Transcript
Jim Cramer (0:00)
What if your limited inventory had unlimited potential? What if your biggest risk was not taking one?
Brian Moynihan (0:07)
What if you could make every move matter?
Jim Cramer (0:09)
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Jim Cramer (1:22)
My mission is simple to make you money. I'm here to level the playing field for all investors. Always a bull market summer and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer from Nvidia's GPU conference in San Jose. Other people want to make friends. I'm just trying to make you a little money. It's my job is not just to entertain but to educate, teach you. So call me at 1-873CBC or tweet me at Jim Cramer. When your stocks are going down and you don't know why, it's a pretty good bet that everybody else's stocks might be going down too. So do not take it personally. As the people in this hall, the Nvidia conference, the GTC convention know all too well as many of the public companies sold their stock shell mercilessly today for no particular reason. Some of these companies are doing amazingly. Yep, on a day like today when The Dow shed 260 points, S&P lost 1.07%, Nasdaq doubled 1.71%. We're all experiencing, but I can only say is Some painful shrinkage. Now we know in real life shrinkage can mean a lot of things. Making things smaller, shoplifting, and of course the classic George Costanza anatomical definition that I don't need to go into any more than that. But in this business, shrinkage means paying less for the same earnings that you were willing to pay up for only just a week or two ago. You'll also hear this called price to earnings multiple compression. And we see it all across this market, notwithstanding the reprieve from selling that we got on Friday and Monday. How about those great days? So why is this happening to us? Why do our stocks go down when nothing's happened to the companies underneath? Look, when everyone's terrified that a piano is about to fall on their heads, they don't want to get hit by the baby grand. And right now they don't want to own the falling stocks either. So they sell. But they can't get a good price anymore because too many people want out for the same reasons. They think that stocks are overpriced versus when we consider what could could lay ahead. Right now we're in the grips of such fear that after two up days, it's a virtual jailbreak from the get go as holders of stocks simply aren't interested in anything positive. They know that weakness is coming and they're simply anticipating it, no matter what good they might hear. Sure, they can't see the weakness, but if the administration keeps talking about how we're transitioning, how the economy needs to make some painful adjustments, then any big rally that we had Friday and yesterday will become magnets for sellers. People just don't want to stick around waiting for the next tariff shoe to drop. Even as I think that if we get back to where we were last Thursday when the S p was down 10% peak to 12, we are going to have to start buying stocks in a lot of the tech companies that surround me. How pervasive is the negativity? Well, we had a real test case today, didn't we? Today Jensen Wong, perhaps the most influential CEO of our era, gave his keynote speech to gtc, which we all know as the Woodstock of AI. But he said it's become more akin to the Super bowl. When you put 17,500 Nvidia's and friends, the SAP arena in San Jose, and you expect some sort of impact on the stock market or at least the stock of a video. But that sure didn't happen. Today we learned that nothing's more powerful than multiple compression as Nvidia stock actually slid $4.10. It declined 3.4%. I say ouch. Okay, I can see a bear case here. Although I don't share it. My Chaplain trust is a big position stock. Nvidia stock isn't cheap unless everything goes right. And in this climate of fear environment, it's hard to see everything going right even for a company that is this special. And oh my. After watching today's keynote always reminds you how special really is. Just because 17,500 people get together listen to Jensen, that doesn't mean you're going to get higher stock prices. Sometimes the tape is simply against you. End of story. At the keynote, Jensen delivered a terrific roadmap for his next generation technology. Nvidia is in full production for its most lucrative product. The Blackwell and Blackwell Ultra is on the way more lucrative. We saw devices that will make self driving much safer. We saw devices that can reason make decisions that we can't make because we're humans and we can't figure them out. We saw technology wildfires. We heard about a spectacular partnership with GM to put AI in their cars and trucks. Totally additive. He had some very confident things to say about the data center build up for AI which he sees reaching $1 trillion surprisingly soon. But those didn't matter today. Jensen told us that he's gearing up for the next big thing in 2026 with the Vera Rubin. He likes to name chips people and Vera Rubens, the astronomer who discovered dark matter from Philly. We know that business needs more computing power in The Ruben has second half of 27. We can have the Ruben Ultra with even more compute. The specs were greeted with oohs and oz. He talked about how much energy these chips will save too. He talked about personal AI supercomputers that can do everything humans can do and also play a good game of tennis. Yep, 2027. But what do we care about terraflops or stacked electronics or quantum photonics or delicate? Today power flops might as well be cow flops. Then there are robots. So many. Cheers. So much excitement. Physical AI robots of every kind in every industry. Training robots requiring huge amounts of data. Blueprints built on Nvidia can make those robots work, helping to solve the chronic labor shortage in this country. They will need so much compute that I can't imagine Jensen will ever meet the demand. Yes, that's right. The orders here are through the roof. I thought it was dynamite to watch. They are coming. They're around the corner. But in this market nobody wants to wait for what's around the corner. We're not going to take our. You know what? We're not taking a rain check on even the greatest of robots, which I saw today on the screen at the keynote. So all these announcements from Nvidia might mean everything for the future, but they meant nothing for the today. New partnership with Disney and Google that creates whole new worlds that everyone love. We heard about the announcement of Groot N1. Hey, that could be legendary. Didn't matter other than to make us laugh on a tough day. You know what's most unfortunate? I think Jensen Wong could have raised numbers there if you wanted to take it up big, right? That's not that kind of conference. But he could. But you know what? I'm glad it did. Might have meant nothing to stock anyway. Yes, the invisible disease known as multiple compression is just that powerful. And it really comes after tech stocks because they tend to be very expensive. Video stock isn't all that pricey, but the expectations for the keynote were high. So even though it was spectacular, nobody's going to care in this environment. Who else gets hit besides Nvidia? How about anyone else involved with AI? Given that AI is so hard to understand, if something is unknown and it costs a lot, like a lot of the stories that its stock is going to go low on a day like today, just like everything in the complex has been coming down for weeks after that. People sell what's known as enterprise software. There are tons of those companies, right? They make businesses run officially. We have tons of venture capitalists love the force these upon us when they should be selling them to other businesses. The way that Wiz sold itself to Alphabet today for 32 billion. Nice. When the market's going up, the growth hounds can't resist buying these enterprise software stocks. But they can't resist selling them on the way down either. Sell, sell, sell, sell, sell, sell, sell. Especially when they're worried about the economy. Next they crush the high priced bio tax. Remember when there's companies when bringing a lot of revenues but losing a lot of money. Well we don't care at least on this farm. What we think about is sell. And then they do the same thing to the industrials as Treasury Secretary Besson keeps talking about a pause. That means we're no longer willing to wait for something around the corner because the street just goes gets longer and longer in the corner further and further. Here's the bottom line. This latest round of multiple compression came on a day of wonderment about artificial intelligence. And even with Jensen's fabulous speech, multiple Compression was just much more powerful. It's. You know what? It's going to stay that way until we get through this environment, either because the White House backs off or because stocks come down to the point where we simply get used to it. Let's take calls. Let's go to Erica in New Jersey. Erica. Hey, Jim, thanks for taking my call. Hey, I'm new to you. Thank you for calling in. Erica. Yeah, I love your show. Fantastic. All right, so I wanted to get.