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Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 3/21/24
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now Hey I'm Kramer welcome to a special West Coast edition of man money welcome to Kramer our car let me make friends I'm just trying to make your money my job is such to entertain but they educate and to teach you so call me at one eight hundred seven four three CBC or tweet me at Jim Kramer you know why we're we come out here so often it's because Silicon Valley is the crucible of innovation it's where things are created it's where fortunes are made you know why we don't do our show from Washington I think it's where innovation is stifled fortunes are lost and companies aren't created Washington is the anti-silicon Valley with some incredibly rare exceptions it isn't hard to find innovation out here is it we can go to any trade show like the one we put but to early this weekend in video where we saw the future and we saw how we can own a piece of it the ripple effects were everywhere today as Nvidia spread pixie dust throughout the averages down gaining 269 points as it be rising point three two percent now it's that convention point two percent tonight we have a bunch of the winners from Nvidia's pioneering work in artificial intelligence and accelerated computing including metronic which partners with the video come up with better outcomes for Colin Colin cancer tests for all sorts of medical devices the innovation so come Valley it's right your face but in Washington what's a lot harder to detect the government's anti innovation biases isn't it they're so clever about hiding it and they're just as clever in camouflaging their contempt for those who've gotten rich with technology even if it's tech that's improved your life and likely Nvidia maybe made you wealthy too however there are times where the mass just slips off maybe they can't prevent it and you can see the truth the regulators they hate big business the bigger it is the more successful it is the more they abhor it especially it seems if it involves our crown jewels of tech the companies that brought us back from our industrial nadir when our nation only seemed to excel at making just movies and soft drinks with ending of superior intellectual property being manufactured overseas well you know what today was one of those days for Washington couldn't hide their anti-business bias today the Department of Justice along with 16 states sued Apple and you know what I think it was a shameful day a shameful day indeed because I'm telling you there is no merit to this case now you know me as someone who said for ages and ages not to mention a gigantic amount of points that you should own Apple don't trade why do I say because Apple sells at a really low price to earnings or sales ratio not really because it's got the hottest technology out there and it's just crushing it really over so many different industries in a positive way no actually that's Nvidia watch our special tonight I ate my special interview with Jensen mom the CEO of Nvidia if you want to know my other own it don't trade at stock no no I say own Apple don't trade it because it's the most innovative consumer product technology company ever technology company creating things we know and love and trust with the highest customer satisfaction rate of any business on earth Apple never makes anything unless it says perfect as it can be made I say own it don't trade it because the phone represents an actual great bargain something you can get with a telephone line that's subsidized by the carriers so you barely even know the cost and if you can't pay then you can buy one use which is often as good as new why because it's Apple I say own it don't trade it because they care about my privacy and protected better than any other company on earth to say nothing about Uncle Sam which I don't when I consider this lawsuit get whether they try to protect our privacy at all I say own it don't trade it because Apple makes its ecosystem available to millions of developers who in turn have hired millions of people taking back the manual manufacturing that our country lost years ago and today just today I just got a whole brand spank and new reason to own Apple don't trade it I know a loser case when I see one and the United States of America versus Apple is a loser as I used to say on the trading desk not today Satan now for a moment there when the news broke I fear that this might be a devastating antitrust case maybe justice had some so horrible smoking gun that would make Apple look like Microsoft more than 20 years ago when they lost their big anti-trust case back then there was so much evidence of any competitive behavior it was easy for the government to paint Microsoft as a monopolist out to destroy everyone else's business but absolutely because it was true but this time if they have a smoking gun let alone multiple smoking nuts I shouldn't see them the worst they have is some 2019 email from a vice president and product marketing from the Apple Watch and all the day yes the Apple Watch quote indeed quote may help prevent iPhone customers from switching and quotes and calls last I checked there's nothing any competitive about trying to retain your existing customers but maybe the law changed now I didn't go to Harvard Law School for nothing because if that's the best they have well let's trim a little off that budget deficit and drop this case if I want to get someone who doesn't create the most jobs pay the