2000 officers.” ([42:09])

• Jim Cramer: “Remember, Jeff Marshall makes it work. Ben Stoder. The whole team does a great job.” ([36:21])

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This episode of "Mad Money" offers a comprehensive analysis of the current market landscape, valuable insights from key industry figures, and practical investment advice, making it an essential listen for both novice and seasoned investors.

Transcript

[Jim Cramer]

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[Jim Cramer]

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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. Always a bull market somewhere. And I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to a special San Francisco edition of Mad Money. Welcome to Kramerica. I'll be with my friends. I'm just trying to help you make some money. My job is not just to entertain, but to explain. So call me at 1-800-743-CNBC or tweet me imkramer. You get some positive earnings, you get some good inflation numbers. Then suddenly you end up with a fantastic day for the bulls. Dow surging 7 and 3 points, S&P jumping 1.83%. The Nasdaq poll voting 2.45%. Lately, there have been a lot of days where I have to come out here and explain how the hidden boogeyman of the bond market crushed stocks. Other days I have to explain to you the concept of beat and raise. How stocks don't go up just because companies beat the earnings estimates. They have to raise their forec. But then there are those rare days, rare perfect days when it all comes together and we try to figure out why this can't happen all of the time. So let's Go over what really happened today and why stocks roared first for two months. We heard that inflation's raging. But when we got the consumer price index numbers this morning, they were fine. Not perfect 3.2% core inflation. But there were so many people betting that the inflation numbers would be horrific, leading to rising bond yields, falling stocks, that it was almost a gimme when we got an in line inflation reading. You could see it coming when everyone's expecting an overheated number. Basically in line one equals success. As an aside, no one doubts that inflation's too high. 3.2% for core inflation is still about a point higher than we're willing to live with. You could argue that inflation is what decided this election. Normally when you get 4% unemployment, the stock market, there's a move, but the incumbents unbeatable, right? But people really hate inflation. It's what crushed Gerald Ford, it's what crushed Jimmy Carter. I don't want to talk politics, but when I saw this morning's earnings and more important, when I talked to the executives who run the institutions that reported today, the banks, there was a palpable sense of optimism about the future, even among those who might know lean democratic. I heard a lot of horror stories today about how the Biden administration so hardcore anti business and that attitude won't miss it. Just today we got news of restrictions on high end semiconductors. Yes, again, again another surprise to the industry that deserves better. And we got restrictions on some biotech equipment sold to China. Thank you. I come back and say what the heck, the clock is ticking people and you guys keep throwing incoherent monkey wrenches at business people who've tried hard to play by the rules which keep changing. They've got less than a week left and they're still pulling this stuff. I don't think there is anyone on TV that is tougher on China than I am. But I'm not going to throttle our companies with lists of who can and who can't get large amounts of semis. We don't do that in this country. We don't pick favorites. And tell Jensen Huang, who is the CEO of Nvidia, here are your countries you can do big businesses and here are the ones you can't. Just so wrong. Just palpably painful and totally off the reservation. But given that this should be a day of celebration of the ownership of equities, I would take a moment to talk about all the obstacles you had to clear in order to get to this point where you could profit from owning stocks. On a great day like this one. First, for months the whole conversation about this market wasn't talking about stocks, was talking about dominated by the bond market, the Fed. But whenever you focus exclusively on what we call macro, you're presuming that CEOs are nothing but statues waiting to get hit, getting torn asunder by powerful forces they can't control. And that my friends, is dead wrong. As we saw for the banks today, the smart ones can make a ton of money in this environment. So I want to urge you not to focus on the Fed had gas bags or the economists who prattle on endlessly about how many rate cuts we might get this year. Not that is a total abstraction. As long as the Fed generally wants rates to go lower, you're fine. The details are not important. It's easy to shoot your mouth off about this stuff, but it doesn't necessarily help anyone making good investing decisions, which is what we do in man money. Stop being scared by them. They are not there to help you. They are not there to help you make money. Second, profits can make a lot of things work. Respect strong profits as they turn into higher stock prices. Third, you may think that the market has thrived under Biden, but much of that strength came from the Magnificent Seven. And the real issues that perplexes the American people is how much more everything costs than it did four years ago. If we can finally beat a rollback inflation, then ordinary people will be as optimistic as the CEOs are now. Under a president who likes to talk to CEOs to see what's going on. Hey, so what you want about this President elect Trump? He's not afraid of a photo op with a farmer, a tech or a fossil fuel CEO. No, you don't mind CEOs? Come on here, let's go like this. So put it all together and you can see that the optimism is indeed contagious. I've been on so many bank conference calls where they we've had positive earnings but then it downbeat through the future didn't happen this time. Which is why you got some tremendous follow through in their stocks. And that follow through may not be over. Remember this, the people who chatter endlessly about interest rates, they are not your friend. They can shake anyone's confidence. Instead you got to keep your eye on the price, how management's doing, the profits to ring up and the belief that you can spend money too, make money. If you were focused on anything else, your money would have been withering in a CD today. Jerry, there's really Only a couple of great days like this one in any given period of time. If you're scared out of the stock market, if someone told you to get out now and you listen to them, especially because of the Fed, I can't help you. Here's the bottom line. All the big gains for the market happen on a handful of days around here. This was one of those days and I sure hope you got a piece of it. Let's take calls. Let's go to Tyler in California. Tyler, hey, big booyah from California. How you doing Jim? Man, you're down the box for me. I'll be there in a snap. What's happening? Speaking of snap, what's your take on Snapchat? With the looming ban of TikTok coming. Well, I sure didn't mean to mention snap in the same breath of snap you want to do. There are so many more companies that are better prepared for this. I'm telling you, I would even go with Meta and by the way, he's jacked and he's got the gun and it's really terrific. I watched that on the Joe Rogan show. So he's got every, every box checked. I say go with Meta. I want to speak to Cheryl, L.A. cheryl. Jim, hi. I want to thank you and your.

