← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 3/16/26
00:44:19
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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- [00:00]
Jim Cramer
Hiring isn't just filling a role, it's
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Indeed Representative
about finding people who can drive results.
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Jim Cramer
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Indeed Representative
the right candidates faster. Target candidates by skills, certifications or location. Join the 3.3 million employers worldwide that use Indeed to connect with quality talent that fits their needs and listeners of
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Jim Cramer
this show will get a $75 sponsored
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Indeed Representative
job credit to help get your job the premium status it deserves@ Indeed.com podcast. Terms and conditions apply. Hiring do it the Right Way with Indeed.
- [00:30]
Podcast Host / Announcer
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 podcast,
- [01:00]
Jim Cramer
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 Cramerica, and welcome to Nvidia's GTC Conference and C San Jose, California. Other people make friends. I'm just trying to make a little bit of money. My job is not just entertain, but to educate, to do some teaching. So call me at 1-874-3CNBC or tweet me at Jim Cramer. Today we saw the price of oil can actually go down. But will it stay down? Oh, come on, let's not get ahead of ourselves. This market rallied today because President Trump is allowing Iranian oil to get to through the Strait of Hormuz. That caused the price of crude to drop back to the mid-90s, which is all that mattered to the averages. Dow surging 388 points. Yes. Be jumping 1.01% the NASDAQ poll voting 1.22%. Now, I know we've all gotten a little Pavlovian in this market. We buy stocks whenever oil goes lower, which isn't very often, and we sell stocks whenever oil goes higher, which seem to be all the time. So today people bought stocks and bought them aggressively because oil went down a fiver. How important is the price of crude to the stock market? Let's put it this way. We left here on Friday thinking the next stop for oil would be $150. We started calculating what 150 would mean at the pump. What do I mean at the voting booth. What do we mean to stocks? Put those rate cuts on hold because of inflation? No, make that stagflation. How bad would the recession be with $150 oil? Did President Trump not know about what Iran could do with the chokehold of the strait of removes? Was this another war we're going to lose? You heard it. You heard it all. As I surveyed the streets research this weekend, I kept seeing the same kind of notes as oil skyrockets higher. This litany I just ran through, this full on parade of nightmarish horribles should cause the S&P 500 to drop between 15 and 20 20%. Pessimism was everywhere. Defeatism. We were back asking if the center would hold again. But then a funny thing happened. The way to $200 oil and stagflation. Oil itself didn't cooperate. Why did it go down? It's all so murky and confused. But I believe the President's decision to let Iranian oil through the street demonstrated a level of practicality that most traders didn't think the president president was good for. A level of practicality that's been sorely missing in this bombing war. So a new narrative suddenly emerged and caught lots of traders leaning the wrong way. If the strait is open to tankers from Iran, then how can oil get $150? Doesn't need the US to do something to Iran's oil to get to 200. If anything, maybe oil is overshot its destination already. From the stock market's perspective, the most dangerous day in this entire war was when Israel struck an Iranian oil facility that unleashed attacks on all the surrounding countries oil infrastructure that cemented higher prices in our minds. But Trump has now decided to lay off Iran's oil industry and even let them export their oil. He's making a point that he isn't going to attack Iran's oil infrastructure. I'm not saying he won't change his mind. I mean maybe he'll attack Iranian shipping tomorrow. He quickly went back to joking about how he took out two different sets of leaders. But he seemed to be ready for whatever happens, including it. And to the war. Traders seem to welcome his swagger. Why don't we do this? Let's call it a quasi off switch, call it a pause button. That shocked the pessimists and just created a huge wave of stock buying. And what did they buy? Oh, what did they buy? Well, why don't you just take a look around here? I mean this is what they bought. They bought everything in the room. See what you see behind me is the wide world of Nvidia. This, this is gtc, the AI festival of everything that drives the tech world. Right here in this hall. Everything. All my faves. This is what they bought. Oh, they bought hardware, they bought the software, they bought the infrastructure, they bought the data center. They bought everything that produces AI. Agents of AI, leaders of AI, friends of AI, buddies of AI, accelerated computing. They bought the whole wide world of Jensen Huang and everything in it. We went to listen to the keynote speech that Jensen Wong gives every year. He told the tale of endless demand. You know, this man previously forecast three months in Washington maybe four months ago that he had a half a trillion dollars worth of demand for his newer chips through the end of the end of next year. Well, that was pretty exciting. And now he's talking. Well, wait a second, he just doubled it. He said there's an even trillion dollars worth of business by the end of 2027. Yep, he has a trillion dollar book of business. Nvidia stock shot up huge when that number came out like this. All right, Then it