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Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 3/18/24
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Coming to you from CBC One Market in San Francisco. Welcome to Kramer America. I'm just trying to make a little money. My job is not just to entertain, but to educate and teach you. So call me at 1-800-743-CVC or tweet me at Jim Kramer. Everything takes too long. Everything's too expensive. If you want to do anything big, you need help. NVIDIA is the helper. It's the expediter. It's the cost saver. NVIDIA allows you to get it done. There's just one problem. NVIDIA is wildly misunderstood because on most days of the year, it's so hidden under so many partnerships that it's hard to capture what they do in a spreadsheet. They deliver productivity per share for their clients. I mean that's what's being bought or taught where I am right now at West. Covering the huge NVIDIA GPU technology conference hosted by CEO, Jason Wong. Now there's a whole other world back east. The one that produces the summaries like the indices, or the Dow advanced 76 points. That's to be rose .63%. That's like jump .82%. But wait a second. It did go out near its closing lows. I didn't like that. But on Wall Street, we desperately want NVIDIA to predict the sales. Give us some metrics that allow us to figure out if it's worth $3.1 trillion like Microsoft? Maybe $2.7 trillion like Apple? Or maybe just 1.8 trillion like Alphabet or Amazon? Those lowly worms? Instead of the $2.2 trillion worth now. Yeah, we want Jensen to come out and tell us how NVIDIA is going to cure cancer while beating climate change and breaking down plastic in the oceans and saving the whales while he's at it. Investors are eager for excitement, raised numbers, boosted forecasts. Well, we didn't get that today. Because that's not what NVIDIA does. Jensen Wong has reduced us all to laymen. Not intentionally. The opposite. He'll only democratize computing. Give 'em your code, that fortune or job or Python or whatever else the vast majority of us never learn. Making us all hostage to the autocratic computer class. He's busting up that click. But what does that have to do with our research share? With revenue growth, with the conventional methods of value. It stocks nothing. Nothing at all. At least not yet. Considered by contrast, the other trillion years, Microsoft has this cloud infrastructure business, a web business, a software business, and it's all right in front of us. Apple needs no explanation. Alphabet? Hey, kids, these days learn to Google before they learn how to do homework. If you're not a prime member, then you aren't saving enough time or money to own stocks, so just go sign up already. But how about NVIDIA? They're enterprise oriented, which means it's behind the scenes kind of story. None of this AI stuff impacts you directly unless you happen to own the stock. That's why I actually tried to personalize the story by renaming my dog after NVIDIA. Many years ago, a lot of people this weekend thank me for that. I appreciate that. So why come here? Because GCC is a trade show about knowledge. That's right. It's packaging AI and selling it to you by showing you how to be more intelligent and how others are using it to be more intelligent in the enterprise. Not in your kitchen or your living room or your PC or your office, but in the business, the company, the workflow, the theft prevention room, the hospital room, the operating room, the doctor's office, the pharmaceutical lab. Unless you're working with or in one of those, you don't know what the heck's going on out here. And even if your work depends on NVIDIA's technology, you might not even know how they're making your job easier or better because it's all behind the curtain. This conference is about how to use AI, something that's almost too revolutionary to discuss. Even as Jensen tries and tries to explain it, much better just to show and tell. Like how he could show that he's given programmers lightning-fast tools so they can write programs for Apple's new Vision Pro. It's a testament to how powerful NVIDIA has become that he can even mention Apple by name. They don't want to let their business partners mention it. Although he didn't talk about the potential deal where Apple gets Google AI in its phone, a story Bloomberg just broke that we're going to mention later. Because NVIDIA toils in the enterprise, we don't really know how it's doing. Which is how its market cap snuck up to $2.2 trillion. If you're Amazon or Microsoft or Google, you need to use giant clusters of high-end chips made by NVIDIA because your data center is all about speed. And NVIDIA makes everything go faster. It makes everything understandable to machines which then know more than any group of people you could ever assemble. No matter how brilliant they are, no matter how many they are. But you can't truly get your head around NVIDIA unless you're at the top of a very big company that's built on computing speed or workflow. And Amazon for coming up with product recommendations and Instagram for brand new retail stores. A Microsoft co-pilot to answer and summarize, look, a service now to explain how data goes through your organization. Only these kinds of companies recognize the dire need for NVIDIA chips. They'll deal with a deal for supercomputers or a crowd strike when we have one tonight for programs that can keep out hackers who hopefully don't have their own NVIDIA supercomputers. But NVIDIA doesn't deal with the consumer on this stuff, which is why the story is so hard for so many to understand. Does this mean we're being let down by this visionary? You heads up what could be the most important company in our lives? At least this one day. Hardly. The only people being let down are the ones who thought somehow you could raise numbers