← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 1/27/26
00:44:08
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money. Mad Money Disclaimer
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This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and subscribe@schwab.com Market Update podcast or find Schwab Market Update wherever you get your podcasts.
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C
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cramer. Other People My friends, I'm just trying to make a little bit of money here. My job is not just entertain, but to put it in context. Call me 1-800-743-CBC. You can tweet me at Jim Cramer. I never thought I'd say this, but the United States increasingly feels like a command economy where you better accept the President's terms without complaints or suffer the consequences which could be severe. Of course, not all negative. We would have had a session where The Dow lost 49 points. But wait. S&P advanced.41% to a record high and then as that gained a whopping.91%. But let's start with the bad stuff. Or at least the stuff that's bad for the stock market today. The health insurance companies sold their stocks. Get crushed. That's UnitedHealth Dow stock, by the way. That's why the Dow is down so much. Humana cvs, which owns Aetna. Why? Because the Centers for Medicare and Medicaid Services increased rates for the lucrative Medicare Advantage programs by just 0.09%. Normally these rates keep up with or exceed inflation. Wall street was looking for about 4 to 5% increase, just brutal for the industry or Wall street was totally blindsided. This was the work of Dr. Mehmet Oz, who's long wanted to stem the endless rise in health care costs. He told me about ways to cut our health care costs all the way back in 2018. It's an obsession of his and this is meaningful, which we know because the stocks got obliterated. UNH fell 19%. Humana plummeted 21%. The House of Hate CBS tumbled more than 14% of I'm honestly surprised it happened because both parties have checked off on these price increases for years. It's like by road. This president does not mind inflicting pain on even the most powerful of companies who quiver quiver at what he says at the same time. Last 24 hours we've seen the President's policies bolstering some domestic manufacturers. Gm it reported a huge profit boost today, sharply better than expected. Some of that's because GM has a great car truck lineup. They've had the highest full year market share in a decade. But GM has also been a huge beneficiary of less stringent environmental regulations allowing the company to sell popular gas guzzlers. No fines, no purchases of EV credits. And while it wasn't stressed, GM certainly benefits from tariffs on imported cars. GM CEO Mary Barr Listen, time for you to take a victory lap. You're offering the best cars and trucks at the best prices. You deserve a huge amount of credit. And I agree with Barr when she says 2026 will be even better. And we have to credit this business environment, the President's support for some of that success. Shareholders did well. GM stock jumped almost $7 or 8.75%. What else? Last night Nucor, our largest steel company, reported a mixed quarter. Its shares pulled back today, but the stock was up at its 52 week high coming in the quarter and the actual print wasn't nearly as good as the stuff underneath. I think there were many positive factors, but I also what's key? Nucor's being protected by steel towers to block farm products from being dumped on our soil. Remember what that means? They are making it and selling it for less than their cost of production and wiping out our steel industry. No more. As CEO Leon to Pallian said on last night's call, quote, what we've seen out of commerce in USTR is a very supportive trade environment that's pro market and pro US manufacturing. Topalian told me that the import picture is best in his 30 years at Nucor. On the other hand, though the defense contractors saw Their bottom lines print by the President's efficiency crackdown. He's demanding quicker results for the Pentagon. Boeing had to take a hit on a big tanker contract where the government wants to time more timely product. As CEO Kelly Orberg pointed out, quote, as you know, the Department of War is super focused on us make first of all making investments to support growth and also ensuring we're delivering on time. And so we took that decision, albeit a big gulp, and to have to take a charge here on the tanker program. End quote. Ouch. It killed the stock. It was down. It would have been up big if it weren't for the charge. But so what? It wasn't at the same time that Wartburg did credit the President for a hefty increase in Boeing's backlog. Still, the charge brought out the sellers. Some are just too tired of the company's missteps. Now it is a big position for our travel trust. We told club members at our morning meeting, which is broadcast at 10:20, stick with the program. Then there's RTX, which had been singled out by the President for being least responsive of the defense contractors to the part of war's demands for quicker, better munitions of pure buybacks. That was in a true social post. The company addressed these concerns several times on the conference call. It was very responsive. I've known RTX to be a huge repurchaser of its shares in the last five years. A serial buyback company. Not this time. The key contractor for the Golden Dome project, it didn't buy back any shares. This quarter. Saw its share count grow, which should cause a 5 cent per share earnings head win this year. They got the message. As CEO Chris Calhoun explained, quote, we fully support the Department of Work's transformation objectives to significantly increase capacity and accelerate production over a sustained period. End quote. My conclusion, the true social post