Transcript
Geico Announcer (0:00)
Geico presents a 30 second podcast between your podcast, Today's story is shared by one of our listeners. It's called Betrayed by a Bill. It was in that moment I caught who was staring back at me in betrayal or more like what, my insurance bill. With trembling hands, I grabbed my phone and switched to Geico, saving about $900 in the process and never to be betrayed again. Now that was bloody riveting.
Jim Cramer (0:26)
It feels good when the story ends with savings. It feels good to geico.
Discover Card Advertiser (0:30)
It's smart to always have a few financial goals and a really smart one. You can set earning cash back on what you buy every day. And with Discover, you can get this. Discover automatically matches all the cash back you've earned at the end of your first year. Seriously, all of it. And we trust you to make smart decisions. After all, you listen to this show see terms@discover.com credit card.
Jim Cramer (0:56)
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. I've been making friends. Boy, I'm just trying to make you some money. Like today, huh? My job is not just to entertain, but to educate, do some teaching. So call me at 1-800-743- CNBC. Tweet me imKramer. The data center. The data center. The data center. I mean you're probably tempted to say enough already with the data center. Give me something else. So on still one more day where the averages roared. The Dow jumping 790 points. SB 500 advancing 1.02%. By the way, another new all time high. And Nasdaq gaining.89% to also reach another record high. I got an idea. Why don't we take a look at some of the top performers in the S and P today. Not the sandisk and the Western digitals. I know you're sick of all those just to figure out if they're real companies in here. The data center is too narrow a concept to lead the stock market or as a whole. Is this list representative of what we want? Because. Because if it's too narrow, then the market will have a hard time going for going further. So let's do this. I'm going to go down, literally go down the S and P top gainers today I'm doing a little bit of order that changes just so we can get the narrative right. But it see if they're Representative of anything other than the data center, even if they are involved in it. So let's start with Qantas Services PWR. This stock soared nearly 16% today. That's a big gain. It's an installer of power lines and infrastructures of all kinds. Quant has been a decent company for a long time and worth owning. But it's been roaring because it's the obvious winner when you want to build out the electric grid. Management explains this very clearly right at the beginning of this incredibly stunning positive conference call they had today. Quote, Utilities are being asked to double in size. Technology customers are demanding speed at scale they haven't dealt with before. End quote. See, this is a whole new way our country is doing business. A rally that includes Quanta tells you the data centers about a lot more than just the semiconductors and disk drives. Data centers are like giant mouths that must be fed with constant activity and never ending electricity. We know there are many ways for the utilities to produce more energy. The most frequent being converting natural gas to a GE turbine that's connected to the grid. Quantum builds that. They can also build the other end where the grids connect to the data center. Quantum does this was the market labor high paying jobs using steel. It's often produced by Nucor, the largest steel company in our country. Eaton based in Ohio makes the transformers needed to put that electricity into the data center. And when that electricity gets in there, well you know what, it burns real hot. We know that Eaton has coin technology, so does Vertif. But the one that was up the biggest today was carrier. You know the air conditioning company is up almost 9% after reporting a big upside surprise. I think this quarter may be the beginning of a multi year move for the climate control company. Also very good numbers out of Europe. Then there's Teradine. Okay, now this is a little more arcane. This is up 12%. It's not, it's not new to the list benchmark former. During the data center build out it's a semiconductor test and measurement play. Semiconductors are fragile thing. When you first start building a new line of chips you got to throw a whale on them. No one can afford an errant semiconductor given how many are in a data center. That's a lot of testing but that's narrow. Okay, so I understand some might say Jim, that doesn't do it for me. Nor does this next one Qualcomm. Okay, this one was up 15% today. It had been an out of favor semi. Now it's in favor. They Just landed a big account with a hyperscaler. We don't know which one, but we do know that Qualcomm is considered more of a niche cell phone play and no longer. It's a branch out. Kind of reminds me of its competitor ARM Holdings. Position we've been trying to build for the Chapel Trust ahead of when it reports on May 6th. Candidly, ARM has gotten away from us. The stock's going parabolic. You know, I don't buy parabolas. Okay, then there's one that's