Mad Money w/ Jim Cramer 5/28/25

Summary

Mad Money w/ Jim Cramer – Episode Summary Release Date: May 28, 2025

---

1. Introduction

In this episode of Mad Money, host Jim Cramer delves deep into the transformative impact of artificial intelligence (AI) on the economy and employment. Highlighting both the opportunities and challenges presented by AI advancements, Cramer sets the stage for insightful conversations with two industry titans: Mark Benioff, CEO of Salesforce, and Jensen Huang, CEO of Nvidia.

---

2. The Impact of AI on Employment and the Economy

Jim Cramer opens the discussion by addressing the escalating influence of AI across various sectors. He references warnings from Dario Amodei, CEO of Anthropic, about the potential for AI to displace a significant portion of white-collar jobs, projecting unemployment spikes of 10-20% within the next five years.

"When you factor in artificial intelligence, it might be the most important force out there concerning employment."
— Jim Cramer [02:30]

Cramer emphasizes the dual-edged nature of AI—while it can automate and optimize many tasks, it also poses risks to job security, necessitating a nuanced approach to its integration into the workforce.

---

3. Interview with Mark Benioff (Salesforce)

a. Salesforce's Remarkable Quarter

Jim Cramer welcomes Mark Benioff to discuss Salesforce's exceptional performance in the recent quarter, which surpassed expectations and led to an upward revision of their yearly revenue forecast.

"We're going to do over $41 billion this year in revenue."
— Mark Benioff [14:14]

Benioff attributes this success to robust customer adoption and strategic initiatives, highlighting significant partnerships, including with PepsiCo, which leverages Salesforce's comprehensive cloud solutions to unify its operations.

b. Acquisition of Informatica

A pivotal moment in the interview is the announcement of Salesforce's acquisition of Informatica for $8 billion, aimed at enhancing data management and AI capabilities.

"Our data has to be in harmony. And that's what Informatica does with Salesforce."
— Mark Benioff [17:17]

Benioff explains that integrating Informatica will streamline data processes, enabling more effective use of AI through better data lineage and master data management.

c. AI Strategies and Agentix

Benioff discusses Agentix, Salesforce's AI-driven agent platform, which has rapidly gained traction with over 8,000 customers, half of whom are actively paying.

"Agent Force is now over $100 million in ARPA just six months after we introduced it."
— Mark Benioff [18:13]

He underscores how Agentix enhances productivity by automating routine tasks, allowing human workers to focus on more strategic roles, thereby addressing labor shortages and boosting GDP growth.

d. Future Plans and Market Outlook

Looking ahead, Benioff shares Salesforce's commitment to expanding AI applications across various industries, including banking and healthcare, despite regulatory challenges.

"Our President wants America to win and he also recognizes that this is an important market."
— Mark Benioff [29:33]

Benioff remains optimistic about Salesforce's trajectory, citing strong performance in the mid-market segment and anticipates continued growth driven by AI innovations.

---

4. Interview with Jensen Huang (Nvidia)

a. Nvidia's Strong Quarter Amidst Challenges

Jim Cramer engages with Jensen Huang to discuss Nvidia's impressive financial results, which exceeded expectations despite facing significant export controls restricting business in China.

"Nvidia's market share in China was about 95% four years ago. It's about 50% today due to limitations on the products we sell."
— Jensen Huang [26:47]

Huang underscores the pivotal role of the Chinese market in global AI development and elaborates on the strategic importance of re-establishing Nvidia's presence there to foster American technology standards worldwide.

b. AI and Robotics: The Future of Work

Huang elaborates on the advancements in AI, particularly in inference capabilities, and their implications for robotics and automated systems.

"Robotics is definitely within the next three to five years—the technology works today. Robotics is going to be right around the corner."
— Jensen Huang [33:39]

He envisions a future where AI-driven robots augment the workforce, addressing labor shortages and enhancing GDP, aligning with historical technological advancements that have generated new job opportunities.

c. Software as a Core Component

Highlighting Nvidia's evolution, Huang emphasizes the indispensable role of software in managing complex AI infrastructure.

"The software necessary to keep it humming and to make the utilization and the efficiency and its throughput as high as possible, that piece of software is invaluable."
— Jensen Huang [34:33]

He points out that Nvidia's comprehensive infrastructure solutions, integrating both hardware and sophisticated software, position the company at the forefront of the AI revolution.

d. Future Product Developments

Addressing concerns about product transitions, Huang reassures listeners about the seamless integration of new AI architectures like Ultra and Blackwell Ramp into existing systems.

"Ultra is exactly the same architecture, exactly the same chassis. And so we'll just slip it right in and keep going."
— Jensen Huang [37:06]

He underscores the scalability and robustness of Nvidia's technology, ensuring continued growth and innovation.

---

5. Stock Analysis: Lululemon Athletica (LULU)

Transitioning from interviews, Jim Cramer analyzes the recent performance of Lululemon Athletica, a leading athleisure brand that has faced significant stock volatility due to macroeconomic factors like tariffs and consumer sentiment.

Cramer notes that despite a 25% drop from its January highs, Lululemon exhibits strong fundamentals, including a strategic focus on product innovation, exceptional guest experience, and market expansion.

"Lululemon is a beaten-down retail stock that I think can continue making a comeback."
— Jim Cramer [42:00]

He remains optimistic about the company's ability to outperform expectations, citing past instances where Lululemon has exceeded earnings projections despite conservative guidance.

Cramer advises considering call options given the low expectations surrounding the stock, which could present a favorable risk-reward scenario.

---

6. Lightning Round Segment

In the Lightning Round, Jim Cramer engages with callers, offering quick takes on various stocks:

• Chevron (CVX): Cramer suggests waiting for a dip before buying, anticipating oil prices to stabilize in the $50s and valuing Chevron's 5% yield.

  "You are going to wait till this stock at 136 goes to 130 before you pull the trigger."
  — Jim Cramer [06:30]

• Reddit (REDDIT): He endorses investing in Reddit, highlighting its superior advertising bang for the buck compared to platforms like Instagram and TikTok.

