Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money.
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 3/6/24
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Spy is subject to risks similar to those of stocks. All ETFs are subject to risk, including possible loss of principal, alps distribution, and distribution. My 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 Money. Welcome to Kramer, other people want to make friends, I'm just trying to make you a little money. My job, not just to entertain, but to put this whole thing in context, why don't you call me, 1-800-743-6, between me and Jim Kramer. How big is AI? Look, this technological revolution is crossing all barriers, even potentially becoming the heart of our national security apparatus. So we be like ostriches with our heads in the sand if we don't interest it here, or may have money. I think it could potentially be the key to making the biggest amount of money over the next half decade that we can do, not just the next week, or next month, or quarter, as the professional bubble bursters, and all their negativity keep claiming, and they're all around me. Drives me crazy. So on a day when the average is regrouped after a couple of days of pain, the Dow advancing 76 points has to be rising 0.51%, now that's gaining 0.58%. Why don't we just spell out the stakes here? So you know what I'm really thinking. First, one of the few tech stocks has been able to hold its head up high this week, so of course, Nvidia. That's because it has the cards. The graphic processing units, or GPU cards. These Nvidia semis run much faster than anyone else's with the sole exception of AMD, which is their only real competitor. By the way, the next generation of Nvidia GPUs will far exceed what AMD currently has. Plus, it's learning software that make it the preferred thinking chip for Gen.A.I. That really is the exceptional thing they've got going. Nvidia stock has turned into a rocket ship, precisely because it's already making so much money off these chips. Many would say that they almost have a monopoly on this category of the highest power GPUs. We just don't know how long it'll take for someone else to play catch up. This monopoly is born from the years of blood, sweat, and tears set by CEO Jensen Wong and his team, not for some short-term brainstorms that critics would have you believe. And now it's paying off in extraordinary ways. Believe me, I remember when he was in the wilderness, in the vineyards, no one else listening. Me. Take yesterday. Just when you might have thought that Nvidia was finally going to roll over with the rest of the tech, the company presented a health care briefing, health care, which reminded us that standard computing science is really only a small part of the Nvidia universe. There's autos. Yes, Nvidia is in the Tesla. There's factories, the so-called digital twin, trades of dollars in business. There's banks, a vertical where fraud can be detected incredibly quickly by Nvidia-led devices. Hey, there's Sovereign and Sovereign AI. The end markets are practically limitless. And of course, the biggest of all, is inference, which now accounts for 40% of the company's business. 40%. What's the inference? It's the computer equivalent to mind-reading. The kind of mind-reading to say Amazon does in order to figure out what you might want before you know what you would. When I first met Jensen Wong, he taught me about waste. That's the first thing he brought up. How his graphics cards need to burn less heat. He didn't want waste. He's already made them much more efficient at this point. But when you put thousands of these chips together, they drain an incredible amount of power and produce a ton of waste heat. Companies that use huge clusters of the need far more power than the grid makers ever imagined that we require in our slowing, de-industrializing society. No one thought that one new industry, the Gen. AI industry, could single-handedly drive up the needs for power by about 5% per year. That is gigantic people, especially when you remember that the power generation business hadn't been growing in any peaceful way for decades. We've been more abundant. But think about what's going on here. The immense computing power needed to run all these AI-enabled devices and the data centers and the machine, stands at the heart of the current re-industrial revolution we're undergoing in this country. The sheer amount of data center construction that's going on partially explains why caterpillar stock has been such a horse and that Dow Joe's industrial average. It's why an old-line industrial like Kramer Charitable Trust faith, Eden, could reach the top of the list of companies with urging demand for helping the ailing power grid handle all this excess electricity. It's why I outfit like Vertev, Dave Cody, Chairman, which makes specialized power cooling and IT infrastructure products for the data center out from even the hottest stock in the SB 500 this year. Too bad it wasn't a member, it would have been number one. Now that we're headed for the real battleground people, these data centers aren't just data hogs. Their data needs to be parsed by software from a sales force, say, or summoned by a service now, and they have to be connected to the grid in places that have low energy costs. Oh, and for many cheap energy isn't enough. It's got to be clean too. See, right now there's a furious race among the power generation utilities to meet this new demand of a clean power and phase out 30 coal. And that's why constellation energy nuclear copy of the win kicker is up 54% this year. Get that 54%. The big data players Amazon, Microsoft, Alphabet, Met, Apple, they want to be carbon neutral based on what the EPA calls scope three emissions, meaning no emissions from their own assets and no emissions from the electric power provider either. In other words, if utilities want their business, they need to go solar or go wind or go nuclear and they definitely need to not have any coal. The result, a burst of renewable sustained power that's producing some of the best winners of the moment. Like that offer we had on the other night, next tracker with technology that helps make commercial solar panels more efficient. Look at this eat and I mentioned that on Parker head