Transcript
Jim Cramer (0:00)
Tech changed the world, but so did the bubonic plague.
Announcer (0:03)
Sundays exclusively on AMC and amc. The highly anticipated new drama series, the Audacity. Genius is about being unhinged enough to do something outrageous. The show that Mashable says tears Silicon
Jim Cramer (0:13)
Valley a new one.
Disclaimer Narrator (0:14)
People who have no integrity.
Jim Cramer (0:16)
Did you make the acquisition? Ribeye? No.
Announcer (0:18)
Maybe from one of the minds behind Succession and Better Call Saul. We want to save the world or control it.
Caller (0:24)
Most of us go Dr.
Announcer (0:25)
Evil. The audacity. All new Sundays exclusively on AMC and amc.
Disclaimer Narrator (0:30)
Have you heard about the power of neurosymbolic AI for business growth? EY Parthenon is the only organization with this innovative technology. Neurosymbolic AI helps you find the growth pathways your competitors can't see by fusing pattern recognition with logic, rules and causal structures to uncover granular insights you can trust. Ready to use neurosymbolic AI to capture exponential growth? Start today with EY Parthenon solutions that work in practice, not just on paper.
Jim Cramer (1:00)
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 Cramer. Other people make friends. I'm just trying to make a little bit of money here. My job is not just entertain, but to educate, do some teaching. So call me at 1743 CNBC. Tweet me at Jim Cramer. Oh, we got a two tiered market going on here. A real best of times, worst of times situation. The first year is making you a fortune, but the second tier is downright awful. It's Dickensian. There are the beloved stocks that have something, anything to do with the data center and. And then there's the forlorn part of the market, basically everything else. You can never see this in the average Dow dipping 63 points. SB advancing.12%. Nasdaq edging up 0.2%. Some days like today, have some of the data center complex in retreat even as the mainstays pile forward. But you can still sense that any pullback might just be temporary and the result of just short term overheating. I regard these pullbacks as buying opportunities, provided they take it down at least say 5%. They're. They're refuges. Refuge. Their refuges from the hazards of the war as they don't really correlate with energy other than on their own grid. More on that later. They're separate, apart from all others can the related Data Center Stocks Keep winning? Let's talk short term and long term. Last week we had an explosion of buying related to an incredible, incredibly exciting story that is intel say many of the stocks that were deemed copycats of intel were pancake. I think you're getting a real good chance to buy them those, but I don't want to get ahead of myself. That said, I believe the companies that are involved in the CPU complex will do very well for the rest of the year. Mainly that's intel and amd. But don't forget our holdings really down badly today. We're going to find out about the real health of the data center come Wednesday when we got Amazon, Alphabet, Meta and Microsoft all reporting all four have spent fortunes on the datacenter buildouts. Will they pause spending or is it too important to keep investing in AI, especially because they're now seeing some returns. Or perhaps these returns might be right on the horizon. It's really tough. I'd love to hear that the hyperscalers who want to spend more are already getting a return. But those who keep spending and see nothing, oh you know what, we're sellers and if they aren't spending, they better have a plan for more compute or they can be like Apple perhaps. Only there's only one Apple. They report Thursday. Thanks to its huge user base, Apple can lean on Google Search and Gemini Chat bot in seamless fashion. They don't need to spend a ton of money now. I expect a ton of volatility in these stocks because the market's mercurial and the consensus can change on the die. When you listen to conference calls, pay attention to what the hyperscalers say about their AI capital expenditures. That's what we're all watching. That's really the only data point that matters. But that day, one thing's certain. Though seemingly out of nowhere, we're seeing a tremendous level of interest in Nvidia, which doesn't even report this week. It's enough to make you write off all the stories you've heard about how Amazon and Google have their own competing chips that will eat Nvidia live. Although I have to, I think the competing chips are terrific. I saw this in Video Explosion chart on Friday when the stock finished up more than 8 bucks. I noticed there have been multiple sellers that leaked lived at 200 level and once they were cleaned out this thing went up like a rocket ship. There was no stock supply. None. There's