  "Reddit is probably the best bang for the buck that there is right now in advertising."
  — Jim Cramer [07:00]

The segment showcases Cramer's ability to provide concise investment advice on the fly, reinforcing his role as a dynamic market commentator.

---

7. Closing Remarks

Jim Cramer wraps up the episode by reflecting on the transformative potential of AI and robotics, expressing both excitement and caution about their rapid integration into various industries. He emphasizes the importance of staying informed and adaptable in the face of technological advancements, encouraging listeners to seize investment opportunities while mitigating risks.

"If you can't beat them, then at least stop judging you."
— Jim Cramer [46:21]

Cramer signs off with a nod to the evolving market landscape, reaffirming his commitment to guiding listeners through the complexities of Wall Street.

---

Notable Quotes:

• "When you factor in artificial intelligence, it might be the most important force out there concerning employment."
  — Jim Cramer [02:30]

• "We're going to do over $41 billion this year in revenue."
  — Mark Benioff [14:14]

• "Robotics is definitely within the next three to five years—the technology works today. Robotics is going to be right around the corner."
  — Jensen Huang [33:39]

• "Reddit is probably the best bang for the buck that there is right now in advertising."
  — Jim Cramer [07:00]

---

This episode of Mad Money offers a comprehensive exploration of AI's role in reshaping industries, insightful interviews with leading CEOs, and practical investment advice, providing listeners with a nuanced understanding of current market dynamics and future trends.

Transcript

[Bank of America]

As America's leading business lender, bank of America is on your corner and in your corner. With $215 billion in business loans and over 3,700 business specialists across the nation, we help businesses thrive so communities prosper. What would you like the power to do? Learn [e-mail] LOCALBUSINESS bank of America Official bank of FIFA Club World Cup 2025 Copyright 2025 bank of America Corporation. All rights reserved. Don't just ride the index, Seek to outperform it with FELC, the Fidelity Enhanced Large Cap Core ETF. Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms just like any other ETF. Discover FELC, the Fidelity Enhanced Large Capcor ETF, part of Fidelity's suite of active ETFs. Learn more at fidelity.com felc before investing in any exchange traded fund, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for prospectus and offering circular or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail in index as compared with passive ETFs. Fidelity Brokerage Services LLC Member NYSE SIPC.

[Jim Cramer]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer. Do Make Friends. I'm just trying to make you a little money. My job is not just entertainment, but to put it all in context. So call me 1 873, CNBC tweet me Jim Cramer Every time I think that we are overstating the impact of artificial intelligence, something comes along that tells me we aren't making enough of it on the show. Now I know that there are plenty of other industries we got to focus on, which is why I always say A Dow declined 245 points today. S&P dip 0.56%. Nasdaq declined.51%. They all went down at the end because of some stuff President Trump did about semiconductor kasing. But if you want to know what's going to happen in the future, not the near future like next week or tomorrow, but next year and beyond, then I think you must factor in artificial intelligence. When it comes to employment, both public and private, it might be the most important force out there. Fortunately, tonight we happen to have the godfather of AI Jensen Huang, CEO of Nvidia Coming off an excellent quarter announce this very evening to talk about both the near term performance and much more important the long term implications of what Nvidia is doing for our nation and our world. And we will include China which the President is very worried about. Now I'm not a doomsayer like the CEO of Anthropic, Dario Amade, but he's a brilliant artificial intelligence entrepreneur who according to a recent interview with Axios believes that I could wipe out half the entry level white collar employees in America half and spike unemployment to 10 to 20% in the next one to five years. He's talking about a possible elimination of jobs across technology, finance, law and insulting the man behind Claude. Yes, Amade is the godfather of Claude wants to sound the alarm before 20% of the people in this country don't have jobs. Now we need to know what percentage of people will be replaced by Agentix yet robot agents mastered by Salesforce and of course we'll be your mark Betty up this evening we have to know whether in video will change every aspect of our lives. Once we get mass adoption of their ultra powerful chips, will they let us all drive hands free everywhere? Will they allow us to have robots at home and at work doing the jobs that would have previously been done by humans or not asked by Anthropic CEO but could they make up for the shortfall in population that could be coming when you look at America's ever declining birth rate which I think is incredibly important, not talked about. And yes, when will they be smarter than us and more useful than us and even perhaps obviate us? We always hear not to worry, we're creative, there's room for humans. But where is that room once I gets good enough the CEO of Anthropic is right about where this is going. Just think of what the world will look like five, ten years from now. The Fed won't be discussing how tight employment is. Instead the Facebook will be filled with data about how whole job classes have been obliterated. I've seen the robots that can make the hospital beds clean. The hospital room picks up the hotel room better. Better than any human, certainly much cheaper. I know of the FedEx warehouse where the boxes are unloaded and stacked by robots, not by people. I've seen a box fall on the head of a robot. They have to have our form factor because the world's designed for our form factor. The robot was unfazed, the humans neck definitely broken. Anthropics Amaday focuses on white collar jobs and we'll Know soon enough whether the law and business school graduates can't get a job right? How can companies afford to hire them when they might have to fire him a year from now? I on the other hand, and fixated on how robots could take over the jobs that no one wants or the jobs that people only do for lots of money because they're so dull, they're so dirty, they're so dangerous. Why is it so hard to get our arms around what I can really accomplish? First, I think that no one in, in the industry, nobody really wants to talk about how many jobs would be wiped out. That's not exactly good pr, is it? When we speak to Marc Benioff later, the CEO of Salesforce, which reported tonight after the close, delivered some very strong numbers, excellent guidance. He's adamant that his agent force, which uses computers derived agents or Agentix, will put people who are in relatively unproductive positions in a much more important revenue producing positions. From the looks of his quarter, I got to tell you, I think he's onto some. But when you're a CEO as I've been, you know what? You're really conscious that workers are expensive. CEOs don't want to bring in a gentic step to make their people more productive. They want to bring in agency so they can fire people and rack up cost savings. Nobody's going to make that pitch to the general public because it is so unpalatable. It's more like what Amide says, quote, cancer is cured, the economy grows at 10% a year, the balance, the budget is balance and 20% of the people don't have jobs, end quote. That's a lot of positive, very much balanced out by one huge negative. Now obviously nobody really knows what's going to happen, but we can talk to the people who matter, including Benioff and Chance Wong, the CEO of Videos, see what they have to say. Unfortunately, in this business, we're desperate to find out what's going to happen 90 days from now, let alone five to 10 years from now, which most people are not interested. Fortunately, this is mad money. We got a longer time frame. The time frame that includes the possibility of longer term profit though the bottom line. Let's see if the agents can do our jobs better than we can. Let's see if we'll even play a role in our own world or whether human workers will become obsolete and we'll all just watch TV all day. Maybe Mad money. I just hope it's still the real Jim Cramer rather than my AI replacement Deepa In California. Deepa, thank you for taking my call. I would like to ask a question about one of my favorite dividend stock. That is Chevron CVX. Since it has fallen quite a bit from its 52 week high, is it a good time to buy back? Okay. I think that you have to have a view on oil when you think about this one deeper. And I think that first I think oil is going lower. I think it goes to the 50s. I think it's part of the President's plan to be able to reduce the inflation rate. However, it does yield 5%. I don't want to reach for you. I never want to just say, you know what, I'll take the 5% and not worry about the common stock. You are going to wait till this stock at 136 goes to 130 before you pull the trigger and not until then. Mike in California. Mike. Hey, Jim.