of incumbents. Remember what to see them? Holy cow. They are roaring for the same reason all old line industrials that have a hand in building this stuff. They were very visionary. Oh, and the real industrialization of the Midwest, I got to tell you, we just don't talk enough about positives. But I try to change that in this show. Oh, okay, I get this one. I spent some time talking with GE Vernova today. That's going to be the gold standard and win when it separates from General Electric the next couple of months. I know people are looping about GE's power business and long considered the worst part of the company. But just as I became a believer and then a proselytizer for GE health care for its best-in-show MRIs, we owe it for the Child Trust, I am coming around to GE Vernova as a major player thanks to this artificial intelligence fuel green energy build out. And I like what they had to say to analysts. So these data setters have so much demand for power that the intermittent alternative energy plays, I think wind and solar, can't handle it all. Nuclear is actually the only truly consistent source of clean power, but it's insanely difficult to build a nuclear plant. Although Vernova did tell me today they're starting to see some success building the equivalent of a cookie cutter kind of nukes in Canada, a small form factor. So you end up needing natural gas, though, and the natural gas company is like Enbridge, which runs the largest network of natural gas transmission pipelines and we have them on tonight, is buying into this. Enbridge is buying assets that will put them at the forefront of this bridge fuel. That gas is cleaner than coal and cheaper than anything other than coal, not carbon free, but better than letting the lights out or having a data center score overseas. It's not just a battleground involving our own power grid, it's also about who owns the intellectual property. Right now, NVIDIA, to a lesser extent AMD, make the GPUs that you need to run this technology, but they're all the designers. The actual capital equipment needed to make all this stuff involves alphas like land research, applied materials, KLA, ASML, and of course most important, the uber manufacturer that is Taiwan's semiconductor. So the chips are made in Taiwan. Taiwan's semi-strific stock, but there are some other very tricky things that work here right now that we have to talk about. Our government's doing its level best to try to keep China from getting our latest and greatest. With the Commerce Department just directly telling the other day AMD, "Ah, those chips might be too good for China." The government, well actually, they really think too fast, but the government says they need to dumb them down a little. Last year NVIDIA was blocked from selling the Chinese its best chips because of natural security. Remember, right now you cannot do a cellular computing jet of AI without NVIDIA's chips, hence why it's stock can have that evaluation. How long can China stand by and do nothing if we own all the intellectual property behind these revolutionary technologies? Is it a chokehold on all their ambitions? Or will they eventually just start making their own pirated knock-offs? Is it squelching visions of a stronger military using our own AI against us? Either way, it's all coming together for what I call our nation-state companies, formerly part of the broken band that was the Magnificent Seven. I bet if they can't get the system they want, by the way, the clean system, they might just build it themselves. So what bottom line here is this? The AI revolution is already producing some of the most investable themes of all time. We just need to look into the data center, peer into the cloud, and harvest these incredible ideas while being mindful of the geopolitical issues that could make this business vulnerable. If the Chinese just say, "We can't afford to fall this far behind the U.S." as a military power. Zachary and New York Zachary. Jimmy Chil, thanks for all you do, you're the GOAT. Oh, whoa, GOAT, like that. What's going on, man? I'm calling about a company that pretty much has a monopoly on supplying EUV machines for sending conductors. I'll put it to my position after fourth quarter earnings and after Jensen Huang spoke about the dependence on ASML for making advanced AI chips. With the stock closing at an all-time high today, what's your opinion on ASML? I will tell you, I am in awe of ASML. I know that a lot of people look at the chart and they think Super Micro, they think Nvidia. I don't know what to say. They're just an unbelievably good company. By the way, the machines are the size of a city bus. I mean, these guys are just, they are ring-core wrists. So I like this gentleman. Showman says fine to Zach. Let's go to Eric and Michigan, Eric. Jim, how are you doing today? It's just having a dynamite day, Eric. I was incredibly productive. Jim, let me just say, Monday through Friday at 6 p.m. I don't miss your shows. I thoroughly enjoy them and we all are better investors because of you. Oh, thank you, buddy. Thank you. See, I like this guy. Well, I appreciate you as well. Jim, I'm calling on General Motors today. Here's a stock that had had, sales had been through the roof for the last two years. They've announced a major share buyback. We know the cruise divisions in the penalty box, but hopefully that's up and running this year. But yet a tragedy of forward P of under five. Is this stock going to ever go higher? Okay, so look, Mary Barr is doing a terrific job. I mean, though, everyone thinks, everyone's just afraid that one day that we're going to wake up and the Chinese lotos are going to be here up from Mexico and it's going to be the end of GM. I don't think so. I think GM is a great company. I think it's a buy right here. Look, I obviously wish I had a bigger yield. We own Ford for the travel trust because we know that they're the hybrid king. But I want you to stick with General Motors. Okay, the AI revolution is already producing some of the most investable themes we have ever seen in our investing lives. We just need to peer into the cloud and harvest these incredible ideas. Man, money tonight. Crowd strike. Talk about incredible idea. As opposed to this four straight quarter of gap income. So can this cyber firm safeguard your portfolio from the threads I've got the CEO? They can average recent pipeline expansions, power the stock iron, help the AI grow faster. Don't miss my exclusive with the company's top best. I think a closer look at the 100 appreciated sector this morning. Healthcare utilization. It's more interesting than you think. I'll prove it when I show you my hernia scars. Maybe we'll save that. 