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 5/29/24
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 ssha.com for a prospectus containing this another information really carefully before investing spies subject to risks similar to those of stocks only TS are subject to risk including possible loss of principle house distributors and distribution homes dot com knows that when it comes to home shopping it's never just about the house or condo it's about the home and what makes a home is more than just the house or property it's the location and neighborhood if you have kids it's also schools nearby parks and transportation options that's why homes dot com goes above and beyond to bring home shoppers the in-depth information they need to find the right home and when I say in depth I am talking deep each listing features comprehensive information about the neighborhood complete with a video guide they also have details about local schools with test scores state rankings and student to teacher ratio they even have an agent directory with the sales history of each agent so when it comes to finding a home not just the house this is everything you need to know all in one place homes dot com we've done your homework 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 man money starts now hey I'm Kramer welcome to have money welcome Kramer I'm gonna make friends I'm just trying to make some money my job is not to entertain but that you can teach so call me at one eight hundred seven four three CBC we meet you Kramer we are witnessing but I can regard only as a newfound skepticism of Kramer faith in video I'm sensing it people are suddenly treating in video like it's some kind of a parmanu like the corporate equivalent of new vorish so in a day when stocks for once again hostage to a which pushed down down four hundred and eleven points that was easy while the SMB lost 0.7% and as I climb 0.5 8% it is worth addressing what the heck is going on with these mega cap market capitalizations that everyone's talking about not just people involved in the stock market in videos worth 2.8 trillion dollars nippy at the heels of Apple which is stolen around 2.9 trillion still fairly far behind Microsoft at 3.2 trillion first let's dispel with this part of the new characterization I like to go to the source of old wisdom witness check GPT itself herself which tells us quote while Nvidia's rise to prominence has been rapid compared to older technology companies it has established a strong reputation for innovation and quality in its industry therefore referring to Nvidia as a parmanu might not fully capture its established status and influence in the tech world who I knew the gender of AI was smart employees who would have thought hey why don't we do this let's ask rival and flopics generative AI system called about this newfound wealth characterization well he offers a more aggressive approach and I quote because the company is founded in 1993 it's a fairly mature company especially in the technology industry where companies can rise and fall rapidly and initially focused on graphics processing units for gaming and professional visualization markets however in the profit goes on quote Nvidia seen explosive growth and emerges a dominant force in areas like artificial intelligence machine learning data centers autonomous vehicles in addition to its traditional GPU business this rapid ascent to power and influence in these new domains could potentially lead some to view in video as a parmanu in those spaces even as it is well established company overall given the somewhat more combative extremely worthy answer I could resist his conclude a follow-up is Nvidia member of the Nuva reach upon it for two seconds which seemed longer than usual and then venture quote some may argue that Nvidia's recent dominance and immense wealth in emerging fields like AI and data centers represent a new money rise to power influence in these specific domains but overall Nvidia's longevity corporate structure industry content context makes it difficult to accurately classify the company itself as Nuva reach in the traditional sense of the term there to artificial intelligence services categorically deny the pejorative characterization let it be fair both platforms are built on Nvidia's chips yet in one form or another I keep period people just don't believe Nvidia belongs in the mix too fast too soon it's somehow undeserving or baffling or just playing crazy like these guys somehow don't earn that they didn't earn the 2.8 trillion dollar valuation they stole it I get it until recently Nvidia was not in the top five stocks in any in any of the last 20 years we tend to think that the top five is kind of like a to use more literary explanation Gibbsville and John O'Hara's legendary appointment in Samara a rarefied neighborhood where anyone new simply doesn't belong in terms of this particular neighborhood Nvidia's real new it wasn't one of the five largest companies five years ago or ten years ago or fifteen years ago let alone 20 years ago in the last five years the largest crown title so I'm going to see a horse race among Microsoft Apple outfit Amazon birch rat we periodically have a long shot come close in this run for the roses but nothing the place or showed like that's horse race in terms like Tesla