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 3/20/24
electricity a big idea that's inspired countless new ones from powering the light bulb to virtually powering our entire lives 30 years ago State Street launched the spider S&P 500 ETF spy a big idea that inspired the world to invest differently and still does what can you do with spy before investing consider the funds investment objectives risks charges and expenses visit scea.com for a prospectus containing this another information really carefully before investing spies subject to risks similar to those of stocks all ETFs are subject to risk including possible loss of principal ops distributors and distributors you seek the key but first you must learn the ways of precision craft and performance with Acura's all-electric ZDX with a premium bang and all-of-son sound system up to a 313 mile range and a type S variant with an estimated 500 horsepower the ZDX is their most powerful SUV yet unlock the energy when you visit accurate.com to order yours today my mission is simple to make you money I'm here to level the playing field for all investors there's always a more good summer and I promise to help you find it may have money starts now hey I'm Kramer welcome to a west coast edition of Mad Money welcome to Kramarka I'll be with my friends I'm just trying to make a little money my job is not just entertain but the educate teach call me at 1-800-73 CBC or tweet me at Jim Kramer. Look we don't care about ray cuts we care that the feds no longer the enemy that's what this stock market saying the Fed kept rates steady today and gave a forecast for some ray cuts in the future but while the Fed is important the specifics of when we get ray cuts or how many that's become small potatoes the important thing is we can afford to think about earnings again rather than worrying endlessly about the feds next move a lot of people want to play that part again not me I prefer to try to make money in the market and for that the earnings are what truly matter remember I am not an economist or a Fed divider I am a dollar sign represented by a man and this dollar sign likes what he sees knowing if the Fed is our back will cut when needed that's why the Dow gained 41 points today SB jump 0.89% NASDAQ pole voted 1.25% today but the key thing is we've reached the point in the cycle where you don't need the Fed about the Fed we're so used to parsing everywhere from Fed Chief Jay Powell every statement every press conference I said forget that parse all you want I'm gonna go recommend a video by semi-legally for the child trust of course I'm not telling the feds irrelevant could be further from the truth but I fall squarely into the camp of the late Marty's why who dispense wisdom from his personal iconic Wall Street week with Lewis Rookizer show Marty always said don't fight the Fed and don't fight the tape that meant if the Fed was raising rates you need to be cautious if the tape the action the stock market was bad and it's often bad when the Fed's tightening then you need to be even more cautious so long as the Fed was raising rates or just threatening to raise rates it basically controlled the direction of the vast majority of stocks sure some names could defy the Fed but far fewer than we'd like and then once the Fed's not raising well you know what why don't I announce I see I understand I set my youngest daughter to a huge David Busser some filling with pop which she was little and she had this game she wanted me to play I hated it was had a giant claw you know you put a quarter in you got to direct the claw we spend maybe 30 bucks a night stupid claw and at most we caught maybe I don't know a five-inch high troll doll worth about 15 cents real bad risk work when the Fed's tightening picking winners in the stock market is like playing with that David Busser's claw but when the Fed's done tightening it's like the claw suddenly works you can actually pick things up some of them might be worth something something big now there's this whole contingent of money managers and strategies who think we can divine the Fed's next move and that's all that matters we can game how many rate cuts we'll get and when they'll do it and that's what what we're supposed to be doing for the most part I think these people are charlatans now they might as well hang out at David Busser's they're saying three cuts here four cuts there please I'm telling you that's not important anymore whether it's three cuts or two cuts or one cut or even no cut we are no longer fighting the Fed and that is what matters if you're not fighting the Fed you can use that claw machine without feeling like you're constantly ripped off of course if the Fed stops being friendly if Jay Pels is whoops we stopped tightening too soon and now we need another rate like oh then we are indeed back to where we started shutting that 30 buffs into the claw machine getting endless heartbreak but the thing didn't do that which brings me to why I'm out here in Silicon Valley where the money's made if there's money to be made the process of making money in the market is something I want to exploit I know everybody sick of hearing about Nvidia unless you're already bought on my recommendation now I've truly staggering gains some investing club members have made millions in this one's others have happily retired from it but I can tell you that Nvidia's super computers are about to impact