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 madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something? Head to madmoney.cnbc.com. Resourceful small business owners know how to get value from the purchases they already make for their businesses each month. The enhanced American Express business gold card is designed to take your business further. It's packed with benefits and features like four times membership rewards points that automatically adapt to your top two eligible spending categories every month on up to $150,000 in purchases per year. So you earn more where your business spends the most. 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And it's not just faster. 93% of employers agree that Indeed delivers the highest quality matches compared to other job sites, according to a recent Indeed survey. And here's the best part. Listeners of this show get a $75 sponsor job credit, giving your jobs more visibility at indeed.com/madmoney. Just go to indeed.com/madmoney right now and support our show by saying you heard about Indeed on this podcast. Indeed.com/madmoney. Terms and conditions apply. Need to hire? You need Indeed. Look at this incredible movement, the stock of crowd strike up more than 10% today. Last time, crowd strike reported a terrific top and bottom line beat on top of that man who gave better than expecting guidance for both the current quarter and the full fiscal year. And it's now I'm going to say it feisty CEO, George Kurtz, talked about me seeing great orders and more importantly, maybe winning business competitors. No one to the stock court fired today. So can you keep running? Let's take a closer look with Mr. Kurtz, the co-founder, president and CEO of crowd strike. Find out more about the quarter in the future. Mr. Kurtz, welcome back to man money. Great to be here, Jim. All right. So George, I had a kind of a chill when I got to maybe your 12th paragraph where you started to talk about how, you know, cloud today, battleground for cybertext or generative AI, which we all love, right? Is an adversary force multiplier? George, when I read that, I said maybe the bad guys have jumped ahead of the good guys. Is that going to happen? Absolutely, Jim. What we're seeing right now is the use of generative AI to really democratize some of the very esoteric techniques and attacks and make those techniques available to folks maybe that don't have the same sophistication and skill level. And what we talked about in the earnings call is the ability to create more adversaries with lower skill levels, but operating at a much higher skill level, leveraging generative AI. Of course, on the security side, we leverage generative AI to help protect our customers. So it's going to be the battle of AI in the future. But, you know, we've got companies like UnitedHealth and I've had the privilege of interviewing them many times. This is one of the most sophisticated best-run companies in the world, George. And yet they have seemingly been caught up in a hack that I would have thought would have been stopped or caught earlier. I mean, these are great, you know, a great company can just still get hacked. I'm sure they had systems. Well, when you look at any company that's out there, we've talked about this before. It is so easy to become a victim. And I always look at this as, you know, not blaming the victim, but focusing on how determined the adversaries are. And almost any company is going to have an incident. You're going to have adversaries get in. And one of the things that we've really focused our efforts on, Jim, as you know, many years coming on the show is stopping the breach, not just stopping malware. And you have to instrument your security for not only protecting against these systems, but also protecting against identity, which was an outstanding business for us as we called out. Over 300 million in ARR up dramatically quarter over quarter and year over year. Yeah, they mentioned that because identity, there are others who have taken that crown, or at least think they have that crown. But it's so integral to trying to get the bad guys. Now, you were just able to put it in your platform, correct? We did. And I think that's the beauty of the platform is with the single agent, single platform, single console. It's very easy for us to add new capabilities. When we think about identity, that's a broad term, we focus on identity protection. You have identity creators like Azure and Microsoft, you have identity aggregators like Ping and Octa, and you have companies like ARR's that are focused on identity protection. That's a critical element to having the full stack of a zero trust architecture, and it's served our customers really well. Now, there were two issues that came up. I want to tackle them ahead one, because I don't want to be like, "Oh, Jim owns this Palo Alto First Chable Trust, so he's not going to take on anybody else Chable Trust. I don't play that way." Crowd strike holdings, UBS, no fatigue here. Morgan Stanley, no spending fatigue here. Now, these are references to when the cash was Aurora, who's the CEO, and I know you and I think a great deal, but he did use the term fatigue. And it may have been misinterpreted, whatever. Let's just describe whether you're seeing any fatigue anywhere in the whole food chain of cybercrime. And what people are trying to do to stop it. Well, we're certainly not seeing fatigue in cybercrime. That's been more active than ever. And really, I think there's a lot of fatigue in the companies that are saddled with legacy technologies and having to band-aid different technologies together in platforms. What customers are focused on, and what we're focused on delivering for them, is the right outcome. Stopping breaches with a simple, single platform that allows them to add capability seamlessly without multi-month implementations and without complexity. And