Transcript
Jim Cramer (0:00)
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American Express (0:29)
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Jim Cramer (1:03)
My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to kramerica. Let's be with my friends. I'm just trying to make you a little money. My job is not just entertainment to educate tissue. So call me at 174.3CBC. Tweet me Jim Cramer Nobody ever made a dime panicking. No matter how many times I've said that, it always feels like the first utterance. But if you match yesterday's carnage in tech with today's bountiful harvest of winners, you know why I have to repeat myself. If you panicked and sold tech yesterday, you missed today's cornucopia of tech winners with the Dow gaining 137 points and S&P climbing 0.92%. But the Nasdaq filled with tech going up 2.03%. Now, before we dig into what happened today, I want to emphasize that when I say no one ever made a dime panicking, I'm actually not even talking about being opportunistic. I'm saying that if you wanted to sell in video into the worst single day loss in history of a market capitalization, maybe you learned your lesson as the stock bounced back furiously today, up nearly 9%. Because as bad as this deep sea thing might be for video, it might not be that bad. No, it's not back to where it was. I get that. And maybe it shouldn't be, but it really got oversold and therefore it caught a bounce when there was only one downgrade. A lot of positive chatter that it isn't over for what was not long ago, the world's largest company. I get that it wasn't easy to do nothing yet to sit on your hands. So you had this Chinese alpha come out of nowhere, announced basically that you don't need as many Nvidia chips as you thought for AI because you can get much more out of each ship, maybe 10 times more if you just use the software. That's pretty much what Deep Sequence offered. And it's certainly a frightening prospect for in video as the company has been perceived to be a monopolist that price gouges. Now the way I see it, that's nonsense. Nvidia invented this business, spent billions upon billions of dollars building it up and it simply charged with the market bear until last week. We figured that to get most tasks done, to get the best use out of Nvidia's product, you had to order a colossal number of chips at obscene prices. Now though, if someone comes along and says, hey, you know what, you can get 10 times as much output from an invidious chip that you thought, you got to figure you only need to order 1/10 as many chips as you thought you needed, right? Isn't that the math? And that's why Nvidia stock got obliterated yesterday. What if everyone who's ordering these chips cancels 90% of their orders? What if you only need 1/10 of the data centers you planned? Okay, that is enough to scare anyone, but fear doesn't necessarily generate the right decisions when it comes to the stock market. Remember, I'm not talking about being opportunistic again and buying in video this morning when it went from plus four to minus one. I'm just talking about not selling you the biggest route in history. Or to put it another way, because I really am trying to get this point across. Obviously doing nothing was actually a great strategy. You didn't expose yourself more risk. And if you're truly worried that Nvidia might lose 9, 10 of its orders, you got a chance to sell at a much better price simply by waiting a day. Sell, sell, sell. The panic yesterday was so palpable that people even sold the beneficiaries. The companies that are doing well might even do better if deep seats formula for success spreads. Bunch of knuckleheads. At one point yesterday we saw some huge potential winners get hammered. As to stocks like Meta, Microsoft, Amazon, Alpha, all four of them came roaring back today. They were all fabulous buys, house of pleasure, yes, panicking cause smokescreens that obscure what in retrospect were some fairly obvious opportunities. If matters buy 500,000 chips from Nvidia and the price of those chips comes down because people realize they don't need as many. Well how is that negative for matter? The only way to frame this is a negative is if you got a problem with arithmetic. In which case instead of doing this I suggest some remedial math classes might help. Irony of ironies. How about the fact that Apple, which had been in free fall for weeks, has made abrupt U turn two days ahead of earnings and has now rallied from 222 to $238. How crazy is that? And once again I remind people that I want to own Apple, not trade it. That's how we feel for the trust. But a lot of people sold it yesterday to 22. I wonder what they're thinking. That said, if you can't handle the fear of owning the stock of Apple through a quarterly report that is almost universally regarded as horrible, awful and miserable before it prints, which is going to on Thursday, well you're now free to sell the stock at a much higher price. I say go forth and sell. Some stocks were held correctly as winners this environment mainly the companies that benefit from less expensive hardware like ServiceNow which rallied another 2.6% today in Salesforce which gained 3.7% on top of a colossal gain yesterday. We're going to have CEO Mark Ben Affleck to talk about this new deep seek see and how it seeded the world later in the show. But now let's get back to the real issue here because I got to make another point. If you made it through the yesterday's cataclysmic drop and still own the stock of Nvidia, can we just stop for a second and think about what deep seat might really mean for this incredible company? First, it's entirely possible that companies will place smaller orders if they can really get much more use out of Nvidia's chip chips. It's just possible the price of compute could come down. That's understandable. If a company setting up still one more AI powered customer assistant, then it's entirely possible that there won't be as much demand from videos highest end chips. If that's the case, you could argue that you might even be able to use less powerful chips. Item from from Amazon from amd. Salesforce is the king of the AI powered customer system. So it's a gigantic winner from Deep sea. The more commoditized the hardware, the better off for Betty off. But what if you're thinking much differently? What if you want to create a world of specialized robots that can do anything humans can do physically and do it better than we can actual physical robots? Humanoids. Call whatever you want. Can Deep Seek do that for you? Does Deep Seek help you create the best self driving cars? Does it keep your data private? Or like TikTok, does it just turn out to be a way for the Chinese government to influence us and gather our information? Huh? But one look at the incredible run in the cybersecurity stocks tells me that someone besides me has thought about the implications. Do you think the stock of chapters are holding crowdstrike doesn't go up $34 or 9.35% in a single session for nothing. And then there's something else that bothers me about the slam job on a video. With Wall street suddenly treating as a commodity chip maker like some sort of intel not deserving of a trillion dollar valuation, let alone a 3 trillion. We may have just found out about Deep Seat because we read about it in the New York Times. Is it really possible that Mark Zuckerberg from Meta, Larry Ellison from Oracle, Elon Musk from everywhere, guys who've been ordering chips, video chips, the most aggressive, expensive kind, like mad. Do you really think they were blindsided, Julie? They didn't know anything about this. Were they as clueless as the people who sold a video in yesterday's Vortex? Were they so involved with President Trump's initiative and so eager to please the President that they ordered billions of dollars of chips just to show they liked them? Somehow I don't think that makes a lot of sense. I hope you don't think so either. These folks didn't just fall off a turnip truck where they were frantically trying to buy some Blackwells. Here's the bottom line. The shoot first, ask questions later approach works when there's fraud or chicanery and we know we must sell. But when things are complicated or murky, it might not make sense to help create the biggest single day dollar loss in history. Chums. There's a better way. Just don't do anything. If you really want to sell, you can do it into the rebound the next day. In my experience, after one more dip in the morning, you almost always get a better price. Julie and Connecticut Julie.