works. Now RTX is on board. The stock rally nicely going to keep the dividend, but wow, buyback hardly. The others buy when we don't see some government intervention in the economy. Yesterday I spoke to Jensen Huang, CEO of Nvidia. He was in China. Chancellor likes to visit China during the Lunar New Year. He seemed confident that he could win some meaningful Chinese business. But he said he preferred to keep the potential contracts out of any earnings estimates for the time being. We ran out of time in the interview before I could ask him how Nvidia would account for the 25% of China sales that are supposed to go to the US government as part of the bargain the firm struck with the President, is Trump being greedy when it comes to the semiconductor industry? The government bought 9.9% of intel at $20.47. Even after last week's shortfall. President has more than a double on his $8.9 billion investment. Now, the government technically didn't write a check, okay? The investment came in part from a conversion of unpaid grants left over from Biden's CHIPS act and a classified black box program it had with the Pentagon. Nvidia stock, by the way, finally showed signs of Life. It's only up 1% for the year. I think that that's ridiculous. I think it should catch up with the rest of some of these big Mag 7 names. And how about Salesforce? Yesterday winning a $5.6 billion 10 year contract from the US Army. To streamline procurement and cut costs, the Pentagon is turning to commercial software loaded with artificial intelligence like Salesforce's Slack product. It's an out of nowhere contract that few thought Salesforce was even going for. This company belongs though to the bleagard software as a service segment of tech. It's a group that is so in the doghouse that the stock of Salesforce actually fell $0.87. Despite this obviously great news, I don't know what it'll take to get that group moving. Maybe when ServiceNow reports tomorrow and it can change the narrative. But that's a tall order given that the competitive threat from General ve got all these hedge fund managers spooked. Still, what I want to talk about is all this government intervention. Of course. Yesterday Uncle Sam made an investment in money, losing heavily short of USA Rare Earth Inc. Then there was the canceling of $4.8 billion in Treasury Department contracts with consultant Booz Allen Hamilton for failing to install adequate privacy safeguards. Put it all together and you have to factor in the government's both a positive and a negative matter of what you do. And we know the President isn't done with trying to get that one year cap on the credit card rates at 10%. How do we know this? Because the banks relying on credit cards have seen their stocks shellacked again, while those that don't have credit cards keep rallying. It might go away, but the stocks say don't count on it. The bottom line. It's an amazing and a preposterous time in so many ways, good and bad depending upon how you look at things. But one thing is for certain. We have a level of government intrusion in private enterprise that I haven't seen since before the Reagan administration. Makes me feel like A kid again, back when I had a full head of red hair. Rebecca in New York. Rebecca, hi, good evening.
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D
It's a pleasure to talk to you. I'd like to discuss with you this stock. And before I do that, I just wanted to say that a lot of people now unfortunately have cancer, including my daughter. Passed away at age 42 from colorectal cancer. And so I just would like to encourage everyone age 45 and above to get a colonoscopy to prevent colorectal cancer. So my question is about Moderna. They're working on a cancer vaccination. Should I buy Moderna?
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C
Well, I got to tell you, this is something that they did promise a long time ago. And I hope that it's for real. I'm sorry about your daughter. And that is the worst form right now. The biggest cause of death of cancer. I do say that we have to wait and see. Why? Because the stocks up so much. 54% for the year. I just want to know how certain things really are. Let's go to Billy in Connecticut. Billy.
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Hey, Jim. My annual Happy New Year call to you, buddy.
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Right back at you. What's happening?
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At what point do I stop saying Happy New year like after Q1?
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It's a tough, tough call. My birthday is February 10th. No, that's when you switch from wishing me Happy New Year to wish me Happy Birthday.
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D
I got you. I wanted to ask you thoughts on companies that make and sell commercial airline parts. So Jim, tell me if the stock is on your radar and is she ready for takeoff? Do I buy air?
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C
And I've been recommending air forever. And we know it's up 27% for the year. I saw that go I think was gold. But started with a neutral. This thing is can't miss. We had John Holmes on recently and it is just part of the great aerospace boom that has no sign of slowing down. Cordell in Ohio. Cordell.
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Hello, Jim. Thank you for having me on today.
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My pleasure. What's up?
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I'm calling in about a company that was down last year about 40% currently year to date it's up about 5% and it's trading right around about four and a half years. Lows in around August of 2021 is and it had a new relaunching of more high protein of products and seasonal products. Is Chipotle a buy and if so worth it?