nearly every aspect of our lives yours and mine because they reach the tipping point where artificial intelligence can be used to improve everything just today you know what I did I dropped through the omniverse just like that the one I told you to look at and Jensen wonk's keynote in that speech Jensen joked about how he gets a kick out of stepping out of a non-existent car that he sees when the omniverse is streamed into the Apple Vision Pro so I put the Vision Pro on and I gaped at a Nissan this on sports car really cool I am telling you it was there I know I thought it was some color combinations I checked under the hood I looked in the trunk kicked the tires and of course sat in that nice bucket seat smooth I loved it I wanted to buy it and I said to myself if I were a visionary card you made a car van I'd send a Vision Pro to anyone who's thinking about buying a car then let them do the same thing I did the customer would buy his car from the Vision Pro and voila delivered to the door then I visited factory floor in the omniverse where I could make changes just look at the assembly line resolution was so perfect that if I were Siemens or any other large factory builder I'd give every engineer one of these things same for those for anyone who's building ships or jet planes anything where something needs to be made with changes that could be expensive Boeing desperately needs this technology I'd make sure that all my engineers and architects and even welders HVAC people had the omniverse streamed in by the Vision Pro or something similar they are hand-in-glove I'm telling you but does Apple know that it can you afford to wait until they do right now they're treating the Vision Pro as a consumer product when the truly transformative applications and the huge money are all about the enterprise via the omniverse luckily they had the foresight to charge three thousand five hundred dollars they could charge double to a Siemens or a GE or a Hyundai heavy industries or a floor or a Bechtel just to name some of the builders of gigantic projects remember it only works because NVIDIA supercomputers are connected to the omniverse which is then fed into the Vision Pro if I were you I want to own some Apple before they go after the corporations not just the individuals with this tremendous device it will be worth it look I don't get too totally hung up on tech the owners were strong today because they got a breaking department of energy which said they won't face billions of dollars and fines if they keep making a lot of gas because it's good for Ford good for GM bad for the polar bears you buy the retailers now when the economy's still strong enough and the numbers for a dicks or a best buyer Costco are strong enough the travel stocks they do well when people are flush which is the law but the bottom line is simple when you aren't fighting the Fed the claw picks up a lot of toys that are worth something we aren't fighting the Fed get to the claw and try to grab some winners let's take calls let's start with peroes in California pros hey Jim thanks for visiting the Bay Area it was nice to have you over here really appreciate it I'm not going anywhere I'm staying out here I don't really like me Jersey anymore okay I appreciate it for allowing us to look at the market markets bottom up instead of top-down something I've learned from you and I really appreciate that it just takes a lot of time you can't have any sleep but that's all right you can say Saturday how can I help exactly so just wanted to ask you about this company they're in the energy space they they're pretty big they own the 76 franchise gas stations and they're doing pretty well just wanted to get your take on PSX Phillips 66 it's a horse man it's a horse it's a terrific terrific company and I got a take I'll give you two but I think Valero's great - yeah the refiners have it going right listen people we aren't fighting the Fed that's what you need to know so get to the claw and try to grab some winners met by tonight I'm bringing you part two of my conversation with our gracious host for these past couple days and video CEO Jensen mom don't miss our far-reaching interview on everything from this jury to the US at age 9 to sovereign AI then the US government just awarded its largest chips act funding yet I'm getting all the info with secretary commerce but first I'm continuing my quarter force of companies and San Francisco with exclusive interviews from so fight and Amazon web services so stay with Kramer don't miss a second of mad money follow @chimcramer on X have a question tweet Kramer hashtag mad mentions send Jim an email to mad money at CNBC.com or give us a call at 1-800-743 CNBC miss something head to mad money dot 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 one hundred and fifty thousand dollars in purchases per year so you earn more where your business spends the most plus up to three hundred ninety five dollars in annual statement credits on eligible business purchases at select shipping food delivery and retail subscription merchants and with flexible spending capacity that adapts to your business and access to 24/7 support from a business card specialist you can continue to run your business with confidence the amx business gold card now smarter and more flexible that's the powerful backing of American Express enrollment required terms apply learn more at American Express dot com slash