← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 8/11/25
00:44:26
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money. Mad Money Disclaimer
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- [00:00]
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There's no time like now to start.
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Jim Cramer
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- [00:55]
Jim Cramer
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. My friends, I'm just trying to make you a little money. My job is not just entertain, but to educate, to teach you. So call me at 1-800-74-3, CBC. Tweet me Jim Cramer Normally when the government gets involved with business, you expect it's going to be bad. Or at least bad for the business in question. In this country, we like private industry to stay private and we want its interactions with the federal government to be as minimal as possible. Unless the company needs a bailout. Otherwise, just forget it. But that's not the way of this government. Certainly not when it comes to Nvidia AMD as we learned today, which had Wall street buzzing on an otherwise mixed session, Dow slipping 21 points as beat decline point to 5%. Nasdaq edging down point 3% this morning we learned that the US government is planning to take a 15% cut on all the chips that these two companies are currently selling to China. For Nvidia, that means a 15% cut on the 20, which was their cutting edge ship for a few years ago, something they were previously banned from selling in the prc. The President then said that a video might be getting approval to sell a next generation chip to the Chinese something. Wow. More like their current version Blackwell, except it doesn't have as much computing power. We didn't expect that Blackwell could be allowed in China. This is a big deal that market completely just ignored. That was a mistake. President had asked for 20% cut of revenues, but in video, CEO Jensen Wong bargained him down to 15%. That was good. The news was greeted as a total novelty, although it wasn't the first time this government has taken a stake to profit from its own moves. Not that long ago, the Defense department took a 15% stake in MP Materials, the rare earth mineral company with a stock that subsequently doubled good trade for the country. We need these materials for national security and even better trade for the Defense Department. Give it a double the cost to shareholders for the Nvidia deal. And as we told investing club members today, Nvidia was selling about $8 billion worth of chips to China that every quarter prior to the previous Export restriction of 15% haircut would equate to a little more than $1 billion per quarter, or about $5 billion per year. Hey, that's a big number for most companies, but not for Nvidia. They were desperate to get this China business back by any means necessary. If the choice is between not having it or paying Uncle Sam A 50% cut, they're going to pay 15% every time. Many expressed outrage that President Trump demanded a return here, given that that business is, well, business and the government's not supposed to get directly involved, right? I mean, it's certainly not your typical free market policy. Some even called it extortion. But from the perspective of big business, this is a great deal. Under the previous export controls, Nvidia and AMD couldn't sell these ships to China at all. If they can get that business back in exchange for a 15% cut, that's a win for their shareholders. Granted, you probably don't want every policy decision made this way, but from the perspective of your portfolio, there's nothing to complain about. Or to put it another way, we like to tell ourselves that we have a free market economy, but the federal government gets directly involved all of the time. Remember the CHIPS Act? The Biden Europe program that picked semiconductor winners and gave them money to build the United States? I supported the CHIPS act, but the big grab against this program was that the government might pick the wrong company to invest in. And that's exactly what happened when intel got 2.2 billion from the Feds after hitting some milestones. Although it's not clear that intel has completed anything, I did my part here. I was in favor of the CHIPS act because our country had fallen so far behind in manufacturing semiconductors. That's bad for national security. But I also hated the choice of who got the money, practically begging the government not to choose intel because the intel today ain't what it used to be. But in the end, the government winged it and got it wrong. That was really bad. This time at least the Trump administration is picking a pair of proven winners, AMD and Nvidia, and getting taxpayer billions of dollars risk free. At the same time, I want people to realize that there's nothing novel about what Trump did by taking a 15% cut of this Chinese semiconductor business. Taking a stake is something that the US government has done many times. In 1979, when Chrysler was about to go bankrupt, the government took a stake, knowing that their investment would allow the company to make it. The government made $311 million when it sold off its stake in Chrysler years later. Or how about the Great Recession? At the time, the government was worried about failing banks. So it took big stakes in all of the majors to pop up the entire industry. Then eventually they sold these stakes off for a hefty profit. That too was a given. If the US Government invested a bank, it's not going under. The bank is worth a lot more after the investment. Somehow the government failed to make money on stake. And then it took into save General Motors. But you know what? I looked into that. That