Mad Money w/ Jim Cramer 3/18/26

0:00Life's busy. Don't let banking slow you down. Whether you're paying bills, setting savings goals, or just splitting the check. Atlantic Union Bank makes managing your money easier. With helpful people and user-friendly tools, we make sure banking with us fits you. Call, visit us online, or drop into an Atlantic Union Bank branch today. Atlantic Union Bank. Anyway, you bank. 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 at Schwab.com slash Market Update Podcast, or find Schwab Market Update wherever you get your podcasts.

1:00My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a more market somewhere, and I promise to help you find it. Man money starts now. Hey, I'm Kramer. Welcome to Man of Money. Welcome to Kramer, America. Other people like friends? Hey look, I'm just trying to save you a little bit of money here. My job is not just to entertain, but to explain my days like today happens. So call me at 1-800-7-Worth-B-C-Me-C. Tweety-Jump Kramer. When the bear comes or running at you, it's mighty difficult to hide, to stay ahead of the darn thing, to avoid being bald. Right now we have a situation where every time we provoke the bear by attacking Iranian oil facilities, only a few stocks to rally. When you throw in a crummy producer price index reading, and a fed meeting with no hope whatsoever of a race cut, well you get a hit of his day for the averages. The outtumbling 768 points, hasn't been plunging 1.36%

2:00and then as that plunging 1.46%. It was a real bad day. The House of B! These are what's known as macro events that I just talked about, not stock stories. Nick can impact the entire market. Usually there's reliable set of sectors we can turn to, even when things get ugly like this, but not today. Everything was awful except for a handful of oil and gas stocks. Now I am a stock strategist. Not a military strategist, but I can relate the oil futures, which spiked this whole day actually, to the stock market, because with the exception of a few anomalies, up oil means down stocks. And nothing was clearer today than the pressure oil can put on the entire S&P 100. Oil has been stable for a few days. Things look good for the market, but today you use natural gas field and a ram was bombed. A ram immediately retaliated with a missile attack on one of the world's largest liquefied natural gas complexes. And this was in cutter. It caused extensive damage. The price of natural gas worldwide could spike because of that, except for the US

3:01because we have so much of this stuff. That more than anything else sent the market dramatically lower. We didn't get any help from the US economy's numbers. This morning we got a PPI number that showed a big uptick in inflation. It seemed to be a wake-up call that even when Kevin Washington and Jay Powell is fed Jeff be the chief if he does. It would be very difficult for him to cut rates. Sure the housing industry needs lower rates. We know that, but the consumer could be hurt by another increase in inflation. Now I'm going to spare you the word stack-flation. It's one of the words that the bear throw around on TV every time you see something that slows economic activity at the same time that prices go higher. I've seen several ballots of stack-flation in my life. This is not one of those ballots. Even if we've got a 70-style oil shock. I've seen something in today's presser. And I got to tell you I felt I did feel so much comfort and I didn't feel alone. Now I still say this is a temporary and artificial increase. It's because the... Look, it's the course of doing business under this president.

4:01Whether because of tariffs or because of this war. If this conflict drags on and we can't reopen this trade of removes for months and months and months. Then eventually you're going to have to worry about it. But we're not there yet. What can you do when days like today? We have two club members for turning out at the New Orleans book fair and the Nvidia GT's conference in droves. But we like to buy. Not paying, but we're not sellers. Why? A couple reasons. We now think that Iran's response could be more nimic than its previous barrage of paying. We're going to find out soon enough though. We also like the stock market's oversold. When it's oversold. Minus 7 on the SB oscillator. That's a key gauge that measures buying and selling pressure. And boy, that shows that it's been way too much selling pressure. Now, I know this implies short-termism. And we're long-game players at the trust. But it never pays to have a sour basis. And it's easy to get a good basis when you have an indicator that can predict when the market's likely to bounce. We have that right now. Of course, it's harder to find good stocks that are worth buying when the crowds think we stagnation.

5:01For instance, take the drug stocks. You know, you're not supposed to like the drug stocks in stagnation. But I got my own Johnson Johnson. It just received a green light. Only really important drug for plaque psoriasis. It's a pill, not an injection. It's huge. But the stock was down nearly a dollar today. It should have gone higher. But it just shows how hard it is to buckstagflation theories. I thought that General Mills might pile on a good quarter. Big yield. Sadly, the quarter wasn't good enough. Management tried to turn minuses into pluses. But the crowd wasn't buying it. Even with that 6.5% yield. No one likes Campbell's, which now yields 7.4%. So there seems to be no good houses in that neighborhood. We did have one report that was solid. It was from William Sonoma, the retailer. It put up terrific numbers. But after a quick down move in pre-market trading and flew up furiously. We're pulling back hard in the afternoon. That wouldn't buy when it was up 11. But it closed up less than two bucks. That's intriguing. That may be something to buy in the week this tomorrow.