no sellers and again today lots of buyers. Those sellers just pick up. So the Buyers took the darn stock all the way up to $216, up $8. What an incredible move for the biggest stock in this market. Now, it has been a late bloomer here in part because so many big accounts already owned it but but I guess enough firms didn't that it could still have such a rapid joint. You know me, I say Nvidia, don't trade it, own it. The memory and storage stocks keep ramping up to micron, up another 5% today. Sand is jumping up another 7%. They make essential components for servers that are in short supply, along with Seagate and Western Digital, which took a breather today. Still though, we saw a narrowing of the semis after a remarkable 37% run this month alone. Now they're in. I'd like to think they're in RR rest and relaxation mode. Throw in the four Horsemen of Wednesday and you could get a terrific opportunity to go back to an intel if it goes down, or AMD or ARM holdings as well as LAM Research and Applied Materials. I regard those are the two best capital expenditure stocks. Obviously I'm inclined to keep betting on I I am a disciple of Jensen Huang, the CEO of Nvidia who preaches the coming of the fourth Industrial Revolution. What is the fourth Industrial Revolution? It's a revolution of thought where we'll be creating intelligence out of data centers filled with equipment that are known as knowledge factories. They'll come up with things we've never heard of, which is why it's so difficult to figure out whether things aren't so expensive. If we hear if there are things we never heard of, we can't put them in our numbers. Granted, we haven't been able to reap the gains yet other than a few bits and bobs of cost savings, but no one wants to admit that. Fact is though, this Industrial Revolution, like all the previous ones and is a revolution in productivity. We will be all be able to do a lot more with less and think much further than our brains currently let us. I think that makes the story unstoppable. But we're investing not prognostic as much as I believe you can't derail the revolution, there will be times when you won't be able to make money with it. It just won't be productive for your portfolio. That's not because of the companies themselves. I fully expect Nvidia will be at the heart of all of everything that comes in the long knives that have been out for for so long. They're gone. However, I know that Bull Markets can be killed by an aggressive Federal Reserve. Right now, the incoming chair, Kevin Wash, is a lover of lower interest rates, so it's not something we need to worry about. But a bull can also be killed by excess supply. Too many big IPOs and it collapses under its own weight. Today, jury selection began in the case of Musk vs Altman, et al, who run OpenAI. Musk wants money and the removal of the current leadership, specifically CEO Sam Altman and President Greg Brockman. It's a very convoluted case, but for our purposes only. One thing matters. When this case is resolved, will OpenAI be able to come public? If so, it will suck up a ridiculous amount of money. Because this thing could have a trillion dollar valuation that one needs to come from somewhere. Most likely will come from the rest of the market alone. An OpenAI IPO might not kill the revolution bull market, but you know that Elon Musk is going to bring Space X public at what is said to be a $1.75 trillion valuation. Given that it's Musk, it turned out to be two and a half trillion. Right Again, that'll sup up a huge amount of money from the rest of the market that might have been in some of the other data center stocks. And then lurking, lurking, lurking is Anthropic, which is the blessing of so many large institutions because it works with the enterprise and the enterprise loved on Wall Street. It's sticky. It's not fickle like the consumer. Anthropic is currently below 400 billion. The hunger for this company among individuals and institutions is insane, though, and I think a lot closer to profitability. So it's entirely possible that this one goes out at $1 trillion. When you take all the money that's headed to the three of these likely deals, you can only imagine how much every other stock could suffer. If you ask me, that is the real risk to this market, not all the other things you hear about. Here's the bottom line. At the moment, these IPOs are far enough away that I'm not fretting. That said, if the trial is a fast one, Open Air has a shot of coming public this year. They might be in a foot race with Anthropic. I don't know which will be the winner, but the bull could be the loser because the bull runs on money in the fourth Industrial Revolution or not. It just might run out of money if this trio of IPOs goes through the shoot at one time. Let's go to Mona and Illinois. Mona.