gave it up. As we're getting, getting a little sick of this, frankly. Sellers emerge. I myself was a little surprised because that new forecast, the doubles, nothing it sees at a double. Who else has a double? I might have a double. Anybody have a w. I don't see any doubles. I believe there will be a delayed reaction. The stock will go higher when analysts digest things. Because you know what, when you go from a half a trillion to a trillion dollars in sales, it does matter. Jensen told more than just the story of elevated demand. He also announced he had new chips for clients who want more inference oriented semiconductors at a lower price. One of the reasons why Nvidia seems stuck, just stuck at 183epoxy, if anything, is that many of its customers seem determined to make their own chips. I heard a confident Jensen talk about the chips he's making from a new acquisition grok that are faster, better and cheaper than anything else out there, including all these chips that these customers are trying to make. There's no reason for his GPU customers to make their own inference chips if they can buy them for a lower price from Jensen's Nvidia. Again, people yawn, but they won't yawn when analysts put pen to paper. Trust me. On day one, as I strolled the floor here, I saw all the companies that are in the world of Nvidia. And I realized something. I can't name a company that isn't in Jensen's orb. Except perhaps this one real competitor. Amd you imagine a world where everyone's your client. Everyone. Because everyone needs computing. I say that's pretty darn extraordinary. Maybe that's why I think this stock deserves the appellation of being the biggest. Today we're going to talk to some executives who can explain why this video revolution is so important, not just for the companies, but for your pocketbook, darn it. We're going to talk about how AI is going to a new level with the next generation. The Vera Rubin chip, allowing agents to reason on par with humans. In many case better than humans. I'm looking at a robot here is definitely quoting like the Declaration of Independence. The guy's quoting. I swear to God, he's doing it right now. Now. That's why we're here. It's not a sideshow. It's not an escape from this trade of a moose. Not that I wouldn't mind one. It's what matters when the smoke clears from Iran. It's where the earnings are, it's where the sales are. It's what moves stocks. Nvidia is the most profitable company I've ever seen. And? And it's still at 183. Enough already. I know a lot of you aren't willing to think past the war. I get that. But if you're going to manage your own money, I'm urging you to look further into the future. Look behind me, for heaven's sake. Let me do it for you. When this work can look past Iran, it's going to buy AI and everything in it. Because this is the future. You just can't see it because so many things are going wrong in the world. But it's only when things go wrong that the bargain surface. Here's the bottom line. Stop, listen and learn. The opportunities are all around me. I want to share them with you over the next two days at the Woodstock of AI. That was a really big festival from when I was younger. It's the world of Jensen Huang. It's gtc. I say we take calls. I say we go to Amos in California, where I am Amos. Hey, Jim. I have coffee with you every morning and I'm concerned with tariffs and. And over Pfizer, it pays a great dividend and I was just wondering what your take was on it. Okay, Amos, Pfizer is not an espresso. Pfizer is more like Nescafe. But that's okay. It's at $26, yield 6.4%. It's got a lot of stuff in the pipeline. I am with Amos and tomorrow morning when we have coffee we're going whole built. Trust me now if you're going to successfully invest in a time like this, you got to look past the war, the places like where I am right now. I'd like to circle around but it'll probably strangle me. At least let me look around for you. If you will. Synopsis One of the latest recipients of the Nvidia investment so how is the company pushing the boundaries of AI innovation? Let's find out with the CEO then another one that has just been stuck endlessly and it's driving make my head pop. You know what I mean? I mean pop like a squeeze pimple. I'm talking about ARM Holdings. It's clearly becoming one of Nvidia's most important partners. I'm learning more about what made ARM the partner of choice when I speak with the company CEO. And how is the legacy tech company Dell been reinventing itself, empowering its stock higher? I'm getting all the latest with the CEO, so I say stay with Kramer.
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Podcast Host / Announcer
Don't miss a second of Mad Money. Follow imkramer on X. Have a question? Tweet Kramer Madmentions Send Jim an email to madmoneycnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com
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Comcast Business Representative
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Jim Cramer
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Jim Cramer
thy ticket lady, Jennifer of Coolidge. Well, many thanks good sir. Here is my Discover card.
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Sassin Ghazi
They accept Discover at Renaissance Fairs?
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Jim Cramer
Yeah, they do here. Discover is accepted at the places I love to shop. Getith with the Times. With the times.
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Indeed Representative
You're playing the lute.
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Jim Cramer
Yeah, and it sounds pretty good, right?
- [11:42]
Comcast Business Representative
Discover is accepted at 99% of places that take credit cards nationwide, based on the February 2025 Nielsen report.
- [11:48]
Podcast Host / Announcer
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.
