Mad Money w/ Jim Cramer 11/18/25

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Welcome to Mad Money. Welcome to Kramerica. Other people make friends. I'm just trying to save a little bit of money. My job is not just to entertain, but to put days like today into context because they're tough ones. So call me 1-800-743-CNBC or tweet me at Jim Kramer. Dip buying or buying merchandise that's on sale because you trust the market long term to deliver serious returns.

The former has a bad name, criticized constantly, lacking any rigor. The latter is considered both prudent and intelligent, and I share it. So on a day where the Dow tumbled 499 points, S&P shed 0.83%, and the Nasdaq lost 1.21%. I'm going to tackle this issue of the difference between buying the dips and buying great stocks on weakness, even if they might go down further after you first begin to buy.

First, when I think of dip buying, I think of methodically throwing money at the S&P 500. The conventional wisdom in this business says you shouldn't own any individual stocks. They say you're better off sticking to index funds that mirror the market, even though there are a lot of stocks in that index that are better than others.

As I write in How to Make Money in Any Market, the notion that you can't beat the market is quaint. Things have changed since we decided to go all in the decks all the time. You now have much of the information the pros have at your fingertips. I'm a pro. I know what you have. You can act on your curiosity and learn if, say, the stock of Apple.

Maybe right for you, given how much you like the product. Your kids are on Instagram constantly. You love the NFL package on YouTube TV. There's nothing like Amazon Prime. It's not like the old days when nobody had any access to anything, including, by the way, intraday prices. Now you can easily study and inform yourself about a meta or an alphabet or an Amazon. The world has changed from the days when index funds were the orthodoxy.

Something that happened after the dot-com bust. These days, you can use a sale like the one we are experiencing. And I don't think it's necessarily over. We're not that oversold. to pick up stocks of high-quality companies that are outside the blast zone of the data center. You know what? You can even tiptoe into the data center world. Tonight, I'm going to spend a lot of time on the data center.

going for the broken stocks of companies that are doing just fine as long as you don't do it all at once and as long as you buy small, just as we do it for the CMUC Investing Club, where I show you how to be patient and don't load up the boat at one level.

Let's go over what I mean here, using the method I outlined in how to make money in any market. I want to start with the toughest one, which is NVIDIA. That reports tomorrow. Now, I have no idea what NVIDIA will return. I have no idea what they're going to report whatsoever. I will say this, though. NVIDIA stock was at $212 on October 29. And now it's at $181 and change. I got an idea. I think you certainly aren't buying this one at the high.

The stock sells at just under 40 times this year's earnings, which is expensive. That is much more expensive than the average stock. But NVIDIA has a history of crushing the estimates, making it look much cheaper in retrospect. It's at the intersection of accelerated computing and artificial intelligence.

coming out that could make AI a lot more useful. There's a clear roadmap, and while NVIDIA's chips are expensive, CEO Jensen Wang always holds that there's a quick payback, even as we hear constantly that there isn't. What does this mean to me? Look, NVIDIA remains the gold standard. It's indispensable if you want to keep up with the new industrial revolution. It doesn't mean it's a buy. It does mean it's intriguing if it gets hit when it reports.

If you bought a little of the stock today, just enough so you have plenty of room to buy more of reports a quarter that is short-term unappreciated, is that mindless dip buying or is it prudent purchasing versus where the stock was just four weeks ago? If you go slow and not all at once, as I advise, I think you are being prudent.

Well, let's say you wanted to buy Amazon, which is at the heart of the data center blast zone, and had been cautious in spending until the bond deal just launched. To me, Amazon's a company that doesn't spend unless it needs to, unless it has demand. So I'm confident in this company. I trust management. Amazon, a terrific quarter. The stock shut up to 258 at the beginning of the month. Now it's way down back to 222. That's, by the way, down $10 today.