[Cheryl]

Staff for educating all of us about investing.

[Jim Cramer]

Your lessons have helped me to become financially independent. That's what I want. That's why we do the show for 19 years. Thank you Cheryl.

[Patty Poppy]

I love it. My question today is about Katera, a.

[Jim Cramer]

Stock that you like in the natural gas arena.

[Patty Poppy]

It currently makes up about 10% of my portfolio.

[Jim Cramer]

Last week on Squawk Box said you think that nat gas will go down to about $2 this year. But currently Kotera is doing well with NAT gas at approximately $4. How do you reconcile that?

[Patty Poppy]

And what is your recommendation? Should I hold trim?

[Jim Cramer]

Yeah, you got to hold Kotar Big, big, big, big, big, big position for portfolio for the chapter. Why I just said it could go down is because there could be a lot of people who drill and it's going to be very helpful regime the fossil so it might drive the price down. But you're right, it's making a ton of money right now and it's hit a 52 week high. Look, most of the market's gains come and today was one of those days. I hope you were able to take part in it. Well made money tonight I'm rounding out my time on the west coast with another slate of exclusives you do not want to miss from utilities to tech. I'm checking in with CEOs at Cisco, ARM, Holdies and PG and any plus I'm hearing from the new Mayor of San Francisco, Daniel Laurie. So I want you to stay with Bye bye Bye.

[Unknown Host]

Don't miss a second of Mad Money. Follow imKramer on X.

[Jim Cramer]

Have a question?

[Unknown Host]

Tweet Kramer hashtag 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.

[Jim Cramer]

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[Patty Poppy]

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[Jim Cramer]

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[Patty Poppy]

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[Unknown Host]

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[Jim Cramer]

Ever since the tragic wildfires in Gulf Los Angeles utility stocks with California exposure, they've all gotten eviscerated. Even if they have absolutely nothing to do with LA. Take PG&E. One of our favorite. This is the parent of Pacific Gas and Electric, only operates in Central and Northern California, no L A whatsoever. And they've done a lot of work over the years to make their systems fireproof. You heard management say that on our show. Yet PG&E stock has tumbled roughly 15% since the fire started. I got to ask you, could this be the buying opportunity we're waiting for? Let's take a closer look with Patty Poppy. She is the CEO of PG&E. To learn more. Ms. Poppy, welcome.

[Patty Poppy]

Thank you. Jim Cramer, so nice to be with you as always. Welcome to our great San Francisco. We're happy to have you.

[Jim Cramer]

Well, I want to give you a chance first to speak to the Southland because I know that you understand the problems they have.

[Patty Poppy]

First of all, our hearts go out to all of the victims and the entire community. It's a devastating situation and we're thankful for our first responders who are doing valiant work. And I'm thankful to my crews who are down in support. We've got hundreds of people who travel down to LA to support on the rebuild and the restoration. That is going to be important work to be done.

[Jim Cramer]

Now, you have expressed to me over and over again that you've spent a considerable amount of time even just considering the notion of fire. In your November 7th conference call, you did say, as you know, our stand here at PG and E is that catastrophic wildfires shall stop. How can you make them stop?

[Patty Poppy]

We can make them stop with technology. We can make them stop with our layers of protection. We've proven that our system has never been safer. Our wildfire risk has been reduced over 90%. And that's because we do inspections, restorations, rebuilding, hardening of our lines, making sure that our equipment is de energized when it's in high risk fire situations. Our this wildfire season, this last 12 months has been significant. Fires of over 10 acres are up one and a half times to almost three times previous record levels. And yet we've had zero structures damaged as a result of PG and E safety measures. So I'm proud of the team. And yet there's more to do. We're still not satisfied. But what's important for investors to understand is that there is a wildfire fund that is designed to Protect both victims and of. Of the damage as well as investors. Investors in utilities. California has a model our policymakers put into place, a model that is the envy of the nation. Every other state is looking at how can we replicate the California protections for both victims and investors.

[Jim Cramer]

Well, you expressed that when we first saw you when the stock was in the low teens. It was rather remarkable because I was skeptical. You made me a believer and that was the right thing to do. Now, I do want to ask you in terms of that technology we've been out to see in video, it's obviously Jason was a wonderful man, but he says that the way that you can spot the hot spots and then get to them ahead of time is here. Do you use that kind of technology?