was just bad trading. Finally, the government has repeatedly lost a ton of money to keep the airlines alive, most recently during the pandemic. But the whole industry tends to get a bailout every decade or two. It seems nobody minds these airline bailouts because we need an airline industry in this country. So there's nothing novel at all about taking a 15% cut. It's not like Trump collecting this money personally. It's not going to his library, for heaven's sake. That 15% goes straight to the Treasury. To take a 50% cut on their Chinese sales is basically just another form of tariff. And we've gotten a ton of those lately, so why not this? I'm not saying that the government's 15% cut of chip sales to China is perfect policy. There's an element of pay to play here that's definitely debatable. Although again, play to play is. Pay to play is great for big business. I'm not saying it's what I would have done if I were president. I. I'm just saying that of all the ways the federal government has gotten directly involved with business in recent years, I'm calling this one the most benign. But let's take a step back. The government has gotten directly involved in business many times over the last 50 years. What matters to me is did the government block something that it shouldn't block? Go back in time to when the President said that Nvidia was not allowed to sell its lesser chips to China. Suddenly it hurt the stock. But more important, force China to be able to develop its own AI chips. Letting them have their own AI chips is a. Is bad for us. It's not good. CEO Jensen one went to the President, pleaded that case, pleaded it would be better for the US if the Chinese were dependent on our AI chips. The software the Chinese would Write on Nvidia chips, would keep them on a video for the duration. Trump didn't change his mind, agreed with Jensen, or to put another way, the government intervened where it shouldn't have and then it changed course to do the right thing. That was the big decision that mattered, not this 15% tariff equivalent on these chips. That's the one that matters. The bottom line, raise your hands all you want, but this chip deal is good for the taxpayer and good for Nvidia and amd. If the chip makers aren't complaining, why should we? Let's speak to James in Indiana. James? Yes, Professor Kramer, thank you for your insights on the market and stocks. It has made me money. Yes, James, thank you. I wanted to ask you about Chipotle. I bought it last year in the low 50s and it's down 20%. Should I sell or. I am, I am troubled. I am troubled by Chipotle. It hit a 52 week high today, a 50 week low today at 41. Something does. I think that Scott Boatwright should come on and we set out what's going on here because I don't like the action and I don't like what I'm hearing and yet I know that this is a place that I still like to eat. So I don't want to give up on it because I still like the product. Let's do some deep, let's do a deep dive on this one. Let's go to Julie in Minnesota. Julie.
- [08:37]
Generic Voice
Hi, Jim, thanks for taking my call.
- [08:39]
Jim Cramer
Oh, thank you for calling. I have a stock in my portfolio.
- [08:43]
Generic Voice
That has been a thorn in my side. I purchased it in 2021 at its very highest.
- [08:49]
Jim Cramer
Obviously it started to go down.
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Generic Voice
I bought more to cut my cost average. I'm still in red on this stock. I know they have a new CEO trying to turn things around, but what.
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Jim Cramer
Advice could you give me on PayPal? All right. This is really important. I think that the PayPal CEO is going to figure this out. This is Alex, Chris. He's very good. I do think that PayPal has a great business, but the price, you know, it's really top and buy now, pay later, which everybody's so crazy about. But I do think that Alex has got to start delivering and he didn't deliver that last quarter. I don't want you to give up on PayPal. And that's not out of hope. That's out of Alex. Kristen, the core business, which I think is still strong enough to turn around. Marilyn and Michigan. Marilyn. Yes. Yes, Tim. I am a first time Caller, longtime listener. Here's my question. Berkshire B shares in an ira. Buy More. Sell them all. Buy More. Buy more. I'm just, I'm not buying this idea that this thing is Warren Buffett, nothing else. That doesn't make sense. There have been a lot of people working at that company for the last couple decades who've been inevitably involved, and it has done quite well. So I think the answer is, all right, the chip deal today is good for taxpayers and for the companies involved. If they're not complaining, why should we? I heard all day complaints. Give me a break. On Me Money. Tonight, UL Solutions test the safety of products that we use every day. So should you. I'm thinking about should you buy the stock now that it's got hammered? I'm going to check in with the CEO, you know, fresh off the company board. Remember, it has had very few price picks. Then you called and you stumped me on symbiotic. I've done the work and I'm ready to turn in my thesis on the warehouse automation company that perhaps most exciting, and I mean really exciting, Sorense AI technology is found in 50% of cars worldwide. I'm hearing more about how it's disrupting the automotive space for the CEO. And by the way, it's not just going to be the automotive space. I like this one. So stay with Kramer Foreign.
- [10:57]
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- [11:20]
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- [11:51]
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- [12:01]
Jim Cramer
Building your personal brand.
