Mad Money w/ Jim Cramer 5/27/26

Summary

Mad Money w/ Jim Cramer – May 27, 2026 (CNBC)

Episode Summary & Key Insights

Overview

This episode of "Mad Money" with Jim Cramer focuses on the psychology and strategy behind making investment decisions, especially in fast-moving bull markets driven by artificial intelligence (AI) and technology stocks. Cramer reflects on his own successes and missed opportunities, interviews industry leaders (notably Salesforce and Snowflake CEOs), and gives his signature rapid-fire advice in the Lightning Round. The episode concludes with analysis of recent retail and semiconductor earnings, emphasizing the need for investment flexibility and forward-looking thinking.

---

Main Themes

• Don’t Anchor to a Stock’s Past:
  Cramer urges investors to let go of price anchoring—the tendency to avoid buying stocks that have already run up—especially in explosive AI-driven markets.

  "You can't worry about where a stock's been. Just focus on where it's going." (03:11, Jim Cramer)

• The Power of Flexibility in Markets:
  In the face of rapidly appreciating stocks and disruptive technologies, being open to new opportunities—even if a stock has already surged—is key.

• AI’s Transformative Role Across Sectors:
  Interviews with Salesforce and Snowflake CEOs highlight how AI is integrating into products, fueling growth, and creating new business models.

• Retail and Semiconductor Sector Divergence:
  Cramer breaks down winners and losers among retailers and examines the "stunning" rise of chipmaker Micron, connecting market moves to economic conditions and investor psychology.

---

Key Discussion Points & Segments

1. Cramer’s Investment Lessons: Past Anchoring vs. Future Growth

Timestamps: [03:00 – 12:30]

• Missed and Captured Opportunities:
  • Success stories from buying Corning (GLW) and ARM Holdings after rallies, choosing conviction over fear of missing the low.
  • Regrets over hesitancy with Dell and Marvell Technology due to price anchoring.
  • Microsoft held as "value," but it's become a value trap rather than an opportunity, especially compared to up-and-coming hardware and AI names.
• Memorable Quote:

  "If you think a stock's headed higher, don't use where it came from as an excuse not to buy." (11:14, Jim Cramer)

Lesson: Be forward-thinking; tech stocks that haven't moved in this environment might not offer value—they could be value traps.

---

2. Salesforce CEO Mark Benioff Interview: AI Adoption & Buybacks

Timestamps: [13:58 – 23:41]

Highlights:

• SaaS and AI Integration:

  • Salesforce's Q1 revenue up 14% YoY, marking their first $11B quarter.
  • Massive stock buyback ($27B authorization) boosts EPS.
  • AI agent integration (“Agent Force”) powers all major Salesforce products and is already generating $1B+ in revenue.

• Customer Examples:

  • CVS/Aetna and UCLA Health using Agent Force tech for improved customer engagement.

• AI Competition & Market Perceptions:

  • Benioff dismisses the "SaaSpocalypse," pointing to record large transactions and Slack’s growth, driven by built-in AI (including partnerships with Anthropic and OpenAI).
  • Tableau’s AI-driven transformation keeps it competitive.

• Buyback Philosophy:

  “If the market is not delivering on our results, then we are very happy to buy back our stock as well.” (20:35, Benioff)

Memorable Quotes:

• "We are delivering more than $46 billion in revenue this year. There's no enterprise software company that's doing more than Salesforce." (21:04, Benioff)
• "We have an incredible new capability which is artificial intelligence... it's a new type of infrastructure." (21:52, Benioff)

---

3. Snowflake CEO Sridhar Ramaswamy Interview: Explosive AI-Backed Growth

Timestamps: [25:24 – 32:35]

Highlights:

• Blowout Quarter:

  • Revenue up 33% YoY; net revenue return 26%; AI product usage doubled QoQ.
  • Raises full-year growth outlook on strong results.

• Strategic Partnerships:

  • Expanded AWS deal (worth $6B); partnerships with OpenAI and Anthropic.
  • Differentiates Snowflake as a platform provider, not just a software vendor.

• Platform Evolution:

  • Announced acquisition of Natoma for contextual AI integration (“control plane” for the enterprise).
  • "Consumption company" model: Snowflake gets paid only when customers see value.

• AI Use Cases:

  • Cortex Code and other products enable faster data migration, governance, and app development.

Memorable Quotes:

• "We bring choice to customers whether it's in a cloud service provider like an AWS or Azure, but also in models... And is that ability to provide choice and value that makes Snowflake so unique." (27:25, Ramaswamy)
• "Control plane... Your cockpit for getting things done." (31:36, Ramaswamy)

---

4. Retail Earnings Roundup: Winners & Struggling Names

Timestamps: [32:35 – 38:40]

• Winners:

  • TJX: Robust sales and earnings, raised forecasts, benefits from nervous consumer.

    "Nobody does off price better than TJX." (33:40, Cramer)

  • Ralph Lauren: Blowout quarter, direct-to-consumer strength, strong guidance.

• 'Okay' Results:

  • Walmart: Matches expectations but cautious guidance; expensive for its growth rate.
  • Target: Healthy beat, raised guidance, puzzling selloff—Cramer calls it a buy at these levels.

• Disappointments:

  • Home Depot/Lowe’s: Weak comps due to high rates; Home Depot seen as a hedge for a potential Fed pivot, but currently lacks a strong housing market.