business gold card 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 the matching and hiring platform used by over three hundred 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 percent 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 seventy five dollar sponsor job credit giving your jobs more visibility at indeed dot com slash mad money just go to indeed dot com slash mad money right now and support our show by saying you heard about indeed on this podcast indeed dot com slash mad money terms and conditions apply need a higher you need indeed what that we do is so fight digital bank with the stock is now down 26% for the year now that declines mostly come over the last couple weeks if the company announced a big convertible debt offering made some exchange agreements with the existing convertible debt holders they created a ton of new shares suddenly investors are very worried about delusion about their shares getting swept underwater by a flood of new stock now I know many of your frustrated about this we've gotten a lot of calls about it I feel frustrated too because I've championed so far at many points when Craig in Florida called about this one a couple weeks ago I told him I still believe in the enterprise and it's an open invitation to CEO Anthony noto come on explain why the stock is still worth owning luckily he accepted so we can get right to the bottom of this picture no welcome back to my money thank you Jim thanks for having me okay so anything you heard what I said which is that people just feel that after the great run and it was a great run after the really terrific outlook you gave after the stock was moving up that you yourself hurt the stock and it went down big and people feel badly that they bought it at nine only to find out that well something was wrong at so far yeah I think it's important understand why we did the convertible deals why we did the buyback and the benefits to shareholders that I don't think are truly understood by the market well this is your chance the first point is we did this deal from a position of strength we just had a record 2023 over 2.1 billion dollars a revenue up over 30 percent 40 percent growth in our members our first quarter of gap profitability over 400 million dollars of EBITDA generation and gave an outlook that was going to be for a full year positive gap profitability in 2024 as well as continued strong growth in our tech platform as well as our French business and we're going to be more cautious on the personal own business what we saw was an opportunity from that position of strength with the lower our cost of debt we had two pieces of debt that were quite expensive one we did in 2019 it is a series one preferred that pays 12 and a half percent interest five years after we issue it we can buy it back in May if we don't buy it back in May we'll have to not just pay 12 and a half percent interest but actually was up to 15 percent interest for the next five years and we can't buy it okay so in other words it wasn't like you could play around if you try to think that maybe we'll go to 12 and we got to May you would have and it didn't go to 12 you could have been hurt it was not like the risk was hey listen it could go up to 20 here it was the opposite which is that you had to get this piece done well I would put it this way we saw it as an opportunity to do it and have a negligible impact and gap brings per share and also combined with the buyback have it be a creative to change things you get crushed like let me finish have it be a creative to tangible book value per share by eight to ten percent okay when you do a convertible there is pressure on the stock from investors shorting the stock against the convertible right Delta hedge that does happen so there is typically five to ten percent the client but the reason why we did it is really important because I think this is what we'll put some momentum back into the stock first is we had this 12 and a half percent debt we also had another piece of debt that's about five hundred million dollars that we pay seven percent on so we're going to save between forty and sixty million dollars of interest expense a year by refinancing from twelve and a half percent down to one and a quarter where the convert is and from seven percent down to one and a quarter so in other you need to do you need to raise money because you have a lot of bad loans no we did this to lower our cost of debt because the we have done so well as a company we can now issue debt at one point two five percent retire the twelve and a half percent debt and the seven percent debt now we also bought back a convertible that we issued in two thousand twenty one in the fourth quarter we bought ninety million dollars back of that convertible so I'm going to process and was willing to sell it to us at seventy eight cents on the dollar well as our business continue to do better the convertible kept going up and it was in the mid-eighties and what we decided to do is buy back six hundred million dollars that convertible at eighty percent of the face value because we have to refine that refinanced that in two thousand twenty six there was one point one billion of that outstanding by buying it back it actually was a creative to book value per share I could read things and say that there's even more stock coming from so far that they may not be done it's completely false let me explain why