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- [12:12]
Jim Cramer
What the heck just happened to the stock of UL Solutions when I reported last week? So global leader in safety science handles all sorts of product testing and until very recently, stock had been a great performer. But when you Solutions reported last week, even though their sales and earnings came in substantially better than expected, management only reiterated their full year forecast. They didn't raise it, not even to compensate for their strong results. In response, the stock tumbled 11.5% in a single session. That was surprising to me. Since then though, US Solutions was able to recover a couple of bucks. So was that initial sell off merely an overreaction? And let's take a closer look, just not just in the short term, but the long term with Jennifer Scanlan, the president CEO of US Solutions to find out this Scanlon, welcome back to Mad Money.
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Generic Voice
Thanks Jim. Great to see you.
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Jim Cramer
Okay, so Jeff, first to get started. It was an excellent quarter and a lot of things went right. Even as some people were concerned about tariffs, other people were concerned that maybe there was some short term, let's almost say trouble, but issues involving data centers too. Maybe people got too excited. I have to can you clarify what really happened? Because I know that incredibly Bear came out and said guidance held street disappointers.
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Generic Voice
We were incredibly pleased with this quarter. We had 5.5% organic revenue growth, a record revenue. We increased our EBITDA 170 basis points. And all of this was happening in a pretty dynamic manufacturing environment for our over 80,000 customers. So we were thrilled with results. But you know, Jim, I think I've said this to you before. We're pretty good solid Midwesterners. We're not going to over promise and under deliver into the future. And the environment continues to be uncertain for our customers.
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Jim Cramer
Well, I know, you know, in, in an initial slowdown in customer projects when tariff levels were first announced early the second quarter as companies paused to assess the potential impact of tariffs, was something you said on the call perhaps that made people worried because then after that you said they came right back.
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Generic Voice
It's really important to separate the distinction of the effect of tariffs which we as we said all along, really have no long term effects on tariffs. There can be a short term bump, but long term tariffs are pretty neutral for us. But to separate the effect of tariffs from the effect of uncertainty. And I think we saw our manufacturing customers take a pause in the month of May to assess what decisions they needed to make in this really dynamic, pretty challenging environment.
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Jim Cramer
But then because these are megatrends, electricity megatrend, data center megatrend, high voltage cable megatrend, they had to come back.
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Generic Voice
They had to come back. And here's why. I mean, just think about it, data centers are growing 12% over the next five years. Electricity, which, and energy generation, which has been a pretty steady low single digit, is going to double or triple the needs. And all of that's supported by what we do, power and automation, wiring, cable, the built environment that houses those data centers and make sure that there isn't thermal runaway. The demand across all of our operating units based on these megatrends, it just continues and it continues all over the world.
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Jim Cramer
Tell me about the specialized stuff you do in a data center, because it seemed pretty interesting what you, what you certify.
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Generic Voice
It really is. And there's over 70 standards that are written out there that we certify to in the data center space. So we can certify the DC current that's coming in through the much larger cables and ensure that those cables are not counterfeit. We ensure we certify those chillers that are wrapped around the data center. And interestingly, I know the carrier CEO said a typical commercial building might have two or three coolers, chillers on the roof. A data center can have well over 100. The amount of cooling technology that's needed is tremendous. And then you just add in all of the building materials to ensure that it's not flammable. And then you get into the ways in which, you know, the chipsets are used and benchmarked within servers and storage systems. It's just endless. Those 70 standards that we, that we.
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Jim Cramer
Test to, well, I know it's not just in the data center in terms of state of the art. We did watch a panel you moderated on Quantum. Now we know that if quantum comes, frankly, if Quantum comes, I'd be very concerned about Bitcoin. They might be able to crack the code. How far are we away from having something that you all solutions would have to review with Quantum?
- [16:58]
Generic Voice
Well, we are certainly involved in, you know, every generation of technology and we're excited about Quantum. Today, Quantum is about a billion dollars of a market size and it's expected to be over 850 billion in just 15 years. And so here's what's happening. You know that the computing power and speed of the types of problems that quantum can solve are completely different than classic computing or even the way that AI computing is performed. And it's a different environment. Those quantum data centers have to be really cold and they have to be motion free. So there's a whole new set of ecosystems and environments that's required. And then you just get into, as you pointed out, the ability to crack encryption. What's the type of security that needs to go into those environments. And what's really exciting is that there are old technology companies like IBM pairing with new technologies like Psiquantum who are out there just innovating and building this entire environment for Quantum.
- [18:02]
Jim Cramer
Well, is this an example of what you guys do? I mean, no one would have. Frankly, I have to admit, I didn't expect it. I didn't expect. I'm sorry to interrupt it. I didn't expect Quantum to hear about Quantum. But I imagine that when there's a new technology, you have to be able to keep up with what your clients want you to keep up with.