[Jensen Huang]

Love the show.

[Jim Cramer]

Thanks, Mike.

[Mark Benioff]

Become better investors. I wanted to get your opinion on.

[Jensen Huang]

Which is the better investment right now.

[Indeed]

Costco or Wal Mart.

[Jim Cramer]

Okay. Costco is about to report tomorrow and I think that no matter how good the quarter is, the stock will sell off because that's been the pattern now for the, I'd say the majority of quarters. That's just the way it is. So therefore I'm going to tell you, take that gun away from my head. When it comes to Costco, I like Wal Mart very, very much. Buy Costco after it declines if it does go down because Costco is actually on fire. It's just that they tell you how each month's going to be already no surprises there and people just say bored by the boredom. Ian in Florida. Ian. Booyah. Jim. How you doing, Ian? I'm having a good day, how about you? I'm doing great. Thank you, Jim. Thank you. Investing club member, third time. Thank you. All right. Love what you do for us. Thank you very much for everything. Thank you. Jim. I got a question about a communication stock. It's been kind of, it had really good earnings and it went up quite a bit, but lately it's been really sinking and it's kind of attached a little bit to Google in some ways for advertising. What do you think about Reddit and is it a buy here? Okay, I want you to buy Reddit here. Let me tell you something. This stock has been coming down. It was a short squeeze, went all the way up to 200. That shouldn't have happened. I think Steve Hoffman is doing a remarkable job and you are on to something. Reddit I think is probably the best bang, really the best bang for the buck that there is right now in advertising. And people don't realize that I've done so much more work on this. I have. Like I can't even tell you how much work I've done on this. And I keep coming back and it says, you know what, insta is second. All right, TikTok second, kind of even. First is going to be Reddit bang for the buck. You're onto something because the verticals are so precise. They're so precise. So anyway, that's my lot. I used to say TikTok first. I used to say Insta first. No, their backseat to Reddit. You heard it from me. All right, Tonight I'm finding out what's really going to happen with these agent robots. Maybe they'll be our co workers. Maybe they'll replace us. Maybe we'll just all watch Mad Money reruns for the rest of our lives. Could do worse. My late father would have loved that on everybody. Tonight we have a really big show ahead with two of the most important executives in this market. Salesforce turned in results. I like that quarter. We got to talk to Mr. Benioff. Got some big customer wins and I think Informatic acquisition got to be sussed that out then Nvidia reported top and bottom line beat despite China. We have the most anticipated interview in the history of the western world with Jensen Huang tonight. Plus, we're always on the hunt for opportunity. So I'm seeing if we shouldn't be able maybe buy. Ooh, I'm sorry. That gave it away, didn't it? So stay with Kramer.

[Bank of America]

Don't miss a second of Mad Money. Follow imKramer on X.

[Jim Cramer]

Have a question?

[Bank of America]

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 Comcast operates the nation's largest converged network, reaching 64 million homes and businesses. With $80 billion invested to expand broadband infrastructure in the U.S. comcast is actively supporting the goal of bringing broadband to everyone, including rural communities across the country. Comcast has connected 1.2 million new homes and businesses in the last year and are on track to do the same this year. Learn more about how Comcast is bringing high speed Internet to communities across the [e-mail] don't just ride the index. Seek to outperform it with FELC, the Fidelity Enhanced Large Cap Core ETF Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms just like any other etf. Discover FELC the Fidelity Enhanced Large Cap Core ETF part of Fidelity's suite of active ETFs. Learn more at fidelity.com felc before investing in any exchange traded fund, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for prospectus and offering circular or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. Fidelity Brokerage Services LLC Member NYSE SIPC.

[Indeed]

You just realized your business needed to hire someone yesterday. How can you find amazing candidates fast? Easy. Just use Indeed. When it comes to hiring, Indeed is all you need. Stop struggling to get your job posts seen on other job sites. Indeed sponsored Jobs help you stand out and hire fast. With Sponsored Jobs, your post jumps to the top of the page for your relevant candidates so you can reach the people you want faster. According to Indeed data, Sponsored jobs posted directly on indeed have 45% more applications than non sponsored jobs. There's no need to wait any longer. Speed up your hiring right now with Indeed and listeners of this show will get a $75 sponsored job credit to get your jobs more visibility@ Indeed.com madmoney just go to Indeed.com madmoney right now and support our show by saying you heard about Indeed on this podcast. Indeed.com madmoney Terms and conditions apply. Hiring Indeed is all you need.