most taxes and create the best products we've ever had of course there is a huge difference between the Microsoft case back in the day and Apple now at the time Microsoft really did come in 95% of the worldwide market share for PC operating systems justice had a real case but Apple only has 20% market share for smartphones worldwide and if you listen to the analysts who follow the stock that numbers actually dropping pretty quickly like the stock that lost one hundred fifteen billion dollars in value today and then I thought okay I'm I'm maybe too quick maybe justice has emails that look like something out of the standard oil predatory pricing model that gave it a hundred percent of the oil market ever sit century ago maybe the feds have a true monopolist in their grasp a company's determined destroy everyone else in the business even though Apple obviously isn't doing anything like that in reality believe me you'd notice instead what I found was a pastiche a mosaic if not a genuine hodgepodge of issues involving allegedly suppressed super apps hampered streaming video games Apple watch tie-ins and Apple pay privacy concerns that collectively amounted to one of the most bogus boogeyman of all time there's no standard oil there's no gates there's no Rockefeller there's just the greatest product in history the one that's become our most cherished possession and now the government wants it to make it worse not better thanks for nothing and that really is what this case is about the government wants to make it worse for the company we like and better for companies we don't like justice literally created this whole new term it's called the performance smart phone market and then it uses Apple the temp you monopolize this performance smart phone market I burst out land and I read it never heard that term before today yes it's true that Apple has 70 percent of the performance smart phone market but that's because hardly anybody else is making anything that can rival the iPhone's performance is that Apple's fault I mean the government basically created this category at a whole clock just to make Apple look bad I'll give the just part in this though they did manage to scare a lot of the summer soldier and sunshine patriotic shareholders out of the stock today those people will probably sell more Apple tomorrow because the regulators just created I can't I kid you not the radios just created a head and shoulders pattern for the stock who knew that Justin Park was filled with a bunch of closet charges love them but I'll tell you this the decision by the justice party go against Apple will end up like any of the myriad analysts who've gone from buy to hold on Apple stock during my time it's creating still one more buying opportunity because the regulators they ain't got nothing for you bottom line maybe when this loser of a lawsuit comes to trial we'll look back and say thanks justice I remember that day when I bought the stock of Apple at discount and boy was I ever right to hold on to that one let's take calls let's go to bill in New Jersey bill hey Jim Booyah Booyah man what's up I just want to know why that's so viable it goes from 196 a year ago to 166 now it's on the move on the upside but it was flat yesterday big couple pennies today sure well you know what this is about the this about Eli Lilly it's about a Monjaro it's about Zepbao it's about the GOP - ones and people feel that that people won't want to eat as many free leads you can just eat one if you take those drugs and right now people kind of like it's a lull people forgetting about those drugs and Ramon Ramon the quad is pretty good manager I say Pepsi's fine not great not bad but a few percent yields probably not gonna hurt you Earl Earl Merlin Earl hey how's it going Jim good day how are you Earl I'm good I'm good so I've been looking at Taiwan for a while services been about $80 and I want to know should I wait for a pullback what's happened now I think it's worth waiting for a pullback you'll just get some story out of China that makes it sound like everyone's scared and that's when you've been buying this and right to buy it and that's what you'll do it again okay today I think today's decision by the just apartment to go against Apple is creating just another buying opportunity for the stock thanks justice although that I'm worried about that that head and shoulders pattern justice all right tonight I'm getting a close look at all the companies that are partnering with NVIDIA's groundbreaking technology including that tribe the metal device company is using NVIDIA's chips to improve many of its own technologies all in finding out more from the CEO then five below sank today after its latest earnings report but it's now the time to go shopping for the discount chain I'm gonna get to the bottom of the story with the CEO and I couldn't come to San Francisco without sitting down with a leader in cyber security Palo Alto Networks how's the company adopting to the latest sentiments around its growth I'm gonna sit down with the company's top brass 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 brought to you by Eaton Vance the symbol of advanced investing what's inside your ETF with parametric equity premium income ETF you know inside you'll find institutional quality expertise from a specialized 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today I got a chance to see how this device and others develop with help with Nvidia firsthand seem to be changing the whole medical industry and then I spoke with metronics