Mad Money w/ Jim Cramer – August 27, 2025

Overview

This episode of "Mad Money" with Jim Cramer focuses on parsing the current state of AI-driven investing, responding to skepticism around AI stocks after Nvidia’s earnings, and navigating key company stories affecting the market. The show features in-depth interviews with Scott Boatwright (CEO, Chipotle), Joe Hendricks (CEO, CSX), and Sridhar Ramaswamy (CEO, Snowflake), plus Cramer’s signature Lightning Round. Major themes include the AI "bubble" debate, consumer and investor sentiment around high-profile companies, mergers and acquisitions (M&A) trends, and actionable advice for both seasoned and new investors.

Key Discussion Points & Insights

1. AI Stock Hype vs. Reality – Nvidia's Earnings & Market Response

Timestamps: 01:43–11:19

Market Reaction to Nvidia (NVDA) Earnings

• Nvidia’s latest quarter delivered strong top and bottom line numbers and robust guidance, yet disappointed on data center sales, causing market jitters.

• Cramer contextualizes this as a classic case of sky-high expectations catching up with astronomical stock performance (+35% YTD pre-earnings).

  “Perhaps hype has taken stocks involved with artificial intelligence too high versus reality… the $4.4 trillion emperor has fewer clothes than we thought.” – Jim Cramer (02:28)

Bubble Parallels: Dot-Com vs. AI

• Cramer compares today’s AI surge and its skepticism to the late 1990s dot-com bubble:

  • Some giants succeeded (Amazon, Microsoft, Google), while many crashed and burned.
  • He notes the fundamental difference: current “hyperscalers” (Microsoft, Amazon, Meta, Google, Tesla) are led by elite teams with world-class balance sheets.

  “Feel free to dismiss AI as a bubble. But the bottom line, during the dot com bubble, people did make fortunes who had faith… If you give up on Nvidia now, I think you could miss a boat that's not sinking, just resting before it reasserts itself.” – Jim Cramer (10:44)

Investment Wisdom

• Emphasizes trusting the long-term vision of tech leaders and warns against panic selling out of long-term narratives due to momentary skepticism.

  “I learned not to question Amazon or Microsoft or Google or Meta or even Tesla… They know more than I do. They're run by people much smarter than I am.” – Jim Cramer (09:10)

2. Stock-Specific Deep Dives

A. Chipotle Mexican Grill – Interview with CEO Scott Boatwright

Timestamps: 14:14–22:32

• Discussion centers on Chipotle's recent stock struggles (down 29% for the year), despite remaining a growth story and introducing new value-driven promotions.

  “For over a year now, the stock struggle... investors are worried that even though Chipotle sells high quality food... it's just not offering consumers maybe what they want, the kind of bargains maybe that they need.” – Jim Cramer (14:37)

Key Takeaways

• New "Build Your Own Chipotle" group meal program offers value ($8.50 per meal), responding directly to consumer price sensitivity.

• Despite tough macro environment and disappointing recent quarters, Boatwright insists Chipotle remains a growth company:

  • Still opening new locations at 8–10% annually (315–345 new restaurants in 2025)
  • Aims for return to mid-single-digit same-store sales growth

  “I still believe us as the best growth story in the industry, full stop… We're navigating a really challenging consumer environment.” – Scott Boatwright (17:49)

• Stock buybacks ($430M at $50/share) reflect leadership’s confidence in long-term strategy.

  “We're buying more aggressively this year... We have confidence again in the strategy. We have confidence in the plan.” – Scott Boatwright (21:50)

• Acknowledges that Chipotle must better communicate its value proposition and improve the consumer experience, both in-store and digitally.

B. CSX Corporation – Interview with CEO Joe Hendricks

Timestamps: 23:41–32:37

• CSX faces activist pressure to merge or restructure; Cramer gives Hendricks space to respond directly.

• Hendricks highlights CSX’s best-in-class operating margins, customer service, and readiness to collaborate with other railroads for operational efficiency without necessarily merging.

  “We are proud of our results… highest margins in the industry... best customer service in the industry… we have an opportunity we have never had before.” – Joe Hendricks (24:39)

Industry Insights

• Major rail mergers (e.g., Norfolk Southern/Union Pacific) dominate headlines, but Hendricks insists CSX can create value via partnerships (e.g., with BNSF).

• CSX uniquely achieved volume growth in 2024 over pre-pandemic levels and rapidly rebuilt after a hurricane disrupted key routes.

• Open to value-creating deals, but committed to shareholder and customer interests first.