the interest expense is going to be captured more refinance that that's a known thing forty sixty million dollars the buyback of the six hundred million dollar convertible we are issuing stock but we're doing it below the value on those convertibles and therefore that transaction is eight to ten percent creative on tangible book value per share so yes they're stopping issued but the actual value on the tangible book basis per share is going up by eight to ten percent with this market has not been defined by that because if you take a look cities tangible book value is dramatically higher than its stock people want earnings per share they want to have growth they want fintech to be providing the growth they would like it to be fifty fifty as you said it might be they want the brokerage business to do well and they don't want you make it a lot of loans if things are loans go bad versus fintech you hit the nail in the head of what we're doing okay they're gonna still get the growth from us driven by our tech platform growing twenty percent and our financial services business growing seventy five percent and not growing the borrow business so they'll get that same growth and a neutral impact on the gap EPS from this deal and eight to ten percent of creative on the tangible book value per share basis so we they can have the cake needed to with so far okay that's important but with now though a lot of people say well you know Jim you like so far you didn't like Robin Hood that much Robin Hood has crypto so far no crypto why don't you have we don't because we're a naturally chartered bank in our deposit business and that's not permissible our deposit business are checking the same account business which we call so if I money do extraordinarily well the strategy is played out tremendously well we continue to have record deposit growth ninety percent of our deposits are from direct deposit customers which means were their primary relationship in addition to that ninety seven percent of our deposits are insured so super high quality deposit base that funds are loans at higher margins and better returns that's how we hit gap profitability in the fourth quarter and hit our long-term you down margins of 30 percent so it's all working together fundamentally and now we've improved the balance sheet one thing I forgot to mention about the buy back thing convertible not only is it a creative at eight to ten percent on a tangible book value per share basis if we'd done it in cash it would not have been in addition by doing it in stock we increase our capital ratio to seventeen point three percent if you pro form of the fourth quarter from fifteen point three we only need to be at ten point five percent there's such a huge cushion now in our capital ratios it allows us to navigate whatever's in front of the last question is it possible for you to go on the road to large institutions and explain to them what you just said to me because some of the parts seven dollars tangible book earnings go up no worries about bad loans the stock should not be at seven yeah since we did the convertible there was definitely pressure from people doing that they just would understand that absolutely but at that same point in time there started the grave concerns about interest rates and what the Fed would do the clarity we saw from the Fed today drove a big increase but between today and three weeks ago was the period of time where people weren't sure is it going to be higher for longer are we cutting rates in May may be June so that uncertainty weighed on the stock as well fair enough but I'm glad you came on that speaks louder than anything else you could do absolutely thank you Jim thank you Anthony no no it was the CEO so if I met my second coming up more from San Francisco with the band of the hour chips AI and much more stick with Kramer looking for a rewarding life-changing opportunity that enhances the lives of children in your community with almost 50 years of experience Huntington Learning Centers the nation's leading K through 12 tutoring and test prep franchise dedicated to shaving brighter futures for students and franchisees Huntington is the top revenue producing supplemental education franchise in the US and out proven system is the 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who spurred on a new industrial revolution created so much value for shareholders in videos up more than three thirty thousand percent since the first time he came on the show you want to learn everything you can here's part two of our conversation with the man of the hour and Jensen Wong Jensen eight billion people did not get a degree in computer science what are you doing to democratize this world we're gonna make computers smarter so that they don't have to learn computer science to program a computer the computer should just understand what we want and what we intend but we say let's please help me build a factory that can make the best cars it can do that well it surely will help a lot and the reason for that is because you give it a plan you tell it what to type of parts that you like to put into it eventually this factory will be a robot that's orchestrating a bunch of manufacturing robots that are building cars that are going to be robotic and why do robots look like people well robots look like people because a couple of reasons first reason the most important reason is that we built the world for