Mad Money w/ Jim Cramer — September 26, 2025
Episode Overview
This episode of Mad Money with Jim Cramer dives deeply into the ongoing debate about whether the current artificial intelligence (AI) and data center boom is a sustainable new industrial revolution or an overheated bubble. Jim defends the buildout by some of the world's largest companies and offers his trademark practical guidance, stock picks, and honest opinions. The show features a double "homework" segment with homework deep-dives on Credo Technology Group and Resolve AI, interactive caller questions, and an exclusive interview with Johnson & Johnson’s CEO, Joaquin Duato, about healthcare innovation.
1. Main Theme: The AI Data Center Buildout – Bubble or Next Revolution?
Jim Cramer opens the episode addressing persistent concerns voiced by billionaire critics about the explosive investment in AI and next-generation data centers. He argues that while some see a bubble, he views this as the early days of a paradigm-shifting revolution—backed by the judgment of proven technology and business leaders.
2. Key Discussion Points & Insights
The AI/Data Center Debate: Bubble or Opportunity?
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Cramer’s Position: Rebuffs the repeated labeling of the AI/data center expansion as a "bubble," urging listeners to look at the track record and strategic vision of industry leaders.
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Quote:
"I will not call it a bubble because I trust the judgment of Jensen Huang. He's the CEO of Nvidia, who's arguably the father of both accelerated computing and generative AI. Jensen has been met with skepticism every step of the way and the skeptics never seem to learn even as he constantly proves them wrong."
— Jim Cramer [02:28] -
Billionaire Critics: Jim argues that ultra-wealthy critics default to bearishness:
"Once you are that rich, it seems you can only see the worries and not the opportunities. So stop being swayed by their negativity..."
— Jim Cramer [05:08] -
Comparison with Dot-Com Bubble: Distinguishes today's AI/data center investments—backed by cash-rich giants—from the overleveraged and vendor-financed dot-com era.
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Winners in the Space: While not everyone will prosper, Cramer believes multiple winners (not just one Amazon or Google) could emerge as the sector matures.
Market Game Plan for the Coming Week
Jim walks through anticipated company earnings and economic data:
- Carnival & Jefferies (Mon): Carnival rides the post-COVID travel boom; Jefferies will clarify if investment banking strength can last. [07:53]
- Paychex (Tues): Payroll and HR company is a key read on the true state of America's small businesses.
- Nike (Tues Night): Poised for a potential breakout; investors encouraged to anticipate a turnaround.
- Conagra & UPS (Wed): Worries about unsustainably high dividends and whether earnings can justify such yields.
- Thursday/Friday: Jobless claims, car sales, durable goods—all leading up to the Friday Nonfarm Payroll report, which Jim calls the ultimate market mover.
"The bottom line: the employment number lords over all other entries here."
— Jim Cramer [11:34]
Stock Spotlight: Double-Header "Homework" Segment
Credo Technology Group ($CRDO) — [14:31–21:32]
- Nature: Semiconductor/data center connectivity solutions.
- Key Takeaways:
- Phenomenal recent performance: up 357% in 12 months.
- Deep integration in data center infrastructure—critical between Nvidia GPUs and switches.
- Standout metrics: 274% YoY revenue growth last quarter, 43% operating margin.
- Caveats: Extreme customer concentration (top 2 = ~85% sales); some insider selling; high-flyer pullback recently (from $176 to $143).
- Valuation: Wait for $120–$123 range for a meaningful entry; high growth but caution is key.
- Quote:
"For as long as the data center theme remains real hot, I'd be looking at a pullback like this as a buying opportunity, not a bail."
— Jim Cramer [18:42]
Resolve AI ($RSVZ) — [23:30–32:32]
- Nature: E-commerce AI tools (chatbots, 1-click checkout); microcap stock.
- Cramer's Warning:
- Ultra-promotional, questionable "partnerships" with Microsoft & Google.
- Aggressive share dilution, minimal revenue ($188k last year against $138M operating loss).
- Management repeatedly touting upcoming $100M recurring revenue; results TBD.
- Quote:
"This is one of the most promotional companies I've ever seen...puts out tons and tons of press releases, often for trivial reasons...Red flag to me..."
— Jim Cramer [24:42] - Bottom Line:
"If you want a play on artificial intelligence, I'm begging you to find one with actual earnings like the Credo Technology Group...and not a money loser like Resolve AI that seems best at promoting itself and then selling its own shares."