- [12:28]
Jim Cramer
Since we're at Nvidia's GTC event, it's time to take a closer look at some of the AI kingpin's most important, important partners. Take Synopsis. That's a leader in electronic design automation for semiconductors and electric components. It's now a big player in engineering simulation and analysis following its acquisition of Ansys last year. Not only are they a key part of the chip food chain, but they also rely heavily on AI and accelerated computing to help their clients design better products. Now, this stock's come in pretty significantly since last summer. It is off 35% from its highs last July. So we got to ask ourselves, is this a buying opportunity? Earlier today, we got to speak with Sassin Ghazi. He is the president and CEO of a very exciting company. Synopsis. Take a look. I feel like we have to reintroduce you. In the time since we saw you last, Synopsis has become a bigger, better company.
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Sassin Ghazi
Yes. Actually when we met last time, we were just announcing the acquisition of Ansys. Since then we closed the acquisition even though it took us about 20 months to do so. It expanded the opportunity in a significant way. Synopsis roots have been in silicon design. Now it expanded to physics. Physics is important for physical AI and how to model the environment, the world and product. So exciting opportunity.
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Jim Cramer
I think that self driving cars is maybe the biggest use of AI. I think that ANSYS itself may be the centrality of trying to figure out how to make it work. I mean, for instance, let's say you have. You want to do try to figure out black ice how cars work on it. You could crash a million cars or you could use you and save a lot of money.
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Sassin Ghazi
Exactly. So think about the future products. They're going to be intelligent systems where AI is infused everywhere. They're powered by silicon and tons of software. How do you do this in a physical prototype or a physical testing? It's impossible, it takes too much time, too expensive, etc. So what we do, we virtualize the chip. We virtualize the actual mechanical system with Ansys and we model the world. That with the partnership with Nvidia Omniverse, they have the ability to model the world. We bring in the physics, fidelity and accuracy to create those products.
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Jim Cramer
One of the reasons why your company stock has been so amazing is you are the linchpin between an Nvidia, say in Taiwan Semi. You literally can't just have Jensen Huang call Taiwan Semi and Say, look, here's what I'm cooking up. But they can call you because you're, you are a very important part of the phase before it gets to Taiwan Center.
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Sassin Ghazi
What's often not understood is the leading semiconductor companies, they cannot just architect a chip and assume it's going to be manufacturable. We're the bridge in between. There is something called design technology co optimization. You have to go between here and here multiple times. And that's what we do as a company. We provide the design solution between an architect and manufacturing at the chip level.
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Jim Cramer
All right, so let's talk about prototyping and digital twin. Why do we need to have a digital twin? Why can't we just put up factory after factory? What, what do you say with digital
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Sassin Ghazi
twin, the cost of iteration. Because the, if the product is not complex, of course you don't need to go through the effort. But as you're envisioning those future complex products, especially with AI infused in them, where they have to operate in the real world, uncontrolled environment, they have to reason, learn, act. How do you do it with a physical prototype, you have to virtualize every aspect of that stack from the silicon all the way up to the software that's running on it.
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Jim Cramer
Well, this is beyond the 10th grade physics that a lot of people took, obviously. Now if I were to go to your booth, please explain what happens. I mean, in the end, this is a bit of a trade show. I don't mean to reduce it by saying that, but you've got product that people can buy.
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Sassin Ghazi
Yes, of course. At the silicon level, if you're a semiconductor company, we have the products that the semiconductor R and D engineers use to envision the product, to implementing the product to make it manufacturable. With the Ansys acquisition, it opened up our market significantly. If you're designing a jet engine, an arm or a hand for a robot, autonomous, autonomous driving, etc. You need to simulate, you need to make sure whatever you're envisioning is going to be manufacturable. And it's low cost doing it at a schedule that is practical. So that's what we're doing with our customers.
- [17:21]
Jim Cramer
You hit upon a term, low cost. I mean, the fact is, is that it may take forever, thousands of laborers to do what you do. And it's too expensive to explore, to create in this new world unless they have you.
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Sassin Ghazi
And there's a shortage of engineers to do it right today. You cannot get enough engineers to design and deliver to these products. Actually Today at our booth we have companies like Applied Materials, we have companies like adi.
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Jim Cramer
Analog Devices are faves.
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Sassin Ghazi
We have a company like Honda. We have a number of companies that are participating with us to say we cannot enable that future without having a virtualization of these end systems. And we need the technology that the solution from silicon to system to deliver to it.
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Jim Cramer
Well, this is so important because right now we hear about are there going to be giant layoffs and how about the fact that we couldn't do the things you're talking about because there aren't enough people. You substitute it without. Without you. Is any of this stuff cheap enough to do?