chairman and CEO Jeff Martha take a look Jeff from the work we've done on here I keep hearing your name your company's name over and over and over again as being the pioneer of how to use AI for democratization for personalization and for lowering that cost of health right so what are you doing well well first of all thanks for having me on Jim let let's glad to hear that you've got it you've got the headline here so look the the intersection of traditional biomedical engineering which is what Medtronic is all about right has been all about for 75 years the intersection of that with digital technologies today's digital technologies whether it be data AI edge computing cloud computing it robotics that coming into our space is has been a game changer and it's allowing us to get to those headlines you just you just mentioned using data to to you know democratize as you said it good health care and and actually personalize therapies things like deep brain stimulation for Parkinson's personalize that over time or surgery like spine surgery which we were talking about off-camera here lots of room for improvement there in the ais personalizing surgical plans but I suppose it's just having 70 million bibbles lifelong pain right with no real hope with pills that have so many side effects that it's not worth it you got it you got it now how about one that I think is palpable when you give the percentages colorectal cancer which is preventable and I know I talked you off camera said I'm gonna go for it colonoscopy because I've been banned I use another method that does not give you as much view about what can happen just tells you where you are now what are you doing with a colorectal cancer all right so what we're doing there is as we we already participate in colonoscopies we have technology for colonoscopies but what we we saw an opportunity to take all of these colonoscopy videos that have already been done 13 million of them to be exact and train an algorithm to be to find those polyps that surgeons from I have what we learn more within video exactly it's a great example and we're partnered with NVIDIA we partnered with them well over a year ago and it's there it's their technology that's on the edge in the GI the gastrointestinal G Suite where the colonoscopy is being being done processing this algorithm real time so that's the beauty of this is it we're we didn't have to change the surgeon workflow it's it's the existing surgeon workflow that that AI box is right there we have that algorithm it's FDA approved and what we found in the clinical studies is it surgeons were missing 26% of the polyps you know and again it's not it's not that they're doing something wrong other than being human right when they're doing eight procedures a day in some cases 10 you know their eyes get tired over time and you miss things and some things do are almost impossible to see with the naked eye and the AI is picking it up and the AI doesn't get tired AI doesn't make that we keep learning how AI is better than humans but it's because they don't get tired they don't make these mistakes that could be life-threatening now you guys are doing some incredible hypertension stuff that could make it for the now FDA approved right that could make it so people who don't like to take their medicine because they can't see that they have hypertension you can you save their lives for them right I think look Jim this this hypertension this new hypertension procedure we call simplicity could be the biggest thing that we've ever done we've been working on for 15 years as you mentioned just got the FDA approval and what it is it's a it's a it's a day procedure where we're actually applying some energy to some nerves around your kidney that is a root cause to much of hypertension and it drops your hypertension down pretty pretty instantly and we're saying double-digit drops in hypertension and even like a four percentage drop is like a 30 40 percent improvement in strokes and and heart attacks and things like that and so it's a day procedure no pain and the effect lasts we update we have thousands of patients on our database here and and the if we have it going out to 10 years the effect actually gets better over time now when you do work with back I mean there's one where you have a lot of data people are doing from the work I've done people are saying well you know what I I I've seen a lot of things let me tell you what we think you do guess work people who are just relying on their own personal history of being a doctor that's can all go now we can just do the database and find out what's right right so you talk about spine surgery any any surgical procedure right and these surgeons spend their whole life a lot of time in school right and then they graduate med school they do a residency and and and then a fellowship to specialize in something like spine surgery and they spend a lot of time honing their craft over years and years and years and then when we retire we lose a lot of that knowledge right so now we're collecting the all this literature all these surgical experiences into a database and and applying you know AI to that and you know so for if you were to go into back surgery now you get your image or CT image your MR image we load that into this this tool this AI based surgical planning tool that has all this historical knowledge in it is constantly learning and will personalize your your your your back surgery now three years ago is any this going on just starting you know but now we've got you know we've