temporarily stick in the fifth horse with a trillion dollar capitalization 2022 the tech field bet with Berkshire somehow in the mix isn't all that new from 2005 and 2012 Exxon of all companies led the list that was it a fossil fuel company with a lot of oil on the ground waiting the omission taken to the market in fact you could argue that Exxon led the list of largest companies in one form another for about a century in this country the lead only changed 11 years ago when Apple finally surpassed Exxon's size I remember how shocked I was that any tech company could possibly topple the company was gradually reconsolidating John D Rockefeller's standard oil empire it seemed ridiculous a company that made cell phones worth more than a world number one integrated oil it was going enough that Apple left over Microsoft Walmart alphabet which previously had brought all the lead over the handset company but back then we didn't really care because everybody knew Apple deserved it we understood the business we use the iPhone just like we use Microsoft Windows just like we bought things on Amazon not that we knew about its rapidly growing web services business we knew alphabet is Google and even 11 year old new search while YouTube seemed to be an overnight sensation Berkshire athlete let's face it Warren Buffett the greatest icon in finance even as you might not know that perks are an amalgam of auto insurance fossil fuel pipes a railroad box of candy even when Tesla snuck in a few years ago people gave it more credit than Nvidia is getting now at the time it felt like Tesla was well on its way to becoming the best-selling sedan in America with worldwide ambitions but Nvidia sure it's been around since 1993 or Jensen one would have more number 93 when he threw out that first pitch doesn't matter unlike any other company in the top five for more than 20 years two things distinguishing video one hardly anybody knows that they ever used an Nvidia product as it's really part of the hidden tech world known as the enterprise when the consumer side only hardcore gamers care about these chips and to we know Nvidia will soon overtake the Microsoft we used up this pace or as chat GPT the spawn of Microsoft on the software side and Nvidia on the hardware side told me today to estimate when Nvidia might surpass Microsoft is the largest company we need to consider Nvidia's growth rate chat GPT goes on to say Nvidia could potentially pass Microsoft within the next year or two to which I say hold it partner the stock keeps value at this base it could be the next day or two hence the real conundrum we're facing on the one hand Nvidia's new and rich Microsoft's older and state we know windows and we don't know Blackwell somehow it's so many it just doesn't seem right that a company they rarely interact with could be this big to me it's as right as when Apple defloned Exxon I say all that happened is that Nvidia at the far term was nowhere to be seen but as we got to the stretch it made its move it shocked us as Evercore ISI points out no top five S&P market cat name has ever had a 20% move after the earnings when the S&P was down it just snuck in bottom line is it a photo finish no because in the end the race is eternal and for all we know Nvidia not Apple not Microsoft is Secretary the greatest of them all can't in Florida can't hi Jim thanks for taking my call I really saw your show yeah I take my questions about Shopify it's fallen about 20% since earnings release a few weeks ago it looks like it stabilized around 57 what would you do with Shopify I think you could hold on Shopify you know Shopify did miss it did have some issues I think you actually have to wait till the next quarter see if those issues are resolved there was a spending issue they didn't need to spend more to get business I do like to come in very much but I'm not going to just send in when it's not the sector in the market that's doing well bill of Massachusetts bill oh yeah Jimmy James oh yeah Bill what's up hey I had a question for you I really would like to know if there's any more technology that you see coming out of meta with Zuck I'd love to know what's going on yeah I think there is I mean I think that they're going to be in competition and something we don't know yet they're buying too many of the Nvidia cards for me to think they're just going to continue to be just Instagram and Facebook in what's app I think there's much more in store for us and I think you got to stay long that stock it is not expensive stock a photo finish may not be in the departure because the race is eternal but who knows maybe Nvidia is secretariat oh man money tonight tech Titan Salesforce reported after the bell I got Mark Benioff fresher for the report to break down the numbers and it does not look good then is it time to dig into partly with a stock split on the horizon I'm talking menu updates tick tock turbulence and war with the CEO and cadence design systems has been a steady long-term winner but can it keep climbing in this new wave of AI innovation I'm sitting down with the CEO to learn more so stay with Kramer don't miss a second of mad money follow at Jim Kramer on X have a question tweet Kramer hashtag mad mentions send Jim an email to mad money at CNBC calm or give us a call at 1-800-743 CNBC miss something head to mad money