today. They raise numbers in NVIDIA. Yeah, you could simply go from hold the buy on this event even though everyone has a buy on already. No, that is not what's going to happen. What have I heard so far? Pretty simple. Some of all that NVIDIA is doing will indeed create the next industrial revolution because NVIDIA is about the speed with which we can arrive at smarter, better answers. If it takes days or months or years, well maybe NVIDIA will allow that to be hours or weeks or months. It requires the 1000 software engineers and you only have 500. Then NVIDIA can be the force multiplier that gets you there cheaper and more quickly than you can find those additional 500 people. NVIDIA creates time. NVIDIA eliminates waste. NVIDIA invents knowledge that hasn't been invented yet and isn't or can't be invented by humans because they are too slow, cost too much, or just aren't smart enough. And in return to be pedestrian, it makes a ton of money because that's an effective monopoly on all those ethereal outcomes. If you want to create wealth in the stock market, sometimes you need to make leap of faith that you're getting it right with Jensen. Because you have to, because otherwise you won't see a comment, whatever the heck it is. Let's just say though, I think AI is bigger than the womb or the steam engine or the jet engine or the mainframe of the microprocessor. Hey, perhaps I'll roll it into one. Everything its digital is run too slowly or too cumbersome in comparison to what NVIDIA can do for it. NVIDIA amounts to nothing more than a giant two over of everything we have that's connected to something else digitally. You just have to hope that there are enough companies that realize they need NVIDIA to be better than the OR. The fact before the animators ease or the lab. This trade show, and it is a trade show, this exhibition is about showing you the needs you have without you knowing it. The bottom line, Jensen Wong's got a special talent. You want to many, even as you can't see it or hear it or buy it yourself. But maybe that's what makes NVIDIA a stock to own and not to trade. Let's go to Phil in California, Phil. Hey Jim, long time listener to your show. You do a great job. The stock is Oracle and I was wondering if Larry Ellison's got that going working into the AI type of work now. Absolutely. Phil, I appreciate you saying I did a great job. I didn't do a good job on Oracle. They screwed up the quarter twice and I decided I couldn't take it anymore. And then they just totally delivered in that last quarter. Safra catches a terrific CEO. I should have had more faith. The stock is up big because of AI and Jensen, and NVIDIA mentioned it several times. So Oracle probably is going higher and still a very inexpensive stock. I thank you for the kind words I wish I had done better. Let's go to Alex in Florida, Alex. Hey there Jim. My question is about Barrick Gold, ticker, G-O-L-D. I just want to get your thoughts on it. I've been disappointed, I've been disappointed. Gold has had a big run here and you've not made any money with Barrick. And I've got to tell you that is incredibly disappointing to me. It's been, I don't know what to say. It's got a 2.5% yield. That's the best thing I can say right now. Wow. Let's go to Elizabeth in Florida, Elizabeth. Hi Jim. I was wondering what are your thoughts on Walmart? Is this a good time to buy? You know something, it is hard to find a bad time to buy Walmart. This stock is just a juggernaut. Management there is so good. We've been doing this so good. I think what people have to do is they have to walk the stores. You've got to go with me and Emma. Yeah, that's right. We go aisle by aisle by aisle. And we just look at the prices and we can't figure out how they do it. That's my kind of store. Brian in North Carolina. Brian. Booyah, Jim. Booyah. Thank you for all you do. I'm a club member. Yes. All right. Thank you. I just want to ask you a quick question on Tesla. What are your thoughts on it? I thought that the price increase today was very significant. I think Tesla's come down too far. Now it's $500 billion so it ain't cheap. The stock is down 30% for the year. When are you going to start a position in Tesla other than right now? Brian, listen to me. You just have to hope that there are enough companies that realize that they need and they need it to be better in whatever workplace they have. This GTC event is about showing you the needs you have without you knowing it. And that's why we're so excited to be out here this week. I'll make my trade. When I'm out in San Francisco, I look to get the pulse of the state of tech and I'm here to listen to a REEX. That's right. REIT. Like ProLogist because they serve e-commerce and data centers. And beyond with the CEO, we got to find out they've got one right down there I was looking at earlier. Then CrowdStrike announced a new collaboration with the video through my AI computing power with CrowdStrike's number one cyber security platform. I'm talking to the cyber CEO to learn more about how the two juggernauts are working together. And as enthusiasm has faded for one semi's key end markets think solar and EVs. So as enthusiasm for the stock, our investors getting that great buying opportunity I've been waiting for. I'm checking in with the PuppyStop brand so stay with Cramer. Don't miss a second of Mad Money. Follow @chimcramer on X. Have a question? Tweet Cramer. #MadMensions. 