Mad Money w/ Jim Cramer 2/3/26 – Episode Summary

Date: February 4, 2026
Host: Jim Cramer (CNBC)

Episode Overview

This episode captures Jim Cramer's signature energy and analysis as he guides listeners through another tumultuous Wall Street session, with a sharp focus on the sector rotation from software to hardware and “real economy” companies, the role of AI-induced panic, and major interviews with top CEOs from Nvidia, Dassault Systèmes, Chipotle, and Merck. Cramer explores whether the sell-off in enterprise software is overdone, interviews leaders driving the next industrial revolution, and spotlights turnaround strategies and innovation at Chipotle and Merck. His “Lightning Round” offers rapid-fire stock takes, and he closes by dismantling rumors around Nvidia’s relationship with OpenAI.

Key Discussion Points and Insights

1. Rotation Out of Software – AI’s Market Impact

Timestamps: 01:42–10:13

• Market Sell-Off Context:
  • The Dow fell 167 points; S&P down 0.84%, Nasdaq off 1.43%, with enterprise software stocks being hit especially hard.
  • The market, according to Cramer, is rotating away from software (especially cloud and data-collection names) and toward hardware and companies with large IT spending.
• AI as the Driver:
  • “Anything remotely connected to software is suspect, including companies that just collect data. But any client...is golden. At least for now.” (Cramer, 02:30)
  • The rise of companies like Anthropic automating legal work sparked panic that AI will make enterprise software obsolete – even if most law firms still distrust such tech.
• ETF Effects and Misclassification:
  • Software-focused ETFs (notably IGV) are exacerbating the sell-off, punishing a wide swath, even stocks like CrowdStrike (cybersecurity) that Cramer argues don’t belong.
  • “[CrowdStrike] shouldn't be in the enterprise software cohort. But it's being brought down by that stupid ETF. The idea that someone will use AI to...” (Cramer, 05:52)
• Valuation Compression:
  • Multiples (P/E ratios) may keep shrinking; Cramer expresses uncertainty about “how low can they go,” and thinks many high-flying software stocks have little defense (low dividend/buybacks).
• Private Equity Fallout:
  • PE firms with exposure to enterprise software are getting hit, as the IPO window slams shut.
• Bottom Line:
  • Winners: Users of software (industrials, banks, consumer staples);
  • Losers: Providers of enterprise software. But Cramer raises the specter that market logic can break down.

2. Lightning Round – Rapid-Fire Stock Picks

Timestamps: 44:21–45:23

• Notable calls:
  • Gladstone Land Corp (LAND): “Ka-ching, kaching that one.” (Cramer, 44:50)
  • Solstice Advanced (spinoff from Honeywell): “Fantastic stock. We own some. We were too quick to sell it.” (Cramer, 45:10)

3. Nvidia/Dassault Systèmes Interview – AI for the “Real Economy”

Timestamps: 12:10–25:27

Interviewees:

• Jensen Huang (Nvidia, CEO)

• Pascal Daloz (Dassault Systèmes, CEO)

• 25-Year Relationship, Next-Gen Partnership:

  • Partnership aims to bring “physical AI” into factories, aerospace, pharmaceuticals, and more by integrating Nvidia’s full platform (CudaX, Omniverse, AI) with Dassault’s suite.
  • “The next frontier of artificial intelligence is, is physical AI. This is where AI understands the physical world and we apply artificial intelligence to design, simulate, validate and operate incredible systems.” (Jensen Huang, 13:40)

• Digital Twins/Simulation:

  • “We're going to do all product design and testing completely digitally...save enormous amounts of time, enormous amounts of money.” (Huang, 15:31)
  • Dassault can now “uplift many, many things,” accelerating certification, compliance, and time to market for innovations like faster airplanes. (Daloz, 14:57)

• Drug Development:

  • “There is a way to virtualize part of the clinical trial. That’s what we do...synthetic control arm... gain something like 50% of the cost.” (Daloz, 16:32)

• OpenAI/Nvidia Deal Rumors:

  • Cramer presses for clarity on supposed drama between Nvidia and OpenAI (17:25–22:28):
    • “No, there’s no controversy at all. It’s complete nonsense.” (Huang, 18:16)
    • “Everything is, this round is going to get done. It’s going to be the largest round in history.” (Huang, 19:45)
    • “There’s no drama involved. Everything’s on track.” (Huang, 22:25)

• Robotics & Manufacturing:

  • “The future... digital design, virtual twins of the products, they’re going to be built by virtual twins of robots operating in virtual twins of factories... all done inside these virtual twins running on top of Nvidia computing platforms.” (Huang, 23:52)

• Cramer’s Takeaway:

  • Excitement at seeing this “before I die,” spotlighting the sweeping transformation about to hit physical industry.

4. Chipotle – Recipe for Growth

Timestamps: 27:25–36:17
Guest: Scott Boatwright, CEO, Chipotle

• 2025 Was a “Year of Resiliency”:
  • Chipotle remains “successful in any consumer cycle.” (Boatwright, 28:21)
  • 2026 plan is the “recipe for growth”: focus on culinary excellence, operational experience, brand messaging, menu innovation, new digital rewards, global expansion, and talent.
• Menu Innovation/Customer Focus:
  • “Menu innovation this year will be nothing like you’ve seen historically. We’re going to launch four new protein LTOs...sides and dips.” (Boatwright, 30:17)
  • Chicken al Pastor, “our most requested LTO in the brand’s history,” returns Feb 10.
• Reinvigorating the Workforce:
  • Hired/promoted key positions, new Chief Digital Officer, VP of Emerging Technologies, CMO to drive the brand and AI adoption.
  • “Not everybody bought into the plan...Those of us regular people see different Chipotles. There’s a different feel.” (Cramer, 32:15)
• Super Bowl Promotion:
  • $1M of free burritos via Instagram Reels for Super Bowl – “our way...for our most loyal guests.” (Boatwright, 33:53)
• Store Closures/Buyback:
  • Very few underperforming stores; “it’s in the tens, not hundreds.” Low build cost, strong economic model.
  • Aggressive share buyback: $2B in 2025, another $1.8B approved.
• Cramer’s Reaction:
  • Believes the market is missing the turnaround; excited for menu launches and management’s willingness to “get tough.”