You're buying a high-quality company that just blew away the numbers 36 points below its highs because it raised money to build out something that it needs. In other words, I think this is a smart debate. buy only the situation, not mindless dip buying. Again, you can't buy all at once. You buy small, and then you get bigger as it goes down. Stocks, by the way, do get cheaper if they're good on the way down. Now, let's keep going with how to make money on the market.

because it's really important, because when I say how to make money in any market, we're talking about this market. Sometimes you just want to wait for the stock of a company that's made a significant change, and then you get a chance to buy it at a cheap price because the market's throwing a sale. Take Kroger's giant department.

food store, right? Giant grocer. It opened almost unchanged today, even as it did something radical. It surrendered much of its e-commerce delivery business to DoorDash, Instacart, and Uber. It took a $2.6 billion impairment charge to account for the money it already invested. e-commerce infrastructure.

Stock temporarily sold off response. People freaked out. Give you a nice discount before it recovered. Finished the session almost up 2% as people realize that Kroger's doing something smart here. I bet it goes higher again tomorrow. Great opportunity. How about Starbucks? The stock that we own for the charitable trust.

They get into Starbucks at enticing price levels, knowing that management's been saying all the right things about business. Stock opened the day at $83.61, dropped to $82.34. It's a decent starter price. Temporarily, though, as the stock then closed above $83. Yesterday, Alpha, the parent of the red-hot Google Gemini complex, traded up to a new all-time high of 293. And today, it briefly fell to 278 before finishing just under 285.

You're buying a Buffett-endorsed company with a thriving YouTube business that's spewing cash as its cloud business. You're getting it cheap because Wall Street doesn't like how Alphabet's spending on data centers to meet demand.

Today's sell-off may have given you a great entry point to start buying it. Then there's one more household name. We'll give you Apple. This stock traded up to 277 after it blew away the quarterly estimate at the end of last month. Today, in the teeth of the sell-off, the stock hit 265.

I think that's a terrific price to start a position in the company that initially, you know, I think is starting to show signs that its AI business is a really good idea because it's someone I think is going to pay them to give them what we're doing with the different chats.

I bring up this method, this small buy method, with plenty of room between each purchase. Because in the book, I recommend that you pick five stocks. For a small portfolio of high-quality companies, one is speculative, the other is not, and you use my cautious method to get started. You should try to go for some diversification, but it's not imperative if you have just two that are kind of similar. No more than that, though.

You should have some money in an index fund side by side because index funds are good. They're just not the be all and end all. Index funds give you relative safety versus your individual stock portfolio. But the individual stock portfolio gives you. Potential for much more upside.

Just don't venture into the realm of the two times leveraged ETFs or the zero data Xperia options or any of the other clown shows that the regulator shouldn't have ever blessed, even as a DraftKings 14 parlay would likely be less risky and more lucrative.

If you want to put money in the market via an index fund, you can and you should put money in monthly. But if you get a sell-off like this one, you've got my blessing to pull forward some of those future contributions and put them to work right now, perhaps even as early as tomorrow.

The bottom line, though, in a market like this, my favorite move is to buy small something out of favor that's way down from its highs, ideally something that's just reported a stellar quarter and is getting zero credit for it. Now, that's a sale worth attending, if not nibbling outright to get started.

Gregory in California. Gregory! So great to see you and Lisa out in L.A. recently. Lisa said the same thing. Lisa said the same thing, Gregory. She said, boy, that fellow is really nice. I said, you bet he is. She was quite taken. by how just honest and forthright you were, and it was really thrilling to meet you in person. Again, thank you. That's so very kind. Well, while sipping on an iced mezcal recently.

I was listening to a call of a quarter of a company that I'm interested in that just missed by a smidgen for a tariff related issues. But then they dropped a whopping 30 percent. I've been reading this rather good book lately, Jim. It's called How to Make Money in Any Market. And I get to page 159. Now, I'm a guy that struggles with his tax returns. So the idea of reading a ballot sheet is like foreign language to me. But now...

I'm learning about things like assets minus liabilities equals equity. So question, with a minimal debt to equity ratio of 0.04 with 2.67 billion in cash. versus $205 million in debt. Well, they also generated this company $1.2 billion in free cash flow over the last 12 months. and are probably, you know, set up for a very strong upside. So, look, with a year of magical investing over.