[Patty Poppy]

Yeah, we use AI enabled cameras that identify where an ignition has occurred. And in fact, the Cal fire chief was testifying to the state legislature and talked about 200 occasions on which those cameras notified first responders instantaneously. And in nine cases, there was never a 911 call. Never. So the only way first responders knew was because those AI enabled cameras who can differentiate between a barbecue and a real fire, who can see the difference between fog and smoke, can get first responders on the job instantaneously. It's a huge enabler to safety.

[Jim Cramer]

Well, I want people to understand that you've been a visionary. When I first met you, you talked about how we're out of power. We need the nuclear power industry. And a lot of people felt that nuclear power was the wrong way to go. You were obviously correct in that. What's going to happen in terms of the power generation that we need for these data centers? Yeah.

[Patty Poppy]

I think first of all, we have to utilize our existing assets best and most efficiently. So our Diablo Canyon nuclear power plant, extending the life of that was smart. It was.

[Jim Cramer]

I was there when they create the idea, of course, the left wing, and we all thought it was a horrible thing. You knew. You knew we were going to need diaphragm.

[Cheryl]

Yeah.

[Patty Poppy]

And Dabble Canyon provides essential power, carbon greenhouse gas free power for California. I think also we have new technologies to optimize the utilization on the grid. And some people worry that EVs will strain the grid. Combined with these data centers. I say that's actually the light at the end of the tunnel. We can finally bend the cost curve and start to stabilize costs for energy costs for customers. By leveraging new load, new customers grow demand for electricity in America. Grow demand for electricity in California help customers have more affordable access to energy.

[Jim Cramer]

Now do I have to worry about the at the money offering that you're doing? I think it's great that you always want to raise money because you've got more demand than any utility. But has that hurt the stock, do you think? Or is it really just this guilt by association which is wrong?

[Patty Poppy]

Yeah, I think investors are worried about the longevity of this fund and what I think is very important for investors to know, number one, capital is going to be essential for rebuilding California. California has gone through crises before and has always risen to the case and to the cause. And our policymakers know that we need to have healthy investor owned utilities in California to enable the clean energy transition. I have confidence in our policymakers. If a change is needed to this construct, if there's an improvement that is required, they will definitely step up to make sure that our state is open for business and that we will overcome this most recent challenge. California always does well.

[Jim Cramer]

I have confidence in you. You have been true to your word the whole way, which is wonderful. We don't have many CEOs like you on this show. That's Patty Poppy, CEO of PG&E. And yes indeed, I think it's a buy stable crib.

[Patty Poppy]

Every day thousands of Comcast engineers and technologists create connectivity solutions that change the way we work, live and play. Like Kunle, a Comcast engineer who is.

[Jim Cramer]

Focused on revolutionizing the in home WI.

[Patty Poppy]

Fi experience today and for the next generation. Learn [e-mail] wi fi and now a.

[Unknown Host]

Next level moment from ATT Business. Say you've sent out a gigantic shipment of pillows and they need to be there in time for International Sleep day. You've got AT and T5G so you're fully confident, but the vendor isn't responding and International Sleep Day is tomorrow. Luckily, AT&T 5G lets you deal with any issues with ease so the pillows will get delivered and everyone can sleep soundly, especially you. AT&T 5G requires a compatible plan and device. 5G is not available everywhere. See att.com 5g4u for details.

[Jim Cramer]

After spending our first couple days in San Francisco fully focused on the J.P. morgan Healthcare Conference, let's not forget this is Silicon Valley, for heaven's sake. Earlier today we took a quick trip to Palo Alto for Cisco's AI Summit, where they rolled out the new AI defense platform. I had a chance to speak with Chuck Robbins, Cisco's chairman CEO, along with G2 Patel. He's the EVP and chief product Officer. I would need you to take a look at this Launch. Chuck, we're at the AI Summit and I've got to tell you, I'm chilled. You talking about lots of companies, even after all the big hacks that are completely unready, how is that possible?

[Chuck Robbins]

Well, Jim, first of all, thanks for being here today. We're really excited. We have a. We have a great agenda of the who's who in the AI industry, candidly. And we have over 100 customers. We kept it very intimate. I think probably 40% of the Fortune 100 are here. And so we're pretty excited about it. This is actually a big announcement in this space because we think the advent of AI is going to just exacerbate the cybersecurity issues. And so G2 and the team have done an amazing job of building this first wave of security products. And it's going to be a big.

[Jim Cramer]

Day for us due to the first and great to meet you. I. When I read who's at the conference and then what. I know what, let's just say the prc, the Chinese are doing, they feel, I feel like they're ahead of us. You've got pacesetters from your report, but then we have chasers, followers and laggards. That's three groups that are just ripe for the picking, aren't they?

[G2 Patel]

But, you know, the thing is, is there's only going to be two kinds of companies in the future in the world, Jim. The one is folks that are going to be really good at AI and know how to take good, may make good use of it. And the second class is the ones that are going to struggle for relevance. And the, the first class, the great ones, they want to move fast, but they actually get held back by this safety and security quite a bit. And so there's a common interest right now in saying what do we need to do to make sure that we don't trade off, you know, safety and security for, for speed. And we need to make sure that we have both. It's not a good trade off to make.