6:01I debated the financials. We seem to be working our way out of that private credit issue. Some of these are bouncing. But I don't have a thesis about why they should roar. The financials are collateral damage in inflation battle that rages after a miserable producer price index. Like we had this morning. Which brings me to check. I just got back to one of the most remarkable of all places. The showcase for artificial intelligence and accelerated computing in all of its forms. Nvidia's GTC conference in San Jose. There I saw so many different companies capitalizing Nvidia's software and hardware platform. And they're going to do that regardless of what happens in the Middle East. Nvidia's stock is hard to understand. We'll end that later. But what keeps people from missing the big gains in the stock is that it's really at the heart of what's known as the fourth industrial revolution. That's where technology overruns the way we do things. Not just companies but individuals. They can do more with less. They can create all new industries. We haven't even imagined yet. They can generate amazing profits for companies that harness AI.

7:01So I'm going to talk about later in the show. There a canvas anyone can write on. So I scanned the field for winners. I think Dell's worth buying. This is the company that enterprises are using to connect with Nvidia. I call it the customer's most sought-after technology and one of the most undervalued stocks in the market. I reiterated Dell's a bullpen stock for the club in today's morning meeting. But only if it retreats a bit from these levels. I like on holdings, which I think will be the big beneficiary from the pivot. To using not just its monster GPU architecture, but also its more agile CPUs to help manage these AI agents. They need CPUs. Arms always been tight with Nvidia. I think he gets tighter. But most of all, if I didn't own it, I would buy this stock of Nvidia. I know it can go down maybe four or five points. Doesn't mean anything. It's small. The tech giant's not hemmed in by Iran. It's not shredded by stagnation fears. It's lack of upside as more to do with the structure of the market. Nvidia is over-owned right now. That won't matter for all the good things I saw in GDC come to fruition though.

8:01Some stocks may be just too cheap to avoid. The bottom line. Nvidia is one of the fastest growing firms with one of the lowest valuations in the entire market. And that's always tempting, even with oil up a few bucks and recalcitrant federal reserve. Something that may matter to the stock short-term. But actually doesn't matter in video long-term prospects. After that festival, I gotta tell you. Nvidia is still best in show. Let's go to Michael and Virginia Michael. Boyachin, Netflix. Boyachin, Michael. What's up? $2.8 billion in a breakup check since the Warner deal fell through. They're making a $20 billion investment in content. And I think the interpositive acquisition will help do that more efficiently. They're planning to double their advertising revenue and project 12 to 14% growth. What do you see happening to their range-bounded $90?

9:01$90. Okay, let me tell you, Michael. I think I'm gonna throw one more positive. I think they could raise the price of the service. I think everybody loves it. I think you leg into Netflix. This is not a good market. You buy some here. You buy some a little bit lower. That's what we're doing. A few stocks. We need a little more aggressive tomorrow. But buy it slow. Then this market won't get you down. Ken and Ohio Ken. Hey, Jim. Founding a club member here and just got your open email. Oh, thank you. I really appreciate that. Hey, you were kind of high on my stock here last fall. But they had earnings about a month ago and it's falling a lot. What's the latest on Boston scientific? You know, I have to tell you. I have been blown away about how badly that stocks performing. The competition got much more severe than I realized it could do. I thought that Mike Mahoney had under control. I was not right. Except for means I'm wrong.

