Transcript
Jim Cramer (0:00)
You made it through all the starts and stops of your tech business. And when you're with Amex Business Platinum, you can count on a network of benefits to keep going, including access to over $1,000 in business and travel value annually. And thanks to five times Membership Rewards points on flights and prepaid hotels booked on amextravel.com you and your plugged in engineers can get rewarded for working in the cloud. That's the powerful backing of American Express. Terms apply. Learn more@americanexpress.com AmExBusiness what's your boldest, truly ambitious life goal?
Julie Masino (0:34)
Everyone has one and everyone deserves a.
Jim Cramer (0:36)
Way to get there. That's why Estateg offers a wide variety.
Marc Benioff (0:38)
Of ETFs to give all investors access.
Jim Cramer (0:40)
To the market and the chance to reach their goals.
Marc Benioff (0:42)
Like with DIA, where you get 30.
Jim Cramer (0:44)
US blue chip stocks in a single trade. Wherever you're heading, getting there starts here with State Street.
Marc Benioff (0:49)
Before investing, consider the fund's investment objectives, risks, charges and expenses.
Mark Klaus (0:52)
Visit ssga.com for prospectus containing this and other information.
Marc Benioff (0:55)
Read it carefully. DIA Subject to risks similar to those.
Mark Klaus (0:57)
Of stocks all ATs are subject to.
Jim Cramer (0:58)
Risk, including possible loss of principal.
Marc Benioff (0:59)
Alternative Alps Distributors Inc.
Todd McKinnon (1:00)
Distributor.
Marc Benioff (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 Marketer. Up to my friends, I'm just trying to make you a little money. My job is not just to explain, but to entertain teachers. So call me 1-873-CBC. Tweet me Jim Kramer not longer. We were constantly told that this AI stuff pure hype. According to conventional wisdom, there was no way could ever live up to expectations. But after speaking to Mark Benioff, the CEO of tech giant Salesforce last night, you know what I mean? You think that not only are there no hollow promises being made here, but the fruits of the off bandit about terms like generative AI accelerated computing could be far sweeter than anyone thought possible. That's right. I believe that the reality behind the buzzwords may exceed expectations, perhaps even dramatically. And that's the reason why Salesforce rallied 11% today. It deserved to. Today's action was all about Salesforce and some others in its wake, with The Dow gaining 309 points, a lot of it because of the gain in the stock of Salesforce, member of that elite group of companies, the S and P advancing 0.51% and of course the NASDAQ poll voting 1.30% House of Pleasure. I try not to go into too much depth about the power of AI because I'm sure you're sick of hearing about it. But now I'm thinking maybe I don't talk enough about it at all. There's just too much money being made. And I don't want to downplay that. Because you know what? Anything that makes you money will count me all in. Here's the quick history First, Nvidia provide the platform, the hardware and software for all good things to occur. They changed the world with a two pronged assault on the status quo. Accelerated computing, really fast and generative AI. We just didn't know it at the time. For five years now, Video CEO Jensen Huang has been telling us that as fast as chips could upend everything, change the world, change it for the better. And more importantly, his full stack would reduce the cost of ownership and give customers a massive rate of return. But until recently, we had no idea how that would actually work. Tangibility. We had no tangible evidence. Then exactly two years ago, we saw the power of this platform with open air chat beauty. Until then, Nvidia been looked down upon by clueless tech snobs as a maker of video game chips. Intel was king. Nvidia resume was pawn. With some industrial wins, Nvidia become maybe I don't knight bishop, but practically overnight because of generative AI and accelerate computing, Nvidia become crowned king. Intel's not even on the board anymore. Even then it was hard to explain the value proposition to you though, because what does general even do? It felt kind of a parlor game. Oh right, a haiku. Show me what it looked like for Jim Crater interview Gandhi on Mad Money, Jose and yada yada yada. Lots of fun, but nothing really commercial. Nothing to make money from now. Jensen proselytized everywhere about a new industrial revolution, but none of this stuff seemed life changing for all but a few in the know. The tech cognoscente. Oh sure we were aware that there were gigantic cloud infrastructure businesses. Amazon Web Services, Microsoft Azure, Google Cloud, Oracle Cloud infrastructure. We knew that Tesla was ordering everything in video made or at least tried to, but never got enough. And so were Microsoft, Google, Amazon, the Meta. They were packing invidious chips into these data centers all over the world. But who knew what a data center was? Sure, Tesla needed the chips for driverless cars, Microsoft needed them for chat, CBD, Copilot, Google for Gemini, Meta for better AI startups like Anthropic got $7 billion from investors including Amazon and Google to create something called Claude. Not like Claude range, but like Claude. But again, we just couldn't figure out how the heck they were going to get a return on their investment. To