[Jim Cramer]

Well, and I see the client list that's here and people are speaking. I see, for instance, the banks and it makes me worried because that's where our money is. I always fear that I could wake up one day and the money's gone. How do you make it so that. What are you guys doing and talking about that? We cannot let.

[Chuck Robbins]

That should make you feel better that they're here.

[Jim Cramer]

That's true. Because they will know more after this. But are we okay? Just tell me, are we okay?

[G2 Patel]

I think there's always going to be risks that you have in security, but then you always have to stay a little paranoid. But if you think about what's happening right now, the architecture of how applications are getting built is fundamentally changing. And so you know, if you think about models, they have this characteristic of being non deterministic, which means that they're very unpredictable.

[Jim Cramer]

Right.

[G2 Patel]

And you got to make sure that you ensure that there's some guardrails around that so that the applications you build in the next era are predictable and that a bank doesn't have a surprise that happens or a manufacturing company doesn't have a surprise that they didn't want as a result of AI. And that's what we do is we're launching a product around safety and security to make sure that those guardrails are enforced.

[Chuck Robbins]

And if you, if you think about Jim, one of the big things is that we're moving from the models, consuming all this public data.

[Jim Cramer]

Yes.

[Chuck Robbins]

And really moving the models into the enterprise and taking advantage of a much larger data set which is what exists in the enterprise. So this, this is timely because that's where this is going to become even more important.

[Jim Cramer]

Now you guys uniquely understand the role of the enterprise. That has always been your strength. Enterprise really starting to spin. Can you do something that I've always hoped would happen? The enterprise has a mixture of humans and agentix. Make it so that the machines are really good and can help the humans be better.

[Chuck Robbins]

Yeah, go ahead.

[G2 Patel]

Gt well if you think about it, the workforce composition is going to completely change over the course of the next few years. Right now 100% of the workforce is humans. I think in the future you're going to have agents, you're going to have applications, you're going to have robots, you're going to have humanoids. And when that happens, the security risks also get completely refactorized.

[Jim Cramer]

Well, my worry here is that they may they the proverbial people who went in, they have access to everything. They have great robots, they have great AI. How are you ahead of them?

[Chuck Robbins]

Well that's why this is so important. And I think, you know, if you just to add on to what JITU is talking about, then we'll jump to that. I also think about this. There's a whole debate around replacing people versus augmenting people.

[Jim Cramer]

And your business roundtable hat we know it's going to be with the new administration.

[Chuck Robbins]

I think, I think the way the CEOs that I know so well are thinking about this, it's just going to make us More productive and give us the ability to move faster. I think that's what, that's what this is ultimately going to boil down to on the security front. I think this has existed forever. Look, when we, if you go back to the 90s when everybody, every enterprise was an island, we had, we had some security, we had viruses and all those kinds of things. Then you fast forward, then you had the Internet explode, then you had cloud come into play, and then you have virtualized building of enterprise networks across the Internet. So we just continue to evolve and this one is a, is a step level increase. But I think that's why it's so important for us and other security companies to be ahead of this thing and candidly to partner. I firmly believe that the security industry has to partner together more effectively than we have in the past in order to help keep our customers safe.

[Jim Cramer]

I think it's interesting, when you bought Splunk, you told me that could, that you would have a holistic, unified approach that the corporation, the clients would really love. I think a lot of people are saying, well, how can it really work out? It's a testament to who's here. And by the way, it's a testament that you're on the 52 week high list. And you know, I'm a stock guy. I think these are all coming together. And Splunk was a great acquisition.

[Chuck Robbins]

Yeah, we feel really good about where Splunk is right now. We'll have obviously talk about its performance in a few weeks on our earnings call. And I suspect I'll.

[Jim Cramer]

I don't want to front run that.

[Chuck Robbins]

Yeah, we don't obviously. But I think that Nikesh and I have talked about it others, other security companies we've talked about. The only way we're going to ultimately protect our customers is if we share real time threat intelligence, real time so that we can correlate what's going on. That something they're seeing as something we're seeing might actually help us resolve the problem as opposed to us seeing what we see. They see what they see. I just really believe this is really important for the future.

[Jim Cramer]

This highly unusual to me, Cash, Aurora. We're talking about a very competitive individual at Palo Alto. It must be a crisis if mortal combat companies are getting together to help combat.

[G2 Patel]

If you think about it, the true enemy is not the competitor, it's the adversary. And so if you can make sure that as a community, we all kind of band together, we will be able to beat the adversary. And it's very clear who's Good. Who's bad in this equation?

[Chuck Robbins]

You know, I don't think it came out of us believing there's a crisis. I mean, there's certainly issues. But he and I were speaking at an event a year ago actually, and we just begin, we just started having a conversation and we're friends, we, I know we interact. So but we, we just started talking about the, the industry and we both agreed that this is the only way we're going to ultimately solve them.