10:01And I am surprised. Let's talk about one of the greatest performers. It's not anymore. Let's go to Carrie and Colorado. Please, Carrie. Hi, Jim. I was wondering what you thought about Eli Lilly. Getting up on Willie. My experience with the Eli Lilly is there are bouts of giving up in this. That's what I call it. Giving up in this moment for one of the greatest, not the greatest drug company in history. I think the pill is going to be gigantic. People are saying that the chat GPT of chat GPT. And the GOP is not big. Okay. Not as big as we thought. Chat GPT is big. And so at GOP that's one. Two big things. In this environment, if I didn't already own in India, I would buy it. It is tempting here, even with the recalcitrant, recalcitrant, federal reserve, and oil on going higher. These will be short term people. On May-Money Tonight, as the Werner Rain sends oil in the natural gas prices higher,

11:02I'm checking it's one of the country. Our country's strongest producers of electricity. And I think you're going to love it. Don't miss my exclusive assembly. Then I think Wall Street's overlooking the fantastic quarter out of Uber. I'm taking a look at the numbers and giving you my take on the stock. And while we're at the GTC festival, we've got the chances to sit down with a lesser known French AI company. It's making waves in the industry. Don't miss my part two of my conversation with Mistral AI. Stay with Cramer. Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Cramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com. Or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com. Life's busy.

12:02Don't let banking slow you down. Whether you're paying bills, setting savings goals, splitting the check. Atlantic Union Bank makes managing your money easier. With helpful people and user-friendly tools, we make sure banking with us fits you. Call, visit us online, or drop into an Atlantic Union Bank branch today. Atlantic Union Bank. Anyway, you bank. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Landsford 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 at Schwab.com-marketupdatepodcast or find Schwab Market Update wherever you get your podcasts. Men are struggling with their mental health as some of the highest rates we've ever seen.

13:02But most aren't getting the support they need, and that needs to change. I'm Dr. Guy Winch. Your host for season three of the Visibility Gap presented by Signal Healthcare. This season, we're focusing on men's mental health, bringing together real stories and expert insight to explore the pressures men face every day, and why opening up can feel so difficult. Join us for the new season, wherever you stream your podcasts. The West 12 months have been normal for a lot of utilities. Take Sempera, which owns gas and electric utilities in Texas, California. Now, let's come up with one of my favorite grocery utilities. Remember, growth utility. But a year ago, this stock had a bit of a beat down by tariff worries, L.A. fires. Even the fires, by the way, had zero impact on the business. That turned out to be a fantastic buying opportunity. As Semper's now run from $61 and changes in its lowest last April, all the way to $95. 50% gain plus in less than a year.

14:02Not bad for utility. Now, Semper's made some big changes last fall. They announced they were selling a majority stake in their infrastructure business. That's vaccine gas, pipelines, and liquefied natural gas export facilities. The plan now is to focus on their core utility business. Simplify. So let's get a closer look with Jeff Martin, the chairman, president, and CEO of Sempera, or more. Mr. Martin, welcome back to Mad Money. It's great to be back on with you, Jim. Well, I gotta tell you, you have made a bunch of changes in $24. By the way, all of them to the betterment of the shareholders. So why don't you walk through? Sure. Well, it's great to be back on with you again. And I'll say I'll start just last month. We provided an update to the street on our equity selldown at our infrastructure business. And Jim, it has two principal benefits for us. Number one, we get a chance to simplify our business model. We've talked about this before. You're taking risk away from your financial performance. And secondly, we get to concentrate our future capital spending on our utilities in California and Texas. And you were a call. I was on set with you a couple of years ago.

15:02And you and I talked about the American utility industry. It was entering a super cycle of growth. Yes. We talked about that. We were the first to talk about that. And this is actually playing itself out. And that's why last month we were pleased to come back and raise our five-year capital plan to $65 billion. And we've earmarked potentially another nine billion on top of that. So I think with some efficient financing, we offer investors today opportunity to be exposed to a higher growth utility with a growing dividend. Now, talk about the sales. Because I think the disposals are terrific. Yes. So what we're trying to do now is we've announced that 45% selldown in our infrastructure business will maintain about a 25% residual interest for now. And we're selling that interest to KKR. We're going to bring back about $10 billion of financing back into the business. And here's why that's important. Every time you're faced with growing your capital program, your first obligation is to compete capital internal to your business. What you're trying to do is source the cheapest financing.

16:04And we felt like that we had the chance to not only source the cheapest financing, but move simply more toward a pure play utility, a growth in income utility, which we've talked about a lot. Right. Okay. So now we have to talk about the greatest market of utilities maybe our country's ever had. And your dominant player, Texas. What's going on? Well, look, I cannot tell you how remarkable Texas is. So it starts with economic activity. We're seeing economic activity at Texas at levels higher than the national average. And that's translated into higher electricity to demand. In our internal estimates, Texas Electricity Demand is growing at three times the national average, right? And that sets up a lot of opportunity. So let me give you an example or some context. You recall back in 2018, we bought 80% ownership in the state's largest utility, which is on court. At the time, Jim, they had a five year capital program equal to $7 billion. That same company today, just one month ago, announced a $48 billion capital program and line a site to upside of about $10 billion.