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Sassin Ghazi
We are racing ahead with bringing all kind of AI and agents into the workflow because our customers don't have enough resources or time time to deliver to these chips. Think about chips. Three, four years ago it was 18 months to 24 months. Deliver a chip right now is down to 12. Imagine the inference if it's operating in the physical world. That design cycle has to operate at 12 months or less. How do you do it and deal with that complexity without that automation? You bring it.
- [19:03]
Jim Cramer
And I don't want to be too pedestrian, but the fact is the stock did fall in part because of just delay of approvals. To me it wasn't because of any shortfall, it was just because you had to get the deal done. And now people are getting the opportunity to buy the new expanded synopsis.
- [19:19]
Sassin Ghazi
Yeah, we had a restriction to sell to China for six weeks that it was a significant headwind.
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Jim Cramer
True.
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Sassin Ghazi
We were right in the moment of wrapping up the acquisition. And as you know, we don't run the company and build the portfolio on 90 days in increment. We have to look at it for the long term and we cannot be more excited.
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Jim Cramer
And I can't fortunate I can't stress enough that investors should be thinking in the long term because that's what, that's how you built this company. And it is an amazing company. And with Ansys it's even better.
- [19:51]
Sassin Ghazi
Thank you. I mean when you look at synopsis, a 40 year old company, ANSYS, a 50 year old company, we have an amazing opportunity.
- [19:58]
Jim Cramer
It's just terrific. Okay. Sassing Ghazi is President CEO of Synopsis SNP long. A company we have championed since the beginning of Mad Money.
- [20:06]
Sassin Ghazi
Cecine.
- [20:07]
Jim Cramer
Thank you so much.
- [20:07]
Sassin Ghazi
Thank you so much.
- [20:08]
Jim Cramer
Thank you.
- [20:10]
Podcast Host / Announcer
Coming up, even the likes of Nvidia needs production support sometimes. And the CEO of one of their biggest helping hands is sitting down with Kramer.
- [20:20]
Jim Cramer
Next,
- [20:23]
Podcast Host / Announcer
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- [21:55]
Jim Cramer
As we celebrate all things AI at Nvidia's annual conference, I want to highlight a company that's becoming increasingly important to the entire semiconductor industry, ARM Holdings. This semiconductor design company cut its teeth providing CPU designs that maximize energy efficiency, especially for smartphones. That Expertise has made ARM the preferred partner for many AI systems, including Nvidia's. That said, for some reason, the stock has been stuck in a rut. It's trading sideways for the past couple of years. Can it get its mojo back? Because I got to tell you, it's got the earnings back. Let's take a closer look with Rene Haas. He's the CEO of Holdings to find out. Welcome back to Bear Money. Well, Jim. All right, so Renee, I want to start by saying I look around, you look around. Does anything not have ARM holdings in it?
- [22:37]
Rene Haas
I would say probably not. There's a whole bunch of robots that just fired on here before our show. Those robots are ARM inside. I'd say virtually every single one of them. Obviously all the smartphones are. But the reason is is that ARM is the mobile technology that now powers everything around AI. So I doubt you'd find anything did not have ARM inside on the show floor.
- [22:57]
Jim Cramer
Okay, so Jensen is gpu. That's a different kind of chip. Many People felt that he thought at one point that we would not really need a lot of CPUs. That's no longer true. We know he needs a ton of them and you're the one and he has chosen to make them.
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Rene Haas
There was a time when this AI thing sort of kicked off that everything was all about the gpu. And that was really because the tokens, the information was being generated by GPUs but you still needed CPUs to work in orchestration with that GPU. That was Grace Arm based. That was the first generation Nvidia built. And then Vera, which is your next generation system. What's happened though, Jim, over the last year or so is that everything moves towards agentic AI. In other words, agents running the work. Agents run much faster than humans. They do jobs. Those jobs need to be done by CPUs. So we're seeing is a huge explosion in CPU demand. And even Jensen today announced the VERA standalone system. We announced the standalone system on CPUs, which of course are ARM based, which indicates the demand for CPUs is now moving to a complete different level.
- [24:03]
Jim Cramer
Now I think that people should have to know when we think about robots, we should be thinking you not optimist is you. When we think about the fact that people are saying self driving cars. Well, self driving cars, these agents, because they, they would use too much power otherwise. A lot of us has to do with efficiency, that the idea of using your chips so saving energy is just incredibly important. And it's you.