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. Trading Heshwab is now powered by Ameritrade. Unlocking the power of Thinkorswim, the award-winning trading platforms loaded with features that let you dive deeper into the market. Visualize your trades in a new light on Thinkorswim desktop with robust charting and analysis tools. All while you uncover new opportunities with up-to-the-minute market news and insights. Thinkorswim is available on desktop, web and mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly. Learn more at schwab.com/trading. In life, we're often driven by the search for better. But when it comes to hiring, the best way to find candidates isn't to search. It's to match with Indeed. Indeed's a matching and hiring platform used by over 300 million global monthly users according to Indeed data. Need quality candidates fast? Use Indeed for scheduling, screening and messaging. And you'll connect with candidates in no time. 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. Can Prologists finally take control of its own stock destiny? Here's a long time Kramer fave. Believe it or not since 2008, a real estate investment trust that mainly owns warehouses, logistics, facilities for e-commerce. Though the stock's rallied over 30% from its lows last October, it's basically been trading sideways for a little bit since beginning of year. When Prologists reported a couple months ago, the results were mostly in line with more or less solid guidance. Even as there was some hair on the quarter and the stock pulled back in response. But management also gave us some optimistic commentary on their largest market, so I've been California. And they noted that they'd make some big money in the Red Hot data center. Business is going to talk about that. Don't take it from me though. Let's check in with Hamid Mogadon. He's the co-founder, CEO of Prologists. Get a better sense of the story, Mr. Mogadon, welcome back to May of Money. Thank you, Jim. It's always great to be with you. Oh, thank you. You're in a business where you do see the future. And I think that what happened, tell me if I'm wrong, but there was this momentary overbuilt, but that is now over. And if I look at the rest of 2024, this is the time to buy. Well, that you can decide. Oh, I will. But I'll give you the facts around supply and demand. In our business, it's pretty easy to forecast supply, at least out of the year, because in order to deliver a property, you need to have started construction already. So we can look out on supply a year from now. Not a lot of mystery around that. It's going to spike, and then it's going to come back down because a lot of people can't start new projects. They can't get financing. They can't get the land. And the markets have gotten much tighter in terms of availability, capital, equity and debt. So we see this supply surge that's coming on, just declining as we approach the end of this year. The bigger question is demand. And demand is really dependent on interest rates and what happens to that trajectory. But we think demand is normalizing. It's not falling off the cliff or anything. It's just not as crazy as it was a couple of years ago. But it's pretty much in line with any year prior to 2019. And the combination of these two is going to make vacancies bottom and then come back up. And we are already at 97%. I was going to say before we start really talking about dire, almost every one of your markets. And then also when you move over to Mexico, 99%. I mean, you've got some unbelievable numbers. I just came back from Mexico. That place is on fire. There's so much manufacturing moving to the northern cities of Mexico. And that drives consumption in Mexico City and other places. So Mexico is doing really well. Brazil is doing really well. Yeah, I know. Some of these countries are very stable when we have a misperception about them. You mentioned land, acreage. You have enough land to put up more spill paces. The other guys don't? Well, it's all a matter of scale. We have 1.2 billion square feet of existing real estate. We have land that we control or we bought or we have access to that can produce another 200 plus million square feet. Now, I throw around these numbers. They're big numbers. 200 million square feet would be bigger than any other reef. Okay, there you go. So we have a lot of control over our growth in the coming years. And land is getting tougher and tougher. So it's a good thing to have. Okay, how do you decide what to put up? Because I saw you do 500 million dollars in data centers. We all know that we are data center constrained. Is that something that you should be putting a lot of chips in? So the great thing about the logistics business is that you own the cheapest house in an improving neighborhood. So that's the lowest land use. In the days where there was an office market, office is always an upgrade. Retail is an upgrade and data centers and life science are an upgrade today. So what do you need? You need a flat piece of ground. You need access and you need access to power and fiber and water. And a lot of our properties meet that criteria. Not all, but a lot of them. So we've mapped the portfolio for all these opportunities. And we think we're going to be doing on the order of eight to ten billion dollars of data center development in the next five years. Now, we've got to line up the power for some of those projects. They don't all have power. But we have a hundred people in our energy group. Because we've hired these people to build our energy business, which is primarily solar, utility scale, storage and mobility. And those people are talking to the utilities all the time about supplying them with renewable energy. So we have knowledge and experience in dealing with utilities to secure power. Doesn't mean we're going to get it everywhere, but we've got a better shot at getting it than most people. In the meantime, people need to understand the mosaic of business you have. A lot of them might just say, well, maybe they're twenty-five percent Amazon. Maybe they're twenty-five percent. You have a unique advantage over everybody. There's no one who's that important. Well, exactly. We're their largest landlord and they're about four to five percent depending on when you look at it