17:07And 70% of it is focused on high voltage transmission to connect all this new load growth. So from our perspective, for investors out there looking for capital appreciation and income, separate presents itself as a compelling opportunity. And I want to tell you, my friend Michael Sembles who does great energy work at JP Morgan, he did really a white paper about how your rates are not moving up because of data center. The problem is there's another area where they're not really run very well and the utilities aren't regulated very well. You have not seen a big spike in rates for ratepayers because of the data centers. No, what's interesting in Texas is the fact is they've got currently a settlement with the regulator that's going to be up for approval in Q2. We're expecting to pursue this $48 billion capital program with approximately a 3% increase to the retail rate. So I think we're trying to be thoughtful. What you do is in a growing market, you're really spreading costs across more kilowatts, right? So conceptually, when you grow a marketplace

18:08with higher electricity consumption, the rate should not go up that much. Right. Okay, good. That's the natural arithmetic situation now. Another thing you're doing right, we have a surfeit of LNG in this country, obviously, in the Middle East. There are some issues. Cutters is huge, and they've just taken out their biggest natural gas facility. We are the dominant player. What role can we play in the America's future? Look, this is a very complicated fact. Yes. And you're making a great point. It's a fluid situation with new events breaking today. I think one of the read-through opportunities here it emphasizes the fact that the United States will become increasingly important as an energy exporter. And as I thought about it, let's talk about the LNG trade. Today, the global LNG marketplace balances supply and demand between Asia and Europe. With the challenges in the current conflict, but taking the cutters production offline, you've seen huge volatility, both in Asia and Europe, and very little volatility in the United States. That's where independence really is. Right.

19:08From an energy standpoint only. Right. This is a good old-fashioned competitive advantage for America. We've got the deepest capital markets, ample natural gas supplies. We've got low price volatility and the rule of law. So our takeaway, Jim, is, in the near-term and the long-term, America will continue to be the market of choice for buyers. And tell me what sempre is doing to take advantage of that? Well, we've got a whole portfolio of LNG. We've got facilities which are online and Cameron today. We've got a brand-new facility coming online in Northern Mexico later this summer. We've got two big giant projects, about 13 billion each, taking place down in Port Arthur, Texas. So we have a growing portfolio. And obviously that's something we're looking to pursue with our partner at KKR. Now, there are people who would say, well, Jeff's a dreamer. We don't have that much natural gas. How much do we really have? Look, I think what's taking place is, we've had a real opportunity with new technology and horizontal drilling. So the whole fracking industry, our integrated oil production has been great.

20:08And what people don't realize is, roughly 20% of our natural gas production also produces liquids of natural gas or associated gas. So it really makes the lower cost of getting oil out of the ground. So we have a lot of confidence than our oil and gas industry in the United States and we feel good about our current long-term reserves. Well, last thing. I want people to understand the way you can figure out things for your IRA. You want to get more income and you don't want to have as much volatility. But you want good growth, too. That's simple. Yeah, I would describe it like this. Long-term, the S&P 500 has offered seven or eight percent earnings per share growth. At our company, we're forecasting seven to nine percent earnings per share growth in a utility with a .6 beta. And currently, Jim, at today's market price, our yield is 2.8 percent. It's twice the average yield of S&P 500. Well, look, I got to hand it to you. You made a series of projections, that said certain things that most utilities could not do. But it's really because of your work.

21:08I just think you've done some remarkable things, Jeff. Well, you can. Well, I know I'm a total believer because I also think it's really important what you mentioned about Texas rates because we have to make it so people realize that data centers don't wreck your pocketbook. That's correct. Good. That's right. And particularly if you do it right from a regulatory standpoint, they need to pay their fair share. Right. You need to protect the residential customer but growing the pie is a good thing for all customers. You're spreading costs. You're spreading costs across more customers. Well, I hope everybody listens to you because it's very wise advice. That's Jeffrey Martin. It's the chairman, president, CEO of Sempera. Wow, you did it all. Thank you, Jeff. Thank you. Really appreciate it. Thank you. Coming up, could the door be opening to hop into Uber's stock before it starts flying? Kramer is breaking down the top developments in his latest report for you. Next. Now, finding a doctor is a little less challenging. United Health Group is investing in tools

22:09that make it easier for patients to navigate health care and pay less. These transparency tools help patients find providers. And this is the big thing. Compare costs up front. The big picture, more transparent pricing benefits everyone. And these tools from United Health Group can help patients save hundreds of dollars annually. Learn more at unitedhealthgroup.com slash commitment. Life's busy. Don't let banking slow you down. Whether you're paying bills, setting savings goals, or just splitting the check. Atlantic Union Bank makes managing your money easier. With helpful people and user-friendly tools, we make sure banking with us fits you. Call, visit us online, or drop into an Atlantic Union Bank branch today. Atlantic Union Bank. Any way you bank.