[Jim Cramer]

Only back to these numbers from Salesforce, the cloud software titan that's betting big on AI with Agentix at the close company reported a strong top and bottom might be management also raising their full year forecast. But there's always a lot going on under the hood on this one. Let's check in with Mark Benioff. He's the co founder chairman CEO of Salesforce. Mr. Benioff, welcome back to Mad Money. Mark, welcome back to the show. You've done a remarkable quarter here with just a tremendous raise in fabulous guidance. So tell me, what were the drivers that made it so that you could take numbers up so so big?

[Mark Benioff]

Well Jim, it's just was an incredible quarter and you're right, we are raising guidance by $400 million. That means we're going to do over $41 billion this year in revenue. Jim, Pretty awesome for Salesforce. We're so proud of our team here and I'll tell you, a lot of it has to do with the customer success that we're seeing. And we've got some great stories about the quarter.

[Jim Cramer]

It does seem like a lot of people been saying, all right, well when is it gentics going to take to really be in the numbers? What is it going to matter? To me, this quarter looks like an agentix quarter and that the other things that you have, let's call it all Salesforce, just for a second, all augment each other. It's not like different silos. Am I right?

[Mark Benioff]

Jim, you really understand what's going on with Salesforce. We have so many exciting things happening, especially with Agent Force. As you know, every company can now transform themselves with. I mean this is really what I was meant to be. And you look at a huge deal in the quarter was with Pepsi. Now, Jim, you know Pepsi very well and their CEO Ramon, he's incredible. He's a good friend of mine. And now they're using 11 of our clouds and now led by Agent Force and our data cloud to really transform ada, they transform Pepsi and that means that they can really bring together their snack business, their beverage business. All is one customer information system. And that idea that it's all then interface directly with our agents and agent Force, that that's just an awesome vision.

[Jim Cramer]

Talking to. I know Ramon. Well, I'm trying to figure out at what point what stage does the customer get involved. It's obviously not the retail customer, is it the retailers worldwide? Because PepsiCo is a worldwide retailer.

[Mark Benioff]

Jim. This is everywhere. Everything from order placement to inventory checks to given consumers being able to kind of learn and interact with the product.

[Jim Cramer]

Division which sends a truck every minute to another store. You're in on that?

[Mark Benioff]

Yeah. Jim, this is Pepsi. This is lay's, this is Doritos. This is going to be every part of the company. This can be about creating one Pepsi and that's one thing I'm really excited about what's going on.

[Jim Cramer]

All right, now let's talk about what would happen if you happen to have informatical layered on. I like metadata because I like indices. I like to be able to look at data and make decisions. What would. What would informatica do right now for Raymond LaGuarda at PepsiCo?

[Mark Benioff]

Well, Jim, as we said, this is all about AI. It's about Agent force. It's about our data cloud. But if our customers don't have their data together, it makes it a little bit more of a challenge for them. So you have to have the data. It's not like consumer AI. Consumer AI, you've already got all the data put together for enterprise AI they have to put their own data together and that means they have to understand their data lineage, they have to have a master data management. They have to be able to have all the connectivity and the homogenization of their data and ultimately their data has to be in harmony. And that's what Informatica does with Salesforce. That's why we're so excited to announce yet just yesterday the acquisition of Salesforce buying Informatica for $8 billion. This is really exciting.

[Jim Cramer]

All right, so last year it was a dalliance, didn't happen. What made it happen this year and why do you need it given the fact that you have a lot of smart guys? You said it yourself, my fault. Could have developed a very similar metadata approach without Informatica.

[Mark Benioff]

We're very disciplined, Jim, in our acquisition strategy. As you know, it had to be accretive, it has to be non dilutive. It has to make sense for our customers, has to make sense for our investors. And everything really lined up this year. We love the company. I mean I've been working with the company, Jim, since 2006.

[Jim Cramer]

I know. You made me sit down with a new smart guy.

[Mark Benioff]

Always loved.

[Jim Cramer]

They're smart guys, they knew about this. They understand banking and you need some more banking. Do you think that they will be able to get you to be, to be in the door to do the other side right now? You do a lot of banks. I know, but regulation has kept it from being able to be the agentix situation. Same thing with health care. I see the possibility that you will be able to do agentix for banks and health care. Those are the two largest verticals and that you'll have them.

[Mark Benioff]

Well, Jim, we're doing that. We've talked about what we're doing with RBC and so many other banks as well. Some of them don't want us to talk about that quite yet. Yeah, I know, but we're talking now, Jim, you have to realize Agent Force is now over $100 million air product just six months after we introduced it. Our data cloud and our Agent Force product together is more than $1 billion now in ARR. These are our fastest growing products that we've ever seen in the history.

[Jim Cramer]

Do you think that some of the outside surprise actually came from these? Because when I look at the Other verticals, they're all good. But you had a big number, Jim.

[Mark Benioff]

More than 8,000 Agent Force customers. The 4,000 of those are already basically paying and fully, fully involved. And some of those stories, Jim's, we've been talking about, but they're still unfolding. So we look at booking and what's happened with Glenn and how he's really rolled out Agent Force in this really smart way. First with the restaurants, then with the employees. Now he's talking directly to his consumers with the agentic platform. Plus he has all of our clouds, you know, right behind all of that. So whether it's doing sales or service or marketing, you know, field service, even commerce, all of these things can basically be tied together and then delivered through this agenda.

[Jim Cramer]

How much more thorough and how much more accurate and agentic Salesforce is then if you. I hate to say it because people are human, right? But how much better this is than humans, Jim?

[Mark Benioff]

I'll do that through a story. And Jim, I don't know. We've never talked about Flabella before, but.

[Jim Cramer]

It'S actually the largest department store in South America.

[Mark Benioff]

Okay, well, you already know, so I can't surprise you. But anyway, this is like the Nordstrom's of Latin America. And we started with Agent Force with them in their Columbia operations and they want to do it in a completely new way all through WhatsApp. So we're like, yeah, we're going to do that. It's going to be great. You know, we're willing to do whatever you need. And their major use case, Jim, is this, where is my order? So here you are, you're talking to the agent. You want to be able to like get your order. It was such a success, Jim. They immediately completed the trial and said we're going throughout all of Latin America. So now all of Valabella is on Agent Force, on data cloud, on our sales cloud, our service cloud, our marketing cloud.