you're seeing that in the results, and I think the numbers and Q4 speak for themselves. And that is something, Jim, we talk about overnight success. This has been in the making for many, many years. And I've talked to you about being the Salesforce as security. And this is something that we're delivering. Okay, let's switch direction for a second. I'm going to read a paragraph that I thought was pretty frightening. And this is a win that you had. An eight-figure multi-year win in a Fortune 100 business where the Falcon platform displays five different products with recent breaches, costing them hundreds of millions of dollars. This is going on, and we don't even know it. Well, there's a lot of costs associated with this, Jim. And now with the SEC disclosures, you have a lot more visibility. Before that, you didn't necessarily. And when you look at how much it costs in ransomware, you're talking about tens and tens of millions of dollars of single ransoms being paid, then you look at the cleanup, the downtime, the impact. You look at the legal fees, you look at the lawsuits. Immediately when this happens, you've got all the lawyers that are about to break these class-action lawsuits. So you put all this in a bucket, and you're talking about hundreds of millions of dollars. This is just incredible to me. And you've really been able to be the first person to explain exactly how horrendous is for corporate America. Now, this is another one that bothered me. Winds from the quarter include a seven-figure deal with a mega-cruise line using a next-gen product that can never be fully deployed. Upgrades and operations were disastrous. Who sells products like this? Well, this is the challenge in the security industry, and that is one platform is not the same. You can create power points, and I always said I've never seen a power point that was wrong, that looked the same. Until you actually implement the product, something like CrowdStrike Falcon that was built from the ground up to be easy to install, easy to deploy, and easy to manage. And we see this time and time again. People may try to buy something. They may think it's cheaper. It's not. Free is not free. Cheap is what you get what you pay for. In this particular case, you're talking about customers that had incidents, they had issues, and more importantly they had technology they couldn't deploy and operate. One last one. We collect trillions of threat signals. Well, I was thinking maybe it's going to be yearly. Maybe, I don't know, monthly. Dally? Trillions? I mean, come on. If 10 gets through, we can destroy the banking system. I don't want to be over. You know what I mean? I'm saying that if you're JP Morgan, you can't afford to have one of these. Well, there's a lot of companies out there, and just on the banking side, we protect 15 of the top 20 banks in the world, right? So when we think about the signals that we get from the industries, part of our whole goal and philosophy has been community immunity. We take, as we built a data platform in Falcon, we take these signals, we understand what they look like, we use our AI and generative AI on top of all this massive data sets, and then that is then continually learning and protecting our customers. And that's the outcome they're looking for. Well, look, how about I congratulate you? Yeah, you are taking names, you're taking business, and you're doing a remarkable job. And as you said, you've never missed. George Kurtz is the co-founder, president and CEO of CrowdStrike. I want everyone to read this conference call before you buy this. And you will understand why I'm so excited about this situation. Thank you, George. Great to see you. Thank you, Jim. Yeah, Mike, back after the break. Coming up, energy has its ups and downs, but can investors set their watches to this power player's dividend? Kramer's got the CEO, Maxed. Brought to you by Eden Vance, the symbol of advanced investing. What's inside your ETF? With Eden Vance High Yield ETF, you know. Inside, you'll find smart bond selection from a specialized team with deep fixed income expertise. Get to know what's inside EV HY, the symbol of high yield done right at edenvance.com/cnbc. Before investing, prospective investors should carefully consider the investment's objectives, risks, charges and expenses. The current prospectus contains this in other information and is available at edenvance.com. Read the prospectus carefully before investing. Not FDIC insured, offer no bank guarantee, may lose value, not insured by any federal government agency, not a deposit. Investments involve risk, principal loss as possible, distributed by four-side fund services, LLC. Like I mentioned at the top of the show, the demand for electricity is now increasing at a 5% annual clip. After years of going nowhere, banks in large part of the energy drain from all these data centers that you need if you want to make use of the gender of artificial intelligence accelerated computing. In a world where the demand for power is on the rise, we need natural gas, which brings me to Enbridge, the Canadian pipeline, Kingpin. That moves 20% of the natural gas consumed in the United States, not to mention the biggest business, which is the 30% of the crude oil produced in North America. Yeah, that's who's exporting. At least they're getting into the ships. Best of all, Enbridge pays you to wait for the natural gas researchers with a 7.7% dividend yield. I think this is Enbridge's moment, and clearly someone over there feels the same way. Because they held an investor day today in New York Stock Exchange, and it was just a very exciting, exciting production. Right before that event, we got to speak to Greg Ebel. He's an old friend of the show, President and CEO of Enbridge. Take a look. Greg, it's great to have you for this full day analyst meeting. I think people need to know your company better. I want to start with what our people want to know, which is a huge dividend and a long history of paying one. Why don't we start there and then we'll go about how that happens? Yeah, it's a key part of the investor proposition, Jim, right? So 29 years in a row of increase in the dividend. Over the last five years, we have paid shareholders $34 billion in dividends, and over the next five years, we will pay out