• Macro Take:

  “Economy is looking at more of a K-shaped recovery where the rich get richer while the lower income consumers, they struggle.” (38:30, Cramer)

---

5. Callers & The Lightning Round

Timestamps: [38:40 – 42:37]

• Mattel (Caller Sonny, Illinois):
  Stock is bottoming, attractive at 11x earnings, CEO doing a good job—worth buying.
• Other Lightning Round Highlights:
  • Cautious on software companies being disrupted by AI.
  • Pool Corp: Not a buy due to housing turnover concerns.
  • Realty Income: Good dividend, "terrific situation."
• Memorable Moment:

  “It's time for the Lightning Round! … The Lightning Round is over.” (41:30, Cramer)

---

6. Micron Semiconductor Analysis: The Trillion Dollar Memory Play

Timestamps: [42:37 – 47:40]

• Micron Stock Surge:
  • Stock raced from $500B to $1T market cap in 48 days, far faster than Nvidia.
  • Driven by massive demand for high-bandwidth memory essential for AI data centers; industry supply shortage continues.
• Risks:
  • Historically boom-bust industry—eventual capacity expansion could trigger downturn.
  • Current rally aided by ETF hoarding and limited free float; potential for sharp reversal if conditions change.
• Cramer’s Stance:

  “Even I have to say I missed it. Sooner or later I know that new capacity is going to come on. I don't want to walk headfirst into the buzzsaw, even if it means I miss some upside ahead of time.” (46:30, Cramer)

---

Notable Quotes

• Jim Cramer on Investment Philosophy:

  "Don't think about where the stock has been because if you do, you'll own Microsoft instead of Marvel or Micron or ARM or Dell and so many others that have moved." (11:35)

• Mark Benioff on AI:

  "It's a new type of infrastructure... bringing that in, for example, one of the tremendous success stories in the quarter is Slack, but also Slack Bot, that inside Slack now you have the ability to talk to this incredible AI." (21:52)

• Sridhar Ramaswamy on Customer Value:

  "We are a consumption company, which means that we get paid only when we deliver value to our customers." (29:47)

---

Key Takeaways

• Be Flexible: Don’t let price anchoring prevent you from entering still-growing winners, especially in the AI revolution.
• AI Capabilities Are Key: Companies integrating AI smartly (e.g., Salesforce, Snowflake) are seeing growth and defending against “SaaSpocalypse" fears.
• Retail: Management and Macro Matter: Execution and positioning (off-price, high-end) drive winners; big-box and home improvement stocks need catalysts (rate cuts).
• Semiconductor Caution: Massive rallies (like Micron’s) offer rewards but also require discipline—not every train can be caught, and cycles may turn abruptly.

---

For Investors Who Missed the Episode

This episode underscores the dangers of backward-looking biases in investing and the vital importance of focusing on where transformative trends—especially AI—are taking the market. Cramer’s interviews and sector breakdowns provide actionable context for current opportunities and hazards in tech, retail, and semiconductors, all delivered in his trademark direct, energetic style.

---

End of Summary

Transcript

[A]

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 [e-mail] credit card trading at Schwab

[B]

is powered by Ameritrade, giving you even more specialized support than ever before, like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy. Gut check. Need assistance? No problem. Get 24. 7 professional answers and live help. And access support by phone, email and in platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn [e-mail] Trading My mission is simple.

[C]