- [18:20]
Generic Voice
Exactly. And this is something, you know, we've been involved with this for a couple of years now with these big companies who have been really thinking about what are the challenges, what are the safety challenges, what are the security challenges, what are the sustainability challenges. And like all new technologies, as we say, our customers tend to call us first to have us involved in the research, to have us involved in really thinking around those corners for the ways in which it could affect, you know, their customers.
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Jim Cramer
One last question. Are we years away? Are we three years away, 10 years away for when we should be talking about Quantum quite regularly like we do AI.
- [19:03]
Generic Voice
You know, here's the thing with technologies is, you know, I look back 35 years that I've been involved in technology, and what's old is new again. And I think many of these concepts around Quantum have been in applications in a lot of different industries. And so it will be, I think, a rapid evolution in the near term. And it's pretty exciting.
- [19:25]
Jim Cramer
Well, it's really exciting for us, too. Anyway, I'm really glad you checked in. So, Jennifer, I think you said the right thing. You said, look, we're conservative. There's nothing out being conservative. That's Jennifer Scanlan, President CEO of UL Solutions, which is a very just, I'd say, great grower if you want to be involved with these technologies without being on a roller coaster. Thank you, Jennifer.
- [19:46]
Generic Voice
Thanks, Jim.
- [19:46]
Jim Cramer
Me. Everybody's back in food right now.
- [19:49]
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Coming up, Symbotic is aiming to revolutionize warehouse distribution centers with AI. But does that mean it deserves a spot in your portfolio? Kramer's sharing his thoughts next. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe@schwab.com MarketUpdatePodcast or find Schwab Market Update. Wherever you get your podcasts, Is it.
- [20:35]
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- [21:10]
Jim Cramer
A couple of weeks ago, Brooks in Colorado called in to ask about Symbiotic. That's an automation company with a red hot stock. It's almost 120% up this year. Holy cow. I said I'd do more homework because I hadn't been following this one too closely. Now this is an interesting story. Symbotic makes robots the common use to automate warehouses. Everybody from Walmart to Target to Albertsons uses their machines. You might want to check out their website to see how it works. It's a whirlwind of robots that look like vehicles moving goods all around a warehouse. Smaller sorting and picking robots, conveyor belts, dense storage racks, all working in unison to get everything where it needs to go. This company was actually founded by a grocery wholesaler. The head of CNS Wholesale Grocers created Symbotic to help solve his distribution problems, then gradually started offering his technology to other businesses. In 2021, Symbolic announced that it would be coming public not the regular way, but via merger with a SPAC but backed by Japanese investment company Softbank Real backer. The deal closed and the combined entity became symbolic in mid-2022, just as the SPAC boom was turning into a bust. But Symbolics a little different from many of the companies that came public via SPAC mergers because it has a real business with real revenues. The stock had some choppy trading through the first six months, but then went on a major run that lasted through 2023. That's around where we first started hearing about the company. In fact, I covered Symbolic in a homework piece. It was a little I've been about over two years ago when the stock was at 26 bucks. I felt like we were late to the party given how much the stock had already run. Maybe that was too conservative though, because the stock went on to double over the next few months. But then it got pulverized and spent the next couple of years in battleground mode by the time Symbolic finally bottomed, just after Liberation Day, it was back in the mid teens. But now that the stock is hot again, I think it's worth taking a fresh look. First off, in the two years since we've covered this one, Symbotics financials have improved dramatically. Their earnings for interest, taxes, depreciation, amortization turned positive last year. And their sales. Sales have grown like crazy from 252 million in fiscal year 2021 to 1.82 billion in fiscal 2024 that ended last September 2nd. Though there are real risks here, for the past couple of years, Symbolics been a frequent target of short sellers. Sell, sell, sell, sell, sell. The shorts argue that the company's tangled relationships with its largest customers could create problems. One of the company's large customers, for example, is cns, the grocery wholesaler that's controlled by Symbiotics founder and CEO Richard Cohen. There's also a somewhat close relationship with Softbank, which started with the with the SPAC merger. To bring symbolic public in 2023, SoftBank and Symbolic formed a venture called Green Box, which essentially is a reseller of Symbolics warehouse automation technology. They build as Quote Warehouse as a service end quote offering. Then there's Wal Mart, which accounted for 87% of Symbolics revenue last year. That's why it was so damaging when we got a short report last summer which alleged Symbolic had completed more of its work for Wal Mart than most people appreciated. And unfortunately, the company gave more ammo to the short sellers late last year when it disclosed that it found errors in its accounting and had to delay the filing of its 2024 annual report. Sell, sell, sell mart are also symbolic two largest shareholders. And Wal Mart has a substantial amount of warrants that could give it even a larger ownership position in the future. It got even more complicated when Symbolic bought Wal Mart's advanced systems and robotics business earlier this year. I, frankly, I don't love all this complexity. It's very tough to follow and complicates the story to the point that some investors don't want to get involved at all. But at the end of the day, as long as Wal Mart's happy with Symbolics and they seem to be happy with Symbolic, then all of this is not necessarily a deal breaker. But it is a risk to be aware of. So let's talk about this stock's incredible run from its April lows from the mid teens to the low 50s right now. Now some of that's because the stock never