got thousands of thousands of people in the database now now we're personalizing implants you can actually personalize based on your images based on what the AI algorithm is saying we should do for the surgery will personalize the implant in terms of a certain for a like a rod a rod that's implanted a scaffolding if you will for your spine will personalize that that curve for you people got to know that they can go to the doctors different from them if they haven't been in three four years maybe they could learn something about themselves in their lives absolutely and what I'm so encouraged is not just about the technology that's come in it's just how physicians their intellectual curiosity is is they're adopting it they're they're working with us the you know the FDA you know they got to watch a safety and efficacy but they want to see this technology get the patients and they're collaborating with industry in the appropriate way to say okay how can we make sure that this is safe how do we make sure we can because it's data how do we make sure we don't betray any patient trust but how do we get this technology to patients and how do we democratize healthcare so I really feel like between the regulators around the world the FDA leading the way physician community the big tech community like indeed you talked about Jensen this week they're very focused on this working with the med tech industry to make this happen because there's there's big companies like Medtronic but there's a lot a lot of startups out there a lot of startups out there that are doing some really innovative things they keep us on us on our toes look all I can tell you is the what you've done with your company I've seen you since you became CEO you were a big thinker and you're getting it done it's really you know it's just very exciting stuff thank you so thanks Jeff alright 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 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 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 $75 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 to hire you need indeed what the heck just happened to the stock of five below today and we know the dollar stores haven't disappointing this early season last time we got some not so hot results from this five dollar store a small top and bottom line miss management playing theft along with tapping guidance for the current quarter in the year head and that's why the stop plans more than 15% and this is a darling what do we do with it now though five below still has a very ambitious store growth agenda and if they can beat the theft issue this might be a terrific answer point although it's it's tough to own any of the discount retailers here let's talk it over with Joel Anderson's the president CEO five below to learn Mr. Anderson welcome back to mad money Jim thanks great to be with you as always well Joach got to tell you lost at all the kerfuffle of the stock price today it was a pretty good year a pretty good quarter that you just went through wasn't it hey Jim it absolutely was a good it was a great quarter you know what happened yesterday we obviously disappointed investors and they let us know that today what shouldn't be lost in everyone though is we didn't disappoint our customers and you know we're coming off a quarter with a 3-1 comp and sales grew 16% last year so the customer still likes what they see it's all things Easter over my shoulder here and you know we're pushing ahead to continue to please our customer now let's go over on some of the things that you've done also that maybe people think are not working that I think we're five beyond this was something I know I was concerned at one point I thought maybe you're getting too expensive but that's working out well isn't it it is and you know five beyond started one tariffs happened back in pre pandemic and we started with 10 below which is really a defensive strategy and out of that came five beyond we converted over 450 stores last year to the five beyond format which is about two-thirds of front of the stores five below and the back of the store you enter in a store by store inside a store and you enter five beyond and it's working great it's really been a driver sales for us all right so let's talk about what the analysts spent most of their time talking about I understand that I could get at one point even someone said you're beating a dead horse here but there were some some theft issues it's elevated but not just in your place it's elevated with a lot of different stores and what I was thinking about was you were the first one at least to say you know what maybe our problem is with a little bit too much self-checkout now you are pivoting on that correct and it's starting to address somehow self-checkout maybe a weakness and not enough defense against theft yeah it's a good call out Jim and but I think it's also important we remember why self-checkout really took off not only for us but most retailers surged during the pandemic because as you recall people didn't want to interact with other people and the customer really embraced self-checkout so it was really done the explosion was done out of customer experience but you know we've got to dial that back now because as city laws have changed and we decriminalized shoplifting and retail theft we've also got some bad actors in our stores and so you will see us shift more to assisted self-checkout and we'll have a an associate checking you out now now at the same time some people might say oh that's gonna