dot CNBC calm take your business further with a smart and flexible American Express business gold card you can earn four times points on your top two eligible spending categories every month like transit US restaurants and gas stations that's the powerful backing of American Express four times points on up to one hundred and fifty thousand dollars and purchases per year terms apply learn more at American Express calm slash business gold card when you're hiring the best way to search for a candidate isn't to search at all don't search match with indeed indeed is your matching and hiring platform with over 350 million global monthly visitors according to indeed data and a matching engine that helps you find quality candidates fast use indeed for scheduling screening and messaging to connect with candidates faster plus 93 percent of employers agree indeed delivers the highest quality matches compared to other job sites according to a recent indeed survey leveraging over 140 million qualifications and preferences every day indeed's matching engine is constantly learning from your preferences join more than three and a half million businesses worldwide that use indeed listeners of the show will get a $75 sponsor job credit to get your jobs more visibility at indeed calm slash mad money just go to indeed calm slash mad money right now and support the show by saying you heard about indeed on this podcast indeed calm slash mad money terms and conditions apply need to hire you need indeed what the heck just happened to the stock of sales force that's the king of customer relations management software after the closed sales force reported genuine miss several key lines were weaker than expected revenue operating margin current remaining forms obligations although the urge for sure number actually came better than expected making matters worse management gave a weaker than expected sales and earnings forecast for the current quarter that said I'm not sure it's just fine to make it a total meltdown after hours trading the missus weren't that big and there's no doubt sales forces swung off a ton of cash they even raised their full year earnings forecast but we're so used to having this company do the right thing that I think it just took people by surprise perhaps it shouldn't because the whole enterprise software sector that belongs to seems under siege right now after what it looks to be over earning during covid earlier today we've got the chances people mark then you have the straight shooting co-founder chair and CEO of sales force take a look mark welcome back to man money great to see you Jim thanks so much for having me and hello from San Francisco well hello and thank you for coming on look I'm not gonna dance around it your the stock is down the most I've seen your stock down a long time but the cash flow numbers seem strong I'm looking at the operating cash flow I'm also looking at the sales force margin they both see when within guidance so I'm trying to I need to rationalize why this is happening why have people decided that your business is definitively slowing right now slowing and that things are not as good as they seem look Jim you can't always control the buying environment but what you can control is your cash flow in your margin and you can see the incredible growth this quarter is amazing I mean these are cash flow numbers that we've just never seen before up 39% year over near to 6.247 billion dollars in cash flow incredible and you can see the margin is up 450 basis points to 32.1% you know this is a huge transformation that we've gone through over the last year and this has been an incredible moment for our company I mean these are cash flow numbers that are even larger than Coca-Cola well if that's the case in revenue guidance of 92925 it is indeed below the 9.34 guidance why is it below given the fact what you just said Jim we're holding our guidance for the year at 38 billion dollars which has been incredible for us and what we see happening is not only this amazing transformation in our core financials but also the amazing AI transformation that we're going through as well and you'll see some incredible new customer stories that are merging with companies who are transforming themselves using our amazing new AI including FedEx air India and even paychecks and I love to talk to you about that as well well let me just before we get to that I wanted to deal with this idea that things have gotten more competitive and maybe sales elongated is there something that I am missing which explains why people are taking your stock down 17 18% when to me looks like this is a rather just typical good salesforce quarter Jim this has been an amazing year for us we've completely transformed the financials of the company and you can see that we're you know delivering as I said this incredible cash flow and margin numbers so look I can't predict what the stock market does you know that we've been through this how many times over a couple I guess I've been doing this 25 years but what I can tell you is that the most important thing remains the customer success which is why how are we going to make these customers totally transform themselves more profitable better customer success using our incredible new AI technology and that's what I'm really excited okay so let's talk