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. Other people want to make friends. I just want to make you some money. My job is not just to entertain, but to educate. Do some teaching. Call me at 1-800-743- CNBC. Tweet me. ImKramer. You can't worry about where a stock's been. Just focus on where it's going. That's becoming my watchword for this explosive market. You need to be extremely flexible, more than you might like to be. You can't pass up on a good stock just because it's moved up beyond where you thought it could go. You're liable to miss a score of a lifetime. Pleasure that feels like the takeaway from what you see every day around here. Including this one with The Dow gained 182 points. S&P advanced.02%. Nasdaq edged up 0.07%. Today we host our Investing Club Monthly meeting. Frankly, I was furious of myself. As the steward of a charitable trust and a teacher of how the market works, I felt I haven't delivered enough of late, not enough value. Sure, we, Jeff Marks and I have had some real winners. We. We're not dupuses, we're not bozos, for heaven's sake. But when I look at the winners, though, I invariably find the same pattern. These stocks have rallied often, gigantically, before I bought them, and I did not let that fact stop me from purchasing that. Meanwhile, my Biggest missed opportunities were stocks that had run where I let the price scare me away. And that is what made me so furious. Let's start with a couple I did right, if you don't mind. Corning. Yeah, glw. That's Corning Glass Works. Glw. Here's a company I hadn't thought about in Asia. I didn't know what they were up to other than making the glass for my cell phone. Then on September 12, 2025, we went to Harrisburg, Kentucky, where Corning makes the glass for that. And I listened to the formal Wendell Weeks talk about how Corning's fiber was starting to take a lot of share in the data center. I was down there to talk to Apple, but I'm listening. I'm listening, I'm listening. I only knew the copper ruled in the data center because it's cheap and conducts better both the power distribution, the high frequency signals. But Wendell is patient with me. He walked me through things. He calmly explained that glass is superior to copper when it comes to speed cybersecurity. It doesn't have corrosion. He said that's enough to displace copper, both as a way to connect separate chips and as a way to connect transistors within a chip. And those are gigantic markets. My first reaction. Oh, I thought said, wait a second. Corning had just rallied from $52 to $77. I had missed it. Too bad. Oh, I wish I had heard it earlier. Definitely going down Harrodsburg earlier. But then I said, wait a second. No, no. The CEO's conviction, so fundamental, his knowledge of what could happen was so crystal clear, I had to buy it. I just had to. So what do we do? We bought Corning for the chapel trust at $77. You know what? The stock's now $190 even after double. It turned out to be cheap as Nvidia bought the the right stake in Corning for $3.2 billion. Good thing I didn't let the stocks relentless rally scare me away from buying it for the charitable trust. Same goes for AAM holdings, the chip design company have been putting up some pretty good numbers. But more important, it announced that rather than just licensing its technology to other chip makers, ARM would also make their own CPUs. Big change. Right when we started hearing that these new agents needed a ton of advanced CPUs to operate. It's a windfall for anyone who can make CPUs, meaning Intel, AMD and ARM holdings. I don't know. ARM's trading at 172. I've been up. It had been at 115 just a couple of weeks ago when I learned this. All right, six weeks ago, I had passed on almost 60 points. So what did I say? I said, well, I'm too late. But you know what? I couldn't resist the temptation. CEO Rene Haas was so darn bullish on our interview from the Nvidia GTC conference, and he's always been straight with us. I'd already missed intel. I passed on amd. So I decided enough is enough. Just forget where that darn thing came from and do some buying. Sure enough, as people realize that we're going to need more CPUs in the data center arm at $172 when I purchased it proceeded to roar right to $302. There are so many stories like this. I just wish I had realized that you needed to forget where it was and focus on where it's going to go. I mean, for example, okay, I sat down with Michael Dell at the same Nvidia GTC conference that I met with Arms Haas. Michael told us it totally exposed. I mean, it was like an amazing story. Like, I couldn't believe it. Like I was like saying, you mean this? You mean this? I mean, I was downright unbeatable right there on the tape. Stop. $156. Oh, I was furious myself, though. I'd actually told club members that we were going to buy this one. But did I know? No. Why? Because the stock had been at 117. I had missed it. What was I supposed to do? Come on top of an almost 40 point gain? I'm not an idiot. In retrospect, I was an idiot. I should have bought it because now it's at 305. Oh, then there's Marvell Technology. Lots of people think that this one was totally uncatchable, but that's untrue. Late last year, okay, get this. Late last year, there had been this kind of noise about maybe Marvell had lost a huge chunk of business. Okay. Last time CEO Matt Murphy had come on in December when the stock was at $88. He told us that he just reported and there was no loss of business. People were lying about what he was saying. I wanted you to listen to the adamancy of this man who spent several million dollars in the open market by his stock. And you tell me what you do. There's all this noise out there. I am the signal. I know what's going on. I have the visibility, I have the relationship with these customers. And so our Business is rock solid in our data center, right? And nothing has changed since last Tuesday. Does that sound like a man who's in doubt about his company's fortunes? I was two feet away from the guy. Two feet. I wanted to wait until I was not frozen for the trust. I was free to trade. But when I was free, did I buy it? No, you see? Here's why. Because I remember when the stock was 70 and now stocks at 90. I had missed Marvell. My bad. Next Matt was the signal. Yeah, he really was. The company just reported a monster quarter this very night. That $88 stock traded to $218 today before succumbing to profit taking this very evening. I whiffed, hey, maybe I can try tomorrow because it looks down. How about though, when I'm attracted to it looks like value? How about when I own Microsoft for the chapel trust? Thinking, well, it's got ignite, right? It's cheap, it's good, it's ready. I smell the bargain. Hmm. I think my nose got this one totally wrong. Stupid nose. I cut it off, but I don't want to spread my face. Now I look at it, same price as it's always been, right? I mean, it's been there forever, but I gotta say, oh, wow, that's cheap, right? It's doing nothing. I mean, the others are flying. I don't think this one's doing nothing. The same enterprise value to sales multiple is an Alphabet. It's got a ton of software it's hated, but that's got to be liked eventually. Of course, the stock be recommended by everyone. Except for this. Ben Wrights is from Nelius, who's adamant that Microsoft is vulnerable from so many different directions. Nonvoice, a huge gaming business, a Windows product that you wish you didn't have to deal with but your employer insists you have. Meanwhile, the stock could be a huge source of funds to purchase Space X, anthropic and open air once they come public. Microsoft's done absolutely nothing. While most of the rest of tech has exploded higher. The opportunity cost here for me has been horrendous. But I liked it because it hadn't taken off, because it hadn't doubled. That was looking like a darn big mistake now and it doesn't do well this next quarter we'll get. Guess what's going to happen. Sell, sell, sell. Yeah. Nine years we've owned this stock. Sell, sell, sell. I look at where it had come from. Nowhere. And somehow I thought that was good. Look, there's just too much opportunity out there to hold on to stocks that refuse to budge. The lesson here is that if you think a stock's headed higher, don't use where the stock has come from as an excuse not to buy. Notice I'm not including the wow ones. Micron, Western Digital, Seagate, Sanders. I'm not talking about those words. I'm not talking about those. I'm talking about the more easily attainable. Those ones are just incredible. Obviously I miss those. People have made billions in those stocks. No, the ones I went over here are all logical up a lot, but in retrospect, not all that much. Meanwhile, we held on to Microsoft for the Chapel Trust, assuming represented value. And the value you got? Nada. The real value was in the other stocks I just mentioned, not Microsoft. So here's a brutal bottom line. Tech stocks that haven't moved in this environment probably do not represent value. They represent value traps. Don't think about where the stock has been because if you do, you'll own Microsoft instead of Marvel or Micron or ARM or Dell and so many others that have moved. But they will likely keep going higher. Why? Because they're questioning expectations. They're out executing the competitors and they're cleaning up this new era of artificial intelligence. The dominant theme of what perhaps may be a lifetime. Will in Kentucky. Will. Jim, this is Will from beautiful Lexington, Kentucky. How's it going? Well, man, I wish I were there. I like Harrodsburg though. That's more my kind of corning Apple style. We love corning. Yes, we do. So. So I know we've got some uncertainties around, I feel. And previously you put these kinds of stocks in a too hard bucket, but now the multiple has gone down a little bit. And I know you respect Bill McDermott. Is now the time to buy. Now I think the stock is bottoming. I don't think that it's going to have a huge year because I do think that in the end people want hardware. But I mean, do I agree that Bill McDermott is going to do a good job? I think the stock is again, I mean, there's upside, but I feel there's a little bit upside in some of the other software too. But what I really want to be in is hardware because that is what's moving in this new era of artificial intelligence, accelerated computing and just amazing opportunity. Look, you have to stop thinking about where a stock has been and instead focus on where it could be going. That's how you can own the winners in this market. Flexibility. I'm on Salesforce Earnings just cost. TABLE Digging the results of the CEO Mark Benioff Learn more about the quarter then we've gotten a raft of retail earnings over the past couple of weeks, and I'm breaking down the reports to see which companies are separating themselves from the rest in this economy. And can Snowflake's blowout quarter tell us about these? Well, what is it going to tell us? State of Software? State of AI? Why don't we talk to the CEO and find out? Stan McCramer Foreign. Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Kramer. Hashtag Mad Mentions. Send Jim an email to madmoneycnbc.com or give us a call at 1-800-743, CNBC. Miss something? Head to madmoney.cnbc.com