23:24If you have any questions, please let us know in the comments. We'll see you in the next video. See you next time. Bye. Bye.

24:24Bye. Bye.

25:24Bye. We'll see you in the next video. Bye.

26:24Bye. once in the San Francisco Bay area later this year. Just last week, Amazon Zooks, that's the COOX kind, Robotaxi business said they're deployed their vehicles on Uber's platform, starting in Las Vegas. That's gonna be sometime the summer. And in LA, by the middle of next year, they're also collaborating with Nissan in a startup called Wave, W-A-Y-V-E. They've got a pilot program for Robotaxis in Tokyo later this year. The fact that Uber has already created an auxiliary Robotax business at a whole cloth. Last month, they launched their Uber Autonomous Solutions,

27:26where they used their data and mapping solutions to help train models for self-driving taxis. And it's not just cabs. Uber's got a partnership with several Robotaxi to handle Uber, eats food delivery in multiple major markets. Last month, they announced to deal with Joby Aviation for electric air taxis in Dubai, admittedly, not the best time you know them. But none of these partnerships have been able to get the stock rallying again. Even though they proved my point that Uber's rideshare business isn't necessarily direct competition to Robotaxis. What I think of this week, when Vitya Jensen made a bunch of autonomous driving announcements at GTC, here's what Jensen told me, when I asked him about what I thought was incredibly important. We are going to be very, very large. You know, we've been working on self-driving for about 10 years now. Our strategy is not to build a self-driving car. Our strategy is to build a platform so that everybody can have self-driving cars. Our strategy is to build help Uber and help all these companies create a large fleet of autonomous vehicles.

28:28Wow, you know, that's what woke me up to do this piece. I mean, look, he mentions Uber because like I said before, they're now working with a growing roster water makers to develop their own Robotaxis that we're learning in Vitya software, with the plan to get them into 28 cities around the world by 2028, not that far from here. And this finally seemed to resonate with investors. It's why Uber stock caught fire early this week. Now some analysts have written up the news, claiming that this in Vitya news was very positive. And I couldn't agree more. Of course, I'd like Uber for years. I still think the company can make plenty of money now by being the number one rideshare platform and the number two food delivery app. I still think there'll be a major player in Robotaxis either through their own vehicles or someone else's because anybody can plug that technology into Uber's rideshare network. But what changed this week is that Uber self-driving strategy now has the in Vitya and promoter. And with each new announcement, we can get more visibility into what the Robotaxis strategy looks like. And that's why the stock down is footing this week.

29:29And it's just beginning. Here's the bottom line. Given that Uber's still down almost 25% from as high as just last September, I think you get any terrific buying opportunity here, specifically with the slousing market. At this point, Uber's basically a value stock. It trades at 23 times this year's earnings estimates. It's rarely been this cheap since the company turned prop on 2023. If, like me, you believe the Robotaxi competition where it's our overblown, then this might be your chance to pounce. I'm going to take some calls. I'm going to start with Bill and Pennsylvania Bill. You know what Jim, Bill? Yeah, buddy, listen, Jim, I'm looking at a company. I'll be honest with you. I made some money with it several times in the past. But this company is since phase four of FAA certification. They're building vertebrates in Dubai. They're going to be launching a transportation out there before FAA certification, really just for the data. They got partnerships with Delta Airlines. Uber, I believe, Uber, they're already on the Uber app.