about what you're doing FedEx let's let's put it out there about why someone selected salesforce for the largest trans one the largest transport companies in the world why do they need Jim what are you doing well the opportunity of FedEx is incredible and we've of course worked with Fred and Raj for years but the idea now that we can really take their business to a whole new level of profitability and productivity is amazing using salesforce Einstein now you know Einstein is very delivering more than a trillion transactions a week but when you look at our customers overall the power is with this new generative AI capability we can take the 250 petabytes of information that's stored in salesforce and action that to create another level of capability for our customers and with FedEx what that means is they're able to sell services to their customers that before they had tremendous white space with and we saw that in the quarter with an incredible delivery of the AI capability with Federal Express and the other one that I just mentioned Air India you know this is an amazing next generation airline that is acquired all kinds of different airlines in India to create the leading airline in India but when they did that they had lots and lots of islands of information but using our data cloud they're able now to aggregate that information and using this generative AI capability to again deliver another level of productivity and capability and this is the technology that I see as a catalyst for more growth with the company okay so specifically we saw more than a thousand new data cloud purchases in the quarter that's the second quarter in a row where we saw data cloud with more than a thousand new customers each and that is the kind of growth that we're looking for new products and capabilities okay now you've talked about the the transformation and it is self-evidently gigantic but do you feel the efficiency efforts are substantially complete I know that you did cut your full year adjusted operating margin guidance so I would think that perhaps given it's the modern guidance that you're not complete and there's more work to do Jim as I said you can't always control the buy-in environment but you can control your cash flow and your margins and the growth that we've seen this year of the last 12 months in our cash flow and our margins has been just spectacular and that's what we're going to continue to focus on that's why we've also you know we've we're able to deliver you know incredible buyback this quarter we of course we've initiated our dividend as well it's been a complete financial transformation but not only that it's also a complete transformation of the product line for customers giving them this incredible new capability with artificial intelligence so what happened with Informatica just didn't I know that you introduced me to them years before at Dreamforce I thought that I know that they have some really terrific products it just didn't fit Jim we're looking constantly at every company that's out there and unfortunately investment banks can get a little bit ahead of themselves or maybe we make a phone call to a customer to find out you know what the strategic possibilities are partnership pop-up possibilities are with a company and all of a sudden we see the news stories that were acquiring this company or that company and look I'm a huge believer in innovation you know that I believe in an organic innovation and inorganic innovation it's how we've created the third largest enterprise software company in the world so I can address specific rumors about any particular you know M&A opportunity but what I can tell you is that you know we're we love that company it's a great company it's always been one of my favorite companies and you know when we look to have greater partnerships with them you know I cannot you know comment or whatever the rumors about people want me to ask you about HubSpot and alphabet or you and again to me HubSpot's another great company it does it's kind of a many sales force but I don't necessarily regard them as someone who is nipping at your business right now you know these are great customers of ours you know Google HubSpot I mean I get back to our customer success you know what is it that's making sales force successful today and you can look at you know another company that I think both of us love so much crowd strike we had an incredible transaction the quarter completely transforming the company in sales and service helping them to build new products again using AI helping to keep their costs down while delivering these incredible new capabilities so what I'm hearing is is it yes you can't control the stock but the environment is not so bad you're not giving me the look the environment's gotten weaker it's gotten tougher in Europe it's gotten tougher in Asia I'm not hearing that for you Jim you can't control the buying environment the reality is you're you're gonna have heterogeneous buying environments it's gonna happen we're in this post-pandemic reality where the buying environment has been we've talked about this now for a few quarters been very measured for enterprise software companies not just the company like sales force but many companies so what are we gonna focus on we're gonna focus on improving our cash flow in our margins what