approximately $40 billion in dividends. So keep part of the business, and you underline that with four great business franchises, and keep going all the way forward. Okay, you make a very big acquisition with, frankly, a company that I have called Trouble, where I know I think you've got some great assets. What will that mean for you, and how far along are you paying off these assets so that we can figure out whether 2025 proposition? Absolutely, so we're about 90% of that completely financed, which I think was important to get that done. We did most of that late last year, and then we'll bring in the three utilities, so you're talking about the Dominion acquisition, the three utilities, Ohio, North Carolina, and Utah, and Wyoming. And don't be surprised to see us close one of those in the next couple of days. That's very good about that. Yeah, I think that'll be ahead of investor expectations, and we're really excited to get those men and women on board, because as you know, natural gas is really the future under any energy scenario that you look at. Let's go there for a second before we talk about how big you are. I've been talking to a lot of the data center crowds, so to speak, and they're growing. We probably have the largest demand for electricity, maybe in our country's history at this coast, are you prepared to help these, what I'm going to GPU problem, help the data centers, and where are they located versus your footprint? Yeah, so a variety of different places. Now remember, we're in 43 states, so they're pretty well located everywhere in 8 provinces in Canada. So in the natural gas at Ohio, interestingly enough, where we're about to get the utility, and where we have gas pipelines and oil pipelines, and renewable resources, and I'll come back to that in a second. That's a big location for these data centers, so we can sell them gas. We're selling them renewable, and a lot of these data centers are interested in signing up long-term renewable contracts with us, very utility-like, the natural gas is the backup. North Carolina, where I would expect to get that utility inside. That also is going to be a great opportunity in that Raleigh region, and you know, we're located near Charlotte, so great growing locations for those. We can give them gas, we can give them renewables, and we're ready to go on that front as well. Right, people know you from the history as being, well, geez, you're a great exporter of Canadian crude. I think that we need to set the plan here. How big are you in the U.S. versus your competitors? Yeah, so we move 30% of all the oil that moves in the country today in the United States. We go by about 75% of all the refineries, and the Great Kicker, because I believe the future of energy is through North America, and out of it. We have the largest export facility out of the United States for crude down in Ingleside, near Corpus Christi, Texas. And a great opportunity there, and we just announced earlier today an expansion of some of the docks there, so that we'll be able to do the very large crude carriers, as well as the Afro-Max and Suez Maxes as well. I don't think people always have the importance. What we've been doing in a lot of cases is a two-step process, small ship to big ship. And I'm always worried about spills, too. This is going to change. We're basically going to be a large exporter, just like the great exporters say at OPEC Plus, except for it's our crude, enough crude here to export. Yeah, absolutely. There's plenty of crude, right? First of all, most of that crude is coming from the Permian. Probably the largest, not probably is the largest growth area from crude. Probably add another couple of million barrels of crude out of the Permian by the end of the decade, and we expect to bring a lot of that. And then ship it abroad. You know, as North Americans, Jim, we often forget part of energy transition in other parts of the world is going to crude, because, you know, they're using far less sustainable and more dirty fuel. Not everybody's where we are, and crude really provides that. Not to mention the geopolitical power of the United States being able to provide crude to our friends, as opposed to people being forced into getting it from places like, I don't know, Russia, would you know it's going to challenge? I think that there's a gut-check moment here. There are many people in our country. Right. So, for example, we want to be able to forestall climate change, fix climate change. Sure. But we have an energy security issue, of which I regard Enbridge as being key to our continent's energy security. Yeah, absolutely. Not just security, Jim. Affordability. Remember, really powerful for industry. You know, frankly, the ability to use natural gas in this country for industry, the ability for consumers to have choice to be able to pick affordable energy. You know, it's challenging for a lot of people to put food on the table to pay the rent. If you can keep the energy bills down, and that's only possible through the use of natural gas, that is a powerful economic tool that I think policymakers are starting to realize. And we've had that view about energy change system for a long time. We're going to need it all. Okay, so some of them might say, who doesn't really follow us very closely. Wait a second, natural gas under $2, not sustainable for Enbridge, not realizing that that's not what you're levered to. Correct. Right. So, I often, and you and I have talked about this, but I often think of us as like the FedEx of natural gas. We pick up the product, same with on the gas side. We'll store it, we'll hold it, and then we deliver it where it's needed. So, we do not have any commodity exposure, right? So, we are just, you know, long-term fundamentals for energy are only going up, and the need for natural gas is going up. And the continued need for growth is going up on oil as well. So, as long as you need the infrastructure, which I don't see any other solution to that, you're going to need the Enbridge as other work. Okay, one last question, because we know people are going to say that dividend is great, and we know it's secure. But what I want to be certain about is, I do fear underperformance. There's a couple of analysts that are following you, not as many as I'd like. They're not as bullish