I'm tech out of favor. Am I wrong now to start a position in Pinterest? No, as a matter of fact, you read my mind. I've been telling people that they have so much that's great in Pinterest. Mets, by the way, that they could, that these... I think these large language models should be just...

comb and right through it. I think this is a tremendous level to start buying Pinterest, Gregory. And once again, Lisa and I thank you for visiting for the Fosforo signing. And she really did. She goes, boy, that guy's a terrific guy. And you are. Thank you for calling. Look, I'm a big advocate of regularly investing through index funds. Day like today, you put some money to work. But when you get a sell off, I think you need to put some money to work.

the right way and also to start buying some best of breed stocks, understanding that this isn't probably the bottom, but it's certainly not the top. Well, Mamadi, tonight, the data center trade might be unwinding for our very eyes, but the concerns behind have been brewing for quite some time. I'll take you through the timeline of how we got to this point. Plus, I'm breaking down which companies are in the center of this data center storm. Holy cow.

of moves you should make in the face of this new scrutiny around all things AI. And Rockwell Automation kicked off his automation fair today. I'm sitting down with the CEO to see what's behind the company's nearly 30% run so far this year. So stay with. kramer don't miss a second of mad money follow at jim kramer on x have a question tweet kramer 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.

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Over the past few weeks, the AI data center stocks have been obliterated. NVIDIA is off a quick 14% from its late October high. Oracle is down almost 36% from where it peaked in September. Corview has been nearly cut in half since mid-October. So what the heck went wrong here? How did Wall Street go from loving the data center stocks to being very, very worried about pretty much...

the entire group. I want to walk you through how this played out, because even though I'm a big believer in AI, there are plenty of legitimate concerns that popped up over the past couple of months. This all started in early September when Oracle reported an OK quarter with a stunningly positive.

Remaining Performance Obligation Number, RPO. That's what we used to call bookies. That was the old name for it. A business that's been contracted, but not yet delivered or paid for. Oracle's RPO, as a call, came in at $455. Billion dollars of 359 percent year over year. In response, the stock shot up more than 35 percent in a single session, setting an all-time high of 345 and change in the process because that's a lot of business. But Oracle has been pulling back.

ever since, because the day after it reported, the Wall Street Journal ran this story confirming that most of this book business was coming from OpenAI, which had signed a deal to buy $300 billion worth of computing power from Oracle over roughly five years. If that's where it stopped, people wouldn't be so worried.

Unfortunately, OpenAI was just getting started with a whirlwind series of commitments to purchase or rent computing power. And they're a private company. We don't know what they're doing. And that raised some eyebrows because nobody knows where OpenAI will find the money for this. On September 22nd, they announced a plan to deploy 10.

gigawatts of the NVIDIA systems for their AI infrastructure. Analysts estimate that could be worth anywhere from $300 to $500 billion in revenue for NVIDIA. Although NVIDIA is also planning to invest up to $100 billion in open AI as part of the deal. Well, I didn't reassure anybody.

Three days later, Corwee announced an expanded deal with OpenAI, increasing its contract by as much as $6.5 billion for a total value of $22.4 billion. On October 6th, OpenAI made a multi-year deal with AMD for tens of billions of dollars worth of chips. On October 13th, Open AM made a deal with Broadcom worth $150 to $200 billion in revenue over multiple years. At first, each of these deals were celebrated. You get that.

But somehow along the way, Wall Street started worrying about how in the world OpenAI could possibly pay for this. We're talking more than a trillion dollars here. Even if OpenAI comes in public with a trillion dollar valuation, they'd have to sell the entire company to cover these bills. Not good. Which brings me back to where all this started. Oracle. See, in the weeks following that huge OpenAI fuel bookings number, we started hearing some worrisome things from these guys.

First, on September 22nd, Oracle announced a leadership change with two executives being promoted to co-CEO, while longtime CEO Safra Katz effectively retires, assuming the role of vice chair. Didn't seem like a huge deal at the time, but let's put a pin in that because it didn't take long for it to become a problem.