should have been so low in the first place, some of it's that Symbolics speculative stock with a high short interest. Get this, currently around 26% of the float has been sold short stock. That's gigantic and it makes a pitch perfect meme stock. But a lot of it's because the company reported an excellent quarter may even if management also gave tepid guidance for the next quarter. The stock rallied relentlessly for the next three months. Then last Thursday morning, Symbolic reported another very solid top and bottom line beat. But this time there was some hair on the quarter. First, the free cash flow came in much weaker than expected. Second, management gave weak guidance for the current quarter. The company explained that it was redeploying some resources as it transitions to a new next generation storage solution. And this transition will continue into the first half of fiscal 2026. But investors weren't having it, perhaps because the stock had run so much going in the quarter. This time Symbolic rolled over with the stock tumbling almost 14% last Thursday. After a modest recovery on Friday, it got hit again today, down nearly 8%. So what do we want to make of the stock now that's gotten hit? I'm a bit torn on this one. I like the technology and the growth trajectory. I just wish symbiotic were a cleaner story. I'm not super worried about the concentrated Wal Mart business, but at the end of the day it's a problem when you get 87% of your sales from a single company. It's also tough to value the stock. If we use the consensus earnings estimate for 2026 then the stocks trading at over 150 times next year's numbers. If you use the 2020 ADS, symbolics looks a little more reasonable just over 25 times that number. But that's three years out. If you want to use a price to sales, multiple Symbolics trades at about 14 times this year's earnings, which I'm sorry sales and 14 times sales is far from cheap. Frankly now I wish the stock had more of a reason to more than triple. I don't know why it tripled from its April lows in its current level. That bothers me A lot of this is just feels like Symbolic can't lose in a market that loves AI or automated related anything robotic. As long as that dynamic continues, the stocks are winner. But I don't like to recommend stocks for that reason. At the end of the day I just don't feel comfortable enough with this complicated story to stick my neck out for Symbols. If you're thinking long term and if you Fully understand the risks and try to understand that short position in the concentration with Wal Mart. You got my blessing to speculate on this one. Just keep in mind you're speculating. Here's the bottom line. Symbolics a cool company. And if you're comfortable speculating, then you can put a small position on here and potentially buy more weakness. But overall, I think there are more straightforward ways to speculate this market. But it is cool. I'm not denying that. All right, let's go to Maggie in Missouri. Maggie.
- [28:08]
Generic Voice
Hi, Jim.
- [28:10]
Jim Cramer
Maggie, how are you? I'm very good, thank you. I'm good.
- [28:15]
Generic Voice
Calling about Celestica.
- [28:17]
Jim Cramer
Oh, Celestica's red hot. I like Celestica. I like J Bill, I like San Meno. All three of these companies are. What they do is they contract manufacture. And in a time of tariffs, you want to be where you can build something that you have a lower tariff and Celeste can really help you. It is a strong buy. I've been trying to figure out how to recommend it on the show and I'm so glad you called, Maggie. You just gave me the chance to do so. Let's go to Mike in Florida. Mike. Hey, Jim. How you doing, big guy? I am doing well, Mike. Thank you for asking. How about you? Hey, just want to say a big fan. I just wanted to say you are an American treasurer. Just want to thank you for all the great work that you do. Yeah, yeah. So here's my question about a company that has earnings coming up towards the end of the month. It's been on a decent run, so a little bit lately here. How about Dell Technologies? What are your thoughts about Dell's a buy. And I keep hoping like maybe we get a bad CPI number. I mean, come in and buy and I can recommend this thing hard. It hasn't had a break. You should see all the stock that Michael Dell bought back during the downturn. Remember, we came out very strong in the 90s and 100 and said when it was there we had total conviction that Michael was the real deal and he always been the real deal. I want to wait for a price break. I think you can get one before the quarter is reported in April. I'm sorry, in August. But I will tell you, the more I do work on Dell, the more I realize he is every bit as great as he always has been. And anytime it goes down, you just buy, buy, buy. Anyway, I think there are more straightforward ways to speculate in this market than just symbolic. Oh, but this is a cool company. So if you want to start a small position in Amal Ford. I wish they had like five big customers though not just so much Walmart, much more made money I including my sit down with the former CEO of Intel. Hey, he's a new cool company. I'm getting his take on the current state of intel now that it's drawn the attention of slash ire of the White House along with of course what he's up to with CERN's AI. Oh, you don't want to miss that one. Then I'm sharing with you why index funds won't make you rich alone and how individual stocks like when I found Nvidia are crucial to your financial freedom. And of course order calls rapid fire in tonight's edition of the Lightning round. So stay with Kramer. What does the next outlook for Sarin's AI which makes AI powered user interfaces for the world's leading automakers. The company was spun out of the old Nuance communications back in 2019 and its stock caught fire in the early years of the pandemic. Like other AI plays came right back down in 2022. Around this time last year, Sirs was far too small for me to talk about on air. Then last October the company brought in a new CEO, Brian Cruzanich, best known as the former CEO of Intel. And earlier this year its stock soared when we learned that CERNS would be working with Nvidia on its AI models for automobiles. Which brings me to last Wednesday when CERN's report a very good set of numbers even if the guidance was some people thought were mixed that breathe some new life into the stock. So what's next? Let's check in with Brian Cruzinus, the presidency of science AI to find out his long term plan. Mr. Kuzan, welcome back to Mad Money.