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C
You know a lot of people are warming up to Chipotle down here. It has had such a decline. It only sells for 34 times earnings. I say only because I've seen it at a much higher price earnings multiple. I think it's actually a decent level to put some stock on. We they have report on February 3rd, remember it might go back down to that $30 low and you might have to buy a little more. But wow, what a good franchise at a very reduced price, right? Look, we've never seen this level of intrusion in private enterprise. Well, maybe not since Fort Reagan. And it's creating winners and losers every day in the stock market. So please invest accordingly. Keep an eye on Washington. Keep both eyes on Washington. Make more money. Both eyes on Wall street on that money threat. The shortage of memory and data storage products has created some big winners in the space, but I'm revealing an under the radar way to play the boom. In case you missed out on the rally so far. And speaking of rallies, the run we've seen in gold and silver has been nothing short of historic. But could we be nearing a top or even a blow off time for the precious metals? I'm going to find out. And D Web Quantum is holding its annual Quantum Computing conference this week. It's got some big contracts. We sit down with CEO find out a little bit more. So stay with Kramer.
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Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Kramer. Hashtag mad mentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com Comcast business helps retailers become seamlessly restocking frictionless paying favorite shopping destinations. It's how nationwide restaurants become touchscreen ordering, quick serving eateries, and how hospitals become the patient scanning data managing healthcare facilities that we all depend on. With leading networking and connectivity, advanced cybersecurity and expert partnership, Comcast Business is powering the engine of modern business powering possibilities. Restriction Supply before you set health goals for the year, you need to set a baseline with LabCorp On Demand's suite of science backed health tests, you'll get a more complete picture of your health. Whether you want insights about hormone health or nutrient levels, Testing provides data that can help shape your wellness goals and track your progress over the course of the year. To get 15% off select tests, visit ondemand.labcorp.com podcast use code podcast for 15% off, go test yourself. Hey Fidelity, can I get a second opinion on stocks in the Fidelity app?
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That's right.
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C
How do you play the memory boom without chasing these data storage stocks? The four big players in the space Micron, Western Digital, Seagate just reported, and SanDisk. Each one tripled last year and they keep running. In 2026, just since the beginning of the year, SanDisk has more than double. The other three are up anywhere from 35 to 50%. I don't want to chase this. I don't chase the storage memory place because even though there's a severe shortage of this stuff thanks to the data center build out, it really doesn't take much to derail these commodity chip makers. Maybe the Korean competitors like Samsung, SK Hynix will expand their production capacity without our knowledge. Maybe the hyperscalers look at the sky high prices of memory and data storage products and decide it's time to dial back their data center investments. Possibility? We'll find out soon enough. Even the smallest disruption could crush these stocks. I've seen it happen so many times before, given how much they've already run. If you don't really own them, let's just say I think you're too late. But there is a relatively safer way to play the same theme. These are not safe stocks, but safer versus those others. And that's the semiconductor capital equipment plants. Whenever there is a chip shortage like we have now, sooner or later these companies start buying more manufacturing equipment in order to boost production. That's why asml, Applied Materials, KLA and Kramer, Faye Lam Research have been roaring because people know that they'll have big orders as the year goes on. The big four semiconductor capital equipment makers rallied like crazy last year. They're up anywhere from 29 to 39% just since the beginning of January. You're not early, but they haven't run nearly as much as the storage and memory makers, so relatively they've still got more room to run. Plus, I think this industry has a lot more going for it. Two weeks ago, Taiwan Semi, the world's largest semiconductor manufacturer reported a total blowout quarter. More important, management said that the advance on fire they plan to invest heavily in building out the production capacity for this year. Taiwan semi guided for 52 to 56 billion dollars in capital expenditures. That'd be up 27 to 37% from last year. Wall street was expecting less than 45 billion. When management was asked if that would be enough to fix the chip shortages, their answer was a clear no. Taiwan Semi doesn't see supply and demand coming into balance until 2028 or 2029, so they're planning to keep their capital expenditures high for the next few years. Again, great news for the semiconductor capital equipment makers. Now, the specific commentary was about Taiwan Semi investing to meet demand for AI semiconductors, not necessarily memory or data storage chips. But if anything, that's better for the capital equipment makers because manufacturing chips requires more advanced hardware. ASML is best positioned for this type of leading edge equipment. But all the big four semiconductor capital equipment companies participate in the market, which is why they all had such huge gains. In response to Taiwan Semi Quarter Rational we got another big clue the very next day when I got a chance to interview Sanjay Mehrotra, the CEO of Micron. What a stock once. What a company on squawk on the street. That's when Micron broke ground on $100 billion semiconductor foundry in our state New York. While that facility won't be up and running until 2030, you better believe it needs equipment. On top of that, Micron's working on a new fab in Boise, Idaho, which will begin adding output by the second half of 2027. Micron also broke ground on a new fab in Singapore yesterday that should start producing in the second half of 2028. Dizzying, right? The key takeaway, Micron's investing in new production now and