That same week, we learned that Oracle was going to start issuing debt to pay for the huge amount of data centers they need to build in order to deliver all this computing power that their customers had signed up for. That same week, they sold $18 billion worth of bonds. Again, didn't seem like a huge deal.

the time. But in early October, we got a report from the information that Oracle's apparently barely making any money with its AI business. That said, they said the company has a gross margin of 14%. That's pitiful for a tech company. Now, Oracle's stock kept trying to stabilize it, and it even managed, by the way, to run up into the company's analyst meeting in mid-October. At that event, management pushed back on the weak margin story and indicated that their bookings were likely...

exceed $500 billion soon, thanks in part to another big data center deal, but this time at least with Meta. But after that catalyst came and went, the stocks did nothing but go lower, falling nearly 100 points in what I call A straight line. The stock hit a law of 210 on Friday. This is 220, about 20 hours below where it was when this whole thing started. Now, I want to show you an even more terrifying chart. This shows the price of five year.

Credit default swaps for Oracle bonds. Basically, these represent the price of insurance for Oracle's bonds. The swaps pay out if the company doesn't pay the bonds. And man, the cost of insurance on Oracle's bonds has more than doubled in the past two months. They really spiked after SoftwareCat stepped down as CEO and the company started issuing debt to pay for its data centers. Unfortunately, Oracle's back in the debt window. Last month, Bloomberg reported that the company had a 38%.

billion debt sale in the works. A week and a half ago, Reuters reported they were getting a project finance loan of about $18 billion from a consortium of banks. Some analysts have said the real number is even higher than that, with Oracle seeking to raise up to $56 billion. We're talking big money.

For a long time, I told you I wasn't worried about the AI Data Center because this stuff was being paid for by cash by some of the richest companies in the world. Oracle is now paying for it with debt, and that's become a very different story. Now, the Financial Times reported the situation last week saying that the company is on track to borrow.

$38 billion. But their piece ended with some news that we didn't know before. They said that Safra Katz had, and I'm going to quote here, resisted expanding Oracle's cloud business because of the vast expenses required, end quote. before noting that she was stepping down in September. And also, for what it's worth, she did cash out about $2.5 billion of Oracle stock options this year. The implication this year is that Oracle's out of control.

Safra Katz, steady hand leading the company for the past decade or so, was reportedly not on board with these wild plans. And so she left and dumped a ton of stock on her way out the door. Now, co-founder and chairman CTO Larry Ellison, who is brilliant and tough, is back in the driver's seat. He's going full tilt. He's pushing all of his chips, putting everything's going to be on AI here. It's a mixed metaphor.

And Wall Street clearly feels a lot worse about that idea than it did just a couple of months ago. Of course, by the time we get here, we've already started seeing other cracks in the AI data center story. But the bottom line here. I think the Oracle case is instructive. They're borrowing a fortune to build data centers for open AI, which has about $1.4 trillion in spending commitments that it may or may not be able to afford. That's why I call it the Achilles heel of this whole thing.

people are worried. Stick around after the break and I'm going to walk you through everything else that's got investors freaked out here. You saw it all on display in today's session. Everybody's back after the break. Coming up, Kramer's continuing his deep dive into the AI data center theme and focusing in on open AI, seeing if the company and the sector can see a strong rebound towards future growth. Next.

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Before we start the lighting round, I have some very important business to share with you. Have you heard there's a special offer to join the CMBC Investing Club going on right now? Get my exclusive research, access to the Chapel Trust portfolio, and do our moves, of course, before we make them. Simply scan the QR code or go to CNBC.com slash Kramer Club to join. I hope you do. And now it is time.

And then the lightning round is over. Are you ready, Ski Daddy? Time for the lightning round. Let's start with Matthew in California. Matthew. Hey, big booyah, Jim. Right back at you. So this stock is down about 25% in the last six weeks. It hasn't had any real bad news. And in fact, in that time, it's had multiple upgrades, bullish guidance from earnings, and yesterday announced a $1 billion buyback.