30:31Defense contracts with L3 Harris. Jim, I'm looking at Joby Aviation. I think now is a time because it's down. What are you thinking about this? OK, I am not as big a fan as you are. I think it's incredibly speculative. I'm in that era of no more magical investing. They're losing too much money. And when companies are losing too much money, even if they have a very exciting idea, I've got to pull in my words here because we have a very, very tough market. And we can't deal with companies that are losing a lot of money. Thank you. I appreciate it. Former is basically a value stock at this point. I think you're getting a great entry point right here. Now, much more may have money ahead. Who am I exclusive with, me? That's probably AI. Now, this company's been labeled the Open AI of Europe. So what's the hype of that? Who are building extensive conversation and exclusive from G2C? Then, Nvidia had so many announcements G2C that maybe the market couldn't digest them all. And that's why it's down big today. I don't know. I'm honing in on the ones that I think could finally move this stock higher. And order calls rapid fire in the night

31:33suggesting a light ring. So stay with me. Order this week at G2C. I got a chance to catch up with Mr. All AI to open source artificial intelligence operation. Now, the often called the Open AI of Europe. This company's become a major player. So when I spoke to Arthur Mench, the co-founder and CEO of Mr. All AI, that interview ran long. We are the first part last night, and now we're going to show you the rest. So take a look. Partner, thank you for coming on. I am worried about two things. American and Germany, meaning that we're triumphant over our allies. And just the, what I call some sort of bizarre wealth effect where there are so many people who don't have a lot of money. And some people through companies in your industry seem to have all the money in the world. It seems like that Mr. All is concerned about American and Germany, meaning that you shouldn't outsource everything

32:35you have to the United States. And you're also worried about concentration of wealth. It sounds like you're a company that has a heart and a head. Well, I think what we are worried about is really a Germany of a few players in artificial intelligence, generally. We're a global company. 25% for teams is actually American. So in that way, we're really a US company as well. Now, what we see in AI is that this is actually this is a foundational layer of technology. And that's something that every company is starting to rely on. And something that every consumer is starting to rely on. And the question is, do you want to own that future as an enterprise? Do you want to rely on the technology that you can fully understand as a consumer? Or do you want to put your destiny into the hands of companies that fully control the entire stack and can influence and decide what the AI can do and cannot do? And so our stance and the reason why we created the company has been to break the dynamic of concentration

33:37of power and artificial intelligence. So the way we've done it is to go for the concentration to actually build open-weight models and to release them to the world, to show to the world back in 2023 that this was possible. And then on top of that, we've built that business model of creating value for enterprises, bringing forward deployment engineers, bringing the entire primitives that you need to create agents and to delegate tasks to AI. So that's the way we think about it. We bring AI, we bring 40 AI into everyone's hands. So we reduce the price through open-weight models. We make small models that can be deployed on smartphones. We make sure that everyone in every country can actually get access to that technology outside of a few vendor control. OK, but if you reduce the price, you must think that it's a commodity. I mean, otherwise, how would you reduce the price? Well, we believe that the model layer, really that part of intelligence, is eventually going to be a commodity. And we want to make it a commodity. When it comes to spending billions to make sure that's not. Yeah, absolutely. But I think that's where I think we're pretty contrariant in that market.

34:38And what we've shown to the world is that the model really is important. That's the reason why we're investing with Envilleia with the quality, should aspects. But what really matters is everything on top that allows to take the model and create value for the enterprise. OK, so that part is not a commodity. The difference is I saw you interviewed by my friend Andrew Alsoirkin with the head of Accenture for Europe and African. When I said to myself, is this guy wants to be able to create really good applications that could actually make it so that they're cheaper than, say, hiring service now or sales force? Well, I guess some of our customers are very happy that our technology is actually cheap to serve. And that our technology is able to replace some of their old legacy software that they've been using. So effectively, we believe that our business model is benefiting to our customers. And that it allows them to reduce their IT costs, but also allows them to build more integrated systems, to build software on demand. So we work with subject matter experts. And they come with us with procurement needs. But they are processed.

35:39The process that they run is very specific to that enterprise. And so what we do with them is that I bring a few forward deployment engineers. They sit with those subject matter experts and they turn their needs of software into a software that we host that relies on our open source models that is going to improve over time. And that is fully customized to their needs. So Arthur, even though you don't have that big profit percent of these other guys have to keep you out, so to speak, you can make enough money and then make a lot of money on top that I would want to own your stock if it ever were to come public, right? I mean, we're not doing this as an alien or an alien or ever. You are not a chair. We are not a chair, you know. This is the business model that we have built. As a load us to grow 10x last year, we're past 400 million revenue. We're going to cross a billion this year. So the open-weight business model is actually working in that there's so much value to be created for customers on top of open-weight models that some of this value is something that we can actually get