will continue investing in new production for several years into the future. Which means consistent orders for LAM Research, KLA and Applied Materials. Finally, when intel reported last Thursday, the stock got clobbered. Remember, it was down 70% on Friday, another 5% on Monday before stabilizing today. That's not because the numbers were bad. The quarterly results were actually quite good. Instead, intel gave dismal guidance because they just don't have the ability to meet the demand for their chips. From my own reporting, I've found out that intel simply doesn't have enough manufacturing equipment. It didn't predict the strength of its own markets correctly. Again, as with Taiwan Semi, this isn't about memory chips. In this case, it's CPUs that Intel can't make enough of. That means more business for the capital webbing makers, especially Lam Research. CPUs are the bread and butter. Lam is also one of the leading providers of the type of equipment used to make memory chips. So they'll be one of the first companies to benefit as the memory and data storage companies look to boost productions which I know they want to. That's why this stock rallied 137 last year for tacking on another 39% gain in January. Now some of these semiconductor capital equipment companies will be reporting earnings in the next few days, as Mel reports tonight overnight from Europe. So we'll have numbers when we get in tomorrow. Lam reports after the close tomorrow. KLA reports on Thursday night, materials we don't hear from until mid February. But while I expect all these companies to report great numbers, the bar is now incredibly high given how much your stocks have run. So I can't say for sure how their stocks will react as they are what I say Coming in hot that brings me to a very smart analyst note from Links Equity Strategist that came into my inbox was published this morning. The Lynx analyst says that a beat and raise result is already baked into Lamb Research stock. I agree with that. It's hard to argue with, but the analyst is still very bullish on Lamb and that's because they expect much better numbers in 2027 than the rest of Wall Street's looking for. I agree with that. If management gives a qualified qualitative view of Wafer fab equipment into 2027 and we hope that not everybody is starting to build build out at once, the Links analyst argues that the stock could soar. Otherwise I expect it to sell off because it's up 39% over the past few weeks. If Lamb Research does sell off though, that may be the real opportunity. I would be a buyer. I believe in this group long term and Lamb is my personal favorite. It's incredibly well run and it's antecedent novellas for anyone who watched the show all the way back in twenty 2005-2012 was my favorite semi cap equipment company of all time. Here's the bottom line. If you want to play the memory and data storage without chasing stocks that have tripled or quadrupled in barely more than a year, I think the semiconductor capital equipment makers will be more durable winners here. I think Wall street might not fully appreciate the long term capacity expansions coming through the entire semiconductor ecosystem. While I don't know how these companies will do when most of them report this week, that doesn't interest me. I hope the stocks pull back because then you've got my blessing to buy them for the long haul, which is what we care about on Mad Money. Mad money's back at me right now.
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Coming up, gold and silver have soared to record highs. But could the metals market be heading for a meltdown because of it? Kramer's going off the charts to find out.
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Next, thy ticket, lady Jennifer of Coolidge. Well, many thanks, good sir. Here is my Discover card. They accept Discover at Renaissance fairs? Yeah, they do.
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Here.
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Discover is accepted at the places I love to shop. Geth with the times. With the times.
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You're playing the loot.
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Yeah, and it sounds pretty good, right? Discover is accepted at 99% of places that take credit cards nationwide, based on the February 2025 Nielsen report.
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We keep trying to figure it out. What in the world are we supposed to make of this monster rally in gold and silver? It simply refuses to quit. That I know so many of you are compelled to play it. To answer that question, I want to go off the charts with Carly Garner. She's a brilliant technician, senior commodity market strategist, broker at the Carly Trading and the author of the Carly Perspective newsletter. She's our resident commodities expert. She knows he's cold. As Garner sees it, gold and silver both had legitimate reasons to run. But the magnitude of these moves become impossible to justify. She hasn't seen silver running like this since 1980, when the market was cornered by the Hunt brothers. This time around, she thinks it's something similar. Except the culprits are less identifiable, likely consisting of both momentum traders and governments around the world that are stocking up on precious metals. That includes, by the way, countries that aren't exactly friendly with the United States. If you don't trust the dollar like I don't, and you need to put your reserves somewhere, gold and silver make a lot of sense. I have felt that way about gold since the show started more than 20 years ago. Whatever. I felt it that way when I was with Kudlow and Kramer all the way. Now we're talking, we're dating me at the same time. We've got all these highly leveraged ETFs that let you make triple long or triple short bets on commodities quitting gold and silver. When you have a big commodity rally, those ETFs often add fuel to the fire. Although that could end badly as Garner sees that these leveraged ETFs have wildly magnified our usual commodity boom and bust cycles. She thinks that's part of what's happened to gold and silver. On top of that, there's simple fear of missing out FOMO given how much these metals have already run. We don't talk about these ETFs, by the way, nearly enough on the show. There are scores and scores of them and they are moving the markets in a very outside fashion with very little money wagered. And make no mistake about it, these are wagers, not investments. Now, Garner points out that commodity markets, they