totally away from manufacturing or industry or tech, and that's Eli Lilly. It was up 10%. Lilly astounded people today by reporting a fantastic quarter with encouraging prescription data for the new pill form glp. One drug found Dao. There was some worry that this drug had gotten off to a slow start. A lot of rumors going around Wall street that it was a bummer. Novo Nordisk was said to be way out of Lilly because it got approved earlier. As is so often the case, the Wall street gas banks got it wrong. When David Rick, CEO of Lilly came on CNBC this morning, he said that things were pretty strong. Strong demand for the pill. More than 20,000 people now taking it even as the company had only just started marketing it and building the brand. That's good news for my Chapel Trust. We've been telling people to stick with Lilly no matter what. Just too much good going on there. I think that Eli Lilly's gain though today is sensational and this company is creating a lot of jobs. Mercury built factories all over the country, but it is a less a health care company and health care companies are not good indicators of good times when it comes to stock market drug companies. They're bad leaders. I remember the days when our economy ran on only on the consumer with some new homes thrown in. However, with the arrival of the data center, it's no surprise to see that Caterpillar is on the list of hottest stocks up 10% today. Caterpillar has got a ton of LED the Dow. That's why Dallas up so much. It's got a ton of business for the data center. Build out a new twist though. Investors. Actual investors are putting together groups, buying and then going and buying. Okay, get this, buying hundreds if not thousands of of engines, cat engines. They're stringing them up. They're putting them next to a natural gas, I don't know, like West Virginia, that kind of thing. That's actually where it's. And they are taking the natural gas from the hills in West Virginia. Pumping it through the turret, these actual Caterpillar engines, and building their own power plants basically off the grid. And this is just driving a huge amount of business for Cat. I was always worried these guys might have too much inventory after I heard that story where they don't have enough. And again, if the power grid has to get much bigger, that means a lot of construction for the utilities. Who do you think they're going to call? That's right, Caterpillar. And a huge number of workers. Again, strong for the economy. How about Alphabet, up 10%, which is expanded by leaps and bounds, needs all the computing yet. I'm going to go into more detail on Outfit later along with the other three mega cap tech companies that reported yesterday. But Alphabet strength is not bad for this. Our economy is good now. We Got Sienna up 11%. Networking equipment. You need to get all these chips talking to each other. Sienna's been in networking forever and as well as Arista Networks and Cisco are the big three of the industry. Stock's been strong for ages. And finally there's another company that used to be something else. It isn't anymore because the data center, and that's Iron Mountain I used to know as a paper shredder. They've done a big pivot, though, and are taking their massive document storage facilities and leasing them next to the hyperscalers who need space for racks of their artificial intelligence ships. Yes, they too are cashing in on the data center. Now, I know that it wasn't on a list, but this evening we got a staggering set of numbers from Apple. We, or at least I thought so, there was a controversy of how strong the iPhone really was. But I've got to tell you, I think that Apple is having no controversy whatsoever. And tomorrow we will realize that revenue up 17 is pretty darn good, that the guidance is good. And as far as I'm concerned, you had a chance to buy it after they reported and people once again didn't understand the greatness of Apple. They should watch the show. Maybe occasionally, I don't know, maybe once every 30 seconds. Because I say Apple, you own it, you don't trade it. And by the way, you know, greeted me intergalactically on the Artemis too. They were taking pictures of the Earth from the dark side of the moon. Came out a lot better than I got. The 17 Pro. Max, man, it's fabulous. Now, if we look at all these winners, what do we say? I think it's a manufacturing mosaic the likes of which we haven't seen since we decided to outsource a huge percentage of our industrial base to China or other countries with cheap labor. I know the data centers seem fringe in terms of its impact on the so called real economy a year ago, but this quarter what happened, it went mainstream. And from listening to so many of these conference calls, I say we're in the early innings of this build out. Listen, I got nothing against any other sector, including the consumer sector, the health care sector, but the bottom line, as far as I'm concerned, the data center is a windfall for almost every slice of the economy. The I say don't look a gift horse in the mouth and instead maybe buy some of these stocks. I think there's some real winners on that list. I want to go to Mark in Illinois.