- [31:25]
Brian Krzanich
Thanks Jim. It's good to be here with you.
- [31:27]
Jim Cramer
Okay, so Brian, what's been the primary focus for the last 10 months? Because I know you've rebranded the company, but I wanted to figure out what the rebranding what has changed the CERNs?
- [31:38]
Brian Krzanich
Well, a lot has changed, Jim. I mean as you can see, the financial performance has really improved.
- [31:43]
Jim Cramer
Right.
- [31:44]
Brian Krzanich
We, we hit it out of the park on almost every single parameter in the third quarter. And I'm really proud of what the organization has done. But what's also changed is AI everywhere in every one of our products. Artificial intelligence and really large language models are the key to the performance. And there are many large language models that are internal to Seren that actually help differentiate our products to the end consumer and we do. Everything we do now has large language models and AI built into it. We're writing code with AI. We're. We're doing quality assurance with AI, we're doing language improvements with AI because we're in every country. So I use AI every single day of my job.
- [32:32]
Jim Cramer
Now, I know when I was fooling around with your website, I was in a car, basically, with two other people, with people with heavy accents, admittedly. And one thing was absolutely clear. Unlike, say, Siri or Alexa, you could interrupt. You could interrupt and ask a question, and it was unfazed and went back and forth as if it's a conversation. Is that some of what the AI is? And sarns.
- [32:57]
Brian Krzanich
Yeah, that's really about agentic.
- [32:59]
Jim Cramer
Right.
- [32:59]
Generic Voice
It's.
- [33:00]
Brian Krzanich
It's in a partner. It's something. It listens and talks to you, just like you and I would talk.
- [33:05]
Jim Cramer
Right.
- [33:06]
Brian Krzanich
You can interrupt me. My train of thought keeps going. There could be two people talking in the room at the same time. Three people, four people. And we can keep those conversations, conversations separate. And AI is getting to that same point. It has that ability, and it really, really empowers you in the vehicle.
- [33:23]
Jim Cramer
Is that why, for instance, that Mercedes is a new partner? Because I felt that that's a pretty hard partner to beat, frankly.
- [33:33]
Brian Krzanich
Yeah, yeah. You know, I mean, there's a few things that differentiate us in this industry. One, strong automotive experience. You know, there's thousands of instructions that are unique to automotive that you have to have the artificial intelligence and the, and the models and the history of the data sets to really run the car right. Open the windows, close the doors, all of those kinds of things. But then the strong technology and the artificial intelligence roadmap, we showed them that. We continue, we're on an annual cadence of bringing in new technologies and new capabilities, things like measuring your emotions, using the cameras in the car to read street signs and billboards. As you're driving down, you pass a billboard, you could ask the car, hey, what was that billboard that I just passed? The car will have read it. That whole roadmap is what they bought.
- [34:22]
Jim Cramer
Yeah, I saw that. I was surprised. I mean, you could say, you dial that number, what was that number on the billboard? And it was incredible because it makes it so that if you catch them in your eye, you don't. You know, you can focus on, focus on the. You can focus on driving, but you can ask questions without turning around, without looking around. So it's got safety as the chief component.
- [34:43]
Brian Krzanich
It does. And it's like having another Partner in the vehicle.
- [34:46]
Jim Cramer
Right?