- [24:31]
Rene Haas
There's a lot of ARM inside these data centers, but there's a lot of arm, maybe even more in these mobile systems such as autonomous vehicles or robotics. And why is that? All of that work around the AI workloads has to happen locally inside the machine. You can't have latency in terms of a car braking or a robot making a maneuver that has to rely on the cloud. So AI now that finds itself into physical devices all has ARM inside because of two reasons. One, we're the most power efficient system in the world. We're 50% more power efficient than the competition. And of course, table stakes. All of these machines have to have CPUs, which is why ARM is the CPU of choice there.
- [25:12]
Jim Cramer
Do you think that there's still this hangover of people who think before you buy arm? How are cell phones doing? Because I see them as increasingly smaller part of your mosaic.
- [25:21]
Rene Haas
You know, in the last earnings call I said that in a few years and my IR guys were really careful that I use the word few versus the numeric number data centers would be our largest business. No question about it. That's, that is very going to happen very, very quickly. Largely driven by all this demand for power efficiency. Smartphones, great business not going away anytime soon. But the growth for us is really around physical AI and digital data center driven by power efficiency. And yeah, you're right, people may have overlooked that, but we've reported the numbers consistently that that's where we're headed.
- [25:53]
Jim Cramer
Can you help me with what? Where you are in terms of scale out. Where. What does it mean when you are. When a lot of Jensen's GPUs are together and they got to talk to each other but they can't, they don't know how. They, it seems like they push it to you.
- [26:09]
Rene Haas
Yeah, there's a lot of buzzwords out there, right? Scale up, scale out. What does all that mean when you have a single rack and there's lots of GPUs and CPUs in that rack and they all connect to each other. That's mostly us. That's scale up.
- [26:22]
Jim Cramer
Okay.
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Rene Haas
All those racks now to be connected to each other, that's scale out. All of that work in terms of managing the storage, managing the data, managing the interconnect, that's all arms. So we're seeing an explosion of demand. And thank you for asking that question of ARM usage in the scale up and scale out domains largely because you need power efficiency to go manage all that traffic. There's a lot of traffic.
- [26:44]
Jim Cramer
And how about in a car? What really does happen if you have a self driving car and we're going to be able to make it so that every car is going to be self driving. What does that mean for arms business?
- [26:55]
Rene Haas
It's going to be, it's going to be gigantic. Already we are the default inside the car. You look at your digital dashboard, that entire display, that's all ARM running. The display that now integrates with the autonomous agents inside the car. That ARM drives again similar to a data center where tokens are generated. The CPU is the brain, the control panel that runs everything inside the car and in the Robot. So physically 10 years from now, maybe less might even be bigger than data centers for arm.
- [27:24]
Jim Cramer
You know, I'm kind of myth that your stock isn't going up more as this total, total addressable market is so much bigger than when I first met you. I mean I, I remember discussing what happens if, what happens versus Qualcomm. I mean you've kind of left them in the dust. You also have there are other companies that do CPUs but they are not close to Jensen like you are.
- [27:47]
Rene Haas
You know, when we met two years ago, the company is going public. People did not believe that we could grow 20% year on year for two or three years. And we said we're going to be able to do that. We've exceeded that. I can tell you honestly, Jim and I was. You met, you remember when we met, I was so optimistic about the growth of the company. Two years later, I'm far more optimistic today than I was two years ago. The line of sight we have in terms of our future business is so strong in terms that we can see two, two years out, three years out, five years out in terms of demand. And everything is moving our way because the CPUs are needed for everything and in a bigger way. And what's the biggest thing they need? Power efficiency. And we're the best at that.
- [28:26]
Jim Cramer
Now people always ask you about what, what is SoftBank going to do with its stake? When I listen to you, I say I don't really care.
- [28:34]
Rene Haas
Well, there is something in the industry and I've learned as a bit of a public company CEO about hedge funds. Short only long only. The ultimate long only is Masa. He has not sold a share share and there was a lot of rumors and buzz that when the company, when SoftBank was doing these investments in OpenAI, etc. Masa was going to need to sell the shares. And I said to you on our last earnings call, he has no intention of selling. And he said, and you can tell the folks I said that he is the true long only.
- [29:02]
Jim Cramer
Now one thing that I want people to understand and you helped us with scale Asco, I need you to explain to something else to people because it's why I'm so bullish on your company. There are 2052 million developers who have chosen ARM. That means once they choose you, it's kind of for life. It's really sticky. This is really the ultimate endorsement of arm.
- [29:20]
Rene Haas
The magic of a hardware business is the software that runs on it. The more developers you have, the more software that's written, the more software that's written. The more hardware there is, the more hardware there is. The software guys say why would I try to design software to anything else? So it's this flywheel that flies and gets bigger and bigger and bigger and it's a very, very hard momentum thing to move the other way. It's been going our way.