ourselves and so the workstations of a factory the manufacturing line of a factory was really creative for people and that's the most important reason the second most important reason is that we have to we have to teach a robot how to be a productive robot and you need data for that we're in a world where in order to write a software for a computer we use data or training examples and the computer learns from the examples well we have the most examples of human moving around of just about any other form of data when you thought of this were you at where you at Denny's sitting around with some people and saying you know what we can do this it may take 20 years 30 years but we're going to do this when did you think of this well we started the company in 1993 and our big idea was acceleration accelerating the work that CPUs are not good at and if we if we take that work that the CPU is not good at and we offloaded to something that is incredibly good at it we can make the overall computer more efficient that was the big idea but that was for a game well game was the first application okay okay that's okay that's a mistake a lot of people just say you were a gamer no you had we were so good at making that chip for games that people thought we were a game company Intel thought you were a game company I know that you presented there we were happy that anybody thinks of us at all and and we were so good at it and in fact Nvidia is the world's best game technology chip company today there's there's that we have I'm so proud of the work that we do there and you know as you know games kind of a simulation of the virtual world and so because of this yeah because of the whole date from Denny's all the way somehow you are still the underdog you that you are hungry you make it feel like your company's gonna go out of business in 30 days you know Jim that's probably something just related to upbringing you know I I you know we grew up we grew up working hard my parents worked hard were immigrants you arrived here with before them when you were nine yeah yeah and so my older brother brought me to United States he was ten and so so we had a ten-year-old bring a nine-year-old to the United States and and so we we had we had quite a great life you know and but we had to work for it and we were immigrants and we took nothing for granted and my parents work incredibly hard they work incredibly hard today and so so I think that that part of my DNA are they hard workers well they they work super hard and we're what divisions are they in I have two kids they both work at Nvidia took me a decade to convince them to come work here they're they're they you know they wanted they wanted to go do their own thing and they want to be a chef one wanted to be a world-class chef and one wanted to be in marketing and and an artist and so but now both of them are here went to marketing and once an engineer and so it's really terrific they can engineer the best cake ever Spencer is in Spencer is in robotics and Madison is in omniverse and so they're doing amazing work okay so are your black well is these are these the most expensive things on earth well this this this chip is the heart of the black wall system okay and this is the largest chip the world's ever made this is made a TSMC TSMC's four nanometer process and it is so large we have to take two of the largest chips in the world and connect them together into one giant chip and so that's the black well chip that chip goes into the black wall computer and this computer the R&D budget is about ten billion dollars it took us you know about three years or so to make and what goes into this is supported by a whole bunch of unbelievable networking and high-speed IO and mountains of software and it goes into a data center and this data center becomes an artificial intelligence factory and it produces artificial intelligence well can we safely say that if we wanted to have let's say a thousand incredibly smart people at our company that they would not be a collectively even as smart as that well it depends on the type of smartness yeah you know artificial intelligence is is good at emulating emulating us and so it emulated how we read and it emulates in order to emulate how we read and finish sentences and summarize paragraphs it had to understand what it read and so in order to emulate us it had to understand words well okay so I visit you six years ago five years ago it's obvious to me when you show me the dog picking up the jello and then you reward the dog that this is I'm seeing something special I'm painting a says and seascape it was so obvious but it took chat GPT for everybody to know well chat GPT is quite an amazing breakthrough you know the open AI engineers and scientists they're based on this it's it's we're I'm very proud that NVIDIA's computers made it possible for chat GPT be possible but they're their researchers did just unbelievable work now one of the things that does concern me is we're not perfect yet I went to Microsoft's co-pilot and I asked who your best partner is and it said your best partner's Intel I don't think that's true Intel's a great partner Intel's a great partner microstatic who isn't a great partner we have to convince we work with Justin by everybody you know and we NVIDIA here's here's what NVIDIA is a market maker not share taker okay we create markets everything that we do didn't exist before but then why are