look at those numbers Jim no the numbers you know the numbers say to me this is 230 why don't I did I would you I'd stand there 230 I can't control the stock price but I can't control my buying of my buy it we're gonna focus on our customer success and these great companies like you know FedEx or Air India or you know a crowd strike or even like paychecks is another unbelievable story where we completely transformed the company this year the technology that's happening right now is awesome so for CEOs our opportunities to go in and continue to show them the incredible opportunities that are at hand and deliver that and show them what they can do in this incredible new world that we're all in now what did happen enterprise software that we've decided it just doesn't have the let's say it doesn't have the moxie that that engineering software does right now well I don't think that that's it at all Jim I I've said it a number of times over the last few quarters and I think it's a little bit hard to understand that you know we went through the pandemic and during the pandemic enterprise software surged and companies you know aggressively bought enterprise software and put in all kinds of next-generation infrastructure and in this post pandemic world you know they've really worked to I think I think absorb a lot of that technology that they put in and while that's happening you're also going through this AI kind of renaissance that's happening so those things have to be rationalized for these companies you have to say you look at our numbers we still sold a massive amount of software in the corner it was unbelievable how many deals we did I mean our deals over a million dollars Jim were record levels so we're still selling massive amounts of capability and we have incredible new products like data cloud well we are delivering we're delivering against much you don't like to think that my questions are an abstraction and what matters is a single source of truth that you're telling me about how the company's doing I'm trying to rationalize the stock price which is my department with the selling of enterprise software which is your department and right now my department is transferring your department and that's why I'm asking these tough questions not because I'm saying it's great to see it it is great to see it but now at least we understand it is getting a cash low to move getting the margins to move you know and also delivering the next generation of innovation making our customer successful that's what I always am focused on that's what we focused on that's exactly what you should be posting I want to thank Mark Benef co-founder Chairman CEO of Salesforce who does not shy away from anything and basically he's telling you listen it's this is business and there we go maybe I'm back in front coming up want to split a burrito Kramer chats with Chipotle and there's plenty on the menu next fact running a business is not getting easier on your wallet with higher expenses on materials employees distribution and borrowing everything costs more also a fact smart businesses are reducing costs and headaches by graduating to NetSuite by Oracle NetSuite is the number one cloud financial system bringing accounting financial management inventory and HR into one platform and one source of truth with NetSuite you reduce IT costs because NetSuite lives in the cloud with no hardware required accessed from anywhere you can cut the cost of maintaining multiple systems because you've got one unified business management suite you improve efficiency by bringing all your major business processes into one platform slashing manual tasks and errors over 37,000 companies have already made the move see how you'll profit with NetSuite and then you can think of all the ways you could be spending the money you save company retreated malleable anyone by popular demand NetSuite is offering a one-of-a-kind flexible financing program for a few more weeks head to NetSuite.com to start saving I can mention this night companies with high dollars share prices are finally embracing the verses of the stock split take Kramer Fave Chipotle which reported another spectacular quarter over a month ago just as important two months ago the board approved a 50 for one split which will make this $3,000 plus stock a lot more accessible as I know you want but the stock currently down more than five percent from its all-time higher on this but I think this could be a really good entry point for a stock that never seems to quit don't take it from me let's speak to Brian Nichols the chairman CEO of Chipotle you get a better read this is ready mr. Welcome back to Mad Money yeah Jim great to be here I said Brian we are stuck in some situation I read a restaurant news story 80% of America thinks that fast food is now a luxury what the heck has happened here you know look I definitely think consumers are getting to be more thoughtful about where they want to spend their money when it comes time to eating out that's why at Chipotle we've always been focused on great ingredients great culinary you know terrific customization and obviously we always talk about great throughput and I think when we stay focused on those things people feel good about spending their 10 $15 with Chipotle that's what's so amazing to me it's got to be the health