- [29:45]
Jim Cramer
Now people should know you have a long relationship from Jensen dating back you Guys work together. I mean to me it's very clear the another company that does make CPUs is an opponent. So it really is. And he likes intel too. But there's amd and AMD I know don't see as competitive right now in a lot of these markets that we're talking about.
- [30:05]
Rene Haas
You know, x86 has a lot of legacy software that runs on right. But the newer software that's being developed, the native software for the cloud and AI is moving towards ARM largely because of its power efficiency. Jensen said it today to 2x the power efficiency, what does that mean for the same power you run twice as fast?
- [30:23]
Jim Cramer
Well, I've known you for a while. I know that you do not make up things. I know you're concerned, conservative. This is the most optimistic I've heard and a lot of it has to be because the data center is now yours.
- [30:33]
Rene Haas
We can see it. Yeah, the optimism is real.
- [30:37]
Jim Cramer
That is Rene Haas, CEO of AAM Holdings. Guys, the stock is up since the last quarter, but nowhere near reflecting the kind of book of business that Rene has just outlined for the next year and a half. That money is back in.
- [30:50]
Podcast Host / Announcer
Coming up with Dell on the rise as it cements its place in the AI revolution. Cramer sitting down with founder Michael Dell to learn more about the company's plans next.
- [31:15]
Jim Cramer
While we're out here for gtc Nvidia's colossal AI conference stocks, I like to catch up with their most important partners like Dell, which has become a data center powerhouse thanks to its red hot server business. Now there's a reason the stock's up 24% year to date, 64% over the past 12 months. So we have to ask ourselves can keep running. Let's check with Michael Dell, the legendary founder, chairman and CEO of Dell, a man I'm so proud of, to find out how Dell is doing. Michelle, welcome back to money.
- [31:41]
Michael Dell
Great to be with you, Jim.
- [31:43]
Jim Cramer
Did I remember you making comparison computers in your dorm room? So I don't know what it says, Maybe, maybe I'm ancient, maybe you're ancient. But what you've developed is such a powerhouse that I think your stock is outperforming the Magnificent seven it has over
- [31:59]
Michael Dell
the last five years. And there's only one stock that's performed better. We know what that is, it's Nvidia. But our business is doing really well. You know, we had a 45% growth in EPS last quarter and you know, last year $64 billion in AI orders, you know, we entered the quarter with $43 billion in AI backlog and business is strong. You know, we're, our team is executing super well and you know, we're very well positioned. Certainly when you reflect on the keynote today, lots of opportunity for Dell Technologies.
- [32:44]
Jim Cramer
Well, it's very clear that you're the, the partner of choice. You're the one that I think everyone knows to go to. The actual customers, they don't go to Nvidia, they go to you.
- [32:54]
Michael Dell
Well, and we have now over 4,000 customers with our Dell AI factory. We started this two years ago and you know, it's a challenge for customers to pull all the data together, deploy all the infrastructure. You know, you need some services and blueprints and reference designs to make it all work. And we've been operationalizing that around the world with enterprise, with sovereign AI, with cloud service providers, and executing, you know, with, with precision. And it's working well.
- [33:29]
Jim Cramer
One of the things that you have is a real edge over the other guys. People don't understand financing. When you go to buy a Toyota, you're often financed by Toyota Finance. Same thing with Ford. When you go to buy this equipment, sometimes you need financing. You're the only company in your industry that has the power to finance. The other guy's balance sheets are awful.
- [33:49]
Michael Dell
We started Dell Financial Services decades ago. And you know, most of what we do is securitizing those and working with partners to, you know, securitize those loans and leases. And yeah, we've been able to use that in addition to our engineering innovations, our services, our incredible supply chain team, the customer relationship chips that we built. And again, this is not easy to execute, particularly at the scale and speed that it's occurring. And you know, Dell Technologies was kind of built for a moment like this, and we're executing.
- [34:33]
Jim Cramer
You are built for a moment like this because there were many people who doubted you. Everyone talked about skyrocketing dram that Michael Dell is going to have a hard time as Martin's aren't going to be that good during that period of negativity. You buy 54 million shares, you decide to grow the dividend by 20% and the numbers come out and it's as if there was no dram shortage at all.
- [34:56]
Michael Dell
Well, we are executing very well. And again, it's, it's a combination of factors. And you know, I've been through eight DRAM cycles since I started the company in 1984. And you know, Jeff Clark, our operations and engineering wizard, you know, he's so in the call back at headquarters back in the labs making everything run on time, you know, and look, our team is executing very well. We're again well positioned to have a great year this year. You saw our guidance. We took it up again at the end of the last quarter.