trend often to culminate in large spikes in volatility as traders in the wrong side of the trade capitulate in both the futures and options markets and late comer FOMO traders finally pull the trigger. So let's go to work here. Take a look at this chart of the CME Group's sieve volume index for silver, which is like the VIX for silver. You can see that silver options market volatility has now surpassed what we saw during the COVID crisis and the metals peak in 2021. When the implied volatility in silver got this high in 2020 and 2021. Both times it slaughtered the bull like that. Okay, now if you understand what's really going on here, Garner says you need to step back and take a look at a 50 year chart of the action in silver. Way back in 1979, 1980, group of oil billionaires, the Hunt Brothers tried to corner the silver market. They sent the price of silver from around $5 an ounce all the way to 50. This was the corner an ounce before the commodity exchange changed the margin requirements and Then the metal got crushed. Look at that. Is that ever determinate? Now, in late 2003 and early 2004, another bull market picked up. Steam silver running all the way again from five to 50 in 2011, driven by historic explosion market volatility. Everybody was hedging against the great impact of the Great Recession and the European sovereign debt crisis, which is really in evidence right there. Why bring us up? Because even though the price of silver pulled back from its high today, it's up nearly tenfold from its 2020 lows, including a quick 57% gain just since the beginning of January. And Garners do. You don't get moves like this unless the economy is about to collapse or someone's cornering the market. Now, when you look at the monthly chart of the silver futures, you can see just how extreme this move has been. You see the green line above the price and the red line below. Well, these are what's known as Bollinger bands, and they help measure the level of volatility. I've always. I've always liked them. From the days when Bollinger used to come on CNBC many, many years ago. Garner points out that the last three monthly price bars have traded almost entirely above the upper Bollinger band, which represents two standard deviations from the average. Normally, basic statistics say prices should stay within these bands about 96% of the time. In fact, this month, silver has already made a 3.5 standard deviation move. The only time in history we've seen such a big run was when those guys cornered the market in 1979. Then we keep hearing about the corner, corner, corner. So when will it? Garner's not sure, but she's got a good idea of how it will end right now. The relative strength index, the RSI down here at the bottom, and important momentum indicators hovering at 94 on the monthly chart. This is an extremely overbought reading. Even when silver rocketed higher in 2011, the RSI never got above 86. If you remember the scale of past silver rallies, Garner says we should expect buying to dry up between 110 and 1 $20 an ounce. Sure enough, if you're shooting at 115 yesterday, silver sunk back to 112 and changed today. Then again, she wouldn't be surprised if it didn't make another run. It can make a run to this monthly trend line, and that would be around 135 bucks, if only because this market's going so close. Crazy. All right. Now, when the 2011 silver bull market ended, an explosion of Volatility it fell back into what had previously been a comfortable trading channel as represented by the blue lines on the chart. Okay. You can see we moved. It went all the way back. All right. If that happens again, we're talking about price range of $19 to $40 an ounce. Whoa. I know that probably sounds too low to you, but remember, Garner points out silver was trading at $40 an ounce about four and a half months ago. Ago. Pretty remarkable. Of course, if this time is truly different, meaning governments and investors around the world are abandoning fiat currency for hard assets. Last night with the Eagle, then Garner says we could see floors of support at 100 and then 78. So now. Okay, we're done with silver. Let's look at gold. Take a look at this chart showing the volatility in gold going back to the financial crisis. Current gold market volatility matches the 2011 volatility. Okay. To that peak triggered nearly 50% correction and decades of languishing prices. After that, it moderately surpasses the 2020 volatility. That's a spike that set gold back about 25% of the next four years. This is the highest gold volatility has been seen since the financial crisis. That's very meaningful because we obviously do not have anything like that going on right now. Again, Garner points out that this kind of volatility spike almost always precedes a trend reversal. Okay. We don't know if we're going to get that though. When you look at the monthly chart of gold. Let's take a look at this. It's very similar to silver, except the gold didn't break down today. I know lots to look up. Didn't break down like silver. Gold's relative strength index, the RSI is in the mid-90s, extremely overbought. Yet that that has been able to stop the rally. I can't believe that that didn't stop the rally. It's. I've never seen anything like this. Precious metal has blown through levels that technicians normally rely on for higher probability trades. Just right through the knife, through butter. Once gold broke its Trend line at 2900, nothing has been able to stop its momentum. Nothing. A multi month pause near 3355 proved to be a launching pad for another run to the final trend line. Trend line that dates back to the early 2000s. This trend line comes in at 5100, roughly yesterday's high. If the metals have a chance of pulling back, this is it right here. Moldy decade trend lines, historic exposures of volatility and in Hereby expiration of the February futures contract are all potential catalysts for what Garner regards as a sanity saving correction or even what I call a blow off top. Blow off top. Keep that, keep that in your mind. The bottom line. The charts interpreted by Carly Garner suggest that gold and silver markets are busted. They're broken, they move so far so fast that Chicago Merck Exchange had to change the way it calculates the margin requirements looking the level of volatility or Garners betting that the strength in gold and silver can't last. But then again sometimes commodity markets can say so nutty, so crazy for longer than you can stay solvent if you bet against them. Holy cow. Let's take calls Kathy in California. Kathy.