of our portfolio. And the next customer is less than two percent. So the rent rolls are very, very diversified and we're ninety-seven percent least. Now, when I listen to you, it makes me think we've got a big federal reserve meeting this week. I don't like to talk about the Fed because we don't know what Jay Powell's going to do. But it does make me sound like that maybe interest rates did get a little too high. If you find yourself in a situation where some of the people you're up against are constrained. The people we compete with, particularly the private companies that are dependent on bank financing are having a very difficult time getting construction loans. Because a lot of these banks have office building loans. Those are in trouble. It comes under the same category. Commercial estate. Commercial estate. Exactly. So that gives us a window opportunity because we are only twenty percent levered. We've got a single A balance sheet and we have access to capital and that's not an issue. And really it's customers that guide us as to where we go and what we do. And we listen. The thing about real estate companies, Jim, is that they're all about the next deal. The next deal in the company, our size, doesn't move the needle. We got to be about the customer. We got to put the customer in the middle of the business. They tell us everything we need to know. We don't have to guess about it. They share their growth plans because they want us to be there with property when they need it. And it's one thing that is clear. It's not like e-commerce is ground to a halt. No, not at all. It's the opposite. No, quite the opposite. E-commerce did about ten years of growth in the two to three years of COVID. But it didn't stop there. It's continuing to increase in terms of share. People look at quarterly numbers too much. If you look at annual numbers, you see the trends much clearer. Well, I know from the way your business worked even during the Great Recession, it's about as procession poop as you can get. Again, that's my judgment. As a stock guy, looking at a lot of other companies, don't have the stability that you have. That's how me and Morgan, I'm the co-founder, chairman, CEO of Provodius. Yes, indeed, since 2008, we fight the stock. Nevermind, back then. Coming up, a trip to the heart of tech country isn't complete without a look at defense. Can crowds-like stay a step ahead of the bad actors in cyberspace? Keep it here. Trading Ashwab is now powered by Ameritrade. Unlocking the power of Thinkorswim, the award-winning trading platforms, loaded with features that let you dive deeper into the market. Visualize your trades in a new light on Thinkorswim desktop with robust charting and analysis tools. All while you uncover new opportunities with up-to-the-minute market news and insights. Thinkorswim is available on desktop, web, and mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly. Learn more at Schwab.com/trading. I love NVIDIA's Annual GTC Event, and not just because it's where we hear from NVIDIA itself, but also because we get to learn, and that's important, about how its partners are using artificial intelligence to bolster their own business. Take CrowdStrike, the cybersecurity company that ported a phenomenal quarter a few weeks ago. CrowdStrike just announced a new collaboration with NVIDIA. They're using NVIDIA's AI computing services with data from their own AI native cybersecurity platform where we can explain all this. Remember, these AI models are only as good as the data that's fed into them. So this partnership gives you everything you need to build automated cyber defenses for the enterprise. Of course, CrowdStrike's already got a fantastic job using AI to improve the platform. We know that. So how does tonight's announcement help them take it to the next level? Let's dig deep with George Kirk. She's the co-founder, president and CEO of CrowdStrike to find out more. Remember, they had an unbelievable quarter, 30 plus, 30 plus, 30 plus. Mr. Kirk's welcome back to NVIDIA. Great to be here, Jim. Okay, so George, I think people are anxious about a stock like NVIDIA, because it wasn't like Jenson Mon comes out and says, "Listen, you've got to go buy NVIDIA's. It doesn't work like that." He partners with people like you and everybody wins. So please explain this partnership, because it's very significant. Well, when we think about AI and we think about what powers it, AI is the engine and the data is the oil. It's that simple, and we have it in spades and we collect trillions of signals, data signals, if you will, and threat events per day. So that can then be used, and we use that today, and we've used it since we started the company to be able to train our AI algorithms. Well, again, you have to explain that because people don't understand the word "train" and it's very important. Yeah, so with all these data sets that you have, you have to go through a process of feeding it through these mathematical models, and the mathematical models will be able to figure out whether something is good or bad, just in simple terms. But the more data you throw at it, the better it gets, and that's really the training aspect of AI. So once you get through the training aspect of it, then you go into the inference aspect. So you have the models built, then you feed new data sets into it, and then it will tell you if something is good or bad. The whole idea, though, is you can get through massive amounts of data to figure out if something is good or bad. Things that have never been seen before. And this was a key part of the thesis when I started CrowdStrike is to create this data platform that not only do we create first-party data, but now we ingest third-party data. And what we're talking about with NVIDIA as a producer of mass amounts of security data is to be able to leverage their Morpheus