[A]

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 [e-mail] credit card trading at Schwab

[B]

is powered by Ameritrade, giving you even more specialized support than ever before, like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check. Need assistance? No problem. Get 24. 7 professional answers and live help and access support by phone, email and in platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn [e-mail] trading support comes from Amazon Business.

[A]

Don't let complicated purchasing processes get in the way. Smart business buying tools from Amazon Business help you make better decisions faster. Our AI driven features surface insights to simplify procurement, automate routine tasks and help you find what you need when you need it. Now organizations of any size can access unmatched selection, business relevant features and fast, reliable delivery. Learn more to amazonbusiness.com.

[C]

What do we make of these numbers from Salesforce, the cloud software kingpin with a stock that's been under pressure for well over a year from AI worries if they're closed today. Salesforce report a strong set of numbers. Revenue growth re accelerated, coming in higher than expected. They posted a very big earnings per share beat, though most of that was from a bountiful $27 billion buyback. But the stock couldn't get the traction in after hours trading, possibly because the remaining performance obligation, sort of like the backlog, came in light, fueling fears that salesforce might be having trouble signing customers to longer contracts. Even though I think they would beg to disagree. There's a lot to consider here, especially with the stock so far off its highs and a buyback that's one of the biggest in the entire market. So let's go straight to the source. Mr. Benioff, welcome back to mad Money. I mark at sharply better than expected earnings. You are guiding for very good numbers in the second half. I'm trying to figure out the disconnect between a stock that looks like it's down and what I see is very big numbers. Help me here, Jim.

[D]

It's the sass apocalypse. So welcome. We're all drinking sarsaparillas here, but yes, you're right, revenue is up, you know, very significantly. As you can see, we have just a fantastic quarter, up 14% year over year on revenue. It's our first $11 billion quarter, Jim, is not amazing.

[C]

Oh, I think it's incredible. And I know you bought back a lot of stock because you believe the stock is inexpensive. Someone might say, listen, you bought back a lot of stock and the stock is just keep dropping. What's the point of buying back the stock?

[D]

Well, Jim, you're right. You know, we can look around for great opportunities in the market, but salesforce is probably the greatest and we are excited to be able to return that to our investors. In fact, it's one of the reasons why you saw that the Q1 GAAP diluted net income per share was 242 is up 52% year over year. Jim. That's non GAAP diluted net income per share of 388. That was up 50%. We've never seen numbers of that. It's really because we were able to buy back the stock and return that to our investors in a material way.

[C]

Okay. Are you happy with how the Asian force is going? Because I know that you use tokens as one method. You also use billions as another method. I'm trying to get my arms around what the the tokens method looks like to me. The agent revenue number is pretty good.

[D]

Well, you saw agent Force revenues now over $1 billion, Jim. That's incredible. And agent force is now on all of our products from sales to service, even inside our core applications. Now we have agent force coworker that lets our customers work with agent force directly, giving them tremendous capability to do things that they've just Never been able to do before.

[C]

When I call cvs, is it possible that I might be speaking to an agent who can route me better than someone who just puts me on hold?

[D]

Well, you know that CVS, Aetna is one of our largest customers and we're really excited to be announcing that they're using Agent Force and doing it in incredible new ways. We've seen health care continue to look for ways to connect with their customers using agentic technology. Probably also saw UCLA Health. You can even go to their website, UCLA Health.org and you can use Agent Force to kind of get information on directly working with the physicians and the technology available there.

[C]

All right, so Mark, let's talk about this Saskoch, whatever you want to call it. There are people who are saying, listen, you're being disrupted. You're being disrupted by these new AI platforms and what it's doing is making it harder for you to get longer deals and good price increases. What do you say to that?

[D]

Well, Jim, I mean, you can see we just had a record quarter. It's kind of, it's really incredible. And when you see the number of million dollar transactions that happened in the quarter, well, this was a, this was our record level. We've never seen this many large transactions happen. And also I think we're going to see in the second quarter, you know, attrition is probably coming down. A lot of the predictions that are happening in regards to the cesspocalypse just hasn't happened. I mean, it really, you think about half. You look at Slack and the incredible growth rate of Slack, it's been really driven by the air wave and the ability now for these companies to do things that they have not been able to do before. All of this is really made possible by this tremendous new AI technology.

[C]

All right, should I be worried about Tableau, which I think might be a more in the crosshairs of what we're talking about, or the commerce silo, which I always kind of liked and I know is very important, near and dear to you.

[D]

Well, I think that when you look at tableau, Jim, we just got done with Tableau conference a couple of weeks ago. The new tableau is incredible and it's bolstered by this AI capability that is the agenda. Capability is now within Tableau. You can talk to Tableau. You can create tableau capabilities in entirely new ways that gives Tableau the same kind of Agent force power that we now have inside all of our apps at every level. All Salesforce apps, whether it's Sales or service or marketing, whether it's analytics like tableau, whether it's commerce, even whether it's slack, are just all made powerful by this agentic platform. And now I think you saw that we've, you know, completed our transaction and we had a great first quarter here with Informatica. It was just incredible to see data perform so well as in the quarter as well.