people some people so scared so scared of AI so have public fear that this is going to what make them so they don't have a job it's this is going to create jobs this is going to create jobs it's going to make companies more productive when companies are more productive their earnings improve or their revenues go up when that happens they hire more people well that's an that's called an industrial revolution that's right that's what the womb was that's what the steam engine it made companies more productive create more jobs and made the economy larger is there a CPU that it's that that should withstand it or wouldn't we want everything don't we want this in our PC I know we don't have it yet but don't we want this ourself in a consumer fashion not just business to business absolutely absolutely every device will have will run artificial intelligence software the question is are they small software or larger software or gigantic artificial intelligence I listen to I wonder what there be an arms race we're not friendly with every country in the world won't other countries say you know what we have to create our own black well and compete or else left behind because we shouldn't necessarily share what we have as a country the most important thing that countries have to do is to create their own intelligence there's not there's they have to do their own sovereign AI and the reason for that is very simple they have a lot of data that belongs to their country it's their natural resource it's of their people of their language of their culture we want to encourage China to do this China China China China is gonna do their own anyways but we every single country should harvest should process the data of their culture and turn it into intelligence that their own society can use Sweden's already doing this India's working on doing this Japan is working on doing this I think every country should do their own and make sure that they own their own intelligence so that's no hegemony of the United States would be terrible and but most importantly it's because the data belongs to the people it's their national assets their national resources it could be it could have of course be combined and shared with everybody else but we're happy to provide the hardware that helps everybody do that but it's really important that all of the countries create their own sovereign AI tuning tomorrow at 8 p.m. Eastern for a special presentation see me seeing leaders featuring Jensen Wong this is a rare glimpse to do the man behind the video and one of the world's most innovative minds they have money's back after the break coming up say yes to AWS Kramer has a deep dive into the engine that's powered Amazon and more next we're in Silicon Valley for NVIDIA's GTC event in large part because I want you to understand the scale of the artificial intelligence revolution which means we need to talk about who's buying these super high-end chips from generative AI and inference one of the biggest buyers Amazon Web Services AWS for short Amazon.com's cloud infrastructure division or this week we found out that AWS is working with NVIDIA to use their newest blackwell chips throw in Amazon Web Services infrastructure and you've got practically everything you need to build up and train a brilliant artificial intelligence model as fast as possible so let's check in with Adam Slipsky he is the CEO of Amazon Web Services get a better real situation Adam welcome back to that money Jim so good to be with you again like Adam you're the guy who can really explain this that we hear about all this raw power from blackwell and all the different devices that they've got in your partnership I've seen your videos with Jensen could you please explain what it really means for customers of Amazon Web Services if you get a lot of this new a blackwell and all the other new parts of the platform. Sure Jim so Amazon is investing tremendously in all areas of AI from Amazon Q our AI power digital assistant to Amazon bedrock our managed service for accessing many many different leading models and of course down to the chips our own design chips as well as our long-standing partnership with NVIDIA which goes back 13 years and we've been the first to bring really every NVIDIA chip to the cloud so we're really pleased to be partnering with NVIDIA to bring a blackwell platform to the cloud as well and it will be powering next generation of EC2 servers and other Amazon AWS services which is going to enable customers to build bigger models to do inference more quickly and more powerfully and to help drive along with all of our other efforts yeah a ton of different new applications. Okay so let's take a couple I know you have a relationship with Amgen a relationship with Merck could you use NVIDIA in your own your own presence to be able to help these two great companies come up with new drugs. Absolutely so we have if you take our Amazon bedrock service where customers access the model of their choice securely with a great flexibility we have well over 10,000 customers already using bedrock even though it only launched GA in the in the late fall and a lot of those actually are a drug and life sciences companies and we're seeing a basic research being done with with our AI services including bedrock as well as the whole clinical trial and drug development process and one great example is Pfizer who was using our AI services throughout the