5. Merck – Diversified, Growing, and Relatively Untouched by Government Scrutiny

Timestamps: 36:41–44:12
Guest: Rob Davis, CEO/Chairman, Merck

• Strong Quarter, Guidance Fears Overblown:
  • Guidance was dragged down by one-off acquisition costs, not by business trends.
• Transformation and Pipeline:
  • Merck now has line of sight to $70B in potential commercial opportunities, up $20B from 2025.
  • 10 key growth drivers; 80 phase 3 studies underway.
• Major Product Highlights:
  • Elicitide: “Same as monoclonal antibody, but in a pill form,” aiming to radically expand cholesterol therapy access (Davis, 38:45).
  • Windrevere: Drug for pulmonary hypertension; promising phase 2 results could double its target market.
  • Long-acting Antiviral (via acquisition): “Strain agnostic... protects for the full season, 76% reduction in risk of getting flu.” (Davis, 41:24)
• Recognition for Science, Less Government Overhang:
  • Market beginning to reward superior companies with higher multiples.
  • “The government may actually be not really involved right now with Merck, other than to say...that’s a good drug.” (Cramer, 42:56)
  • Most Favored Nations pricing agreement is behind them; Davis sees U.S. alignment now.

6. Cramer Closes the Loop on OpenAI-Nvidia Rumors & Market Sentiment

Timestamps: 45:52–48:04

• Addresses media “hit pieces” and rumors of friction between OpenAI and Nvidia.
• Reiterates (drawing from the Huang interview) there’s “no more questions need to be answered...It’s done.”
• “When somebody writes that there are seven or eight people at OpenAI who don’t like Nvidia...In the end, all I can say is this. These companies have CEOs, and for now Jensen Huang and Sam Altman are on the same page and last I looked, they are in charge.” (Cramer, 47:20)
• Urges listeners not to let “inside baseball” distract from the bigger investment thesis.

Notable Quotes & Moments

• “Hardware companies triumph, software companies shrivel up and die. Industrials profit. Enterprise service companies wilt. Sell, sell, sell.”
  – Cramer, 01:42
• “Wall Street’s convinced that it’s going to happen because of AI. Wall Street’s a prediction machine and the prediction for software holders, the House of Pain.”
  – Cramer, 02:48
• On enterprise software carnage:
  • “Salesforce down 7%. I can’t look at it anymore. Oracle down 3%...Adobe down 7%. Whoa, notes. So great.”
    – Cramer, 04:42
• Jensen Huang on the AI revolution:
  • “The next frontier of artificial intelligence is, is physical AI. This is where AI understands the physical world...”
    – 13:40
• Pascal Daloz on drug development:
  • “We call it the synthetic control arm, which is a way to create a virtual cohort...we could probably gain something like 50% of the cost.”
    – 16:32
• Huang on OpenAI partnership rumors:
  • “No, there’s no controversy at all. It’s complete nonsense. We love working with OpenAI...we are going to invest in their next round.”
    – 18:16
• Cramer on AI hysteria:
  • “I did this interview in part to help you through the thicket created by the business media where negativity always draws more attention than positivity...”
    – 47:00
• Scott Boatwright on Chipotle’s menu innovation:
  • “Menu innovation this year will be nothing like you’ve seen historically. We’re going to launch four new protein ltos...”
    – 30:17
• Rob Davis (Merck) on new cholesterol pill:
  • “We’re able to basically create in a pill form the same as a monoclonal antibody...easy to use pill that brings like efficacy...”
    – 38:45

Episode Structure & Timestamps

• [01:42] Opening Rant: Sector carnage, rotation, and AI fear.
• [10:13] Market sentiment wrap, brief Lightning Round preview.
• [12:10] Nvidia/Dassault Systèmes interviews: AI for industry, digital twins, OpenAI/Nvidia relationship.
• [27:25] Chipotle CEO on turnaround and innovation.
• [36:41] Merck CEO on pipeline, innovation, and government pricing.
• [44:21] Lightning Round: Rapid stock calls (LAND, Solstice Advanced).
• [45:52] Closing commentary: OpenAI/Nvidia rumors, business media skepticism.

Conclusion

This Mad Money episode captures Jim Cramer’s vigorous style and broad Wall Street coverage, as he breaks down sector rotations driven by AI anxiety, challenges groupthink panic selling, and spotlights high-impact innovation across technology, consumer, and pharma. The featured CEO interviews go beyond earnings, offering listeners an inside view of how artificial intelligence is reshaping industries—while Cramer works to cut through sensationalist headlines with direct answers from top leaders.

For listeners:

• This episode is essential for understanding the forces behind recent tech stock movements, the real-world adoption of AI in industry, and how Cramer differentiates between market noise and long-term opportunity.
• Notable for in-depth CEO perspectives, actionable portfolio guidance, and exceptional clarity on Nvidia/OpenAI partnership rumors.