[C]

All right, can you help us understand you're very excited about the tokens number? I'm trying to understand for our viewers why that is such a good number. Put it in some context.

[D]

Well, when you see just the number of tokens that we're able to distribute to our customers, it really gets down to the adoption of the products that is, well, you know, are people using Agent Force? Well, you can see it in this incredible token number. And the token number basically shows that we continue to just outstrip, you know, our ability to deliver to our customers this incredible capability. That, that's why tokens are so important.

[C]

All right, so let's look at the price Journeys Mobile. I tend not to want to do that with software companies, but at a certain point I say, well, wait a second, after this number, which is a rather huge earnings per share number. And yes, okay, so it's from a buyback. I don't know. I saw Apple have huge numbers from a buyback for years. You're selling like 12 times earnings. I mean, my thinking is just keep buying back stock until if the marketplace doesn't want want it, you buy it because you know the numbers better than anybody.

[D]

Well, Jim, you just articulated our philosophy very well, which is that we are doing everything we can to create customer success, to deliver every customer the ability to use this amazing new agent, a capability. And if the market is not delivering on our results, then we are very happy to buy back our stock as well.

[C]

You are buying it back ahead of what you said. And this was, I thought, terrific. Again, you said it'd be a second half acceleration. You're not backing away from that. You're very close to it and you're sticking with those numbers.

[D]

Well, you can see we're going to, we're going to have a monster year. We're going to deliver more than $46 billion in revenue this year. There's no enterprise software company that's doing more than Salesforce is. And I think that being the largest in the field, delivering the agenda capability across all of our products, helping all of our customers cross the chasm into this new world of the agent of enterprise, this remains our main focus.

[C]

And then finally, I just want to get a feel for how you're viewing the world. I mean, you know that all we ever hear about anthropic herding is hurting you, hurting everybody that's in software, open AI or what's the matter with that narrative? Why, why is that narrative so false when we do see so many companies in your industry being hurt?

[D]

Well, Jim, I think that, you know, that isn't exactly what's happening. What's happening is we have an incredible new capability which is artificial intelligence. Everyone who's used it knows this is an incredible new asset. It's a new type of infrastructure. And by bringing that in, for example, one of the tremendous success stories in the quarter is Slack, but also Slack Bot, that inside Slack now you have the ability to talk to this incredible AI that is giving you these amazing results. Well, Jim, guess what? That Slack bot is driven by Anthropic. And so by building Anthropic now into Slack, we're able to take an incredibly successful product. By the way, Slack is used aggressively by Anthropic, by OpenAI, all the companies you just mentioned to run their own businesses. But now Slack, Slack has the ability to go through, to be able to look at your messages, to be able to read your channels, to be able to have a comprehensive understanding of your business and give you tremendous advice. That's the power of AI. It's the ability to read large amounts of data and be able to come up with these tremendous insights.

[C]

Well, to me, look, I'm glad you're buying back stock because I think the sellers down here are wrong. It's just too inexpensive. It just. I don't get it. But we'll see what they say and just second half awaits us. How about that, Jim?

[D]

We're going to keep focusing on our customer success. And you're right, we're going to continue to drive our revenue. We're going to continue to deliver tremendous cash flow. You saw the cash flow number was incredible for the quarter and for the year. It'll be extraordinary. And then, Jim, finally we're going to do exactly what you said, which is we're going to return incredible shareholder value by focusing on buying stock back during this time of incredible low prices. That's called the excellent.

[C]

I want to thank Mark Benioff, chair and CEO of Salesforce CRM, a stock that I do own, for my charitable trust. Thank you, Mark.

[D]

Great to see.

[C]

Okay, may have money is back in brick. Coming up, earnings season is wrapping up for retailers. So Kramer's pump breaking out is lasso. It's time for a retail earnings roundup next. My community gives me the confidence to

[D]

ask myself, what would you like the power to do?

[C]

So every time I'm on the pitch, I play for more than myself. Oh, what a tackle from Naomi G. Absolutely brilliant. Bank of America Champions uk, US Women's

[A]

National Team member Naomi Girma and everyone who dares to ask, what would you

[C]

like the power to do?

[E]

Bank of America Proud to be the

[A]

Official bank of U.S. soccer bank of

[C]

America NA Member FDIC trading at Schwab

[B]

is powered by Ameritrade giving you even more specialized support than ever before. Like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy. Gut check. Need assistance? No problem. Get 24. 7 professional answers and live help and access support by phone, email and in platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn [e-mail] trading support comes from Amazon

[A]

Business Unlock smart business buying with fast free delivery on millions of items and practical AI innovations that automate repetitive tasks so you can make smarter decisions faster. Learn [e-mail].

[C]

We finally got some ironclad proof that AI displacement worries simply don't apply to some software companies. Look at Snowflake. This company shot the lights out after the bell reporting a 7 cent earnings beat off a 32 cent basis with higher than expected revenue up 33% year over year, the remaining performance obligation up 38%. Their business in particular is booming. Even better management gave very strong guidance for both the current quarter and the full year which is why the stock is flying after hours trading. So let's check in with our Ramaswamy is the CEO of Snowflake to get a better read on the quarter. Mr. Ramaswamy, congrats on the quarter and welcome back to my money.

[E]

Jim, Thrilled to be here. Yes is compounding Snowflakes advantage in Data product revenues are $.334 billion up 34% year on year our net revenue return 26% and AI is fundamentally changing how we are right at the center of it with products like Snowflake Intelligence for work users doubled more than more than double quarter over quarter and Cortex Code is our breakout builder product and within one quarter of being GA it's being used by over 7100. We feel very good so we increasing fiscal 27 outlook from 27% to 31% year over year growth. This is this is an exceptional quarter, strongest sequential dollar growth in history for us.