[Jim Cramer]

And I just. One last question again for your business, this roundtable. There's a level of optimism and constructive thinking that I know I myself and I think Jay Powell, the Federal Reserve are kind of surprised by what the heck's happened in the country that there's just a clouds lifted. And I'm speaking to Democrats, I'm not speaking to Republicans, I'm speaking to Democrats too.

[Chuck Robbins]

Well, you're speaking to business people. And I think that's, that's the issue. And regardless of what you are, the reality is the incoming administration is very probish business. They're focused on delivering, you know, next generation tax reform. They're focused on solving these immigration issues, both the border as well as the H1B issue. You know, we need to work closely on the whole notion of trade and tariffs because that obviously is a big part of what they're thinking about and bringing manufacturing back to the US and all those things.

[Jim Cramer]

But we have an incredibly low unemployment rate. The stock market went up. I mean, these are typically the things that we would say were signs of a successful business administration, but it was almost in spite of the government.

[Chuck Robbins]

Well, I think when you look at areas like permitting reform and other things like that, and some of the, certainly some of the regulatory that we face and the tough stance that was taken on M and A that you've talked about quite a bit, I think those we would expect will actually free up and we'll make business business more effective.

[Jim Cramer]

Well, look, I want to thank you for having us here for air Defense. By the way, the 2024 Air Readiness Index that you put together, 29% of the survey feel fully equipped. That's what made me afraid. But I do feel better that everybody's here. Gigi Patel, thank you so much.

[Cheryl]

Great to meet you.

[G2 Patel]

Such a pleasure.

[Jim Cramer]

Product officer and of course Chuck Robbins, chair and CEO of Cisco. Always great to see you. To meet you. Thank you so much. While we're out here in San Francisco, well, we got to check in with some heavy hitters in tech like ARM holdings, the huge semiconductor Design outfit. This has been one of the great performers of the past couple years. After it came public, September 2023, recommended immediately. But for most of last year, the stock traded sideways. However, just in January, AAM has shot from 123 to 147, including a 5% gain today alone. So is it time to get excited about this one again? Well, you know I am. Let's check in with Rene Haas. He's the CEO of ARM Holdings. Find out. Renee, welcome back to Money.

[Unknown Host]

Thank you, Jim.

[Jim Cramer]

Okay, so a lot of people tell me, Jim, why are you back in a CPU? It's all about GPUs. And I say, there are no GPUs without CPUs.

[Unknown Host]

Well, you know, I've never seen a GPU without a CPU in a system.

[Jim Cramer]

Gpu, beside being Nvidia. I'm sorry, I'm being.

[Unknown Host]

But I've seen a lot of CPUs stand by themselves. So the CPU is fundamental, Jim, to just about every digital device you can imagine, whether it's your automobile, your ring camera, your iPhone, your Android phone, the data center. You have to have CPUs, and they run a lot of workloads. And we're happy to combine with a GPU or any accelerator, but you have to have CPUs.

[Jim Cramer]

Well, we listen, of course, to Jen Schmong at Nvidia, and he talks a lot about Grace Blackwell. And you would say, okay, I got to be in. In his kinds of chip. But his kind of chip doesn't ship without your kind of chip.

[Unknown Host]

Oh, absolutely. And there were some really cool announcements that they made at ces. One of them was Digits for Project Digits, as he called it, which is kind of an AI minicomputer, if you will, which ships with 24 ARM cores and a Blackwell GPU where you can run AI on your desktop. A very good example of just really what you can get in terms of the ARM CPU along with a GPU from Nvidia.

[Jim Cramer]

I did not know that. I didn't know that. I think that when I said there are a lot of people who think I have some knowledge of your company, but a lot of people say to me, jim, look, I don't think you can outrun the cell phone industry. And I say, well, it doesn't need to outrun the cell phone. That's the old arm, not your arm.

[Cheryl]

Yeah.

[Unknown Host]

I mean, we've expanded our business so much over the last decade, whether it's the data center, whether it's automobiles again, security devices. You know, we estimate that 70% of the ARM of the world's population uses ARM in some way, shape or form. And Last year over 30 billion ARM cores shipped, which is a gigantic number. Just to give you an idea, 200 million laptops ship a year. So if you have 30 billion ARM CPUs, clearly you're in a lot of other places Besides phones and PCs.

[Jim Cramer]

Will people ever get excited about a regular AI PC? I don't see people interested in them.

[Unknown Host]

You know, I think the new pieces that are coming out are really great on battery life that are ARM based. You'll see more and more of that, I think over the upcoming years. There's a lot of rumors about new suppliers getting into the market. The ARM based PCs are not just about AI though. They're really about super snappy performance, but multiple days of battery life and that is really the game changer for anything that's ARM based. We've seen that with the Apple ecosystem and now that's coming to Windows, which will be just great for consumers.

[Jim Cramer]

Okay, so what is the state of things? I mean we do hear that cell phones are slowing. I'm not so sure that is, I know that there was a critic of Apple one, Joe Rogan. I usually, I don't catch Joe regularly, but very negatively about Apple. But it made me think, wow, maybe growth is stunted here. And yet when I talk to you, I still feel pretty good about the growth of the industry.

[Unknown Host]

There's two the mobile phone has really segmented. So what you see is now the premium segment where people don't upgrade as often.