[Jim Cramer]

Is it time to take a trip? Should we go to Bentonville? Is it time to go to Bentonville, talk to Walmart?

[Mark Benioff]

Jim, you know Walmart is a huge customer.

[Jim Cramer]

I know, but I want them to do. This is the biggest use case for Walmart in the world to be amazing. Just like if you were going to.

[Mark Benioff]

Be seeing Doug actually tomorrow. But yeah, great job. I mean, and by the way, not just, you know, they use it in their soft. Did you know that Walmart also makes enterprise software for retailers? And we have a great partnership with, with Walmart where they've taken our products and actually they deliver them to their customers in enterprise software. It's an incredible.

[Jim Cramer]

Let me ask you, there are people who are saying, look, the big gain here was currency. When I back out, you know, it did go from it from a headwind to tailwind, but it still doesn't account for the entire bump in guidance that you get.

[Mark Benioff]

Jim, you're right. Currency is working in our favor. Bookings are getting in our favor. Revenue is working in our favor. Everything is working in our favor. And sometimes when everything is going well for you, it's all good. And you know that sometimes everything is not going well. But right now we are just going to have a great year. And Jim, how many software companies are delivering for you this year? 41.3 billion in revenue.

[Jim Cramer]

I know that one service now says to me, look, we can come into that vertical of your friends. Benioff, I mean ServiceNow has decided that they, they, they can be in your vertical. Correct. You've seen them.

[Mark Benioff]

Jim, one of the most exciting things about Salesforce is our size and scale. And I think you know that we're about five times larger than them.

[Jim Cramer]

Fair enough. Okay, how about consumer sentiment? How are you feeling right now about both our country and also, you know, a lot of people feel that you detect sometimes that there's a sense that maybe the nation is not as united and strong as you'd like it to be. Where are we as a country? As you see, because you have better barometer than anybody.

[Mark Benioff]

Jim, I really think the economy is going incredibly well. I see, you know, things worldwide actually doing really well. Everywhere I go, as in Japan last week, there's tariff anxiety. It doesn't matter what CEO you're talking to in what country. You know, they just want to know what the rules are and, and, and how to play. And I think tariff anxiety comes from there's been so much change in the last few months that it doesn't matter where you are in the world that these CEOs all have a little bit of tariff anxiety and so they're just slightly adjusting. But let me give you an example where that is not as true. Which is. And you know that Salesforce does business in sales served in the small business marketplace in this medium and commercial in the mid market and the high enterprise in these lower end markets in the small business market and the mid market. Those are double digit growth markets for us in the quarter.

[Jim Cramer]

Yes.

[Mark Benioff]

So we saw really strong performance in the mid market and those are not as impacted by this. It's these.

[Jim Cramer]

That's a very good point.

[Mark Benioff]

CEOs of these very large companies, okay, who are like very hypersensitive to what is going on in the political situation. That is what's happening. That's not just true in our country. That is true in every country.

[Jim Cramer]

But I will say this, I will say that of the big when big companies make a choice when it comes to enterprise software, they're not holding back when it comes to buying your product. And they are in many others. I want to congratulate you on an excellent quarter. Mark Benioff, Founder thank you so much.

[Mark Benioff]

It's great to see you again. Hope to see you soon.

[Jim Cramer]

Absolutely. Thank you, Mark. Good to talk to you, man. Mike's back in for the break. Coming up, the quarter all of Wall.

[Bank of America]

Street has its eye on. Nvidia CEO Jensen Huang joins Kramer to discuss the earnings that move the tape like no other.

[Mark Benioff]

Next.

[Bank of America]

Don'T just ride the index. Seek to outperform it with FELC, the Fidelity Enhanced Large Cap Core ETF. Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms just like any other ETF. Discover FELC, the Fidelity Enhanced Large Cap Core ETF part of Fidelity's suite of active ETFs. Learn more at fidelity.com felc before investing in any exchange traded fund, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus and offering circular or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. Fidelity Brokerage Services LLC Member NYSE SIPC Earn a business degree on your terms at Capella University. Our Flexpath format is available in select programs and lets you learn on your schedule. A different future is closer than you think with Capella University. Learn [e-mail].

[Jim Cramer]

Tonight we got the single most important quarter this entire earnings season when a video reported There's a lot of hand wringing about this one as usual. But Nvidia delivered a huge set of numbers putting a sizable top and bottom line beat healthy revenue guidance for the current quarter, even after taking an $8 billion sales hit on his export controls that prevent him from doing lots of business in China. So how they pulled off? Let's go straight to the source, but the man I call the modern Day, Leonardo da Vinci. Jensen Wong, the co founder, president, CEO of Nvidia. Well, Jensen, welcome back to Mad Money.

[Jensen Huang]

Hey, Jim, it's great to be here.

[Jim Cramer]

All right, so let's go to. It's a remarkable quarter in every single way. But you do say, I'm going to go right there, that China is positioned to lead globally. And you do not think that unless you can sell to China, you can necessarily lead with them. And I look at this market, I'm saying there's $50 billion up for grab. I actually think it could literally be all yours if there weren't export controls. Am I wrong? And how much of that money would flow back to the United States if you could do the sales?

[Jensen Huang]

Nvidia's market share in China was about 95% four years ago. It's about 50% today because of the limitations on the products that we sell. $50 billion a year market today, it's growing just like AI is growing everywhere over the course of the next this four years, the President's administration, we're probably talking about a few hundred billion dollars worth of revenues to Nvidia, probably tens of billions of dollars of taxes, revenues to the country, thousands of jobs, incredible, incredible opportunity. But more strategically, more importantly, this is very important. First of all, the China market is of course very large, but it's also the home of 50% of the world's AI researchers. The platform that succeeds is the platform with the most developers. Just like iPhone successful because of lots of developers, Windows successful because of lots of developers. All these platforms succeed because there are a lot of developers. China is home to 50% of the AI researchers in the world. And so we want the world to build on American technology stack. We want every developer in the world to prefer the American technology stacks. Once that happens, the developers develop on American technology stacks. American technology stacks will run AI the best all over the world. And so this is. That's probably the most important strategic reason to be in China, because there are so many developers there and because the world is going to adopt technology from one country or another and we prefer it to be the American technology standard.

