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Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cray America. Other people make friends. I'm just trying to save a little bit of money. My job is not just to entertain, but to put it in context. So call me at 1-800-743-CNBC tweet Meyim Craver in this corner, weighing in at $4.27 trillion is the reigning champ, Nvidia. In the other corner, coming in at around $86,000 is the challenger. Bitcoin at stake is nothing more than the stock market itself and we don't know which will win. If Nvidia triumphs in this high stakes contest will probably go higher. If Bitcoin keeps going down, the stock market's definitely headed lower, which might sound ridiculous, but it's the truth. The price fight is dominated. A session where the so called regular growth stocks look strong, but the speculative stocks looked atrocious. Dow sinking port in 27 points. SB declining 0.53%. Nasdaq just shedding 0.38% a little stronger than it was looking very early this morning. Now, given that everything was down when I came in today and nothing major turned up until Video unveiled an important initiative with Synopsys, an electronic design automation company, I think it is safe to pin any upside that happened in this market today. From the good news from Nvidia, which by the way rallied $2.92, that kind of rally from the world's biggest stock is very important to the overall market. But I want you to understand that Bitcoin has a peculiar, almost unknown hold. Maybe I should say chokehold on much of the market, because as I painstakingly detailed in this weekend's Investing Club Think piece, if you add up all the crypto derivatives, it makes up a surprisingly substantial chunk of the entire stock market. Unlike equities, there's a bet, the farm aspect of crypto that threatens the averages every time bitcoin sells off like it's doing now. Of course, crypto comes in many forms. There are those who hold it as a store of value against economic catastrophe, especially in the form of debased currency. There are those who think it can be used as a currency itself, if not now, that perhaps in the future. There are investors, many of whom have made fortunes until recently. And then there are the speculators who borrow money to buy crypto simply because they believe it's headed higher. Here I'm thinking mainly of a company, an actual company called Strategy, formerly Microstrategy, that simply become a leveraged bet on Bitcoin itself. Michael Saylor, frequent guest on Squawkbox and also the CEO of Strategy, is a true believer to the point where he's been willing to take more than 8 down $8 billion in debt to buy additional Bitcoin. Hey look, that's terrific position when bitcoin's going up, but it's a disaster when bitcoin's going down. There's always a contingent in the market who views Stuff Sailor as a wannabe Humpty Dumpty. They're just wondering if this fall means all the crypto's horses and all the crypto's men won't be able to put strategy together again. The incredible tentacles of bitcoin stretch into so many different areas. Obviously anything crypto mine, but also like quantum computing, uranium, alternative data center energy, even flying cars that may never pass FA muster. These groups tend to all go down at once, leaked by speculative fervor and what's essentially volatile bets on the far out future. It's all rank and taken Together it's dangerous to the market's health. My biggest fear, my nagging nightmare. And it's ignored by Wall Street, I think in part because the whole complex generated huge fees and the industry never met a fee it didn't like. Now let's talk about the force of light in video. Something's been nagging in video ever since the stock touched $212 the end of October. Despite the company's unassailable long term record, the what have you done for me lately crowd has turned on this stock, hitting and booing it early this morning. Even flirted with $172. Now I could regale you with the slings and arrows aimed at Nvidia stock, but let's just deal with the current embrolio. Nvidia was thought to have almost the entire semiconductor market to itself not that long ago. But lately we've seen Nvidia become a punching bag. First, AMD unveiled a competitive chip, one that was adopted by OpenAI. Not long after, Nvidia said it would invest billions in that company and received a gigantic order for semiconductors itself. Then Google announced it was going to expand the production of its own chips, which had always been presumed to be in some by some, some sort of in house afterthought until it showed the world how terrific they were. Then they leapfrogged into possible oil order, possibly an order from mega Nvidia client Meta to Google. To even think that Metta would team up with arch rival Google and anything would be difficult to imagine. But to pay Google rather than in video in order to bring costs down. It's a travesty. And don't Forget that there's Gemini 3 another reason to be able to want something that Google has all on top of that our government saying that China remains a no fly zone from videos best chips. Even though I'd argue that in our national interest to get China addicted to Nvidia semiconductors. But they call me a globalist. Next thing you know, Monopoly with gigantic Chinese profits looks more like it's a China less unhappy oligopolis. Which means the end of Nvidia's big profit margins and the beginning of its lion and winter scenario. Since then the stock's been just a complete nightmare. Sometimes I feel like they should change the symbol from NVDA to to dnr meaning do not resuscitate until today. Today when Nvidia announced an expanded partnership with Synopsys, a company that helps to automate the process of chip development. Synopsys received $2 billion from Nvidia as an investment to cement the relationship. Take a listen to what CEO Jensen Huang told us this morning on Squawk on the Street. This is a huge deal. The partnership we're announcing today is about revolutionizing one of the most computer intensive industries in the world, design and engineering. Jensen on offense now this partnership marries Nvidia's lightning fast chips with the tools of synopsis to create simulations at speed and scale that Jensen said was previously unimaginable. The hope here is that anything involved in the manufacture of any large product can be ordered automated, revolutionizing revenue, sizing the way things are built. Do what this means means attacking a $40 trillion construction industry and making it much easier, simpler, less wasteful and of course cheaper to build any large project from gigantic bulk carriers to aircraft carriers, for example. Let's say this is an example. Boeing spent $15 billion developing the 77 Dreamliner, which translates to around 25 billion in today's market. Got to believe a big chunk of that went to prototyping, something that this