[C]

It is incredible. I also want to make it clear to people you announced something tonight which shows me a different way that people are are your companies doing that other software companies probably wish they do. You announced this expanded AWB relationship through a $6 billion molar agreement trying to accelerate enterprise AI adoption. Now most software companies don't do this. They don't get within the artificial intelligence sphere. They certainly don't deal with an Amazon or frankly or a Google or a, you know, in video the way you are. Why does, why is this deal so seminal for you?

[E]

So key partnerships like the ones with AWS. We also announced a big expanded partnership with OpenAI. We have one with Anthropic. This has always been Snowflake strength. We bring choice to customers whether it's in a cloud service provider like an AWS or Azure, but also in models. Our products like Snowflake Intelligence and Cortex Code run on top of the best AI models that that there are. And is that ability to provide choice and value that makes Snowflake so unique in this space and with our strength in data, we are more and more work use cases both for builders but also for business users with every passing month.

[C]

Now we had data bricks on last week. You know those are private company, don't really know their numbers. They great greatly defer to you. But maybe think are there really only two companies in this particular vertical and are you growing faster than people realize? Because I got to tell you after looking at this quarter, I did not know you had the ability to grow this fast.

[E]

That is part of the magic of Snowflake. We've always been customer focused. We've always created a tight product that is easy to use, makes hard things like governance work just out of the box. But the real magic has been creating amazing AI products like Cortex Code, Cocoa and Snowflake Intelligence. These are easy to use products. They leverage us because people that use Cortex code can get things done on snow faster. People are driving migration projects with Cocoa that we didn't think were possible. And it's that kind of amazing transformation that happens when you create great products. I routinely hear about both my teams and teams outside getting projects done 10 times faster. And that's the magic of the moment with a truly extraordinary experiences. And when you do that, you reap the benefits of these amazing products because loving customers use them and get value from them.

[C]

Can you tell me whether maybe give me a bit of preview about the Snowflake Summit and model partnerships Because I think what's going to happen is people are going to look at what happened tonight. There's going to be a second wind as people recognize they got to read, they got to blow it up and look at this company in a totally different way. Not as a software company, because that's not what you are after tonight.

[E]

Well, first of all, we are a consumption company, which means that we get paid only when we deliver value to our customers. And at Snowflake Summit, you're going to see us leverage all of this power with AI Donalds, a slew of new products whether and the ability to take on really hard problems like governance and make them super easy for our customers. How to bring up lightweight applications on top of Snowflake. Can't tell too much because then I'd be giving out all of the stuff that Christian wants to announce. But we'd love to have you there.

[C]

I tell you, I don't want to be like, you know that I didn't know you were good because we dealt with that with each other since you took the job. And I always felt that the stock made no sense because you are a prize way to keep data safe and to be able to access the data, to interrogate the data. And there really is nobody else who's doing what you're doing right now and

[E]

get value from data and take action on data. This is where a key acquisition that we announced today to buy Natoma is so important. What that does using a technology called NCP is it makes all of your applications, whether it's a Google Enterprise, auto, Salesforce, auto Workday, available to the agent platforms like Snowflake Intelligence and Cortex code. So for example, you can write a deep research report on things that are going on in the web with your own Snowflake data. But also what is an Office365 documents on Slack, all in one shot with one prompt. We are really strengthening the core of what we call the control plane for the enterprise. I think this massively expands the TAM that we can go after and the value that we can create for our customers.

[C]

Okay, explain that control plane for me because I don't understand it well enough. It's obviously very important.

[E]

Well, so the key components for getting value from AI are amazing trusted governed data. That's what Snowflake has always been about. It's having access to the very best frontier models on the planet because these are the ones that are great at reasoning with data. But the third important component is all of the context from the applications that you use. Whether it is a Gmail or if you are in an enterprise, you likely use something like a salesforce or a workday. What we can now do is bring all of the context into one single area and have a smart agent act on it. That is Cortex core. You can build anything you want and you can figure out how to run a business process very effectively using Snowflake Intelligence with the full context of your it becomes your cockpit for getting things done. And that's the control.

[C]