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D
Professor Kammer, I hope you're having a good day.
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C
It is a good day. As a matter of fact it's a fast day. Saying that to my colleague Jeff Marks. What a fast day. Go ahead.
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D
I purchased 1,000 shares of Ramaco Resources in December at $1730 a share. Stock is up 34%. My question to you is should I increase my position or hold?
- [32:10]
C
Well metallurgical coal is something that I have historically felt should have its day in the sun. With this president that we have, I actually going to take the other side of what a lot of people are going to recommend you. I want you to stay in it. I just think it's a great contrary play. You got to be in it and I'm really glad you brought it to our, to our show because this may be the one, this may be the time that it works. Anyway, look, the charge is interpreted by Carly Garner suggest that the market for gold and silver are busted. She doesn't believe the rally can last forever. But the commodity market can stay crazy for a lot longer than most think. Okay, mad money, what else is ahead? D Wave Quantum, fresh off a new acquisition last week is D Wave, which I know you like, poised to be the leader of world of quantum computing. I'm going to sit down with the company's top race find out. And sometimes the best investment ideas are hidden in plain sight. And tonight I'll reveal which company fits the thesis now more than ever after 8 massive move higher today. And of course oil calls for after Friday tonight's edition of the Lighting Mouse. So stay with Kramer. Remember back in the fall I warned you away from all sorts of hyper speculative stocks because I saw the year of magical investing coming to an end. And that did include the quantum computing place including D Wave Quantum. Sure enough, after peaking at nearly $46 and change. In mid October, D Wave did fall roughly 60% from its highs. But since then it has been able to rebound from its lows, including a nearly 4% gain today as the company held a customer conference where they announced a series of very intriguing commercial agreements and partnerships, which is what we're looking for. Is it safe to speculate on something like this? How about a long term investment? Let's check in with Dr. Alan Barrett, she's the CEO of D Wave Quantum, to find out. Dr. Barris, welcome back to.
- [33:57]
F
Hey Jim, thank you for the opportunity to once again speak.
- [34:00]
C
All right, so you've got your conference. What are some of the highlights and what's the buzz there?
- [34:05]
F
Yeah, so this is our 2026 customer end user conference. We're holding it here in Boca Raton, Florida. And this morning we announced several very important advances for the company. First of all, we announced a $10 million enterprise quantum compute as a service deal with a Fortune 100 company. This is to work together to build and deploy into production multiple applications. We also announced a $20 million system sale to Florida Atlantic University. So so far, just in the first month of 2026, we have $30 million worth of bookings. Next, we announced an important partnership with Davidson and Anderal to work on Department of War applications. We announced that we are moving our corporate headquarters from Palo Alto, California to Boca Raton, Florida. And then this all comes on the heels of an earlier announcement a few weeks ago where he announced the acquisition of Quantum Circuits to put D Wave into the leadership position for both annealing and gate model Quantum Computer.
- [35:15]
C
Let's start with the Florida Atlantic. The purchasing purchasing advantage to Quantum Computer. Now, Florida Atlantic happens to be there too. I don't know whether that had an influence on where you move. The fact that I would rather move where you are than. Than here. But that does seem like 20. $20 million. That's a big deal. So what's, what do they get for a $20 million agreement that you are installing an advantage to a kneeling quantum computer right there at, at their, at their campus? Yep.
- [35:45]
F
So they will get 100% access to that quantum computer. And because they've purchased it, they will have the ability to control all of the operating parameters of that system, enabling them to explore a variety of different customer applications, read commercial applications, as well as to do important scientific research. And you know, they will be the lead university here in Florida for quantum computing. But all the universities here will kind of come together and leverage this technology.
- [36:18]
C
At the same time. Your acquisition, I know You've got some affiliation with Yale. A lot of the universities have. I know Harvard has it too. This is where Quantum has been actually developed the most because a lot of companies that are large tech companies other than say, IBM really haven't focused on this. So tell me about the rationale for the acquisition. Yeah.