— Jim Cramer [29:50]
Caller Q&A and Lightning Round [41:31–48:10]
Jim fields a series of listener questions on a fast-paced "Lightning Round," offering buy/hold/sell advice:
- D-Wave Quantum: Take out your cost basis, let the rest run, especially after a 200% gain. [41:52]
- American Electric Power: Strong long-term recommendation, especially with rising industrial/digital demand. [43:02]
- Oneok (OKE): Midstream energy, strong management, undervalued at its current price—Jim endorses buying more. [44:02]
- Other mentions: Mountain (MNTN), Salesforce (CRM)—generally positive but advises more research due to market shifts.
Exclusive Interview: Johnson & Johnson CEO Joaquin Duato [32:32–41:31]
- Key Highlights:
- J&J investing $55 billion in US manufacturing over four years, driven by Trump-era tax reforms.
- Vision: Next decade to see more advances in human health than the last century, thanks to biology and AI convergence.
"The combination of our advances in biology and chemistry amplified by artificial intelligence are going to give us cures for many diseases that we thought were incurable."
— Joaquin Duato [34:16] - Milestone treatments: Five-year disease-free outcomes in multiple myeloma; innovative bladder cancer therapy (Inlexo) preserves quality of life.
- Medical Devices: Abiomed heart pumps extending life post-heart attack by 600 days on average.
- Ongoing litigation (talc): J&J is confident, winning 16 of last 17 cases since returning to jury/bench system.
- Affirmed commitment to affordable medicines and confidence in US leadership in life sciences.
- Cramer’s Endorsement:
"It is the best company in pharma right now in the country."
— Jim Cramer [41:31]
Costco Earnings Analysis [48:10–End]
- Stock Dip: Stock fell over $27 on “membership renewal disappointment” after strong results everywhere else.
- Cramer's View:
- The concern around renewal rates is overblown, particularly due to structural changes (online vs. in-store renewals).
- Costco remains “always cheap to shop, never cheap to buy”—now relatively attractive after the pullback.
- Major endorsement: outperforming S&P 500 (19% annual returns vs. 11% for S&P over 20 years).
- Quote:
"If you don't own any Costco, it's time to start buying the best retailer on earth."
— Jim Cramer [End (~48:08)]
3. Notable Quotes & Memorable Moments
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On Billionaire Skepticism:
"A responsible billionaire will almost always pretty much default to bearishness when they come on air...they scared you and they got you to trade out of a phenomenal stock that you should have just owned and not traded."
— Jim Cramer [05:08] -
On Picking AI Winners:
"I think that AI is getting better and better and will be worth every penny when things shake out..."
— Jim Cramer [03:36] -
On J&J’s US Investment:
"We have always been here. We are an iconic company...When we finalize our $55 billion plan, we are going to be able to manufacture here in the US essentially all the advanced medicines that are done in the US."
— Joaquin Duato [33:00] -
On Costco’s Pullback:
"Costco—always cheap to shop, never cheap to buy."
— Jim Cramer [End]
4. Key Segments & Timestamps
- [01:28] Opening and AI Bubble Debate
- [07:53] Weekly Market Game Plan
- [14:31] Homework: Credo Technology Group
- [23:30] Homework: Resolve AI
- [32:32] Interview with J&J CEO Joaquin Duato
- [41:31] Lightning Round Q&A
- [48:10] Costco Earnings and Stock Analysis
5. Tone & Style
Jim’s delivery throughout is energetic and passionate, mixing irreverence, personal anecdotes, and deep fundamental insight. He remains direct—even blunt—when rejecting hype stocks or defending favorite picks. The interview with Joaquin Duato balances business realism with optimism about technological and medical progress.
6. Summary: Actionable Insights
- Be skeptical of influential "bubble" warnings not rooted in innovative leadership or deep sector knowledge.
- For AI exposure, prioritize stocks with real earnings, not just stories (e.g., CRDO over RSVZ).
- Iconic, dividend-rich companies with strong pipelines (like J&J) deserve ongoing attention.
- Don’t get distracted by short-term market noise—especially with strong operators like Costco.
Listen if you want:
- Reality checks on AI/data center investing
- Deep dives on overlooked and overhyped AI stocks
- Smart market context for the week ahead
- Pharma & medtech innovation straight from a top CEO
- Cramer’s famously fast-paced stock calls and tough love on investing decisions