I get it. I get it. I thank you for explaining to. I'm not saying I'm naive, but I got to tell you what you're up to now is really terrific. I want to congratulate you. I wish you the best luck at your summit. The stock is pliant, as it should be. That is street, our Ramaswamy. He's Snowflake CEO. Thank you Sridhar. It's great to see you and everybody. Everybody should understand this is one that has transversed where the software companies are going. It's finally where the money is and the growth is and that's what matters. Snowflake has it. I wish others did too. They have money spec after the break. Last week we reached the part of the earnings season where we hear from the big retailers and so far call it a mixed bag. Rather than taking them in chronological order, I want to go by the quality of the numbers. At this point we've heard from six major retail chains. Two are legitimately strong. Two. Okay, two are disappointing. Let's take them from best to worse. The best so far was tjx. That's that off price kingpin that you know as TJ Maxx, Marshalls, maybe the very popular home goods. As well as being a longtime holding for my charitable trust. I've owned this one for ages. TJX delivered a robust top and bottom line beat with a 6% same store sales growth. Wall street was only looking for 4.1%. Home goods was up 9% overall they had 9% revenue growth and reported a 17 cent earnings beat off a dollar or two basis. You know that represents 29% earnings growth. Stellar numbers. TJX also raised its full year forecast across the board and it raises buyback by a quarter billion dollars. When the consumer is feeling nervous about the economy, they flock to the off price change. Nobody does oil price better than TJ X. No wonder the stock jumped 5.7% last Wednesday in response to that quarter. Hey, by the way, Ross stores the next best off price play. They also put a great set of numbers Last Thursday we hear from the third major player in the group, Burlington stores. Tomorrow morning should be good. Now let's talk about the second clear winner among the major retailers. And it's one that I really, really like that I'm so glad they deliver, which is Ralph Lauren. Now these guys learned just a true blowout quarter. 17% revenue growth translated into a 25 cent earnings beat off a 255 basis. Even better, Ralph Lauren posted 17% direct to consumer comparable store growth. Wall street was only looking for 8.5%. The brand, it's on fire. In fact, Ralph Lauren has been rolling for several years now under CEO Patrice Levy. Company's merchandising has been excellent. They keep taking share in new categories like women's apparel, accessories. They've also built this really strong DTC business. On top of that, management gave us a robust full year forecast. The stock had pulled back pretty hard in the weeks before the quarter, but it snapped back last Thursday. It rallied nearly 14% in response. Now within spitting distance of its all time highs. Remember, I like strength. Like I said at the time, top of the show. Now let's talk about the retailers that were, I don't know, it's called more or less. Okay, Wal Mart and Target. I hesitate to call these quarters bad, but the clearly you know the market market didn't like them. Wall street took a look at Wal Mart's numbers and decided to sell the stock hard. It tumbled 7.2% in response last Thursday and target dropped 3.9% last Wednesday. Even if it bounced the next day, I don't think it's so bad. But I think, let's put this way, I think the declines were excessive. Wal Mart matched expectations for us. Same store sales up 4.1%. Eked out a small revenue beat. Delivered in line earnings which were up 8% year over year. Walmart also declined to raise its full year forecast which sat below Wall Street's estimates. Management argued that even reiterating their previous forecast should be seen as a positive given the impact of higher fuel prices. But they also talked about the new pressure on the consumer. We don't hear that. And that's how we ended up with a negative reaction in the quarter. Doesn't help that Wal Mart's pretty expensive relative to its growth rate in the long run. Look, I think Wal Mart's fine. I see the pullback. Rare buying opportunity. Investors didn't like that Target quarter much either. Despite the fact that Target delivered what I thought was very healthy. Top and bottom line beat with 32% earnings growth, same store sales of 5.6% and it's only looking for 2.4%. They even raised their full year revenue growth outlook from 2 to 4% and said that earnings should come in near the high end of their previous forecast. To me that was a home run and a buy. So I'm not entirely sure why the heck it sold off in response to the quarter. Still, it's a turnaround story is clearly head in the right direction. Plus target trades is just 15 times this year's earnings estimate. 3.6% dividend yield. You buy it. Okay? You buy it. Finally, let's talk about the legitimate disappointments. And this is tough this Home Depot and Lowe's. Now we know interest rates have been rising and that's a nightmare for these home improvement chains. We own Home Depot for the Travel Trust. I was honestly braced for the worst here. But even though the numbers were not good, the stock held up surprisingly well. It feels like it's bottomed, actually rallied in response. Expectations were so low. Still, the numbers were not encouraging. Home Depot posted a very modest top and bottom line beat. And same store sales were up just 0.6%. That's below expectations and below my expectations. Management also reiterated the full year forecast which felt like a win given the economic backdrop. We also noted that early May was pretty good. I think that saved the stock. But in the end, CEO Ted Decker acknowledge that Home Depot needs a strong housing market in order to thrive. And you can't have that without lower rates. We do not have a strong housing market. In the end, we own Home Depot for the Chapel Trust as a hedge against the possibility of rate cuts in the Federal Reserve, which I still believe will happen. Without rate cuts, the stock will probably hurt you. But as I said in today's investing club call which I hope you you can listen to replay, if the Fed actually cuts and I sold Home Depot beforehand, I'm going to be kicking myself for years, okay? And it's painful. I got this really nice brownie suit. Someone do that Now. Lowe's has been performing better than its rival, largely because got more exposure to do it yourself consumers than professional contractors. Lowe's had tepid same store sales, but its total revenue jumped 10% year over year. Earnings were up 4%. Perhaps Wall Street's gotten used to the company is doing so much better than anybody expected. And while Home Depot is always well Home Depot supposed to do badly. So it rallied because it wasn't as horrible. Still, given the macro headwinds, Lowe's doing nothing in this environment, I'm still calling it a win. Now looking at all these retail results, I think they generally conform confirm the argument that our economy is looking at more of a K shaped recovery where the rich get richer while the lower income consumers, they struggle. Now that's arguably why we see strong results from TGF's in the low end and Ralph Lauren on the high end. But to be clear, both those companies had also fabulous execution and I think that's what really sets them apart. The big box retailers had solid results but in the case of Wal Mart, sky high valuation solid wasn't good enough. Target is cheap turnaround story. I like finally the home improvement change. They need lower rates, plain and simple. If you think that can happen, they can still be owned. But if you don't, well, you might as well use the bounce to ring the register at Home Depot. Here's the bottom line. We're in a moment where some retailers like TJX and Ralph Lauren can thrive, but that's because of fantastic management. But many others have become hostage to forces beyond their control and that's not the best place to be. As I said again at the top of the show, you can't always look at where stocks have come from because I think both TJX and Ralph Lauren, while up, will keep going higher. If you want a retailer, those are the ones I believe in. Those are the ones I would buy. Let's take calls. Let's go to Sonny in Illinois. Sonny, Professor Kramer, it's your longtime friend Sonny from Illinois. How are you, Sonny? I'm doing well. Thank you for calling. What's shaking with you? Hey, man. Not much. Just a little hot here in the Windy Cities. Didn't know that. How can I help you? Yes, sir. So I'm looking at a company you, you recently had the CEO on your show, Mr. Jan Kreis, and he bought a lot of shares of the company. And there's been some talks recently about taking this company private or potentially maybe having them merge. What is your opinion on Mattel? Okay, the stock's down 25%. I don't know about any merger. I don't know if they, if someone wants to take them private. I would say this. You know, Chrysler's doing a good job. People don't like the toy business right now. It sells at 11 times earnings. I agree with you. I think the stock should be bought. I think it's bottoming here. I think you have a good one. I like Mattel at these levels. Now, if you want to own a retailer, go with TJX or Ralph Lauren because I think both stocks can still go higher even from here. Much more man money out, including snowflake blowout after earnings. I'm learning more about how the SOPRA kingpin is navigating the AI revolution solution from its incredibly valuable CEO. And the gravity defying rally in Micron seems to have no end. So can you still get into the stock at these levels? I'm sharing where I come down. And then, of course, rapid fire. Tonight's edition of the Lightning Round. So stay with Kramer. It is time. It's time for the Light Rail Crystal Rap corner by. And then the Lightning Round is over. Are you ready, Ski? Dad, tell the ride we're coming to the light. Let's start with Will in Colorado. Will, Jim. Jim. Jim. I appreciate you taking the call, my man. Wanted to know your thoughts on BS Wide Mount Music, on which one? And oh, no, that software, the kind of software that's being disrupted by by the artificial and artificial intelligence world. We have to say XNA on the Bentley net. Let's go to Sam in Pennsylvania. Sam. Jim, after I saw Berkshire Hathaway selling down pool stock, I couldn't help but take a look. And the company is still operating. It's a quality compound there. And you know, with climate change, these seasons are getting longer in terms of the operability of pools. So curious what you think of pool here at 6.8 billion given that Greg Abel needs more housing turnover and we can't get that from Home Depot, you know, like, look, I'm in a Home Depot for the Chapel Trust. I need housing turnover. I don't need to go to the pool. It's way too deep. Let's go to Mike in Massachusetts. Mike with Mike.