- [36:38]
F
So D Wave is the world leader in annealing quantum computing. We've talked about this before. Annealing is very good at solving a variety of different important problems, especially good at solving business optimization problems, which represents most of the important hard problems that businesses need to solve. And our Annealing quantum computers are commercial today. We have customers using them on a daily basis as part of their business operations. But then there's also gate model quantum computers. Gate model quantum computers are good at solving a very different problem class of applications. Most quantum computing companies in the world today are developing gate model systems. With the acquisition of quantum circuits, we have basically moved D Wave into a leadership position with respect to gate model quantum computing as well. So we're now leaders for both Annealing and Gate. Sort of one stop shop for quantum computing.
- [37:33]
C
All right, now tell me about the Fortune 100 customer, because again, develop and deploy several quantum powered applications. These are commercial applications. I had asked for that, that you have commercial applications where I felt that I should really bless the situation. You are producing commercial applications. Talk to me about this one.
- [37:52]
B
Yeah.
- [37:52]
F
So again, this is a Fortune 100 company that has a number of different applications that they basically been unable to solve as efficiently and as effectively as they need to be able to solve. And this is a large company that has very large complex applications. And they've started working with us to leverage our quantum computer on an initial application. They saw excellent results with that. And so what they've now done is they've purchased essentially the ability to develop and deploy multiple applications over a two year period for $10 million.
- [38:34]
C
Well, okay, that's terrific. And then I know a lot of us are concerned about and, or what they can do for the Department of War. How will they be using your computing?
- [38:45]
F
Yeah. So once again, there are a variety of different applications that we have started to work on with Davidson and Andrew. There was an initial application that we developed with them, saw very good results on it. And so now we're moving that on to a variety of other applications. These are all, you know, sensitive Department of War applications. But what I will say is that we are also in the process of certifying our quantum computer at Davidson. One of our annealing advantage to quantum computers is housed at Davidson. And we are in the process of certifying that to be able to support classified government applications, which is where this partnership will ultimately go.
- [39:30]
C
Well, look, I got to congratulate you. You. We put out the challenge. You met the challenge. These are all very exciting commercial agreements and congratulations. I think it's good news and I hope you have a good rest of your conference. Dr. Alan Barrett's D Wave Quantum CEO. QBits, thank you. Thank you so much, Al. Thank you. Jimmy. They have money. Be back after the break.
- [39:53]
B
Coming up, Cramer takes your call. And the sky's the limit. It's a fast fire lightning round.
- [39:59]
C
Next. It is time to talk to the boy round. Chris Raymond sound and then the lightning round is over. Are you ready? Getting dad. Let's start with Guy in New York. Guy, how you doing? Jim?
- [40:26]
B
Booyah.
- [40:27]
D
Thank you for all your help. I just wanted to say aside from cooks caught the ball, I was interested in a stock that's looking pretty good, but it's got one little red flag and that's regarding the insider selling without any purchases. But it's Mueller Industries. Mhm.
- [40:45]
C
Do you know that I was. Mueller was a big holder that when it came out of bankruptcy, I've been a gigantic believer. Mueller, I know it's been nothing but straight up. But you know what? Slow and steady wins the race. I am still a buyer of Mueller Industries. That's a lot of pipes, a lot of infrastructure. Used to be a lot of manhole covers. Let's go to Joanna in Pennsylvania. Joanna, thank you for taking my call.
- [41:07]
D
I'm on a stock called FIG that's gone down over 20%.
- [41:12]
C
Yeah, yeah. They bag people on that one, man. People. Actually, you know, I shouldn't say that. People got too excited about it. I think it was very good design software. But you know what? You got Adobe out there just flailing and I don't want to touch design software. I really don't. I think it's just too hard. I'm gonna go to Dave in Illinois. Dave, Dr. Kramer.
- [41:33]
D
Godspeed, healing wishes. Palisa recovering from knee surgery.
- [41:38]
C
Not going that taking a long time. Dave, thank you for answering. I'll certainly pass it on. What's going on, Jim?
- [41:44]
D
This $30 billion company is among 13 companies in the S and P that grew triple digits last year. They supply H Vac and related systems supporting the race to build out data centers and AI stacks. Give me your thoughts on comfort systems.
- [42:01]
C
Oh, it's fix. I remember that. Stocks, Dave. I had to say I like that stock. But it was like in, like that. I don't like 20 bucks. And I should have just said over and over again, keep buying it so very much like yours. Just like one of these stocks. I think you put some on and then if it comes back down, for heaven's sakes, you buy more. It's a great company. I need to go to Rohit. Oh, thank you for tonight's comments about Lisa. Let's go to Rohit in California, please. Rohit. Hey. Hi, Jim. First time caller. Thanks for all you do for us and love your new book. Which one? I own Credo Technology. Thank you, man. Thank you. Bestseller. You can get it now with the club and we have all big tie in and stuff. Okay, go ahead. I'm sorry. Yeah, I'm hooked to the book. Thank you. So I own Credo Technology. Which one? Oh, man, I don't know. I mean optical. If I want to do optical. Yeah, there's. There's just so much. Let's just do Corning. Let's see how they do tomorrow. Wait and then buy if it gets hit. Let's go to Wesley in Alabama. Wesley.