be too expensive but given the the problem the size of the problem you can find good enough labor that can help and still please your customers right absolutely I mean when we put self-checkout in before Trink always grew you know 20 to 30 basis points now we're seeing growth in our self-checkout well over a hundred basis points and so that is way too much and we've got to bring that back and put some labor back in the store which the customers will love too so there's a customer experience to this as well that we believe will be beneficial also I'm glad you said that there was a terrific article in the Atlantic not that long ago it said you know what people really don't they're not really as crazy about self-checkout as you think I hadn't thought about what you said though which is it was sure good in Covid when you didn't want to speak didn't want to talk to anyone now let me ask you do you feel confident that you should stick by your goal of 3,500 stores by 2030 if right now the growth may have been so fast that you didn't realize that you had this kind of theft problem as bad as it was yeah it's a fair challenge the top line is not our problem right now though Jim and in fact you would argue that if we get shrink back under control to pre-pandemic levels you'll even see more growth on that but we're really excited about the pipeline we announced yesterday we're gonna open between 225 and 235 stores this year our pipeline for next year is almost full as well so there's a lot of demand for five below stores our customers love it when we enter the community and I'm not concerned about the top line that's at all my friends who are in the real estate investment trust business say there are still some very high quality spots but they also say that right now tenancy is very high are you able to find the right locations given the fact that we see 96 97 98 percent occupancy at some of these great real estate investment trust malls yeah it's that's clearly was the truth coming out of the pandemic but unfortunately last year we saw several bankruptcies you know last week and another chain announced closing a thousand stores join fabric announced chapter 11 this week so the the shift is happening and and I think what the real estate developers really like about our stories that it's a differentiated concept and so we bring a different customer we bring a young customer we bring families so they're very excited have a chance to get by below in their center right finally for let's go back to what matters you had hello kitty Disney Harry Potter you had hydration you got anything cooking in 2024 that we should be focused on well none that I can tell you about I can tell you right now it's all about Easter everything up here is Easter here's a fuzzy egg you know you open the egg and you know wouldn't you just love Jim a skittles scented body scrub I ask you find these skittles scented body scrub than five below so that's the fun of our story it's a treasure hunt you always find something new in it we'll take care of the bottom line we're gonna take care of this shrink problem but in the meantime it's still about product and merchandising and driving the business and guess we do have some fun things coming down the road I gotta tell you I've been waiting for the stock to come down and never came down suddenly when it comes down everybody's scared I'm not and I am thankful for Joel Anderson present CEO of 5 below coming on the show Joel see you fill it off you in a couple weeks I hope I'd love to see it out there Jim and appreciate that happiness on and we're excited and this is a great entry point I agree with you with me at my knees back after the break coming up a longtime Kramer favorite is playing defense is there a buying opportunity in Palo Alto networks find out next what's happening with cyber security about a month ago Palo Alto networks loan one of my favorites sold stock plunge 28% in a single session after the company gave conservative guidance and management made what sounds like discouraging comments on the conference call she owned a cash or spoke about and I quote spending fatigue while we later clarified that he wasn't talking about overall levels of demand he meant his clients are sick of spending their money across many different cybersecurity vendors in order to get complete protection since then Palo Alto has been trying to get Wall Street on board with their platformization strategy where they try to get customers to adopt their own complete soup to nut solutions rather than going with our car products yet from this we're bounding for the quarter though the stock's been heavy this month we're sticking with it for the chapel trust as we've told the investing club but do not take it from me earlier today we got a chance to check in with the cash reward the chairman and CEO of Palo Alto networks take a look okay so that's time we spoke we talked about the platformization and I like to know because your industry works pretty fast what's the cost of response you know Jim I know there was a lot of trepidation around platformization it's fascinating everybody else seems to want to now talk about platforms which is great I've been very excited about the response I've got from our customers for the first time I've inbound calls from customers saying how can I take a bunch of my legacy stuff and move faster towards this notion of platformization and that's by the way that's not just because of platformization I think the hacking activity continues to increase every time you and