[Jim Cramer]

Right?

[Unknown Host]

But when they do upgrade, those are the phones they upgrade to are the more expensive phones. So what we're seeing is people holding onto their phones longer, but when they upgrade, it's more expensive phones, the premium phones. And why is that? They want to run the latest apps, the latest games, AI. They need to be future proof. So the premium segment is doing really quite well. And the very, very low end is the mid range has been slower, but it's those premium phones which are a lot of profit for the mobile phone guys. Very good for ARM quite frankly, because we derive most of our revenue from the high end, our version nine. So we're very pleased with the growth of the cell phone industry.

[Jim Cramer]

Okay, good. We need that to be strong. We also need to have a strong competitor, intel. And yet when I look at the balance sheet, I am concerned we can't have intel go down.

[Unknown Host]

It's a tough thing, right? You know the change that took place in executive management, not well Handled. Yeah. And then of course intel being so critical to US manufacturing we have a new administration coming in. You know Chips act was something that some debates on how successful that was or popular that was. It'll be interesting to see what the administration does as they look around chip manufacturing in the US because whether it's intel or anyone else, it's super critical.

[Jim Cramer]

For us and China. We know that we don't want to give China the latest and greatest but are we punishing companies like your partners within Video they put out a list of 18 countries that Nvidia can do a lot of business business with and then not a lot with the others. Do you think that stands in the next administration?

[Unknown Host]

You know I don't want to opine too deeply on the politics but I will say that all these regulations coming in at the 11th hour of the exiting administration I think the new administration will probably take a fresh look at things. So we'll see we comply with everything. As you know these regulations, they don't hit us too badly these new ones. But more importantly I think we'll see what happens the next few weeks. I would not be surprised to see some of these things.

[Jim Cramer]

You and me neither. I will say that I do think that there was. We're doing a lot on AI. It looks very constructive and you're deeply involved.

[Unknown Host]

AAM is everywhere and you can't. You know one thing that I like to say is that you can't really run an AI workload without arm. And I think that'll just increase over the next coming years. Jim, because what's happening as these large language models start to move, move from big cloud to your phone, your camera, they need to run in a low power environment and we're seeing that already happen today. And when you think about security and things of that nature it's going to naturally is going to run all on arm.

[Jim Cramer]

Okay. Do you think people are finally getting the message? When you and I were on on Squawk on the street I saw the stock down 7 and frankly I didn't want to do. I just said that is ridiculous actually curse but that is ridiculous. Do you think people are starting to realize that you're not a cell phone provider but you are pervasive in everything.

[Unknown Host]

I believe that we are doing a better job. It's something we can always get improvement on in terms of telling the message but I'd like to think so. It's something we've spent a lot of time and energy on since we've gone public. Since I became CEO almost three years ago of just telling the ARM story, which from a bias standpoint I think is a wonderful story.

[Jim Cramer]

And I think you're a great spokesperson for a terrific company.

[Unknown Host]

And you're very kind. Thank you.

[Jim Cramer]

Absolutely. That's Rene Haas, the CEO of ARM holdings. Arm. You know I like it. I don't hold back. Mad bunnies back after the break. It is time. It's time for the lightning round. Crazy mess by round by Celsius, don't know the clock. Later, my staff prepares for you. When you hear the sound, then the lightning round is indeed over. Are you ready? Ski daddy to the light round. Curse of start with Mark in my home state of New Jersey. Mark. Yeah. Hi. Thank you for having me on your show. Quite welcome. I'm talking about a company, a biotech company. They seem to have the first state oral Alzheimer's disease drug. They just were published in a peer review journal publication started by 58. Okay. And which. What's the stock? It's called Life Sciences. Okay. They're after some brain stuff. And you know, I was the spokesperson for the American Brain foundation for a while. There's nothing tougher than brain. It's a good spec. 11 bucks. But understand it is indeed a spec. Dave in California. Dave, Booyah. Jim wanted to say thank you for all the hard work and. And making it fun and interesting over.

[Chuck Robbins]

The course of the years.

[Jim Cramer]

Really appreciate it. Staff makes it happen for me and that's why we can do it. How could I help? I have a question about Serapta Therapeutics. They presented at the JP Morgan Healthcare conference on Monday. They exceeded expectations last year and reiterated for this year. And the price action was a bit confusing. So I want to know. You're totally right. The RNA based therapeutic companies are not doing well. I wonder why. This isn't like a reverse halo effect. Because of Moderna. I didn't quite understand. I agree with you. It is troubling. I don't want to be there. Paul in Colorado. Paul. Dr. Kramer, thanks for. Good to have you on the show. Absolutely, chief. What's happening? I loved your enthusiasm on Squawk Box this morning. That was awesome.

[Chuck Robbins]

Awesome.

[Jim Cramer]

Well, I get a little fire up now and then. Well, you know, the dog still got some fight.

[Chuck Robbins]

Right?

[Jim Cramer]

Right.

[Patty Poppy]

Yeah.