- [34:46]
Brian Krzanich
That's really where we're headed is it's a partner in the vehicle helping you drive, asking, do you want me to call that restaurant for reservations? Do you want to, you know, navigate to, to your work today? Because I notice it's in the morning and hey, you know, if you ask it what that billboard read, it will give you that information.
- [35:07]
Jim Cramer
Now you went to CDK after Intel, which was a huge win for shareholders. I mean, what's the, what's the long term goal here for certain, say I.
- [35:17]
Brian Krzanich
Well, you know, to me the long term goal was I kind of had a multi year goal in coming here. First was get it financially stable and, and really get it back to, to the growth. I think we're there the last quarter really represented that. The next thing is build a multi year technology roadmap that brings a genetic nature to the vehicle. And third is to start looking for areas outside you saw. We also announced, for example, our partnership with LG for their TVs. Right. We brought our voice technology in our large language models to the television. With lg, you can now just hold up your remote and say, tell me all the movies with Tom Cruise in it that I can watch right now or whoever you want to talk about. Right. You could ask it questions about a movie you're watching. We were bringing that technology to other devices.
- [36:10]
Jim Cramer
Yeah, I love that. Let me ask you why I've got you. I'm sure you know Lip Bhutan. Everyone in the industry knows Lip Bhutan. He's been chief sponsor of Semis when everyone else was doing enterprise software. He knew to stay with Semis. Very few didn't tough that. He's being called up on the carpet by the President. I remember in 2022 when he was, when he got the Noyce Award, he's probably the most distinguished person and it seemed odd to me that he got called out as perhaps not a patriot. I don't know where you come down on it, but I think you probably know him. He's pretty distinguished guy.
- [36:44]
Brian Krzanich
Yeah, I mean, I think we've all, like you said, known Lipo for four years. And I think from a technology and leadership position, he's unquestionably a strong leader who can really take a company cadence was a good example of what he was able to accomplish there. So yeah, I have great faith in Lippo.
- [37:07]
Jim Cramer
All right, that's terrific. Anyway, I have great faith in you because that cdk, which you told me would be a home run and I was like, ah, but it sure was and this one is clearly a great turnaround. Brian Crisanis, president and CEO of Sarence AI. Brian, thank you for coming on the show. Thank you very much, Jimmy.
- [37:26]
CNBC Make It Ad
Coming up, Cramer takes your calls. And the sky's the limit. It's a fast fire lightning round next.
- [37:43]
Jim Cramer
It is time for the lightning convention. Please hit the toxin. Bye. Bye bye. Are down to the core stock at the top. My steppers plant itself and then the lightning round is over. Are you ready? Ski dad to light round crash. Start with Lou in Pennsylvania. Lou. Hi, Jim. I agree with you that the market overreacted last week to the weaker than expected data for the oral form of Manjaro. But others are beginning to buy the dip for Lilly. You too? Or give it more time just to let it out. Look, I got a meeting Thursday for the investors club. The noon meeting. And I'm going to talk about Lily down here. I begin to think that we are too negative on it. But I am very upset with Lilly and the way they handled this. And I think they should come back on and talk to me because I'm running a drug trial. I would not have done what they did when I was running my drug trial. That's a private matter. But I can tell you about it. It's not the way they did it. I think they knew better. They shouldn't have done it the way they did. Let's go to Dave in Illinois. Dave. Dr. Kramer, my good mad friend. How's your tomato crop this year? Getting ready for your none better thought no Canada. I gotta tell you Dave, because we didn't get enough sun. The crop is much shorter than I expected and not as fecund. I hear you. This $23 billion market cap stock operates in the buy now pay later space. This past May they delivered some incredible results after which you commented. I suspect the streak will continue. On the brink of reporting next quarterly earnings of a firm holdings. I expect confirmation of your bullish view. Jim, you're David Just Davidson. 72. It's gone 100. Okay. Now I usually don't talk like that except I talk like that with Palantir. 72 goes to 100. I say get on Burr board affirm. Yes, get on board affirm. Let's go to Frank in Iowa. Frank? Yes. I. I bought BBG and I'm thinking ought to buy a bunch more of it. It's a. It sells for less than book price and has 8 PE and pays 7% dividend. I can't understand why it's secure team. Which one was it? I'll tell you, I don't want to be connected with Brazil. It's had a big run. Can I just substitute if you don't mind and say if you want an overseas back, I think you should be in Santander now. It just hit an all time, you know, you 52 week high again doesn't have as good a yield but it is crushing and it's the biggest bank in Europe. I think Santander is a little bit better. I don't want to be connected with Brazil. I really want to be connected with Spain. Let's go to Akash. Akash in Michigan. Akash. Hey Jim, congratulations on 20 years. I'm a Michigan. Thank you. Very kind. Thank you. I wanted to get your opinion on a root insurance. I know root. I think that root, you know root. And by the way, lemonade is the one that I'm looking at for when it comes to insurance. Lemonade is your play. And by the way, I think lemonade is disrupting industry to the point where we're seeing lower rates possibly. I know that because we're seeing a lot of insurance companies talk about lower rates including Berkshire Hathaway. Now we're going to go to Kevin in Georgia. Kevin. Hey Jim. Hope you're well. I am doing well. How about you? Good, thanks. Good, thanks. My stock has price targets ranging from 724 to 1500. Would you offer some short term and long term guidance for ServiceNow? Okay. ServiceNow short term is being hurt by a call out of Melius and that's why Ben Righteous who was saying that these software as a service companies are going to be under pressure because their seat models and could be hurt by AI. I think longer term ServiceNow has really good AI and it would not be a stock that I would want to bet against. So ServiceNow, longer term I think is fine. Shorter term I think it's be under pressure and that. Ladies and gentlemen, conclusion of the Lightning round.