company and they actually estimate they've got almost 20 different proofs of concept running on us just in general of AI alone and they're estimating that those efforts are going to save between 750 million and a billion dollars annually. Oh that's fabulous because they made an acquisition for that it is going to if they have good luck go after some of the hardest cancers and I'm sure they need you guys to be able to just do iteration after iteration I also want to talk about something else that you're invested in that I use you've got a stake in anthropic I've been using this quad 3 you know look chat jippity seems a little robotic to me the Gemini some little bullet point to me but yours anthropic which you're related to it seems human it's it seems also more accurate is that possible well the new models from anthropic from a quad 3 which were just announced very recently in the in the past several weeks a really leading edge the third-party independent benchmarks are showing them in the categories that they're trying to be involved that they are you know the industry leaders currently outperforming GPT 4 in areas like reasoning and math and coding we partnered very tightly with anthropic as you said Amazon's invested in anthropic financially more importantly we're working tightly together AWS is the preferred cloud provider for anthropic mission critical workloads we work with them to improve their models they work with us to improve our own custom silicon are our training and and for Rensha chips which are gonna have such great performance in the in the months and years to come now I actually had Andy Jassy on once when he was at Amazon web services running and he told me that they cut price every year that people think that Amazon makes so much money but the main thing that they like to do is give the customers a lower price constantly are you guys doing that still but we continue to drive down our own costs and then to turn around and drive down the prices that we charge and we've been doing that for the 18 years we've been serving customers and we tend to to keep on doing that and you know it's proven to be a good business model we've really a small percentage of IT has moved to the cloud so far and there's a lot more to come and the more attractive we can make it and the more we can make it a no-brainer for people to see that not only are you more secure in the cloud not only do you have better operational performance not only are you more flexible and more agile but it's also lower cost the more the more obvious it becomes and and I think that's why so many companies and organizations are still just getting into the meat of their enterprise migrations well I mean I one of the things I saw this is an article that I'm reading says AWS wants 99% of the AI market that seems like hubris is it possible to keep taking share though I think we're all just getting started with generative AI this is the very beginning of a big wave I think most applications that we all interact with whether it's a work or at home are gonna be fundamentally transformed and we're investing tremendously in many many different areas of AI but regarding what you alluded to it is just one facet of AWS business you know we're we're approaching a hundred billion dollar a year revenue run rate last quarter we showed revenue acceleration which is really really great and we are seeing really positive optimistic signs we see less cost optimization or cost cutting efforts by our enterprise customers we see a lot of those companies starting to lean back into their core application core IT estate migrations back into the cloud and we see generative AI laring in in all of that so we're quite optimistic about the future growth potential for AWS that's Adam Silips the CEO of Amazon Web Services when we return master the markets one stock at a time the lightning round is up next don't miss a second of mad money follow at Jim Kramer on X have a question tweet Kramer #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 and then the lightning round is over are you ready ski guys the light round pairs a button like in Pennsylvania Mike who yeah Jim oh yeah I'm calling about Shopify like they were parabolic years ago just wondering what the future might hold to this company look I like e-commerce since I like Amazon wouldn't chop by but I think chop by just an absolutely perfect job with small medium-sized businesses some super package goods companies I would stick by it let's go to Jeremy in New York Jeremy oh yeah okay listen I've been looking into capital one recently and I and I've seen that they're buying cover and I'm wondering if the goodbye I heard that warm bucket capital one is true capital one is terrific and management is great goodbye if they get are they able to close in that discover would be amazing I say stick with that one it is a good company let's go to Jason Texas Jason take a Kramer first of all I want to say I'm gonna do an anagram of booyah and I'm gonna do an anagram and say hey you be the man okay I was I'm asking about a talk a talent here TLTR I like your the I like the quarter last time I once again or invite car point I'm the I got I like the guy I think it's a good company let's go to Bob and Illinois Bob oh Jim how are you today I am good Bob how are you good good what do you think about cover search recently look we think we have a very you know got Ben's deadline go I mean