36:39and that we can actually reinvest in R&D to make the models better. So there have to be a lot of companies that don't want to get in bed with giant emerging companies that are known to try to be able to, let's say, control the environment. There have to be millions of companies that don't want to be involved in that. There are many, and many of them are our customers. They, because artificial intelligence eventually is about running processes, artificial intelligence is a problem of business continuity. When you deploy an AI process and it starts to operate your factories or it starts to be caught to your engineering design process, you don't want this thing to be turned off. So you want to make sure that you have enough redundancy and that if your vendor were to disappear or to start applying pressure on you, you have leverage. Do you actually reduce that? Right. These little guys don't have leverage at all. They just have to, they're price takers. So we bring them leverage. We bring them, the open way,

37:41it's time that we bring them is leverage for them. It's cheaper price at the end. It's control in that even if you were to disappear, they have access to the full stack and they can actually maintain them themselves if they want. So that part of knowledge transfer, IP transfer, that part of making sure that our customers can deploy our technology on their infrastructure if they want, is super critical when we work with financial services with heavy manufacturing, when we work with defense, with public sectors. All of these entities actually want to make sure that from a national security point of view or from a business continuity point of view, they have control over other AI systems. So that is what is driving the business of install today. Well, I think that as someone as a small business person, I can tell you that I always felt that I won't mention the provider I switched to, but it grew in my year. My whole earnings went to them for four years and we were making $25 million, just out the door. You are a cheaper alternative to switch to. Well, our customers are choosing us

38:42because we bring them better applications, super prices, more control. And so at the end of the day, betting on open-weight models for at least a part of your workloads and at least the most critical workloads that you have is the safe bet to take. Because eventually what you don't want to be in a situation, the situation you want to avoid as an enterprise leader is the situation where half of your business is running on closed systems. That can actually have a pricing power on you and that can decide to say, you're not going to get access to these tokens because I'm going to allocate them to your competitor. So that is what we are trying to avoid. I think you help everybody by that point of view. You give even people who are with the other guys, some bargaining power. I think you're a mention, as my friend Mark Benioff told me to tell you, even though I know that he's a software as a service target if you really work it out that way. I think Arthur mentioned co-batter in CEO of Mistral AI is private. I find it exciting and I find it frankly a break from the concentration of wealth

39:43that a lot of us are getting tired to see. Thank you so much. Thank you for having me. Coming up, you've got questions, the cramers got the answers. Get charged up for a fast fire lightning round. Next. It is time. It's time for the lightning round. Of course, the name is Dr. Steve. Bye, bye, bye, bye. Myself is self-discipline. Of course, not put you that time. I step first to play some probably friends sound. And then the lightning round is over. Are you ready? Steve, that's on the right one. Good morning, it's over. Sam, that's my Sam. Jim, the thesis of this one is Egypt on the stand. This is the nation's largest hospital operator. And it's benefiting from an aging population and accelerating EPS things to AI cost efficiencies. I'm talking about HPA health care. We have liked HCA for a long time now. This is a stock that can go down quickly. I want you to buy it only in big clubs.

40:45So no, it's 575, then 450. That would be the way I would do it. Big spaces between. Let's go ahead and David, and can I get David? Hi, Jim. That's David, what's up? OK, yeah, my question is in regard to Wendy's. No, we cannot buy Wendy's. No, it is just the wrong stock. Meanwhile, McDonald's is down to $10 today. I think you start buying some McDonald's. I don't have a fantastic quarter. Let's go ahead and John and New Jersey, John. Hey, Mr. Jim Kramer, how are you? I am good, John. How are you? Big fan here. So I have a good one for you. OK, so after five years down trending since that spike to $66 from $1, this EV maker just posted its first ever profitable quarter last week with record deliveries month over month with a 14 billion market cap. An analyst hyping it as the Chinese Tesla. What's your take on NIO? Is it finally?

41:45Actually, I think it's right. I think you're absolutely right. I did have a good quarter. I'm going to go with you. Five bucks. Let's do it. It's a spec. That's OK. You'll have one spec. I want to go ahead and hire you, New Jersey. Harry. Booyah, Jim. Harry, student from Princeton, New Jersey. How are you? How are you? I'm doing well. How are you? Booyah, thank you. I have a question about Blue Owl cap. OK, blue Owl. If you want to own that world, the private equity private credit world, I have to suggest you to buy Blackstone. It yields 5%. It's better run. I think you just go with Blackstone. You'll do better. Let's go to Raj in Virginia, Raj. Hi, Jim. Congratulations on 20 years of the show. Uh-oh. Thank you very much. I joined the Nesting Club in January. So what if you're new as a fan? That question is unorthodox. Well, look, I mean, why take the risk? Well, it's good. It's good. But I think there are others that are better. And the one that is better than I think is worth doing is right now as a video, standing you from top.