- [43:08]
D
Booyah, Mr. Kranger.
- [43:10]
C
Booyah. Wesley.
- [43:11]
D
Thanks for taking my call.
- [43:12]
C
No problem.
- [43:14]
D
Thank you for all your sincere advice for helping people like me manage their portfolio.
- [43:19]
C
Sure. Try it. I wanted to try it.
- [43:22]
D
Yes, and thanks. I want to ask you about a core dividend stock of mine. Sph.
- [43:29]
C
No. Propane is way too wild. Rusty Brazil told me that a long Time ago from RBN.com let's not mess with propane. It's just too inconsistent. And that, ladies and gentlemen, conclusion of the Lightning round.
- [43:44]
B
The Lightning round is sponsored by Charles Schwab. Coming up, charitable trust holding. Corning just landed a massive deal with Meta. But Kramer thinks this could be just the tip of the iceberg for the company. He's laying it out for you next.
- [44:10]
C
You have to keep your eyes and ears open whenever you go somewhere new because you never know what you'll find. This is something I stress in how to make money in any market. If you use your powers of observation, if you exercise some curiosity, you can find some very, very good investments. And that's what happened to the Travel Trust today when we struck gold with Corning, which rallied more than 15% on news of a gigantic contract from Meta for $6 billion in fiber optic cables. Back on September 12th of last year, we went to Corning plant in Harrodsburg, Kentucky that had been chosen by Apple to make the glass for your iPhone. We sat down with Apple CEO Tim Cook, and talked about Apple's long relationship with Corning. How the late Steve Jobs challenged Corning directly to make the toughest glass imaginable to prevent scratches. Jobs went directly to when the Weeks, the CEO who happened to be with us in Harrisburg and told him he had six months to come up with scratchless glass. Weeks, he demurred. But Jobs famously said, you know what your problem is? You're afraid before convincing to do it. Oh, it's a great story I love telling. However, when I talk to Weeks who was with us, he patiently explained to me that as important as Cornings glasses to their bottom line, I really ought to take a hard look at their fiber optic business. This is the division that caused the stock to boom and then bust during the dot com era. But you know, taking down everything connected to the Internet, I mean, even, even the wiring, including Corning. So I did some research and I found out that Corning has been making fiber optic cable to link clusters of servers together in the data center. Weeks explained that fiber is a heck of a lot better than copper, the current way to link servers. Copper retains too much heat, less efficient when it comes to signal weakening. It's heavy, it's bulky fibers, light and thin. It's just a better way to move data. One who pointed out that copper still dominates, but his money was on fiber taking over. I came back all fired up, not just about Apple, but about fiber and therefore about Corning. So we bought it big for the travel trust after telling club members that they should own. Then today we learned from CNBC.com the Corning selling $6 billion with a fiber optic cable to matter. And the stock just caught fire. As Weeks told CNBC, quote, I think next year's hyperscalers will be our biggest. Next year hyperscalers will be our biggest customers, end quote. That could be incredible, especially when you consider that any given Data center has 30 to 50 miles of networking cable at a minimum. Now, today in our morning meeting, and that's a 1020 show, Jeff Marks and I told club members, please do not sell, even though Corning reports tomorrow morning. Now, I suspect I have to tell you, after this run, a more than 15% gain in one day, almost anything they report could be a letdown. I wouldn't, wouldn't shock. The stock could go down. But why not take profits? Two reasons. One, if Matter wants $6 billion in fiber optic cables, what will Microsoft want? Or Tesla or Google or Amazon? And two, the actual Nvidia chips that predominate the data center are chock full of copper. What if one day Corning can figure out how to make fiber for the inside of the chip? Wouldn't shock me. Data centers would almost immediately burn less hot and therefore need less electricity for climate control. But I digress. I mean, really digress. What matters is that you may go into someplace, anyplace, looking for something, and if you have your eyes open, you might suddenly see something else, some other nugget of an idea that strikes your fancy. If I'd only focused on iPhone, glass, that Corning plant, I would have missed out on something that's given my charitable trust a huge gain. So follow your curiosity. Drill down on what you see. Sometimes there's a terrific investment idea hiding in plain sight, I like to say. As always, bull market Summer Promoter Fed just for you. And here when we have money. I'm Drew Kramer. See you tomorrow.
- [47:54]
E
All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its 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 Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Cramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates Anderson 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 We've been the.
- [48:27]
B
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