framework to allow our customers to bring their own LLM models. So we've got the data, they've got the power and the software. Right, so the large-language models didn't play from the customers, but George, last time you were on, I thought you already had all the AI you needed. We do, but when you look at the chips, the chips, you know, it's all about Jensen and NVIDIA, right? That's where the game is being played. Meaning it's a quantum leap. It's a quantum leap, yeah. Okay, so we have to have a quantum leap because you said in the release that the average breakout time is now down to 62 minutes, with the fastest recorded attack being just over two minutes, modern attacks grow faster and more sophisticated. But what happens if the bad guys have similar things? Or is this finally the leap that we've wanted so that the bad guys can be stopped? Well, what we've seen from an AI perspective is that the bad guys have figured out a way to democratize these attacks. Right, so they're very complicated, very esoteric, but what they're doing is they're making it available to the cybercrime masses, if you will. Meaning, even if you don't have a high skill set, you can buy the ability to understand how to get into a company or create an attack or create a phishing email and get in, or even buy an identity to a company and then use that through a ransomware scheme. So it's very difficult. I know when you're talking about the batched identity, and Microsoft makes the identity, you have the octabatch identity, and then you guys actually protect me. We protect the identity. Now, one of the things that I don't understand is, why doesn't the Justice Department call you, work with you, and put someone in jail for life and in this nonsense? It's pretty complicated. So when you think about what the government's doing, and I think there's some good work going on in all different areas of the government, whether it's state or federal, it becomes very difficult with some of these threat actors. Everyone is in the United States. Not everyone is above 18. I mean, when we think about this, right? So the complexity is high. We certainly understand what's happening in this environment, and I think when you look at the authorities, they want to get the right case. They want to be able to prosecute and get it closed. But then you know what happens? The next batch comes up. It's just another crop of people, and when we think about democratizing through AI, you're going to have many, many more attackers than you have today, because AI is going to empower them. All right, then let me take it another way. How about if we just said, like we do with international terrorists, anyone who pays is going to be prosecuted, provided you have the right stuff, you have crowds, or you have a high end, if you can't pay, you can't pay ransomware, so that the bad guys know that no one's going to pay because the person who pays is going to jail. Again, a very difficult subject. When you look at even OFAC rules, if you're paying a ransom, is it to a sanctioned country, and what are the complexities around that? If it was that easy, I think they would have done it. It's just a lot of complexities, because the internet is worldwide, right? So what happens if you pay out a European entity? Like, it's difficult. All right, now, what are you able to say about the return on investment, now that you have this partnership? Can you go to a major bank and say, look, you're not going to get better than us? Here's the bill, and they say, well, that's really high. How do I prove that it's worth it? Well, what we've been able to do is to prove a high return on investment for all the platform modules that we have at CrowdStrike. This will be another capability that we'll be able to offer to our customers, where through the data sets we have, they'll be able to do this in a much more cost-efficient fashion than just doing it on their own. The thing you have to remember, with data gravity, meaning the data is in our platform, right? If you can leverage the models in the platform, that becomes much more cost-efficient than shipping it off somewhere else and bringing it all back in, and that's what we're planning on doing with our customers. Leverage the data that we have at the source and cut down the cost for customers. Okay, now, I am discovering that when there's a hack, I'm now, I think, all of us are experiencing that we're getting phone calls from people who are trying to sell us services, and they know too much about us. Is this the next generation they get in? They take something, and then they have salespeople call you, and people might maybe fall for it. It can be that way, but I tell you how organized it is. Some of the companies, they get ransomed, they have to pay in Bitcoin, right? They may not know how to pay in Bitcoin, so there's actually a help desk, multi-language support. How do you pay in Bitcoin? Most people don't know how to pay in Bitcoin or have a Bitcoin wallet, right, for the most part, so they'll actually walk you through that with multi-language support. They'll teach you how to do it, they'll show you videos, and then when they're done, because they want to be able to prove to you that they've destroyed the data, they'll actually film that, and then they'll send over a report with recommendations on how they got in and what to use, and even what software and company to use to prevent against it. And you've made it clear that if you don't go through the process, they rat you out to the SEC, because you have four days, so you lose either way. Exactly. I call it the triple threat. So first was ransoming your data encrypting it. The second way was then exfiltrating or stealing the data, and even if you restored from backup, they would leak the data to a dedicated leak site. That's item number two. And item number three now, the triple