[Jim Cramer]

You know, the President has a plan. You say that he has a vision and you trust him. You say that I have to believe that you think that he has to either see the light, already has and that things that look so dire right now in China may not be as dire. And there could be even as soon as next quarter, more business being done than we thought. After tonight.

[Jensen Huang]

It'S hard to tell. But the most important Thing is this, Jim. Our President wants America to win and he also recognizes that this is an important market. It's a very large market. And the revenues that it could generate for the United States is significant. It's just incredible. $50 billion this year. Look, we're talking about the size of a Boeing, not a Boeing plane. Boeing the company. This is an enormous market. And so I think the opportunity left behind is quite substantial. This is also an excellent way to improve our trade deficit.

[Jim Cramer]

It would also seem to be that there must be some people who think that they can militarize our your chips. I can't imagine a scenario where they would decide, you know what, we're going to Nvidia chips on our aircraft carriers. We would put them in our submarines. Wouldn't that be foolhardy? We would never use Huawei chips in our, in our missiles.

[Jensen Huang]

That's exactly right. They have plenty of chips themselves. Obviously we're losing market share for two to chips that are, that are built locally. China is an extraordinary manufacturing capability and they are doubling the number of chips that they're building every single year. The technology that's being offered by Huawei is extraordinary. This is an extraordinary technology company. And so we have plenty of competition there. Chinese government has plenty of choices with indigenous technology, which is their preference. And so I think that the idea that. Anyhow, go ahead.

[Jim Cramer]

But isn't it true that the President has helped you immeasurably the huge business that you're doing in the Gulf states? When you see him, he obviously is many ways Nvidia's number one salesperson. Is it asking too much to be able to say? And not only that, Mr. President, I also want you to open China.

[Jensen Huang]

Well, we're going to keep our dialogue going with the administration and I believe that what we're explaining is ground truth. And we understand the technology best and we understand how computing works, we understand how AI works. And we've been in China for 30 years. And so this is an area that we have a lot of, a lot of expertise and we're going to continue to share that. But let me tell you, let me tell you this, Jim. Listen, the, the President laid out a bold vision for United States, for America to re industrialize the onshore manufacturing so that we can have a more resilient supply chain, so that we can create jobs locally. Very importantly, so that we become great at manufacturing again at a time when manufacturing isn't about labor, but it's about labor only, but it's about technology. And so that vision is incredible. This is going to be, this is, this initiative by the President is likely going to set the United States up for a century, for this century to come. This is going to be a very big deal. I also think that he was, when he rescinded, when he rescinded the diffusion rule, it was a visionary move, it was a bold move. And he recognizes that there's a race and we're not alone and he wants America to win. And so it's not about a diffusion limitation, it's about AI diffusion, maximizing American technology.

[Jim Cramer]

Okay, so, and so he sees that. Okay, so let's talk about the black, the Blackwell ramp, which was amazing. And of course we're going to have Ultra, which is incredible. And the demand is the demand, as when I saw you the last few times. It sounds like you're running out of superlatives. But demand seems even stronger than gtc, even stronger than Computex.

[Jensen Huang]

The demand keeps growing because there's just more companies. Number one inference has taken off. That is number one inference has taken off. This reasoning AI capability is genuinely a breakthrough. It is now so popular, solving so many problems. And the amount of computation necessary for reasoning, for thinking is 100 times, a thousand times more than a couple of years ago when chatbot was a one shot answer AI. And so now these reasoning AI requires a lot of thinking, a lot of compute. The demand is just incredible. Now you're telling me even more customers.

[Jim Cramer]

But even since you just increased it, it was 100 times, you see, now it's possibly even a thousand. How is this possible, Jensen? When What? Why are there still people who are holding back and not seeing what you're doing? We will all have robots, we will all have free hands, free driving. All of this is going to come about much faster than people realize because of what you're working on.

[Jensen Huang]

It's completely true. It's completely. Robotics is definitely within the next three to four or five years the technology works today. It's starting to work very well today. Now once the technology becomes realized, becomes possible, it's only a couple of two, three ticks for an engineer to crank it and turn it into something that could be really scaled out in volume. Self driving cars are here that we know Robotics is going to be right around the corner. Robotic factories being built around the world. Yeah, this is the next great growth opportunity.

[Jim Cramer]

All right, so let's talk software. I don't think enough is talked about software. I don't think we're not talking about Omniverse enough. And we're not talking about the idea that we're not. You're just not selling these devices. You're selling a full platform that's not duplicable, which is why you're so far ahead everybody else. It's not just about the hardware.

[Jensen Huang]

We used to be a chip company and then we became a systems company. And Jim, you know, now we're an entire infrastructure company. If you take a look what we build, it's an entire factory. And you can't just load up a factory with chips. You've got computing systems, you've got networking systems and switches. But what you have mostly is a mountain of software to get it all to run. When you've got a $50 billion infrastructure, the software necessary to keep it humming and to make the utilization and the efficiency and its throughput as high as possible, that piece of software is invaluable. If the utilization was 10% off, that's worth $5 billion. And so this is a very big deal now. Software is just a giant part of our business.

[Jim Cramer]

Okay, how about what we have to talk about, society? And when I hear what you can do, when I hear what the robots can do, when I know what Boston Dynamics 1x, when I see what these companies can do, I wonder is, is the CEO of Anthropic going to be right when he talks about a bloodbath of white collar workers, workers unemployment spiking 10 to 20%, mass elimination of jobs, or isn't your vision that productivity, like, whether it be the loom, whether it be the canal, whether it be the steam engine, these were all generators of jobs, not retractors of jobs.