- [41:48]
CNBC Make It Ad
The Lightning round is sponsored by Charles Schwab. Coming up, Kramer's breaking down why stock picking should be an essential practice for every investor. And he's using none other than Nvidia to make his case next.
- [42:24]
Jim Cramer
So this weekend I'm walking around in Summit, the town I live and I'm stopped by an old friend from the days when his daughter, my daughter used to hang out. After some chit chat about our kids, he told me that he had some good luck in the market. Apparently he watched Mad Money and he heard that I renamed my dog Everest. Yes. In video out of sheer frustration at the fact that nobody was paying attention to it. To Nvidia, that is not my dog who was a real him. My old friend knew I wouldn't make that name change if I didn't have conviction that in video stock was headed higher. He said he'd made almost $1 million in Nvidia with some gains already taken to avoid being pig. Then he said something important. The stock market can be such a wealth creator, it's incredible. You don't need to work at the company, you don't need to know the industry all that well. You can just look at the business, invest some money and make a lot of money. I couldn't agree more. My friend hadn't seen my new book which comes out next month, how to Make Money in any Market. But if he had, he know that these are my sentiments exactly. Exactly. Sure, it sounds like a no brainer to buy in video in hindsight, but there were two big obstacles to doing so along the way. First, without someone vouching for it to the extent that I did by naming my dog in video, it seemed like just another semiconductor company at a time when semis were regarded as second class and everyone just wanted enterprise software for those stocks are awful. Semis have been a wasteland for venture capital while enterprise software drew all the money. Therefore it got first dibs for the public's money. When I came and company came public, so enterprise so forgot the money because they kept making so much money when they came public, semis didn't Second obstacle. This is a point that is the heart of Mad Money and how to make money in any market. Individual stocks are crucial to becoming wealthy. But the financial industry always tells people that they should own only index funds. That's the conventional wisdom. Because individual stocks are considered to be too risky and it's hard to pick winners. It's much easier to just try to mirror the market's overall performance with an index fund. Now there's some truth to that, which is why I see the value of an index fund for diversification. It's nice protection against picking a bunch of clunkers. That's why I recommend putting half of your savings in index funds. But I also favor putting the other half in individual stocks of your own choosing. You can own speculative stocks. You can own stocks that you really love. You can own stocks that stocks with big dividends that can compound over the years. I don't care. And you can pick video. Put simply, there are so many Nvidia millionaires who watch this show or belong to the CNBC Investing Club that it would be insane to rule out owning individual stocks now. You won't always get them right, but when you do, that's where you rack up the big gains. Frankly, there have been way too many stocks like in video over the years. Okay, not quite as good as Nvidia because that's the absolute best of performer since it came public. But you could have bought a stock from Fang or Fang. Those were what I call gettable. You could have bought Apple or Netflix or Facebook, which only became matter. These are not hard to find. They're right in front of you. The only thing standing in your way is the orthodoxy that says you can't listen, you can't learn, and you can't buy. Shame on those who tried to keep you out of Nvidia. And there were many, including the myriad talking heads who say what happened with Nvidia is impossible. People, it happened and you're welcome for those who thank me. But of course, the real thanks belong to Nvidia's renaissance man, CEO Jensen Wong. I like to say this voice Bull market summer I promise to find just for you right here made money. I'm Jim Cramer. See you tomorrow.
- [46:06]
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All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal 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. Cramer'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 Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning and effective communication, and you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at Capella Eduardo.