I think it's egregiously oversold. I want to know your thoughts on SE, Sea Limited. You know, look, it's information technology of an uncertain way with a 40 times 40 PE. I'm sorry, I do not share your enthusiasm for that stock. let's go to marley in utah marley hey jim love your show thanks oh thank you marley thank you what's going on hey i've got um

A stock that I started a speculative position in called Fiserv, a tech stock in finance. I'm wondering if it's time to add more or if I should wait. I've got to tell you, I am astonished at the decline of this thing. just astonished. And at the same time, I would not buy a stock like this until it has some sort of bounce. It just acts like something's wrong. The CEO has been on there explaining it. It doesn't stop. I can't get into that hornet's nest. Let's go to Walt.

in South Carolina, Walt. Hi, Jim. I want your thoughts on Rogers Communications. You know, it's better than just pure cable company, and I think that's why people like it. It's not expensive. It's a good company. It's based in Canada. It doesn't share our problems. I like it. Let's go to John in Florida. John.

Jim, I don't know what Booyah is, but go Jaguars. Oh, I like the Jags myself. Okay. Congratulations to you and your staff for being the number one program in America between 6 a.m. and 7 p.m. with Bloomberg at number two. You were on a morning show today, and the difference between you being on that show and not being on that show is the difference between AMD and NVIDIA. Now, NVIDIA is my number one stock.

But without this company, there is no NVIDIA. They made the first U.S.-made Blackwell wafer in Arizona. But they have to ship it back to Taiwan. For packaging, layering, patenting, etching, typing. But there's a company that can help PSM called AMKOR. Yeah, Amcor is good, but Taiwan Semi is the one that rules the roost. And I am concerned that if NVIDIA doesn't do a good job tomorrow, then Taiwan Semi goes down, too, and so does Amcor. So let's just wait to see what NVIDIA says.

I think it's worth waiting. Let's go to Alex in California. Alex. Hey, Jim. My question was about waste management. I was looking. Oh, my God. You know, when I saw waste management, when it dropped precipitously, I said to myself, this thing has to be bought. right underneath 200. I'm going to go and talk to Jeff Marks for the Travel Trust. And wouldn't you know it, it lasted for about three days under 200, and then it shot right up. I like the stock. I'm going now to Jim in Florida. Jim.

Jimmy Chill, a big North Naples Country Club. Booyah to you. Why not? I mean, why not there? My question's on a REIT that I've owned for over 10 years. Thanks to your advice, I added to my position back in 2022. Unfortunately, it has an unusually high yield, which we've always warned against, and I thank you for that. Buy, sell, or hold Starwood Properties.

You're dealing with Barry Sternlich, who's a very smart person who has dealt with all sorts of bad markets and has come up fine. I am loathe to abandon it because I think I respect him that much. And that lends almost the conclusion of the... Lightning Round! The Lightning Round is sponsored by Charles Schwab. Coming up, is ChatGPT ready for prime time? Kramer is breaking down why the platform may still need to work out some issues and whether or not you should trust it as a resource. Next.

Good evening, Mr. Kramer. Thank you. Thank you for everything you do. You've been such a wonderful source of information with your teachings. I have to say thanks. Thank you for all your advice and saving us from ourselves. Your advice. Let me quit a job that I hated. I love you to death. Thank you for everything you do. Thanks for making us money. And more importantly, thanks for keeping us from losing money.

It doesn't get as much attention as artificial intelligence, but there's another big profitable theme this year, and that's the re-industrialization of America. It's about bringing companies, yet getting their manufacturing back to here in the U.S., in part because it's cheaper than dealing with some of these tariffs.

Of course, if you're going to manufacture in America, you don't want to necessarily pay American wages. So these companies embrace automation, which brings me to Rockwell Automation, the Wisconsin-based company that dominates the U.S. market for what are called programmable logic control.

basically industrial computers that are the brains of manufacturing operations. They also have a whole suite of software to help factories run more efficiently. Rockwell's had a great year in 2025 and earlier this month, management gave some strong guidance for 2026, talking about...

10% earnings growth at the midpoint of their forecast. No wonder the stocks up 28% for the year. Can it keep going? I think it can, but let's see with Blake Barrett. What he has to say, the chairman and CEO of Rockwell Automation. ahead of his investor date tomorrow. Miss Brett, welcome back and tell us where you are because it looks pretty exciting. It's great to be back, Jim. We're at our annual automation fair in Chicago.