[Jensen Huang]

It's a generator of jobs. There are there, There are surely different views. Let me give you this view, okay? The. There's a labor shortage between now and the end of the decade. That's measured in some 30, 40, 50 million short. If you just translate 50 million people short in labor force and translate that to GDP growth, it's extraordinary. It's approximately about the size of the United States. And so the ability for us to expand what is today a limited and short labor shortage, we around the world should be able to expand our gdp, and that's, that's our future. To be able to, you know, turn these agents, which are essentially workforce robots, information robots and human robots, you know, physical robots, to expand the world's gdp.

[Jim Cramer]

All right, one last question from me. I want to be sure that we have a smooth transition to the next iteration to ultra, and then even to Ruben, how are we feeling? Because I know that there was was a glitch. I got a little too aggressive and thinking everything would be smooth, I got ahead. I don't want to get ahead of myself this time. We looking good?

[Jensen Huang]

Well, first of all, Jim, remember we made last quarter, we made the quarter before that. So. So it was not easy. It was not easy. And let me tell you why it wasn't easy. In the case of Grace Blackwell. Because of this thinking machine we wanted to create, this reasoning AI factory we wanted to create. We changed the architecture of these AI supercomputers. The architecture is completely different and it's extraordinarily complex. And so anyways, now the entire supply chain, not only that, we enabled a very, very large supply chain to be able to build these things. Every ODM, every OEM, CSPs, they've now got it up and running. Now here's the really great thing. Ultra is exactly the same architecture, exactly the same chassis. And so we'll just slip it right in and keep.

[Jim Cramer]

We're going to leave it there. I wish you the best of luck. Congratulations on an amazing quarter. And let's see if the president's plan includes opening china back for you. Thank you so much, Jensen.

[Jensen Huang]

Thank you, Jim.

[Jim Cramer]

Absolutely. President, founder, CEO, racist. All right, thank you so much for coming on the show. Appreciate it.

[Jensen Huang]

Thank you, Jeff.

[Jim Cramer]

Okay, Mad Money's back after the break. This week we're going through some of the hardest hit apparel stocks in the market, turning for potential opportunities. Not all of them work right here. I mean, last night I told you, a little tough right now to get involved with VF Corp. Although I am indeed hopeful. But what about Lululemon Athletica, the athleisure kingpin? For years, this is one of the best performing stocks in the market. But it peaked at the end of 2023. Spent most of last year getting clobbered. Just when the stock started to find its footing again, we got hit with those Liberation Day tariffs and Lulu went right back down. Like everything else, it's been able to bounce off those lows. But the stock's still down more than 25% from its late January highs. What do we do with this one? Lulu reports next week, which means we got to do a little guesswork. But let's start with the last quarter delivered in late March, the one that caused the stock to punch 14% the next day. But I thought, I actually thought the results were okay. We would deliver better than expected sales, even if the same store sales came in soft and they posted a 29 cent earnings beat off a 585 basis. The thing is, we already knew the results would be good because the management had raised this guidance. They preannounced in mid January, effectively telling you the holiday season was good. That's rearview mirror, isn't it? And that's why Wall street focused on the guidance. And that came in well below expectations both for the current quarter and the full year. So the stock sold off hard, then sold off some more after Liberation Day. Because Lulu was a huge manufacturing presence in Vietnam, which was set to be hit with a 46% tariff. A lot of people feel that China sends things to Vietnam to hear. Once those reciprocal tariffs got delayed, Lulu was able to mount a comeback. But can this rebound continue? I'm cautiously optimistic. I'm going to tell you why. First, I'm still hopeful that the tariffs from Vietnam won't end up being anywhere near that 46% level that was announced on Liberation Day. This is a place where many companies move their manufacturing to get out of China doing exactly what they thought the Trump administration would want. Plus, we kept hearing that trade talks with Vietnam are progressing well. Their government just fast tracked a new Trump golf course. I mean, that can't hurt. Second, I also believe that the consumer is doing better than most of Wall street seems to assume. And keeping with that much stronger than expected consumer sentiment number we just got yesterday, even when consumer sentiment looked terrible. Actually, consumer spending never really took a hit though. Now with Lululemon stock trading primarily based on macro headlines about tariffs and the consumer, it's easy to forget this company is not totally hostage to the big picture. The company has a strategic plan in place which is focused on product innovation, the guest experience and the market expansion. They're very rigorous about this. They've been doing this for a couple of years. It's been paying off. Well then what about the disappointing guidance the last time these guys reported? Look, I think there's actually a strong chance that management was simply being conservative at a tricky moment. I like this Consider when Lululemon reported in early December they Projected they'd earn $5.56 $5.64 per share in the next quarter. But in the end they actually earned $6.14. And this isn't some one off example. Lemons got a long track record of beating the numbers, in part because they tend to sandbag you with low ball guidance. Maybe Wall street does not doesn't think they can outperform the Guide again this year given everything that's going on. But don't be surprised if they pull it off. And that brings me to my final point, which is that unlike the setup for the previous quarter where expectations were sky high after Lulu had raised its outlook just a couple of weeks before the quarter ended, expectations feel very low right now. I like the setup. Even though the stock's been bouncing back for most of April May. When you look at the analyst coverage heading into the earnings, all of us seems to be analysts slashing their price targets. The latest example came just this morning when Morgan Stanley cut their price target on Lulu from 373 to 346. But you know what, that report is actually more positive than the price target cut would make you believe. The analysts said they expect an upside surprise for earnings per share and also for sales in the Americas. They're even betting on higher than expected same store sales for the for the region. And perhaps more important, the analyst at Morgan Stanley says that if that happens, and even if Lululemon really reiterates this full year outlook with such a beat that could send the stock higher, I think set the stock soaring. I like the setup for Lululemon heading into next week's earnings report. I think it should be bought given that expectations for the company are now lower than at any point dating back to mid-2024, which was a great time by the way, to buy Lulu. This is reflected in the company's forward price to earnings ratio which currently stands at just 21 times earnings. That's nearly a 50% discount to the stock's average valuation over the past five years. Good timing. So the bottom line, Lululemon is a beaten down retail that I think can continue making a comeback. We'll see what happens next week, but for the time being, I am inclined to take a chance here. Maybe do it with call options deep in the money. Why not? The expectations for Lululemon are so low that the risk reward seems pretty skewed to the upside. Yeah, that money specifically. Right.