- [35:32]
Jim Cramer
Yeah. There is a, a percentage of people who somehow view you as, I don't mean to embarrass you, but as old tech. Is there anything that's old about what you do?
- [35:45]
Michael Dell
You know, all the, so almost all our revenue comes from products that we introduce in a given year.
- [35:53]
Jim Cramer
Right.
- [35:54]
Michael Dell
So we're, we're constantly innovating.
- [35:58]
Jim Cramer
I wish people could see this is a list of all the new products that you just put out. It's half the page.
- [36:03]
Rene Haas
Yeah.
- [36:03]
Michael Dell
It's a blizzard of innovation. Certainly. We had a, you know, an enormous number of, of announcements here with our AI data platform, our orchestration engine, of course, keeping pace with all the innovations from intel, from, from, from, you know, Nvidia with Vera Rubin. Now we have our parallel file system, the Dell Lightning file system, the fastest file system in the world, really built specifically for AI. So there's a ton of innovation. It's working. Customers are pulling on the demand and they want to do more with Dell Technologies, not just in AI, but in hybrid and private cloud. And we're continuing to grow and gain share.
- [36:50]
Jim Cramer
Well, it's a remarkable run. I also wanted to ask you about your plan to be able to improve my ratings over the next 20 years. Your plan to give how many, how many families $1,000 when for their account to buy S and P?
- [37:06]
Michael Dell
So as you probably know, you know, the government has set up a program that was enacted last year where every baby born from 2025 on through 2028 gets $1,000 at birth. And now we have thousands of companies matching that program. And what my wife and I decided to do was to give $250 to 25 million children and in, in zip codes where the median income is $150,000 or less impact to get them started on their road to saving and investing. And you know, if you don't have any capital, there's no reason to learn about capitalism. I do think within, not that many years, with other philanthropists and states joining and all these thousands of companies, you'll have roughly 73 million children that will have investment accounts that are materially in value.
- [38:06]
Jim Cramer
And this could mean, as I know from the power of compounding, that by the time they go to college, they're going to have a lot of money.
- [38:14]
Michael Dell
Absolutely. And, and you know, again, this is A platform for saving and investing. And we want to get 25 million of those children started on that path.
- [38:25]
Jim Cramer
Well, I wish people knew that. I could sit here and I just do a whole show about how charitable you are, but the greatness about your charity is you don't talk about it. I'm sorry, almost brought up how much you gained because I know that's not what you do it for. You do it to make our country great.
- [38:43]
Michael Dell
I really believe that this program, broadly, when you look out 10, 20, 30 years, it will have an enormous impact on the future of the country. And that's why we're doing it. It's not a red idea, it's not a blue idea. It's a red, white and blue idea.
- [39:01]
Jim Cramer
I love that. God, I love you, man. It's been a long time. That's Michael Dell, founder, chairman, CEO of Dell Technologies. Been around as long as I have. You know that this man has created tremendous wealth for so many people. And now is the term to do it for the country. That money's backed up to the brain.
- [39:19]
Podcast Host / Announcer
Coming up, you've got questions. Kramer's got the answers. Get charged up for a fast fire lightning round.
- [39:27]
Rene Haas
Next,
- [39:37]
Jim Cramer
It is time shopping the light from my steppers while you play the sound. And then the lightning round is over. Are you ready, ski guys? Dana boy. Jim, thanks for taking my call. The company I'm calling about. Yeah, looks like he's cut out. Oh, Zetta Global. I mean, that's right. The crosshairs of what nobody likes. Right now, I'm not willing to go there. I would say that Salesforce did well in that. In that bond offering, though. Let's go to Ron in New York. Ron. Hey, Jim, how you doing? Would you be a long term holder now? Well, I have to tell you, I'm never going to bet against Bill McDermott. Certainly not down here. But I don't know if it's long term, but I do think that the company represents actual value at these prices and that. Hold on, hold on. It looks like we have someone crashing the lightning round. Wait, are you Olaf from Disney's Frozen? And you are? I'm Kramer. It's my show. Jim Cramer, man, money. I heard you were supposed to be in Disneyland Paris. Not on the set right now. I mean, what are you doing here? I'm a snowman, not a snowclopedia. A real genius. All right, look, anyway, chief, thanks for stopping by. Bon voyage, I guess. Well, everyone, I'm off into the unknown. Don't quit your day job. And that Ladies and gentlemen, is the conclusion of the Lightning Round.
- [41:21]
Podcast Host / Announcer
The Lightning Round is sponsored by Charles Schwab. Coming up, Kramer's had enough of the Bears blitz on private credit stocks. He's sounding off on why this is not the crisis that it seems to be.