threat, is for a public company, what they're actually doing is using the SEC guidelines against the company. So they'll say, "Hey, you've been breached, and they start the clock. You have four days to pay the ransom. Are they going to report you to the SEC?" No, I would get as many protections as I can, if I were running a big public company, I had to worry about that. That's George Curtis, co-founder, President CEO of Power Strike. And remember, we talked about the numbers last time, and they were stellar. I thought that you should understand this combination with NVIDIA, and why it is so important to the company, and all the way, of course, to the welfare of the cheerful. My advantage, I think. Coming up, as automotive slips into a lower gear, is this chip stock stuck in traffic? Kramer gets to the bottom of it when we return. ♪♪ ♪♪ Since last fall, we've had a raging bull market in the semiconductor complex, but sometimes a rising tide does not lift all boats at once. Past during any season, we've got some tapered results from chip makers with too much exposure to certain end markets, like autos, sometimes industrial. And it'll help back their stocks. Take on semi, which makes power management signal amplification chips for hosts of industries, including autos, solar energy systems. We'll talk about that. Lots of electric vehicle exposure. Unfortunately, these seems kind of went out of style in the Wall Street fashion show on semi that first started to stall, and they said, "Well, that's some slowing demand." However, many investors are betting that on semi's key end markets could bottom suit. Even if management doesn't want to make that call yet, when the company reported last fall, they were pretty conservative with their guidance. So could this stock be ready to play catch-up? Or do we need to maintain some caution about a stock that we have liked since it was in the teens, and it is now in '73. Let's take a close look with Jose no Corey. He's the president and CEO of On Saving Dr Corporation. To learn more, Mr. No Corey, good to see you. Good to see you. All right, so we have to deal with a couple of facts straight up. You have the single best chips for the most advanced autos in the world, EVs. However, EVs have slowed a bit. We also know that the auto industry was red hot, and your stock went all the way up with it, and now it's cooled a bit. Where does it leave us? First off, you have to look at the demand environment. When you look at demand, our drivers of content are not really on units' vehicles made, but they're more on content which caused by electrification. Okay, let's put it in perspective. $50 worth of content in the drivetrain for on-semi in an internal combustion engine. That goes to $350 for a hybrid and $750 for EV. Okay, so no matter what the unit demand does, the content growth is there, no matter what path we take towards electrification, but you and I both can agree electrification is the future. Immability is happening. Right, I mean, I think it's other than California, it's slowed or going lower, but frankly, it wouldn't be unusual to have a country that just says, or a state that just says, look, everyone has to be EV because we're about to plant. Now, if we are EV, what are you doing to make EVs cheaper, lighter, more efficient, perhaps even give us more range? So, let me not use a lot of word, but everybody talks about chip, which is what I hold here in my hand. What's that say? This is a 1,200 volt chip. It's a MOSFET. It's a silicon carbide switch. Everybody talks about on-semi, how are we making it? I said, look, carbide and one chip. Exactly. Right. We make them on wafers, that's what it looks like. But the key, the key value that we bring is yes, we make the best technology. But just like that, that's not going to drive a car, that's not going to give you the range. This here is a box, this is the inverter, traction inverter that drives an electric vehicle. This is on-semi's new generation, 2X the power. Now, if you look at it... This is more powerful than this. Twice. The factor of two, five times less volume. Now, what does that mean? You said lighter. Absolutely. Can be lighter, light on EV, that's a benefit. But think about it the other way. Any volume not used to make this power, you can put a battery. Battery, more range. Range anxiety gets solved. Or you say, I'll leave the same range, I'll have less batteries, cheaper vehicle. No matter what trade-offs you want to make, you need the technology, the underlying technology, the baseline technology in order to solve those problems that are going to propel that technology forward. In the meantime, what have you done at your company to make it so that even you think it's going to be tepid, you yourself said it'd be tepid, to make sure that you still make a lot of money. Because in the 2020 downturn, it was just okay. That's the vertical integration part of it. Over the last three years, we focus our investment on vertical integration down. We make the powder by which we make these substrate. And what is that? That's a silicon carbide. Silicon carbide. Okay, so we go from powder to substrate. We wafer them, we process them, and we go all the way beyond just the wafer that everybody thinks about semiconductor doing. Right. We do all the way to this. So that's vertical integration that doesn't start at the material side and ends at the wafer. It goes material, wafer, all the way to system level. That's what the OEM's are. So the gross margins, therefore, are going to be higher than it was last time around. If you think about our target that we outlined in our analyst day, 53%, gross margin. That is the value we provide in the e-mobility. So it would be coiled spring when not if EVs start to sell more again. Now, I also like a business that I know is not necessarily going to move the needle. But