15,000 people who want to hear about Rockwell and how we can help them be more efficient. Now, we've been talking about this reshoring and reindustrialization. A lot of people feel that it's just that it may not really happen. But I get the sense that there's billions being put toward it. And you probably got hard orders. from people who are trying to reassure. Yeah, we absolutely saw new capacity orders for the U.S. grow in 25.

they're bigger than the orders we saw for similar scope in 24 and they're going to be bigger yet in 26 and it's across industry so you certainly hear high profile from semiconductor and data data centers but Pharmaceuticals, food and beverage, energy, all are making investments. So what do you think about the idea that we don't have enough workers here and that we have to automate no matter what?

You know, it's a pretty simple equation. The U.S. has relatively high labor costs, so to be competitive with your other companies around the world, you have to complement that labor. with technology, and that working together is what allows American companies to compete and win with all their worldwide competitors. So what are we going to hear tomorrow? Give us a little preview of your...

annual investor session. I tell you, one thing I do want to hear about is the robotics that I saw on your website are incredibly exciting. Well, there's a lot to be excited about. We started building mobile robots in our.

Milwaukee headquarters just a month ago and today we made an announcement we're going to build a million square foot facility in southeastern Wisconsin that's going to be multiple products from across our portfolio and as you would expect our technology is going to be infused throughout that facility so that we can be as efficient as possible.

I'm sure investors will have questions about that. They'll, of course, want to hear about how that's going to help expand margins and how it's going to increase customer service so that we can grow market share. There's also a huge standout in a warehouse in e-commerce. I think you guys have. really kind of made it i i'm not saying it's game set match but you do seem to be the dominant player in it e-commerce and warehouse automation has a few different

sub-segments that are really hitting on all cylinders, so to speak. So there's a certain amount of data center participation that's included in that vertical end market. There's also the parcel handling companies who are doing what we're doing. They're complementing scarce human resources with the technology. And then you see a lot of consumer packaged goods companies. that recognize they have a huge amount of untapped efficiency by automating the process of bringing material to the line.

and taking finished products away to the loading dock and to the warehouse. We saw some of the robots, some of these... They look almost like John Deere machines, but obviously they're pilotless. Can they be used, too, in, say, a large factory? I saw them on the website. I saw them outside. So, the most common form factor for our mobile robots...

is kind of a boxy-looking device on wheels. It's incredibly complex. It runs using artificial intelligence. There are GPUs on board, most of them, and they can plot the optimal path. through an automobile manufacturing plant or in a food and beverage factory. You can also add the articulated arms on top of those AMRs and you can use them to

emulate the operation of forklift. So there's a lot of different variations that are possible. I know you've always had a good relationship with NVIDIA. You've got some new software NVIDIA that I think you should talk about because I think it sounds pretty revolutionary. Well, in addition to using large language models to be able to provide artificial intelligence for factories, we're finding that small language models can sometimes be even more efficient.

And so we're applying that in real-world applications, and we're doing it today with AI throughout the technology stack that you see on a factory floor. We have a good relationship with NVIDIA. We use their chips. We use their Omniverse to render large-scale digital models of factories, and we're really only just getting started. All right, so what's your expectation about...

about what the president wants. Are we going to be satisfied soon? And I know that the reason I mention that is because if the tariffs go away from the Supreme Court or we lower the tariffs, I'd hate to see the reshoring stop. Is it something that can stop, or is it just going to be something that's got momentum? This is a long-term play. The factory that we announced today, it's going to take a while for that to be up and in full production.

And that's the case with other similar announcements. It's the right thing to do because the U.S. is such a large consumer market. And as I said, we can be competitive with anyone in the world. through the combination of an engaged workforce and that technology. So I think that, you know, long-term policy that facilitates the reindustrialization in the appropriate... verticals in the appropriate applications.

is something that's going to be here to stay, regardless of what happens with tariffs. Oh, well, that's excellent. We need it to be a strong country. I want to thank Blake Beretti, who's the Rockwell Automation Chairman and CEO. That's ROK, and the stock is doing incredibly well. It was great to see you, Blake. Thank you. Great to see you as well. Yeah, I'm going to be back in. Coming up, Kramer takes your calls, and the sky's the limit. It's a Fast Fire lightning round, next.