I speak well that's kind of where I'm going because I think the hacks are now beginning to affect mainstream America I was part of a there was an unfortunate hack and bobby healthcare system yes somehow they know my data someone knows my day I'm being called several times a day about what happened with me and what I'm saying is there's got to be millions of people being in my situation what is going on it's hitting home well Jim you know since you and I talked last time there have been four major things that have happened in the hacking world one you know sister sent out an advisory that everybody has to get off legacy VPNs as quickly as they can literally they told people every government department has to get off it of course that means every enterprise every company is looking at getting off that so I've seen about a hundred inbound calls from customers saying how do we get off this as fast as we can so we actually launch the system that you don't that people are on that the government says we don't want you one and they have to go to another system and so they basically have to get off Yvanti and they have to get on to a sassy platform which is our sassy platform which you've been deploying for the last many years I got a hundred customers calling saying how quickly can I get off this and get on your platform we have free trials running for 90 days we have hundreds of customers are calling us so this is one thing that happened the second thing that happened there's no more fatigue when it comes to people who are trying to figure out what to do look there's never been fatigue on getting their cyber security environment a better place there was a challenge about getting maximum value and that's what we're addressing so notice I change from fatigue to maximum value I think better work well everything I say this because I think there's a crisis that we all didn't see coming and I think that the big guys must have like gotten some sort of cartel and gotten information and split up this information because all of us I mean anyone who has a spam call in the last 48 hours it's from someone who knows your health care records yeah so look the second turn 14 second obviously we all heard about the change health care hack unfortunately they publicly stated the policy was working health you had to help well change health care the subsidiary of United Health right which is where this happened they brought you in they did yes it's us and many and we're working together but what's different is in the last four weeks we have brought back their systems with their support we have reconnected the pharmacies the US health care system is back on track now what that is resulting in it was down yes it was for a few days because we have to make sure we cleaned everything we put in the right place make sure the data was up and running all connections was secure so you brought back up and running what is important is change health care is going to platformize Palo Alto end-to-end right it feeds it back to one with you platform right we have things in place we're working to I want to make change health care look like the example of what great looks like because we think we all deserve that especially as it relates to our health care industry there is no risk that can be taken in that regard so I think the health care industries on alert making sure that everything gets up to snuff as quickly as well and we spoke last we were concerned that maybe there were trouble closing federal deals have the federal deals accelerated well good is this you know as we said we do this that out of our business forecast so yes the federal deals are slowly moving the right direction a lot of the volunteer replacement impacted the federal department so which they are coming back to saying how quickly can get off that so like business is exactly where it should be right platformization is beginning to take hold lots of customers are calling us hacks are continuing to rise unfortunately like you said their mainstream we're seeing a lot more nation state activity on a constant basis so the environment is sort of where it was and cyber security is going to be around for a very long time okay I think the market is big enough for everybody I do know that a competitor George Kurtz we both know it does a very good job at Krauss strike did say that a global financial service giant replaced your company's president Prisma cloud product and a large seven-figure deal that was on his conference call what seven figures is oh it's a million dollars got it yes okay then you also mentioned that a major mobile computing company standardized on log scale next gen as him away from you I what I'm just wondering is this people switch companies right they I am sure that there are people who were with Krauss right that's with you and you just don't talk about it with me well Jim I'm gonna take the higher ground I think George runs a good company Krauss strikes great product I hoped one day they become a platform but for now what we're seeing is cross-platform deals I'm focusing on eight figure and nine figure deals but that's what's gonna make Palo Alto that was great in the largest cybersecurity company in the world and I'm glad that he's getting some seven-figure deals and over frankly because I think there's so much room in this this is the fastest going space in the world I do not want to hear that one is a loser one is a winner when United Health has to call you for change because it the hacks I mean this morning we did a piece about how the