  “[The] important part… they want to work together to solve these problems… you don’t need to merge to do that.” – Joe Hendricks (25:15)

C. Snowflake – Interview with CEO Sridhar Ramaswamy

Timestamps: 32:46–40:03

• Snowflake posted a "blowout" earnings quarter with strong revenues and operating margins, driven by rapid adoption of its AI products.

  “Snowflake is right at the center of today's enterprise AI revolution... over $1 billion in product revenue, growing 32% year on year… over 6,000 customers are using our AI products every week.” – Sridhar Ramaswamy (33:47)

Customer Value and AI Skepticism

• BlackRock uses Snowflake’s AI platform (Cortex) to aggregate and streamline customer data, exemplifying tangible business impact.

• Model: consumption-based pricing ensures customers only pay when they see ROI.

  “Unless people are getting value from running things on Snowflake, we don't make any revenue and they don't spend any money.” – Sridhar Ramaswamy (35:56)

• Snowflake addresses AI “hallucination” risk by focusing on data integrity and stepwise adoption, building customers’ trust and value.

  “AI is a technology. It has to be used responsibly... we pioneered [ways] to create chatbots that would hallucinate far less.” – Sridhar Ramaswamy (38:42)

3. The Lightning Round – Cramer’s Instant Buy/Sell Takes

Timestamps: 40:13–43:22

• Arista Labs (AI/connectivity): Regret not recommending; strong positive fundamentals.

• Open Door Technologies (real estate): “Meme stock” risks; too manipulated.

• Rigetti (quantum computing): Real speculation; high potential, but not a top pick.

  “Here's my view on quantum computing. It is for real. Is Rigetti my favorite? No... but it is a speculation. Please remember that.” – Jim Cramer (42:45)

4. Mergers & Acquisitions: A Market Lifter

Timestamps: 43:37–47:30

• Cramer discusses the resurgence of M&A, with over $1 trillion in deals since June—an environment fostered by a more deal-friendly regulatory administration.

• Fewer publicly available shares (due to takeovers) drives up demand and prices for remaining stocks, supporting the current bull market.

  “Right now this market [is] staying buoyant in part because there are far fewer shares floating around… we've got the makings of a potential stock shortage.” – Jim Cramer (43:42) “I think that this is just the beginning of a wave of mergers that can drag this whole market higher.” – Jim Cramer (46:16)

Notable Quotes & Memorable Moments

• On the AI Bubble Debate:

  • “Feel free to dismiss AI as a bubble. But... during the dot com bubble, people did make fortunes who had faith... If you give up on Nvidia now, I think you could miss a boat that’s not sinking.” – Jim Cramer (10:44)

• On Value Investing and Experience:

  • “I learned not to question Amazon or Microsoft or Google or Meta or even Tesla… They know more than I do... I’m just grateful they let me along for the ride.” – Jim Cramer (09:10)

• On Navigating Consumer Shifts:

  • “We have to ensure that we’re delivering on value... and I think the brand will be back when it’s final.” – Scott Boatwright, Chipotle (19:04)

• On Industry Pressure and Resilience:

  • “We have the strongest railroad network in the east, the best margins, best customer service. We like our position… If someone comes in with a really good bid, you're going to do what’s right for shareholders.” – Joe Hendricks, CSX (24:48, 29:43)

• On AI ROI Skepticism:

  • “Unless people are getting value from running things on Snowflake, we don't make any revenue and they don’t spend any money.” – Sridhar Ramaswamy, Snowflake (35:56)

Episode Structure & Timestamps

• [01:43–11:19] – Cramer monologue: Nvidia’s quarter, AI skepticism, parallel to dot-com era
• [14:14–22:32] – Chipotle: Cramer interviews Scott Boatwright, CEO
• [23:41–32:37] – CSX: Cramer interviews Joe Hendricks, CEO
• [32:46–40:03] – Snowflake: Cramer interviews Sridhar Ramaswamy, CEO
• [40:13–43:22] – Lightning Round: Cramer’s rapid stock takes
• [43:37–47:30] – Cramer concludes on M&A, market structure

Conclusion

This episode is a timely, energetic tour through the highs and doubts of the present bull market, with Cramer urging investors not to panic in the face of AI backlash or tough single-earnings moments. Company interviews showcase the intersection of consumer behavior, boardroom strategy, and innovation at top American firms. Underlying the episode is the thesis that both growth stories and new takeovers are together propelling the market—and that disciplined optimism still pays.

Useful for:

• Investors assessing whether to stay the course with AI or high-multiple growth stocks
• Listeners interested in leadership perspectives from Chipotle, CSX, and Snowflake
• Anyone curious about macro market forces behind current stock market buoyancy

Cramer’s mantra this week: Patience and conviction are still money-making assets—especially when “hype” and “hope” are just another word for long-term vision.