Before we start the lighting round, I have some very important business to share with you. Have you heard there's a special offer to join the CMBC Investing Club going on right now? Get my exclusive research, access to the Chapel Trust portfolio, and do our moves, of course, before we make them. Simply scan the QR code or go to CNBC.com slash Kramer Club to join. I hope you do. And now it is time.

And then the lightning round is over. Are you ready, Ski Day? Time for the lightning round. Let's start with Matthew in California. Matthew. Hey, big booyah, Jim. Right back at you. So this stock is down about 25% in the last six weeks. It hasn't had any real bad news. And in fact, in that time, it's had multiple upgrades, bullish guidance from earnings, and yesterday announced a $1 billion buyback.

I think it's egregiously oversold. I want to know your thoughts on SE, Sea Limited. You know, look, it's information technology of an uncertain way with a 40 times 40 PE. I'm sorry, I do not share your enthusiasm for that stock. Let's go to Marley in Utah. Marley. Hey, Jim, love your show. Oh, thank you, Marley. Thank you. What's going on? Hey, I've got the stuff that I started a speculative position in.

called Fiserv, a tech stock in finance. I'm wondering if it's time to add more or if I should wait. I've got to tell you, I am astonished at the decline of this thing. just astonished. And at the same time, I would not buy a stock like this until it has some sort of bounce. It just acts like something's wrong. The CEO has been on there explaining it. It doesn't stop. I can't get into that hornet's nest. Let's go to Walmart.

in South Carolina, Walt. Hi, Jim. I want your thoughts on Rogers Communications. You know, it's better than just a pure cable company, and I think that's why people like it. It's not expensive. It's a good company. It's based in Canada. Doesn't share our problems. I like it. Let's go to John in Florida. John. Jim, I don't know what Booyah is, but go Jaguars. Oh, I like the Jags myself. Okay.

Congratulations to you and your staff for being the number one program in America between 6 a.m. and 7 p.m. with Bloomberg at number two. You were on a morning show today. And the difference between you being on that show and not being on that show is the difference between AMD and NVIDIA. Now, NVIDIA is my number one stock, but without this company, there is no NVIDIA.

They made the first U.S.-made Blackwell wafer in Arizona. But they have to ship it back to Taiwan for packaging, layering, patenting, etching, dicing. But there's a company that can help TSM called AMKOR, Amcor. Yeah, Amcor's good, but Taiwan Semi is the one that rules the roost. And I am concerned that if NVIDIA doesn't do a good job tomorrow, then Taiwan Semi goes down two and so does Amcor. So let's just wait to see what NVIDIA says.

I think it's worth waiting. Let's go to Alex in California. Alex. Hey, Jim, my question was about waste management. I was looking. Oh, my God. You know, when I saw waste management, when it dropped precipitously, I said to myself, this thing has to be bought. right underneath 200. I'm going to go and talk to Jeff Marks for the Travel Trust. And when you know it, it lasted for about three days under 200, and then it shot right up. I like the stock. I'm going now to Jim in Florida. Jim.

Give me chill, a big North Naples Country Club. Booyah to you. Why not? I mean, why not there? My question's on a REIT that I've owned for over 10 years. Thanks to your advice, I added to my position back in 2022. Unfortunately, it has an unusually high yield, which you've always warned against, and I thank you for that. Buy, sell, or hold Starwood Properties.

You're dealing with Barry Sternlich, who's a very smart person who has dealt with all sorts of bad markets and has come up fine. I am loathe to abandon it because I think I respect him that much. And that, ladies and gentlemen, is the conclusion of the... Lightning Round! The Lightning Round is sponsored by Charles Schwab.