sewer and water companies have to be on alert are you getting deals from that area look critical infrastructure has always been a weak spot because they have traditionally not have been able to invest as much in technology as they should have and we're busy connecting all of those to the internet so as you collect all legacy systems of the internet you need to get cybersecurity up and to a state where those things cannot be interfered with so I think we are gonna see constant upgrades needed in the critical infrastructure whether it's water electricity you know assume there's a lot of discussion gonna be with AI and power like power systems are needed to fund all this wonderful AI data farms they're gonna have in the future now firewall business has been in decline now it's a legacy business for you can this be given away as part of getting people into platformization or does it not matter I think there is a fallacy out there that the firewalls are not going to be needed when people said we won't eat storage at one point in time we won't eat PCs I think those businesses are just fine firewalls will have the same fate in the future last quarter we were the only far hardware firewall business that took share in the market and grew positively so we continue to see low single-digit growth in the hardware business that's different part understood that is different yeah no look firewalls are gonna be needed there is more and more data flowing through the pipes the more data flows you need more data inspection the cheapest form of data inspections hardware many people are moving to the cloud you need software firewall seriously growth both in hardware lower single-digit those and higher growth in software firewall absolutely last question I we were obviously at NVIDIA's conference a lot of a lot of JNI I we know that they announced a deal with crowd strike I have to presume you work with NVIDIA right these are yes yes and it's it's you're not putting out a press release that you work in the video but they obviously are partners when it comes to being partners you need them yes so Jim AI is going to be transformative I think you spend the whole week talking about AI it's gonna be big I think NVIDIA is amazing at what they're doing we're working with NVIDIA with Google with cloud with open AI because we have to do things one we have to protect our customers from anything that bad actors use these AI platforms for and that's gonna be a big deal we're already beginning to see activity where bad actors are using AI to attack people faster secondly we have to make sure we embed AI in our products so we're working with everyone we're really excited about it you will hear a lot more from us well I hope to stay tuned and I hope that we get to see all the stuff that you got playing for us I look forward to showing it to you excellent that's you kester or chairman CEO Palo Alto networks P A N W and a very large position for the child with us that's the car thank you when we return master the markets one stock at a time the lightning round is up next and then the lightning round is over are you ready ski dance I'm gonna let you know I would rather buy NVIDIA a hundred points higher than it is now the bias and CI that's how I feel about let's go to and Indiana and hey Jim thanks for the annual meeting I'm a club member really oh well we have a big one I think we got a meeting next week again don't know they didn't work to me to death but that's okay I'm ready for what's that Ellie Baba by more oh it's so hard if we trusted in Chinese to do the right accounting do the right thing by people who are working really hard then we would say buy it but right now they seem to be inclined to attack all the rich people including the people who run that company so we're gonna have to hold up till goes under 70 that's gonna Vinnie in New Jersey Vinnie oh yeah Jim yeah taking my call how do you feel about AMD over the next time I like AMD here I think AMD has been in the penalty box long enough and I've got to tell you I do live in NVIDIA land but I'm not most sight of the fact that Lisa Sue is one of the greatest matters of our time and it is time right now for for me to think can I own both those for my travel trust NVIDIA and AMD I'm coming around thinking I can't let's go to Chuck and Arizona Chuck hey Jim that's Philadelphia favorite son how are you oh man doing great thank you for asking about you all right yeah I'm on the Jensen one AI phrase and I want to ask you if it's the right time to hit the buy button on applied materials look I it's never been the wrong time in the last couple years Gary Dickerson's so great at what he does now it's up five it's at a high I buy some and let it pull back I would not buy all at once let's go to Mary and I'd hope he's married hi Jim this is Mary and I'd a whole and I'm a frequent caller and a member of the club oh I want to thank you for all the guidance and direction and information you share with us individual investors to help us reach our financial goals that is our plan thank you you you done good kiddo the stock I'm calling about I've held for quite a while and I've noticed lately it's going backwards instead of forwards although it is up today and I know you prefer Home Depot but what I've got is if Lowe's and I don't know if I should just hold on to it and see if it reverses and start no Mary you're gonna hope Lowe's is really good and Marvin Ellis is a great CEO and I've got to tell you Lowe's almost had his all-time high-home heap of great to both of those