[Jim Cramer]

Why not? Yes. Yep. Yes. Last year I bought Viking therapeutics in the mid-60s thinking that it was a great price since it was as high as $90 a few months prior to that. Dr. Kramer, I need a prescription. Do I buy more at this price now or do I hold on to what I have or sell what I have. I want you to sell Viking Therapeutics and roll it into Viking holdings, which is a fantastic cruise line. Does not save lives, does not lower your blood pressure, does not make you lighter, but darn, they'll have a good time. Let's go to Billy in Connecticut. Billy. Hey, Jim. Happy New Year, yo. Yeah, same. I don't even know. I don't even even know when. You should stop saying that question for another day. My good buddy Theo suggested I buy rig. Do you dig rig or no? I do not dig rig. No, no, no. I do not dig rig. And I'll tell you why. Because if I don't like slb, there's no way I can like rig because they're not nearly as good as SOB So I'm going to take a serious big time size pass on your stock. Let's go to Grant in the land of Enchantment, New Mexico. Grant. Booyah. Kramer. This is Grant calling from Santa Fe, New Mexico. I love Santa Fe. Long time and a club member. Yes, thank you, Jim. Before I joined the club club, I was lost in a sea of too much information and a lack of knowledge. Thanks to you and your team, I have been able to make sound decisions based on your rules for investing and the relevant information that you and your team provide every day. I could have not made these gains. You're welcome, sir. I could not have made these gains without you. And I really appreciate your daily bulletins and your morning meeting. Well, you know, remember, Jeff Marshall makes it work. Ben Stoder. The whole team does a great job. How can I help you right now? Yes, sir. So Today I have 13 stocks in my portfolio. Okay? Two of them have been losers lately. And I would like to make room for a winner. I would like to eliminate one of them. But I could either lower my cost basis with Dupont and buy some more. Okay, well, what is. What is the stock that we're referring referring to? Dupont. Oh, Dupont. Okay. Dupont announced after the close that they're accelerating the spin off of one of the divisions and they're keeping the other. And I think it's going to bring out more value. I say you hold on to Dupont. It's very cheap. Versus the rest of the group. And that, ladies and gentlemen, is the conclusion of the Lightning Round.

[Unknown Host]

The Lightning Round is sponsored by Charles Schwab.

[Jim Cramer]

I like this story. While we're out here in San Francisco, I can't resist the opportunity to speak to the new mayor, Daniel Lord. He just sworn in. He's trying to Bring back the luster to this city. One of the greatest cities on earth struggled the last few years. Moderate Democrat ousted the incumbent with a decisive 10 point victory, promising to address some of the city's biggest problems. Fentanyl, homelessness, crime. Right out there. And he wants to stop the outflow business from San Francisco, bring in new ones as quickly as possible. So what's the plan to turn things around? Let's dig deeper with Daniel. He's the 46th mayor of the city county of San Francisco. Wow. Mayor, welcome to man money.

[Cheryl]

It's great to be here. Welcome to the greatest city on the planet. You know this, you know this. I love you being here and thank you for having me.

[Jim Cramer]

I love it here. But I need to know what your plan.

[Cheryl]

Well, first, public safety. It's nothing else matters if people don't feel safe. The statistics are getting better. They are already. Already. But it's a statistic is not a feeling. And so we got to make sure people feel safe. We got to go after the fentanyl crisis. I just came from a meeting with all of our law enforcement officials who are committed to working together to make sure we get people off the street and into mental health beds, drug treatment beds. And we are going to do this. And once we do that, we're going to create the conditions for business leaders to want to come back here. It's not my job to tell business leaders you have to be in the office five days a week. It's my job to create the conditions so that they want to look at how beautiful it is. It's 60 degrees here in San Francisco today. It's 30 in New York City.

[Jim Cramer]

Don't tell me how much we love it here. But when Gavin Newsom was mayor, San Francisco had 2,500 police now is apparently less than 1400. How important is it to refund the police?

[Cheryl]

We have to fully staff our police department. You're right. It's around 1400. We should be at 2000 officers. I ran on that. I won with a mandate, as you pointed out, fully staffed police, sheriff's department and our 911 dispatch office. Absolutely essential. And what we're seeing with the JP Morgan healthcare conference, I know that's why you're out here. People are seeing law enforcement, they feel safe. And the energy is. It's electric out here in San Francisco.

[Jim Cramer]

Right now, I gotta tell you, this weekend I went to Union Square. Yes, I had stopped going. Canada, I used to go because I just marveled. Even from the days of the movie, the conversation I just always loved it. I couldn't go the last two times I went this time. The police presence there is remarkable and I felt very safe.

[Cheryl]

Well, we committed to Jamie Dimon and to the health care conference that we would take care of people and you know, the awful tragedy in New York City put everybody a little bit on edge and we have stepped up. Our law enforcement has been working overtime. I went out there Sunday afternoon, Sunday night, Monday morning, making sure that everything is, is just right.

[Jim Cramer]

You went.

[Cheryl]

I went. Rolled up sleeves when I'm calling department heads every few hours. I called seven department heads on Sunday and said we got to make sure that San Francisco is showing off. And we are. I sat down with Jamie Dimon this week. He came to City Hall. It was an honor to have him in and my message to him and to every business leader and viewer. San Francisco is open for business. No better place to do business in the country than San Francisco.