[E]

Booyah.

[C]

Jim, this is Mike Friz, the Wiz of East Boston.

[A]

How are you?

[C]

I am doing well. How about you, Mike? Good. Sitting here making some wild boar Bolognese and I'm thinking Polycystro from Goodfellas. Like people who paid their debts on time. I do and I know you do too. What do you think of Realty Income, Spider? I like that idea. You got a nice dividend. I think it's going to go higher. That's a terrific situation. And you got horse sense. And that, ladies and gentlemen, couldn't have the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up, Kramer's checking out the circumstances that turned Micron into a trillion dollar company. And breaking down whether it's still a buy in his Eyes. Next. What a stunning fact. It took 490 days from video stock to go from $500 billion market cap to a trillion. It took 48 days for micron to make that exact same journey. That's bonkers. I've seen a lot of slack jawed journalists and commentators gobsmacked by this one. But when you take the story apart, the action of Micron actually makes sense. See, I have a lot of experience trading Micron from back in my hedge fund days. I wrote it from $2.95 in the 90s. But then I didn't get out in time to avoid the legendary collapse in the mid-90s when the price of memory crashed. That kind of crash leaves an indelible score and a lot of skepticism about the semi giant. First though, let's talk about the proximate cost of Micron's trip to 1,000,000,000. A very aggressive analyst from UBS raises price target from $535, which should have been overrun a few days ago, to $1,625, well above the stock's current $928 roost. To say nothing of the $750 level where it was trading at the time of the call. That shocked people, making some recognize that like SanDisk and Western Digital before, Micron might have even more room to run. It was casual, especially when you consider that Even after yesterday's 19% gain, the stock only sells for nine times next year's fiscal year's earnings estimate. And the next fiscal year starts in September. How do you explain the action? First, you have to understand what Micron really trades on. Three factors. One is demand. Here it's insatiable because Micron makes high bandwidth memory exactly the kind of hardware that the data center desperately needs to. There's a huge shortage the high bandwidth memory chips. None of the CEOs in the industry saw it coming except Nvidia's Jensen Wong, who realized the fortifications of AI before anyone else. 3. Because almost nobody saw this shortage coming, there aren't enough machines that can manufacture more chips. Typically, the semiconductor capital equipment makers don't get caught flat footed like this. But there were no price signals that this shortage could happen. We didn't know the power of artificial intelligence agencies until just a few years ago. Still, Micron at a trillion dollars is hard to get your head around because historically this has been a savagely boom and bust industry. The peak for this kind of stock typically comes when new production capacity gets added, bringing the memory chip market back into equilibrium. It hasn't happened yet because it'll take a long time to manufacture enough machinery. So we never got the peak. We still have it. We don't know when it's going to come. Historically, the memory chip makers end up ordering too much machinery and their overproduction crushes the entire group. But this has not happened, at least not yet. Maybe something's changed. Some of that's the higher tech nature of these high bandwidth memory chips. You need more expensive, complex machinery, proof of stuff than you would old fashioned memory. At the same time, the rise of index funds means that close to 30% of Micron shares don't even trade. On top of that, there are all sorts of relatively invisible ETFs that have taken stock off the table. When you consider that multiple ETFs on micron and stocks like it, it's easy to see how the stock could rally on a very small percentage of shares changing hands. And that's what's been happening. It's almost as if you could see an intraday short squeeze that took the stock up much faster than anyone thought possible. Can you still buy it here? It depends. If there's no new machinery coming on line to make memory, then yeah. And I don't see any Micron can keep flying, but my discipline tells me I just can't do it. At this point in the rally, even I have to say I missed it. Sooner or later I know that new capacity is going to come on. I don't want to walk headfirst into the Buzzsaw, even if it means I miss some upside ahead of time. But others don't share my discipline, so they've been right. As I told the investing club though, I simply don't think Micron's worth the risk up here. Even as I said at the top of this show that I think don't worry about where stock came from, think about where it's going to. If Micron pulls back hard, it's another story. Like I said, is always a bull market somewhere. Promise to find it just for you right here man. Money. I'm Jim Cramer. See you tomorrow. 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. Kramer'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 trading@schwab is powered

[B]

by Ameritrade, giving you even more specialized support than ever before, like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check. Need assistance? No problem. Get 24. 7 professional answers and live help. And access support by phone, email and in platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn [e-mail] trading.