technology could allow them to do digitally for much less money. It's more likely that new and old companies would begin to build manufacturing plants that are much less expensive and therefore increase the rate of success. It could be just a productivity enhancer maybe We've never seen this announcement did two things we one it tells you that there's going to be a replacement cycle of immense proportions since everything's built around much slower CPUs versus Nvidia's GPUs and 2 that whatever you may think of that hyperscaler horse race to build out chat bots that we all know that may not be as important now this this announcement has come out. Or to put it another way, there's certainly a lot ride on Google's chips and what they might mean to Nvidia as well as any possible slowdown in OpenAI's growth if Google's Gemini 3 picks up steam and Open Air, closer affiliates in video fold it could be nasty. However, in the end that's a business to consumer strategy and the stock market has historically found business to consumer fickle, hard to game, not worth as much. But Nvidia's work with it with synopsis while almost invisible to you, the consumer has much more potential to actually make a lot of money. Wall street you see loves business to business. This is business to business. Well, this is not just deal stem the selling and Nvidia stock. Oh, it's hard to tell given that we could get a data point Tomorrow. It's so critical of the big data center build out that it takes everything down. Still, though, this deal matters, it wasn't for show, it was for substance. Business to business. And it turned at least that stock around today. The bottom line, I never like to say, well, it's anybody's guess. I would say, however, that it seems like the speculators are going to have their hands full with humpty bitcoin. But the Nvidia backers just got a second win that could be meaningful for more than just one day's action. Let's go to Jerry in Missouri. Jerry, Jim, thanks for taking my call. Of course, sure. What's happening? Jim, you talked about this stock many times and written about it in your new book, but wow, does its price swing a lot. So my question is this. Should I just hang on or is it a good stock to trade around a core position and if so, can you give some parameters for that trade? And I'm talking about Reddit. Okay. I am not going to, I am not going to recommend that you trade around this. I'll tell you why it's at $42 billion. I think this company has within it more quality things to train on, more quality ideas, more quality writing than people realize. It's incredibly undervalued. Steve Hall Hoppin should come on the show. We would go over many of the different sectors. I go into Reddit constantly. I don't know about you. I think it's worth a heck of a lot more than sell for. Let's go to John in Arkansas. John, booyah. Mr. Cramerica, booyah right back at you. John, what's going on? I don't want to get too far in the weeds, but I'm curious about McDonald's stock price, the dividend with respect to commodities. You know, we had mad cow, avian flu, swine flu, fuel shortages. Just your thoughts on that, sir. I appreciate what you do and you know, you are Mr. Crime. Eric. Okay, here's how I think about that. There's two ways I want to look at it. I don't know if you're, if you're on the app of McDonald's or you get the deals every day, they come at you with something that just is just a door buster idea. Secondly, I think cattle's peaked. I think it was, I think was a generational high and it's coming down. And that to me says bye, bye, bye, bye bye. The stock of McDonald's. And thank you for the call. Bill in Massachusetts. Bill. Jimmy, I love how Simple. The club and you and your staff make it for us, people that aren't college educated. I want to understand. I want you understand how much this means to us guys. You give us the information we need, you interview all these incredible CEOs. It's just. You must have an amazing life. I really. I have a fantastic staff, first of all, great staff. But second, I love what I do. And what I do is try to help people feel like that you got a shot. There's so many people in this country who feel you don't have a shot. And that's. You know why that is. They want your fees. They want your money. I don't want anything. I don't want. Okay. I wrote a book, okay? So I want that. No, I got it advanced. It's like, you know, it doesn't work. Let's put it this way. I didn't do it for the. For the price of the book. I did it because I want to help you. Amazing. You're an amazing person, Jim. Thank you, buddy. Thank you. How can I help today? You know. You know me, Boston Bill. I'm your friend. Friend of the club. I love what you guys. You guys stand for American values, which I really enjoy. Tonight, I'd like you to go over a little bit. There was a little incident with cme with Vertical holdings and their cooling system. Could you go over, enlighten me a little more about what happened there and how, if it will or how it could affect Verta. Well, I think Vertiv actually opened down today because people felt that they were somehow involved with what happened with Cyrus One. All I know about Vertiv is their order book is really full. You need Vertiv. That's Liebert. That's the best cooling system everybody knows. I first started buying Liebert in the 1980s, and that was the highest, best form of air conditioning. That's what Vertiv is. That's why everybody loves it. And by the way, I think it's a buy right here. And Bill, thank you for saying those things. You know, you just go over, you have a holiday, your family, they're all asking you when you're done. When you're done. When you're done. How about I said, when do you begin the synopsis? Deal really matters. It has substance, and it turned the stock of Nvidia around. Today, Nvidia backers just got a second win, and it was needed on tonight, the data center stocks have been joined at the hip into one key catalyst that has changed the way these stocks are trading. I'm going to be on what it is and how you can survey the space. Now then we heard from Letter A Agilent last week and things are looking brighter in the life science industry. At last I'm showing you what stocks you should be looking at because I think the outlook just got a lot rosier and you quoted in and you stumped me on four different stocks. Oh no. So we're having a rapid fire homework segment and I'm running through all the names I didn't know what you asked me and some of them. No one of them is real good. Stay with creepy. Don't miss a second of Mad Money. Follow imkramer on X. Have a question? Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Missed something? Head to madmoney.cnbc.com on Fox 1 now you can stream your favorite live sports so you can be there live for the biggest moments. Touchdown and catch history in the making. Gabby Meat Box one We live for.