about short-term. I feel like if you do these financing, you don't have to do maybe at the market, whatever, that this may be a trough. Now, I know, of course, obviously you're bullish in your own start. But what I just want to figure out is, is it possibly that the growth prospects could be greater than what people have been thinking right now? Well, as we announced today, we expect to see our EBITDA grow by seven to nine percent. Last year, we were five or six. There we go. You know, the per share growth will still be in that five percent range, and then interest rates. Remember, as a dividend stock per sensitive interest rates, I don't know where interest rates are going to go, but I doubt they're going up, and as they go down, I think that's going to compress the yield, increase the price. Leave it at that, because that's terrific news. That's Greg. Greg Hubel is the president's CEO of Enbridge, and just have to stand fully announced, meaning really telling a story that I have liked, I guess since I started the show. Hey, Greg, thank you so much. I want you to do that. Thanks very much. Coming up, precision machinery for when the stakes are at their highest. Don't miss claimers and intuitive chat with a redoubtable device maker. Next. Let's talk about one of the larger themes in this market that doesn't get enough love. Healthcare utilization. In fact, during the pandemic, people put all sorts of non-emerge procedures, because it wasn't really safe to go to the hospital. Last year, though, they finally started playing catch up. Not only have healthcare utilization rates normalized, they're now at higher levels than average levels. That's terrific. That's terrific for everything healthcare, except the insurance companies, but you know what? We're not going to worry about them, because we want to talk about quammer-faith and intuitive surgical. The maker of surgical robots can handle all sorts of minimally invasive procedures from the lowest last October, but the stock has now rallied 52%. That includes a major move this year after intuitive, pre-announced a blowout quarter to JPMorgan Health University. It was all anyone was talking about when I was out there, and she continued to run since then. Can you keep climbing? Let's check in with Gary Guthart. He's the CEO of intuitive surgical with a PhD in engineering science. He's got a better sense of what the company is going to see when they're running back to their money. Jim, so happy to be back. Okay, since I see you, the number of procedures, this is not a niche business. 2.2 million procedures perform on the DaVinci system just in 2023. Yeah, we had a good year. Growth was give or take 20% through the year, and that's been really healthy for us. And there are many procedures since you started, but I had no idea it would be as high as 14.2 million people. Yeah, total experience to date of patients who have been treated by a surgeon using one of our products has been 14 million integrated all the way through that. No, there have been category after category that has proven to be a better way to go, and particularly I know I watched one of your videos. But people like to be immersed and to do great surgery and all these different kinds. Just give us a sense of what you never thought could be accomplished and what you're accomplishing now. Yeah, I think early on, the idea has been pretty simple. Can we bring the natural feeling of open surgery for the surgeon and the benefits of minimally invasive care for the patient? So the patient has a better experience and can get back to their normal lives, more quickly with less impact to the lives, less disruption. And we do that by using technology enabled ecosystems that are integrated really nicely and provide the surgeon and the care team a great environment to take care of their patients. Well, I want to tell some of them that having been a patient this year, I happen to have a quadruple hernium. My daughter dared me to lift a stone, really smart, remember always do that. And I went in, I went to the doctors, look, I don't want scars all over the place. You can't see that I had the surgery, which is really quite amazing. People have to be amazed at what they see or what they thought they would see versus what they got. Yeah, I think that patients really are looking for a really simple thing. Give me a predictable result, something that gets me a great outcome, low likelihood of complications, lets me back to my normal life. Right. Well, and insurgents want the ability to be able to do that and to the extent we can help them great and I'm delighted that you were able to benefit from our technical. Now, some things you can't talk about, which is an application for a new DaVinci, the DaVinci 5. But maybe you can tell me what's happened when you've had previous iterations get better. What does it change, new procedures, new ways for doctors to take more people in a day? What happens? Right, so we iterate our surgical platforms over time. We launched our last generation four multi-port platform in 2014. We have since launched a single-port platform, our ion flexible robotics platform, and now we have submitted to FDA of a 510(k) package for DaVinci 5. What are the things that we're interested in? We're interested in helping more patients that weren't getting great outcomes before. We're interested in better outcomes for those who are currently being addressed by DaVinci, who want to do better with what we have. We want care teams to really enjoy using our products. Better care team experiences of great, comfort, easy-to-learn products that are highly dependable. And we want to lower the total cost to treat per patient episode. Absolutely. And that's what we designed to. Those are our design goals. We're delighted to work through with the agency how to evaluate that and to talk more about it once we have a clients. Let's talk about ion. I think a lot of people think that lung cancer, some close by cigarette, some are not, is under control, but it's not. And in some countries like China, you could say it's epidemic. What can ion do? Yeah, clearly for lung cancer, it's a high incidence rate. It's usually number two and number three in a country, but it's often the number one cancer killer. So catching it early is extremely