are good either one is right to buy right now and that lady jumps in conclusion of the lightning round the lightning round is sponsored by Charles Schwab coming up a chip off the old stock Kramer examines the chips act next when you hear the U.S. government spreading a check to Intel for $8.5 billion and extending $11 million loan on top of that to build out some of your plants here in America you're probably thinking boom doggo to many it seems like a foolish giveaway won't Intel build these plants anyway if already committed to a hundred billion dollar investment plan in the United States but I say that is actually all wrong Intel's investing here precisely because of the chips act built champion by Commerce Secretary Gina Romondo because she realized our country's way too dependent on foreign semiconductor manufacturing although we designed tons of chips here we tend to outsource the manufacturing to Taiwan or South Korea Malaysia the chips act which I champion for the get-go was a response to a real need we don't manufacture high performance chips here we don't make many of the chips used by our own military and as we found out during the pandemic our overseas supply chain forget about it it's much more fragile than we thought when it comes to semiconductors in fact we have an unbelievable dependence on a single company Taiwan semiconductor which is a serious problem because our number one geopolitical rival in the world of people's Republic of China wants to devour Taiwan and the more Commerce Department curtails the sales of our highest-end chips to China including the ones in video rolled out at GTC over this week the more incentive China has to do something crazy to get its hands on this high-performance Taiwanese made chips of course the critics love to say that the government's clueless when it comes to picking winners they argue the Commerce Department doesn't know what it's doing when it throws billions of dollars at Intel to fund these new facilities after a while until used to be the leader in cutting-edge semiconductors that in the days you go with the ascents of Jensen Wong's Nvidia and Lisa Seuss AMD so why the heck would they pick it Intel look I get it's a good question but you got to keep in mind something you got to keep in mind that most semiconductor companies don't actually want to be in the business of manufacturing chips the margins are much lower than simply the design of the chips and having Taiwan semi physically make them is what a deal and that's doubly true if you're doing the manufacturing here in America it's just way too expensive no way Intel will be building new foundries in this country without government substance they could make chips in Taiwan at a fraction of the cost boosts their earnings per share how did it get to the point where we manufacture zero accelerated high-performance chips here how'd that happen frankly we just don't know how to do it because we don't train enough engineers and our workforce has minimal experience in building these complex founders they can take up to four or five years to get these plants ready to produce the best chips and almost no company can afford to make that kind of investment unless they can guarantee a good rate of return on Wall Street and the only way to do that in America is with government incentives finally it drives me nuts to hear people saying that the government is picking winners as a guaranteed disaster because the government doesn't know what it's doing that's the wrap I've heard it many times hell sometimes that's true but it depends on the people I know Intel can get the job done seems to be a fine choice to me even if I don't like the stock Secretary Ramanda is pretty much the only person the Biden administration that knows the ins and outs of business before she got into politics she was a venture capitalist for heaven's sake her team is unbelievably rigorous they speak constantly to all the major hyper scalars companies like Microsoft that Amazon alphabet and of course Nvidia the effort includes brat conning the former head of Goldman tax investment banking group Goldman Sachs's tech group I mean I know cooking I helped recruit him to Goldman back in the day he's exactly kind of get you you want for this job I mean I can't believe he's willing to take it so think about like this we need to build these chips in America but we have no hope of making that happen without these subsidies and let's remember that many other countries subsidized chip making far more heavily than we do especially China plus we have the best possible team to pick the so-called winners the Intel subsidy will bring back business that would most likely have gone to Taiwan not there's anything wrong with Taiwan great ally but sadly it's the country most vulnerable to Chinese aggression if we want to protect our strategically essential supply chains we need to be able to build these chips here and that's exactly why our government needs to spend this money oh it's no boondoggle people it's something like let's call it an economic necessity I like say there's always a more market somewhere I pop try to find it just for you right here amid money I'm Jim Kramer see you tomorrow let's go start 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 forward slash mad money disclaimer the National Women's Soccer League is now on ION it's a new Saturday night destination featuring the best players in the world 25 Saturday night 50 matches all season long on ION this is 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