help call centers. We get call centers. Help law firms, I don't know. Law firm use it. Loan officers, really. Maybe to summarize things. Produce wrote documents. Mundane. And of course, to write term papers for college kids whose parents spend $80,000 a year so they can become ChatGPT proficient. Sure, the tech titans had the money to spend, but it started to feel like AI was some sort of multibillion dollar joke that none of us were in one. I mean, why did Oracle founder Larry Ellison say three months ago, quote, we have 162 data centers now. I expect we'll have 1,000 or 2,000 or more Oracle data cloud centers around the world. For who? For what? Nobody could articulate one practical idea that seemed to make economic sense. Save the digital Twin. Twin A way to build factories with less waste by constructing a digital AI inspired prototype. Might as well be some Revel model building kit. Remember those? At this point, some of the smartest people I know started saying, a lot of hedge fund guys, you know, start saying, you know what? That I, Jim Cramer, had drunk the AI Kool Aid for believing that there was anything big here other than a phony arms race. I stuck to my guns. Although other than ServiceNow, which was using Nvidia's platform to make workers more productive, people didn't see it. And then last night, gloriously, we got the confirmation I've been waiting for. When Salesforce reported back in September at that celebration of all things tech, Dreamforce CEO Marc Benioff told us that his company created something called Agent Force. They could collaborate with humans to improve customer relations and many more things. It was the first time we had heard about the customer in relation to AI, though, it's always been internal, hidden, unknown, like agent. Some made up word that nobody could explain until now. Last night, Benioff put on a clinic. He explained that there's a new concept. It's called digital labor. It's a whole new workforce, one that works side by side with Harry Beleaguered employees who want to be more productive, but they can't be because they have to do too many jobs in a world where hiring extra people just has become way too expensive. Suddenly that we have Agent Force. And with it, Mark said, I quote, we're unleashing this new year of digital labor force for every business in every industry. He went on to say, quote, the implications are just simply profound. Now, people ridiculed me for saying how much we need AI, but Mark says, quote, for decades economic growth depended on expanding the work human workforce. It was all about getting more labor, end quote. Not anymore. Now with agents powered by, I have your data work faster, doing tedious things, but essential jobs that nobody wants. And there it is. You know that Mark got 200 deals in the first week of Agent Force alone. Lots of brand name companies too. Do you know there are thousands more in the pipeline? Real customers, real money, tangible. That's an insane amount of business to do in an arbitrary of great things to come. There's a widespread consensus that is simply about replacing people. Well, that is just completely wrong. Jensen never said he was going to have that app, and he said it was a force multiplier. But not a lot of people believed him. He said it would create more jobs. Really thought people would say, I'll give me a break. Creating jobs that couldn't be afforded before, making people more productive, allowing them to do more business, helping customers in deeper ways. That's what this is about. As Mark put it, quote, jobs are going to evolve, roles are going to shift and businesses will need to adapt, end quote. You know what he left out? Two words or die. Sure, it's going to be expensive upfront. We know that demand for data centers, computing power is actually accelerating. That was the lesson last night from Marvell Tech. Their conference call. Wow, we heard that one. And they partnered with everyone, including AI, to make chips, including Met, Amazon, Google and Microsoft. After those two big quarters last night, all I can say is these tech titans aren't overbuilding in some misguided arms race. They're simply trying to keep up with demand, both current and perceived. They'll need every Nvidia full stack they can get their hands on. If none of that makes any sense to you, just look at all the stuff at the stocks. Salesforce stock finished up 11%. Marvell jumped 23%. Now there will always be skeptics, but we now have that crucial use case that we've been waiting for. Agentix. They're only taking away the jobs we don't want that we can't fill. Giving us more time to do what we're actually good at. With lower birth rates, with fewer people in the workforce, maybe we have no choice but to bring in Salesforce to plug into the data center to discover what Jensen's been predicting all along. Now we have the digital labor force. There's your revolutionaries. Here's the bottom line. When this new industrial revolution takes off, you won't want to speak to a human. They don't have the time to talk to you. I say give me the Asian force. Bring on the agenda and thank Kevin's for the digital labor force so that we can do real stuff, not the tedious tasks that we were made, that we've been made to do every day because somebody's got to do it. Not anymore. Now a machine can do it and incredibly, it does it better than we can. Jeff in Florida.