[Bank of America]

Coming up, Chris Timer takes your calls and the sky's the limit. It's a fast fire lightning round.

[Mark Benioff]

Next.

[Jim Cramer]

My interviews with Salesforce and Nvidia may be over, but the works. Just get started. The investing club team is diving deep into the numbers, breaking down the earnings, mapping out a game plan on how to invest in in these two companies. You know we are in and like them and we're not done yet. Tomorrow brings another big club named Costco. Now is the perfect time to join the club with my special offer. I want you to head to cnbc.com/kramer club or Scan the QR code on your screen. And now it is time for the light round. That's right. We're Ralph Raptors by just not questions that might stand for go ahead and sound. And then the lightning round is over. Are you ready, Skee Daddy? Time for the lightning round. Crazy. Give it to Smeeze. It's Sonny from Massachusetts. Sonny. Hey, Jim. I'm a club member and my kids think you're the funniest guy on tv.

[Jensen Huang]

They want to know when you, Jeff and Ben are gonna write a dad joke book.

[Jim Cramer]

You know what we have. We may have to do something. I'm looking at Chef Ben right now thinking that he's all set for a couple of jokes. But Chef Jeff is working on a couple things for the club. How can I help you?

[Jensen Huang]

Tell me your thoughts on ldos.

[Jim Cramer]

Ldos? Leidos. I like it. I, you know, look, I am worried that the defense budget may be cut, but this is Homeland Security. I think it's a good opportunity. Stocks come down a great deal. Let's pull the trigger. Okay. I want to go to Mark in Texas. Mark.

[Jensen Huang]

Booyah. Jim, how you doing from South Texas.

[Jim Cramer]

Oh man, I love South Texas. Let's hippy, hippie, hippie. Come on.

[Jensen Huang]

I've got ibkr.

[Jim Cramer]

Should I start a brokerage firm that is very, very smart and very well run and I do like brokers, particularly those that are able to let us do what we want. And that's one of them. I say bye. Let's go to Barton Washington. Bart. Hey, Jim.

[Jensen Huang]

Just wanted to get you your insight on smr.

[Jim Cramer]

But why don't we just buy GE Vernova? I mean, you know, it's been a winner for the club. I think it can go higher. I really like it. Look, they're both parabolic. New scale's been straight up and so G.E. vernova. But G.E. vernova's got a book of business. That's what I like. And that, ladies and gentlemen, conclusion of the Lightning Round.

[Bank of America]

The Lightning Round is sponsored by Charles Schwab.

[Jensen Huang]

Jim Cramer, the die hard of the doll.

[Jim Cramer]

Hey, Jimmy. Love the show. My five year old grandson loves to watch your show.

[Mark Benioff]

I have to thank you for making.

[Jim Cramer]

Us money when it's there to be made.

[Jensen Huang]

Our world is a better place with you in it.

[Jim Cramer]

If you can't beat them, then at least stop judging you. That's what I thought when I read this morning that Toyota had put $250 million into Joby Aviation, the profitless electric helicopter company. Joby wants this money to help Develop its battery powered vehicle that can take people short distances. Kind of a car. Helicopter, sort of a taxi car. Helicopter. Even though this Toyota money was well known, they've been investing hundreds of millions of dollars into Joby for years. It didn't matter. Joby stocks still roared over 28% today. Nobody cared that the news was old. It might as well be fresh as a daisy, these buyers. And that's at the crux of why you can't sniff at Joby or its competitor Archer with a similar business. It's Black by BlackRock and Stellantis among others, which again put hundreds of millions of dollars into this technology. I'm confident that if we read a headline that Archer just got more money from one of these partners, that's not going to have a similar reaction. Bye bye, bye. So how can you be critical of anyone who's buying these flying car stocks with the possibility that they'll keep flying every time their deep pocketed partners dole out more money, even if the money was expected? And look, it's not just flying cars. When you hear anything about quantum computing, any capital infusion into them because they're all burning money like there's no tomorrow. These names get a huge lift again though. Why not? Who's to say that quantum computing won't be the next technology? The naysayers tell us it'll take decades before any of this is useful. But the naysayers are not in control anymore. Same deal with nuclear. Even though there's really only one company that's ready to profit from new nuclear reactors and that's Nova. Any companies working in the field, in any sort of adjacent field will rally on even the thinnest good news. There are other speculative areas that excite people, even if they the companies in question are burning money because so many of them are money losers. Most of the excitement comes from capital infusions. The worst they do it seems, the better the stocks go. I've steadfastly tried to warn people about the dangers of these two perspective stocks, including many that I'm constantly being asked about. I mean constantly. My caution has been a sane stance at times, but because of the persistent adulation for these industries, I fear I've become too much of a scold or curmudgeon, even in light of how easy it is to move these stocks higher. It is not my job to keep people out of stocks that keep can go higher at the drop of a hat. After this Joby jump, I'm not going to lower my standards, but I am going to have to change. I think something can go up on what looks like old news. I have to relent and recognize that these stocks represent some sort of new class of equities, ones where where no one minds if they never make money. So my role going forward will be to recognize which stocks can go higher on good news and accept that that's the market's judgment, even if it's not mine. Just please, when you a get big gain in these speculative names promised me this. You'll take a little something off the table. Alex says always market some. I promise I'd find it just for you right here on Man Money. I'm Drew Kramer and I will see you tomorrow.

[Bank of America]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of cnbc, NBC Universal, or their 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 Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kremer'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 now.

[Indeed]

Powered by Ameritrade, bringing you an expanding library of education with even more ways to sharpen your trading skills. Access new online courses, insightful webcasts, articles, engaging videos and more, all curated just for traders. Plus guided learning paths with content designed to fit your unique interests and no sifting to find exactly what you need so you can spend your time learning to trade brilliantly. Learn [e-mail] trading.