we have been very clear on Kava it got too hot then it came all the way down and we said bye bye bye and it's been right and we're sticking with it but don't forget Chipotle is the king let's go to Ian in California Ian hey Jim nice to hear your voice again I'm calling about a very interesting on new AI pure plate not that just started trading last week comparable to downtown but cheaper and seems like much better technology the symbol is be an AI boy Nancy Halford Indian would look there's a lot of AI pretenders there's one AI king and that happens to be Nvidia and that's what I'm staying with and that ladies and gentlemen it's a conclusion of the lightning round the lightning round is sponsored by Charles Schwab coming up DC has plenty of skin in the AI game it's a cabinet level confab on the White House approach to the new tech next today we learned about the largest semiconductor subsidy today since the passage of the chips act back in the summer of 2022 this time the government's awarding an eight point five billion dollar grant to Intel to support his hundred billion dollars of investments in domestic semiconductor manufacturing and R&D investors spread across four states including two new foundries in Arizona and Ohio now the chip sack is truly kicking in it's worth taking a closer look with the person who spearheaded the whole thing secretary of commerce Gina Ramondo I got a chance to speak with her yesterday take a look so madam secretary tell us about your announcement big announcement Jim I'll be with the president tomorrow in Arizona we're making an eight and a half billion dollar grant available to Intel to expand they'll be expanding eight facilities in four states doing leading edge manufacturing right here in the United States it's it's huge it's a huge announcement create tens of thousands of jobs and most importantly Jim you're there in video you talk about AI the United States of America is getting back into the business of leading in semiconductor manufacturing so tell me who will use these chips once they're made whoever needs them I mean as you know it takes 10 20,000 leading-edge chips to train a frontier AI model so you know Microsoft open AI Google you know military equipment auto companies I mean chips are everywhere anything digital requires chips as you well know and these chips will be they're really ubiquitous now which is why we need them to be made in the United States absolutely I wanted to point that out because I think a lot of people feel that perhaps I you're tricking these companies I don't know more or less at random but I bump into an old friend of mine Brad Koenig who works for you he used to head global tech for Goldman they're telling me there's a process where you literally are talking to Amazon you're talking to alphabet you're talking to Apple you're talking to everybody all the time to find out what they need these are not chips that are going to sit in some closet when they're done absolutely yeah the demand for chips is growing every day artificial intelligence is a huge consumer of chips you know data centers require thousands of chips even your car you know Jim connected vehicles electric vehicles it's over a thousand chips in every car your your iPhone I mean we have spent a huge amount of time with the customers exactly all the customers you've said plus industrial customers plus military plus auto the one thing I don't worry about is chip demand okay now I think that we all are concerned that we're an expensive place to make things that's just known it's cheaper in Taiwan if you can just point out with these factories with these fabs be done without this without some of these supplements meaning that we are so expensive that typically you would not get a return on investment your first four or five years so therefore without commerce's help these plans would not be major that's exactly right they would be built but they would be built in Taiwan or Malaysia or Southeast Asia and that's why we need this program Jim right now the United States of America produces zero leading-edge chips in the United States we buy 92 percent from one company in Taiwan that is not resilient that is not safe right that is an overly concentrated supply chain for a critical item and that's why it makes sense for the US government to provide these subsidies so that these companies make it in America and exactly as you said it's more expensive here everything's more expensive here higher standards and so that's why it makes sense for the government to do this it's a national security issue it's not just economic security one last question we know that you have said that there are certain chips that we made by NVIDIA and made by AMD are fastest chips the GPUs that you do not want the Chinese to have and so you've held them back will we be making those kinds of chips here in our country the fastest the best accelerated computing and gender of AI 100% we have to and we will well look that's exactly what American needs and I don't think there's really any price you can put on that although I know you have to because you are indeed the Secretary of Commerce Gina Ramondo thank you so much for coming home and money thanks Jim I like to say there's always a bull market somewhere and I promise try to find it just for you right here oh man 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 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