- [41:36]
Jim Cramer
Next.
- [41:44]
Podcast Host / Announcer
Tomorrow, kick off the trading day with Squawk on the street. Live from post nine at the NYSE
- [41:52]
Jim Cramer
split adjusted when I named my dog Nvidia. You were against it. Just don't take the red eye, okay?
- [41:58]
Rene Haas
Please.
- [42:00]
Jim Cramer
It's your dog named Nebula. No, they'll just have the same name.
- [42:05]
Comcast Business Representative
Scoop.
- [42:05]
Podcast Host / Announcer
It all starts at 9am Eastern.
- [42:09]
Jim Cramer
Hey Jim, your mission has been very successful in our family. I listen to your show multiple times a week for investing knowledge. I just want to say thanks. I love your show. Thanks for always looking off the Google guy. A huge thank you for all you've done to make me a better investor. I gotta call Kramer because I can't make a move without this guy. I want to make people better investors if they make money. Fantastic. Let's go to work. Yeah, Jim Kramer. I'm a first time caller, a happy club member. I want to thank you for being the peak champion of investing. Thank you for helping me become a millionaire. Lord knows there's not a lot of benefits to getting old. But when you live long enough, you get a better sense of how much stress our financial system can handle. Right now we keep hearing about the so called red crisis involving private equity and private private credit. We're being told that there's as much as $2 trillion at stake. That's how big this industry is. And a problem of that scale has to be considered something that could take the system down. It could blow a hole in the entire financial world. We're told that anything said for instance at this conference, even the possibility of Nvidia forecasting $1 trillion in orders from 2025 to 2027, that amounts to a doubling in business during that period. Paul's in the face of the private credit bomb as if those kinds of numbers mean nothing at all. The thing is, this is private credit. It's not really a $2 trillion problem. It's very easy to scare people. Here's the bearish narrative. A few institutions trick individuals into investing in private credit. This product with limited upside and unlimited downside. And those investors got trapped, trapped in these funds that are now worth much less than they used to be. When the investors try to get the money out, the sponsors chose to gate them, which is taken as clear evidence that these funds are in dire straits, having bet too heavily on enterprise software companies that are now being eaten alive by a I Just one problem. That narrative isn't true. But the folks who created and pushed these private credit funds are so inept in telling their story, they've created a vacuum. And like nature, investors abhor a vacuum. Since the sponsors can or won't explain themselves, fear floods in instead. So unlike these bunglers, let me tell you what's really going on here. These private credit funds are simply not designed for individual investors who can't take pain. Some of the investments haven't worked out well, but the vast majority have. The enterprise software companies in their portfolios are doing quite well and can easily pay their debts, which is what matters if you're a credit fund. More importantly, the pain is contained. The big banks, for the most part are not involved in private credit. They're real buyers right here. They're not hurt at all. The notion that this universe of investments could bring the whole system down, well, that's just plain preposterous. The only reason we even know about this so called private credit crisis is because investors are scared. And they seem to be under the misapprehension that they put their money in something that's like a mutual fund. But that's not how private equity and private credit work. By nature, they have limited liquidity. These funds are typically set up to last six to 10 years. You give them your money at the beginning and you're supposed to get it back at the end with hefty dividends in between. That's what private credit funds are all about. The media says the private credit investors are furious because they can't get their money back in the middle. But they're supposed simply not supposed to get their money back. That's the point.
- [46:18]
Comcast Business Representative
Point.
- [46:18]
Jim Cramer
These are long term vehicles that lock you in. Can't these funds please explain that now? I personally would not invest in private credit. This business is all about getting consistently high return by betting on loans that I think are too risky. Plus, the industry's done itself no favors by accepting money from regular people who don't seem to understand what they've invested in. That's terrible. But there's not going to be a private credit bank run because they don't have to return your money until a set time when the fund's meant to wind down. That means this won't become a true crisis unless we in the media make it one. I don't want to do that. If I wanted to grab headlines, I could easily say, head for the hills. Even as I know the hills are unattainable, I could make myself a part of the great Reckoning. Wow. Instead, I'll tell you the truth. These private credit funds aren't really designed for individuals unless those individuals happen to be insanely wealthy. For the most part, the investors here will do fine. But next time, don't invest in free funds that lack liquidity unless you're being compensated for that liquidity, and you sure aren't. Now, I like to say there's always a bull market somewhere. And I promise just for you, right here on Mad Money, I'm Jim Cramer. See you tomorrow.
- [47:28]
Indeed Representative
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 and or 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 Snoring gasping during sleep?
- [48:02]
Comcast Business Representative
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