apparently you are integral to solar power. And I think solar power is another power. It's going to be, I believe, 25% of our energy grid by 23rd. So what are you doing? So if we think about silicon carbide and the benefit, the same benefit we provide, and the same technology we provide for the electric vehicles. That same technology will translate into the same efficiencies you get from solar. Why? By better solar. Because you have a surface area. If you maximize the surface area and the conversion from solar to power, you're going to use less solar. That's the efficiency, man. Now, we also use it not just on the generation or the capture of power, but the storage of power. You talked about the grid. Right. Well, we all know the grid is not going to be able to sustain all of that power that needs from EVs or industrial energy. Exactly. So what do we do then? Then you have the micro-gridding, where you have energy storage system. So let's not solve the grid. Let's localize the grid. Micro-grid, you have energy storage. Think about container size battery packs. We do that. That's the future. That's the sustainable ecosystem that we put together from generation to storage. Then don't forget, distribution. You need electric chargers. We have content in that. All the way to vehicles. That's the sustainable ecosystem. Okay, so when did this come out? This is in development with OEMs already. So we're working with OEMs on the future now. So even if we don't have, as you say, we don't have the big up year, next year could be very big. Well, to me. By the way, the fact that you're carrying it with one hand. No, it's under strong. That's a lot. You don't understand. As I get younger, I get stronger. Haseno Corey, presidency of Onsemi. Listen to me. You buy the stock when it is out of favor. You don't buy it when it's going to 150. You've got buy it when it's from 75. Go into 150, all right? Stay with me. When we return, master the markets. One stock at a time. The lightning round is up next. This is the lightning round. That's where I take your calls. That's right. Ten minutes. That's where I take your calls. That's where I take your calls. Right apart. Ten minutes. That's where I take your calls. So just clear it under the course. My step is when you're playing the sound. And then the lightning round is over. Are you ready? It's going to lighten up. Here's the episode with Barry. Introducing Barry. Yeah. Hey, Jim. How you doing? I'm doing well, Barry. How about you? Great, great. I'm doing good too. Thanks for asking. Thanks for asking. No problem. I want to ask you about a stock that you spoke about last week. You said, you know, not to dip your toes into the water yet. Marvel technology. Come down. Yeah, the next quarter. See, part of the business is just on fire. But part of this is not on fire at all. That's why I'm saying we got away. We got to get closer when the rest of the business turns around. It's not there yet. I do prefer Broadcom right now to Marbell. Let's go to Sal in New Jersey. Sal. Hey, Kramer. Thanks for entertaining the family during dinner. Well, you know, hey, why not? Hey, yeah, we... Listen, we don't have any pets around here. But we do own data, data, dog. Are there any synergies for IBM to buy them? You know what? This company was, I think, a... going to be bought for it came public by a bunch. A bunch of people liked it. I will tell you this. I think it is a dynamite company and it is a buy. It is expensive, but they really know what they're doing. They're welcome to show anytime they want. I want to go to Sam. Oh, yeah. Colorado. Sam. Sam, how are you doing? Not bad. I'm in San Francisco. I kind of like it here. Wow, very nice. So anyway, I am calling tonight to discuss a company that I think is extremely undervalued and one of the most important companies here, politically speaking, that's LEU. It's the only company inside of North America to be producing the enriched uranium that you meet for all of our nuclear plants. All right, it's a very speculative situation. I want you to buy the GE spin-off that's coming. It's Bernoulli. Dad has got nuke and I love the balance sheet. I love what the company's doing. You want to be a little diversified because you're going all in. Like the uranium energy company. Got to be very careful because we may not be able to get a lot of nukes built in this decade. How about we had a bill in New Jersey, Bill? Hey, Jim. It's Bill from Bonique, New Jersey. Bonique, I just had my grandpa out of both there. We used to go fluke fishing and blow fish. Remember those? It's a great place. LBI, the Dutchman. Go ahead. I'm Clint Dustin. Go A-L-T. Altamune. Really, man? You're going for it. I'm telling you, you're going for gusto with that one. That is an absolute, without a doubt, high risk stock when you could have me a lot lower. I mean, I know you got to divide it by 10. Think about that. Just divide it by 10. You'll see it's okay. It's that high dollar mouth. It's a bothersome. I need to go to Mitchell in Texas. Mitchell. Yo, Kramer. I hope you're having a good time at the NVIDIA AI Conference. Okay. Well, how do you have it? Where else would you want? Rather big. No way in the world. Exactly. I'm going to open about Lantheus Holding. The fundamentals look great. Doc's pretty cheap. You know, good future growth. I just don't know that much about current product. You're right. No. I mean, I know. I've been preferring RadNet because I think they've got a better business model. And I'm going to reiterate that like RadNet because when they come on, they're really darn good. You know what? We should go to Dustin in Colorado now. Dustin. Hey Jim. Hey Dustin. Oh, how's Jenna? See what you thought about a Stolfi here or Stolfi? Okay. So they were doing great and then they did this convertible bond and it just wrecked the stock. So what we're going to