[Jim Cramer]

But I still see more signs with two words for lease than I ever have. You're a business person. How do we get that square footage taken?

[Cheryl]

You're absolutely right. We have work to do. We are clear eyed about that. But that's where it's public safety. That's where it's getting people off the street. We do that, people will come roaring back. We are the home of innovation. You know this more venture capital funding here, more business starts here. Jim. It all starts in San Francisco. It will again. We've fallen down over the last few years. We have neglected the important work and, and it's a new day in San Francisco and we welcome you all back.

[Jim Cramer]

Do you have the money to really hire all those police officers?

[Cheryl]

Yes, we do. We have a $16 billion budget. Now. We are facing a nearly $1 billion budget deficit.

[Jim Cramer]

Right.

[Cheryl]

But we are going to ask department heads and I did this on day one where we have a hiring freeze, but not around law enforcement, not around public health. We are going to make sure that we cut the least effective programs. We have to spend our dollars more effectively, more efficiently. But no one can tell me that we need $16 billion in terms of, of public safety dollars. We have the money and we will hire those police officers.

[Jim Cramer]

Excellent. Now we've been thinking, as we like to come, voted for bear. What could we bring? We're thinking maybe you can make this the city of agentix, the city of robots, the city where, you know, the next generation AI. This is where you find the talent. You certainly have the schools for it.

[Cheryl]

We have. We are the home of AI and We're going to lean into that. I mean we got waymos going around town. I know you love your way.

[Jim Cramer]

We sure do.

[Cheryl]

So let's we, we just have to embrace what we do best. And yes, we got Cal, we got Stanford, we got ucsf. We have the greatest arts organizations as well.

[Jim Cramer]

You do.

[Cheryl]

We have it all. We just have to do the basics. Common sense is going, going to rule the day here in San Francisco. And I'm telling you, business is going to come flooding back.

[Jim Cramer]

Okay. I was there when Mayor Bloomberg turned around, I think turn around New York City. He was everywhere. He was at every gathering, every charity was there to be able to be seen and talked to. Can you do that? Do you have the energy of Mayor Bloomberg?

[Cheryl]

Yes, I do. I was at four events last night including by the way, a si si basketball game at Chase Center. I went to two different J. JP Morgan after hour parties. I went to the keynote that Jamie gave. And you are never going to see a mayor of San Francisco work more tirelessly than me. And I got the energy and I'm already one week in. I love this.

[Jim Cramer]

I like this. I like this. Now Bristol Myers told me, ok, Chris Bernard, fantastic CEO that their Koben fee which is anti schizophrenia could be a godsend for cities because so many of the people, it's schizophrenia get kicked out of their homes. Can you, you've got the bridge. You could talk to this man.

[Cheryl]

This is not just about law enforcement. This is about public health. And we have to get people the help that they need. And if we can do it with the biotech companies and the health care companies that are here, absolutely. We got to investigate every way to get people the help that they need.

[Jim Cramer]

And can the state help you?

[Cheryl]

Absolutely. The state can help and the federal government can help. We're going to partner with anyone willing to help turn around a great American city. And when we are at our best, this is the greatest city in the world. We all know this.

[Jim Cramer]

Now I know that just even in the last you mentioned Jamie Dimon in the last six months, people are still pulling out of the. Can you. Is there someone you can just reclaim? Go to Charlie Sharp, Wells Fargo say, come on, put more of a presence here.

[Cheryl]

Listen, I'm talking to head of Blackstone in person, John Gray later.

[Jim Cramer]

John Gray knows more about real estate.

[Cheryl]

But we're nail him. We're talking later today. He's coming more money than Croesus. Jamie Dimon came to City Hall. We and I may go to New York. Sorry, New York, I'm coming out, recruiting companies back. I'm going to Miami, I'm going to Austin. And I'm saying, you know, you want to be back in San Francisco, so yes, we can do this. Not only can we do it, we are going.

[Jim Cramer]

I don't want to be a mayor of Miami. I don't want to be a mayor of Os. I want mayor of New York. If you're coming to get us, this is Mayor Daniel Laurie of San Francisco. Can you detect the energy? I sure can. Thank you. Thank you so much.

[Cheryl]

Thanks for having me.

[Jim Cramer]

I like to say there's always a bull market somewhere. Promise. Try to find it just for you, right here on Mad Money and in San Francisco. I'll see you tomorrow.

[Cheryl]

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 parent company or affiliate, and may have been previously disseminated by Kramer on television, radio, Internet or another medium.

[Patty Poppy]

You should not treat any opinion expressed.

[Cheryl]

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.

[Patty Poppy]

Or accuracy, and it should not be.

[Cheryl]

Relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer when you're with.

[Jim Cramer]

Amex Business Platinum, you have the card that works as hard as you do.

[Patty Poppy]

With a flexible spending limit that adapts with your business.

[Jim Cramer]

That's the powerful backing of American Express. Not all purchases will be approved.

[Patty Poppy]

Terms apply.

[Jim Cramer]

Learn more at americanexpress.

[Patty Poppy]

Com Amex Business.