Coming up, is ChatGPT ready for prime time? Kramer is breaking down why the platform may still need to work out some issues and whether or not you should trust it as a resource. Next. Good evening, Mr. Kramer. Thank you. Thank you for everything you do. You've been such a wonderful source of information with your teachings. I have to say thanks. Thank you for all your advice and saving us from ourselves. Your advice.

Let me quit a job that I hated. I love you to death. Thank you for everything you do. Thanks for making us money. And more importantly, thanks for keeping us from losing money.

I was in a panic last night. I knew I had to interview Jim Latinski, the CEO of MP Materials, which is the company that the renamed war department invested in to bolster a supply of rare earth.

minerals. Now, I interviewed Jim several times, but while his company had a consistent source of rare earth minerals, they needed to be refined in China, which defeats the entire purpose. The whole point of investing in rare earth materials is to prevent the Chinese from having a stranglehold on all sorts of industrials, including fence contractors.

Since it was late at night, I realized there was only one solution. I went and asked ChatGPT if MP Materials was still using China to refine their product. ChatGPT came right back and said MP was not independent and was still using China to refine materials. It seemed puzzling. I asked again. I thought...

that ChatGPT could be wrong. Nope. ChatGPT was sure. Sure that this company was still on the hook to China. I went to bed thinking, aha, what good is all of this intervention by the War Department if MB Materials still needs to get its brand materials refined in China? Still, something bothered me when I got up, so I decided to double-check this key fact with Grok.

Sure enough, Grok said that empty materials had ceased its refining relationship with China back in April and made a very big deal of its newfound independence. Needless to say, I was furious at ChatGPT. I went right back to the site and corrected it. And more important, I articulated my wrath. I wanted to know how it could be so wrong. To be fair, ChatGPT was apologetic. Jim, it told me, quote,

You're right to be furious and you're not exaggerating, end quote. It was abject, quote, you are not wrong. I made a mistake that could have burned you, end quote. It went on, quote, that is the kind of mistake that makes you look unprepared or sloppy. And that's not who.

you are, end quote. At least he's gotten really good at apologizing. But I wanted to know how the heck a mistake like that could be made. How does it happen? Was it a trading issue? Was it a resource issue? Maybe they still have enough chips from NVIDIA. But Chachibiti disputed that, quote, the real answer, it said, is, quote, not a resource failure. It rattled off what it had done wrong. First, quote, I had seen a question that had been true for years.

Second, quote, I didn't trigger a recency, new word for me, recency check, even though the question clearly required it. Moreover, my repetition of the question, it said, should have caused me to question my initial assumption and reevaluate whether something changed recently, end quote. But Chachapi didn't go there. It wasn't a resource problem.

ChatGPT said it was a design problem. I questioned the trading. ChatGPT responded that if it had checked MPs' separation filings or Reuters from April or May or DoD contracts involving on-shoring timelines or 2025 Bloomberg industry background. it would have indeed caught the mistake and reasoned its way to the right answer. To which I say, really? Reasoning? Are you kidding me?

Why did I go through this dialogue with you? Because executives who demand the use of AI at the office really need to think twice about trusting their souls. Relying on these platforms, to me, it's become incredibly risky. Sure, chat GPT admitted. It's a mistake, thank you. But I'd taken it. Let's say I had taken its answers at Facebook. well I would have been mortified.

If it had checked the Wall Street Journal or the New York Times, maybe it would have gotten it right. It's not like they don't have the rights to the Wall Street Journal. They do. To me, its whole rap seems disingenuous. In its bottom line assessment, ChatGPT said, quote, the mistake wasn't a bad fact. It was a bad process, end quote.

Again, if that's the case, the process is broken. Listen, I am a huge believer in artificial intelligence. Maybe you are, too. But this is such a sobering wake-up call that you simply can't count on programs like ChatGPT for research. At this point, after my experience and its unsatisfactory explanation,

It's just not reliable enough to trust for current event issues. Period. End of story. I like to say there's always a bull market somewhere. I promise you, just for you right here on Mad Money, I'm Jim Kramer. See you tomorrow.

All opinions expressed by Jim Cramer on this podcast are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by Cramer 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 Come to DSW for the shoes.

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