42:46That's huge. Let's go to John Illinois, John. Greetings from Chicago, Jim. All right, man. I appreciate everything you do. Oh, thank you. Thank you. Jim, I'm long this stock. It's a high-tech security stock that's at O'Hare and other airports. It's called Big Bear AI Holding. No, I'm from Mayo, but I have to tell you, it's losing a lot of money. And we are out of the year of magical investing. We don't have it anymore. This is Tupper Tape. We do not want to go there. And that leaves him a conclusion of the Lightning round. The Lightning round is sponsored by Charles Schwab. Coming up, the stock of NVIDIA has gotten stuck in the mud. So what can restore it to skyrocketing hero status? Cramer's identified the key, and he's revealing it. Next.

43:47Eight years ago, NVIDIA's Jensen Wong told me about something that would only become Jack GPT, a program where I could ask you questions. And it would show me how to do things to pick anything. I can imagine. He said it would be huge. It would change the world. And we'd all have to run it on NVIDIA, because their GPU hardware and software combination was the only way to get enough processing power. While others ignored the technology, it made me want to double down NVIDIA stock. Even though back then, everyone thought of this company has really nothing more than to play on video game graphics. This time, when I first got to stroll the floor at GDC with Jensen, he talked the exact same way about the age of agendas, how we all have AI agents in the periphery and propagate everywhere. The one NVIDIA has created, Nemo Claw, could become the standard for the enterprise, meaning the corporate heavyweights who decide which companies you're successful. He said he plays works with it every single day. Yeah, just a bunch of agents. Just like he did with open AI chat GPU, when it first partnered with them a decade ago. He said these agents would be huge.

44:47Perhaps much bigger than chat GPU, and NVIDIA will be behind the best of the agents. Why? Same reason as chat GPU, they need accelerated computing, a lot of it, and they need the artificial intelligence standard that only NVIDIA provides. Now, there was a lot of news about NVIDIA, or GDC festival, but none of it managed to move the stock. One reason was confusion. Jensen talked about how he has $1 trillion with a business for his highest end chips, up from 500 billion just a few short months ago. The numbers included 2025 figures, though, and the new figures through 2027, while the previous target was only for 2025 to 2026. So, can't really it didn't sound bigger than it was, even though it was a gig. The stock blew up a quick five points through the speeches, retail investors used market orders, spike in the share price, and then getting clobbered all the way down when people realized the $1 trillion number was less significant, than they thought, even though it was significant. Second reason NVIDIA can't seem to catch a break, the big institutions we call full-on. I looked a few years ago in social money managers owned the stock in gigantic amounts.

45:48There's not a lot of accounts that don't own already. That means only new money coming in the SB 500 can really move the stock higher, at least for now. Third reason, option activity. Home gamers remember the infinity of all where this wild moves the great swings higher. They buy calls every day in record numbers because they think it can capture the next move. They're too eager, they overpay. Professional see this, so they sell the call options. They short them to them. Putting selling pressure on the common stock as the call selling always transfers into common stock selling. This happens so often that it puts a lid on the common stock. That's what occurred today. Consider it the tail wagging the dog. What could move up in video again? Numbers they didn't move last quarter, how about new customers? They get new customers all the time, hasn't made any difference. Everyone's afraid that the hyper scalers will somehow decide, you know what, we have our enough orable designer own chips. No, what's gonna get NVIDIA moving again is NemoClaw and the endless proliferation of agents to anthropic and open AI, which will cause a wave of traffic again

46:50for the hyper scalers for the cloud business, which in turn will need more in video hardware to keep all this stuff running. I know it sounds complicated, even fanciful. But so did chat GPT when I first heard about it. Call it the hidden reason to buy NVIDIA stock here. And possibly the best reason other than a gigantic move in the stock market itself, which will pull NVIDIA stock up, but that's not the way we wanted to go higher, is it? I'd like to say there's always a more market somewhere. I promise I'd find it just for you to hear that, buddy. I'm Jim Kramer, see you tomorrow. All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet or another medium. You should not treat any opinion expressed by Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and our subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. Divute the full mad money disclaimer, please visit CNBC.com forward slash mad money disclaimer.

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