have? We have to have Anthony Noto back on to explain why he needed to do that because the stock has just been in the doghouse ever since. And I don't like it when I tell people to buy a stock and it's staying in the doghouse. We've got to get spied out with the X going on there. How about we go to Mark in Wisconsin? Kramer, thank you for taking my call. No problemo. What's happening? I've got one for you in Sports Apparel. Thank you's. Thank Roger Federer. I wear the product. I own the stock. Should I buy more? Oh, and, oh, and on clothing. Okay. Controversial quarter. Controversial quarter. A lot of people liked it. A lot of people didn't. It's a very big short position. I would have told you to listen. Let's just go buy dicks. But Dick Sporty goes this way, way up. I am on the fence on on at 33. I was doing a little writing about this company over the weekend. And I literally stopped writing about it because I said, I am too on the fence. What good does it do to tell people I am on the fence? Let's get on or get off. And right now I am not on. And that legend I'm going to conclude is of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, major eye news between two tech heavyweights. Has Apple answered back to the skeptics on the street? More. Next. Okay, it's Chancellor Moms' world. We're all just living in it. But, you know what? There is another world out there too. It's the Apple alphabet world. Which burst to the fore this morning when Bloomberg broke a story about how Alphabet's Gemini AI platform could power Apple's own AI initiative. If there were no NVIDIA GTC event, if Jensen were speaking today, then this Apple alphabet partnership is all we would have been talking about. If true, it's incredibly important for both companies. Apple's widely perceived being "brifft" of artificial intelligence, especially in its phone. We know that at this moment Apple is considered to be a no-growth company. We know that the analysts have turned on it. In fact, it's widely considered to be a company in decline. So, because it hasn't been able to come up with something to boost growth at a time when their peers have gone all in on artificial intelligence. And Alphabet? Well, we know that its AI initiative, Gemini, has some cultural issues that are, how do you say, suboptimal? More important, Alphabet's stock is underperformed because there's a perception that Gemini will cannibalize search, shrinking Google's incredibly lucrative advertising business. And then, boom, two birds, one stone. Again, if the story's true, Apple gets its AI without spending billions upon billions of dollars developing. Alphabet gets the halo of Apple's huge installed base, not to mention lots of money for something that already spent billions developing. So, what if Gemini has some biases with all that data from Apple, they'll get it fixed? Now, the big question, how does this help us to try to make money in the market? OK, yes, Apple's stock has been absolutely in the doghouse. OK, yet I don't believe for a minute that it's a no-growth company. I think the service revenue stream and adjunct to the 2.2 billion people who have an Apple device is one of the greatest annuities streams of all time. Apple's customer satisfaction ratings, which is what I care about so much, are so fabulous that I haven't been phased by the numbers from Best Buy that show the new Samsung phone has real interest thanks to its AI features. That's why I still say Apple, own it, don't trade it. Even as the stock closed at its lows today, as the bears will not let go of the negative narrative. I say you never know when Apple will do the right thing, but it always will, when Tim Cook and his amazing team decide that there's something good enough to share with you, the consumer. You'll miss every big move in this stock if you try to trade it. Historically speaking, whenever anyone gets too clever with Apple's stock, they usually end up buying high and sell low. That's not a way to make a lot of money. How about Alphabet? Another one we own for the Chapel Trust. Now, look, I've had a back and forth with Jeff Marks when he works with me, of course, on the Trust on Alphabet for the CMBC investing club over the last few weeks. I've spent a lot of time with club members, both at our annual meeting, and in my wife's mess gal signing this weekend in Florida, thank you for coming down. They want new names, they want new tech names. Meanwhile, we're sitting with this outfit, it's doing nothing. Every time I wanted to dump it though, Jeff reminds me that it has the best balance sheet in the world, and it could at any moment make changes that would send the stock much higher. And that's exactly what happened. Now, I don't have an only-it-don't-trade policy for Alphabet. It's just a little too dysfunctional for my taste. But we have held it for the Trust for a long time because of the optionality. The optionality that could be behind this Apple move. This conditionally ability to close underperforming divisions, they can do that. The optionality to buy something more important than Fitbit, which Alphabet sold out $2.1 billion three years ago. Alright, anyway. So remember today. Remember that Apple, by virtue of how good it is, can command and deal with Alphabet that saves them a fortune and brings them what could be the best AI engine. Alphabet, by virtue of its smarts, can cash in on something that's bought but not paid for. A marriage made in heaven? No, it's a marriage made in Silicon Valley. And everybody wins, including us. I'd like to say there's always a more market summer. I'm trying to find it just for you, right here on Mad Money. I'm Jim Kramer. See you tomorrow. Last call starts 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. Kramer's 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. 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