important. Number one. Often. And as a result, you want to catch it early. If you can catch it early at an early stage, the likelihood of good outcome goes way up. And that's what ion is about. Reach deep into the lungs, grab a little bit of tissue and a biopsy. It's hard to navigate manually. It's showing great safety profiles, and we're seeing really nice adoption. In the U.S. we have a start in Europe and we're working with Chinese regulatory authorities to bring it to China. That's sensational. Now, there is a procedure. A lot of people just talk about that there are people saying that GLP-1 is going to collapse everything. The only one that I was aware that it might best be a trade-off is bariatric. You are the first person I have to tell you who actually admits that there is something that could be gained from GLP-1. Just one might be better than what we have. Tell us why you were willing to just be candid about what could happen here. You know, I think patients don't start off thinking about what their core technologies are out there. They start thinking about what's the disease they have and what might treat it well. I can completely understand why people are interested in GLP-1s. An injection to help control diabetes or obesity makes sense. Not everybody's going to benefit from those injections. There's an issue of durability over time. The drug companies are going to evolve them. So, bariatric surgery is going to have a role. Other treatments are going to have a role. What's that balance? It will play out in time. There are some great outcomes in bariatric surgery. Patients are going to be interested in try GLP-1s, and we'll see how it evolves. Very good. Now, the last thing is kind of off the wall. But, you know, I've been spending a lot of time talking about things that didn't think had financing problems that did. For instance, solar. You put a solar thing in your house. Turns out solar panels went down dramatically. You just had to finance. Hospitals have to finance. If rates come down, will hospitals be able to buy more machines? You know, we give a lot of flexible acquisition opportunities and models to our hospital customers. If they want to lease our systems, we're able to do that. If they want to do risk sharing models, we're able to do that. The cheapest thing they can do is buy it and hold it, and if they want to do that, we can do that too. So, we want to remove barriers for them, and we want to meet them where they are, and we've been able to do that. So, we want to remove capital raises as a barrier to our customers if they believe in the clinical efficacy of our products. Well, you were a very well-run company. Having done a fundraiser for a hospital to buy one of yours, I was struck at how professional and terrific you were. Well, thank you for the company. Absolutely appreciate it. Let's carry that on. He's the intuitive surgical S-R-G-C-E-O. This is a great company, people, both the product and the stock. Mid money's back into the front. Coming up, Kramer takes your calls, and the sky's the limit. It's a fast fire lightning round. Next. [music] It is time to turn the light around, create a bad spot, pull for me, send me some pop up on you, but it's a... [buzzer] And then the lighting round is over. Are you ready, skiing, dad? Turn the light around, clear myself with Alan. In Florida. Alan! How are you, Jim? Thank you for taking my call. Alan's my pleasure, what's happening? Ah, I got in-talented technology, it's a little late, it's about $20, but we had a 52 week holiday. And I want to know if you think there's still a run in this world. I think you actually think there's certainly a $30 million contract in the moment, the Army. I'm not begging them to come on, I am simply imploring them to come on. Let's go to Dan and Massachusetts, Dan! Hi Jim, thank you so much, thank my call, I appreciate it. Of course. I think you do a great job on yourself, I appreciate that. Thank you, thank you. But I had a question about you, Pat, Inc. Are they running the AI technology? Look, I actually look, robotic process stock that when it finally starts making a lot of money, I will talk positively, but you know what, I can't back companies that are not in clover. Let's go to Truman in California, I always like Truman. Truman in California, Truman. There you go, one big one double game. Hey, I recently as a finance engineer focusing on artificial intelligence is laid off of a regional bank, thank God. I had Jim Kramer since 2008, $2.5 million later in my retirement account, I retired. Oh, yes! That's what we did. So that's what we did, I front run with the shippling of some of the mags having the portfolio investment club. I front run some of the into the oils a little bit, and because I had too much cash already. Okay. With that, Jimmy, what do you think about Schlumberger in the club eventually? Okay, so being what we have, thank you for being member of the club, we have Kotara. I look at S.L.B. all the time, I admire the company ever since they rejected me seven minutes into an interview in 1982. Saying, you know, you're highly under qualified, I said, you betcha! But you know what, I'll tell you this about these guys, they are good. I like them right now a little bit more than hell, just because I like the international, but I'm not going to pull the trigger. Why? Because I don't want a lot of oil and gas. Let's go to Garrett and Massachusetts, Garrett. Oh, yeah, Kramer. Good, yeah. Okay, I've talked about a rusty year near all time loads. I think it's on sale, and Kathy would like to. What are your thoughts on unity software? Okay, I don't really care about that, do it, generally. I do care that Jim Whitehurst is there, and here's what I want. I want Jim Whitehurst to come on the show, old friend to the show, for 15 years. If he comes on the show and he says, "If it tells us a great story, then you and I are going to say, you know what, time to pull the trigger?" He unities, but not until then. Van in Colorado, Van! Hi, Jim. Thanks to you and your team for taking my call. I appreciate it. Of course. My pleasure. I'm looking at youth fortress energy. Stay closer to Fort Worth. I want you to buy, you know, people who are addicted. If someone's always going to try to stifle West Eden's brilliance, okay? Don't count me as one of those people. I want to buy West Eden's enforce that there's a stock called "New Fortress." That's West Eden's. Let's go to Jeff. Jeff, no! Oh, come on! All right, and did that ladies and gentlemen's conclusion of the LIGHTNING ROUND! The Lightning Round is sponsored by Charles Schwab. Coming up, watch the Fab 5 run. How an influx of AI might add muscle to these already ripped retail giants. Kramer explains when we return. After hearing from the proprietors and retailers for the last 10 days, it's clear we're approaching a tipping point for watch. The acronym I coined a few years ago for Walmart, Amazon, Target, Costco, and Home Depot, because these five winners seem to be pulling away from the pack. Each one has special characteristics. Walmart with this unparalleled store and traffic reach. Amazon with same day or next day delivery. Target with gorgeous $1 billion house brands, 11 of them now. Costco with low prices thanks to their club membership model. They report tomorrow, by the way, and Home Depot with unparalleled support for small and medium-sized contractors. This quarter though, I noticed that something's developing, something that could make the retail have nots pull even further behind these five halves. What is it? Simple. Only the major players with tremendous scale and huge balance sheets can afford to harness the power of artificial intelligence, specifically inference and videos barely with, which gives them the ability to predict what you want with incredible accuracy, often almost simultaneously with your current choices. Just, you know, inference isn't all that new. Amazon's been using it to figure out what to show you for many years, although they've gotten a lot better, faster, and most important, accurate over time. See, the big stores have so much scale, so many customers. They can collect tremendous amounts of data, and the more data they have, the better their predictions. Data is, as Salesforce.com would tell you, many a time the new goal. Aided by companies like Salesforce's Einstein product, their hit ratio of what you might want is extraordinary. Cotton is that to say Nordstrom or Macy's is two great places. I love the shop, but they don't have as much data. They lack the scale to make it work as well, let alone pay for all the technology you need to truly come up with great predictions. Now, they're not a scatter shop with the advertising, say the newspaper or old fashioned TV, but if you're in Nordstrom and you're in-store traffic goes down while your econ business stagnates, something we heard on last night's conference call. You might not get enough data for reliable inference, and you'll continue to fall behind the other guys. It's a vicious cycle down. At one time, all that mattered to me tell us inventory management and immersion's good eye. If they had that terrific feel for what might be hot and took on the right amount of product, then they'd have a good year. Neither was easy. You had to keep one eye on fashion and the other eye on just maintaining inventory, which meant in my father's case that now the funk gimbals counting up men's gabbardine trousers on a day when the store had to close to ensure it had all the merchandise and thought it had. Now, when we know that Target has clean inventories, we presume the stock will be up at least two to three percent, because that means the company can bring in a new product without having to discount the old stuff to get rid of it. Target's had a miraculous run from its great quarter yesterday, because of low inventories, decisions to spend more on improved lowly program, guess what? That'll give me even more data. Of course, some retailers have a terrific sense of what's going to work no matter what. It's a peaceful day. See you on Ralph Lauren. Unbelievably good numbers. And his stock's sort, aided by clever online pushes and great outputs that are capturing today's zeitgeist. Some retailers have a tremendous sense of value like TJX. They come in struggling brick and mortar shops like the soon-to-be-close group of Macy's stores. The company is mentioned. And then TJX buys up that excess inventory for ultra-approachable cash. Other merchants, Lauren Hope, are unsung. Dick Sporty, good. Laura Albersung by here, because we think she's terrific. William Sonoma. Tremendous eye for what will sell. That's so incredible. By the way, the Tony Spring, now running Macy's, has a fan of fabulous eye. You can't remember me, yes. But there are activists that are bent on getting it sold or buying. Either way, we might not be able to see Spring work as magic, which I think would be a shame. Agriculture moves down today, but not because the numbers were bad. It's simply that the stock got too high. I bet it bounces right back. Most of all, though, I like how Marvin Ellison has fixed up lows to the point where many of us gardeners can't wait for the Spring to walk the aisles of the nice bright stores. No retailer is permanent without the scale. The half and the balance sheet, you're going to get pigeonholed as niche or boutique these days. Many of the niche and boutique chains can make you money as stocks. One look at the Abercrombie chart tells you that's what you need to know. But in an era where generative AI and infrastructure in play, data is indeed came. And the little guys will always struggle now to keep up unless management is so deft that it can compete and, but it's increasingly looking like a stacked data deck. I like to say, there's always a more market somewhere. I promise I'd find it just for you right here. I'm Matt Money. I'm June Kramer. And more or less, closer now. All opinions expressed by Jim Kramer on this podcast are solely Kramer'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 Kramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Jim Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. He's not sure that he or his opinions are based upon information he considers reliable. But neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com/madmoneydisclaimer. Dislike the thought of your address, phone number, and your family's information being sold online? Imagine having your own private detective, who scours the internet for data brokers selling your personal info. 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