and the food and the people or else you would be way outside the realm of what people can afford in this country yeah that's right I mean we've spent a lot of time making sure that you know the bulls the burritos you know obviously they're big you get exactly what you want whatever diet you may have keto whole 30 whatever it is however you want to vegetarian you can get great culinary always from Chipotle and our people do a great job I think of serving it up every time every single day now you mentioned big obviously we've got this TikTok troubles I would say where some people are filming and some people are saying hey listen give me one something big what leverage does a customer have over a very seasoned worker who wants to do the right thing for the company and might seem to the customer yeah I mean look the whole thing is kind of crazy to me we've always said we want to give people great portions I want to give them what they want and you're not shrunk the portions no no we never have like from the beginning of time with Chipotle I think there were billboards that said burritos as big as your head like that's never changed and our teams they are focused on giving people what they want so the whole thing's a little silly it actually kind of really bums me out when people frankly do this videoing thing because it's like it's a little rude to our team members and you know our team members their desires to give our customer a great experience like that's what they want to do there's nothing better than our team members giving people the bowl or the burrito that they want and so you know hopefully that's what people are getting I know that's what our teams want to provide okay well I finished half my chicken out bus stores save the rest for dinner today but other people say listen this let's check it out bus store and I say no that can't be it's the same mountain that I started thinking maybe if you order out that you're not looking in the eye of the worker in the work I'm trying to figure out Brian I don't know I mean if you're in our restaurant in person you know how this goes Jim all you got to do is look at our team member and you know if you're like hey can I get a little more rice just give them a little nod and more than likely the guys give you a little more rice that's absolutely the chicken you know they want to give them a great portion of chicken I like you love the chicken out pest or whenever I go in the restaurant I see people getting great portions I see a lot of happy people would you ever do it all you can eat like they did the shrimp and red washer no we don't want it you don't want to go back we're not going yeah we're not going all you can eat we are going great ingredients great culinary great bowls okay so everyone knows the food tastes great and we're willing to pay off obviously even California that but what I think people don't know is the engine and I know when your conference call you talked about an outfit in Boston that did so many more when they did for that key 15 minutes and then right before we start from me talking about another office doing 15 minutes it's that crunch time that really determines how well you guys do yeah look I had the opportunity before we sat down here to visit a handful of restaurants and it was just really exciting to see you know as a company we're focused on throughput right and I had a couple managers share with us you know in 15 minutes they're doing 50 transactions 55 transactions 60 transactions you got to explain how hard that is it's well this is what it's in 15 minutes I went my restaurant if I did 10 well look this is why it's so important that our teams are staffed deployed correctly they do the prep in advance they're ready to go because then they're able to give the customer exactly what they want and move them through really quickly and you know it's it's really fun to see when you're doing 250 transactions in an hour the teams are getting bonuses they're fired up it's it's really fun to see well how about this stocks but what does it mean you hear people buzz in about it when you're at the stores yeah that you know what is fun to see is people have the ability to buy chipotle shares but it's the other buying pieces right and so there's a lot more excitement when you can buy a whole share or get a couple shares and it's great to see because some folks I mean literally that have owned our stock and have been a manager for you know many years they they're cashing it in to buy homes and that's what makes this place that's America that's the order I reckon maybe I don't know that's the chipotle that we're trying to create yeah and that's what matters now let me let me ask you seven thousand that's just a huge burden upon you but you think that that's what you obviously need that many right well look I think there is the demand for it right and you know today we have 3,500 restaurants we definitely see a path to seven thousand I'm guessing as we get closer to that we might see a path that goes beyond that just in the United States that many great people because that's the hardest thing everyone tells me trying to get that many great leaders that many linebackers that many captains you know what was really awesome Jim is we just had our all manager conference we brought in every restaurant general manager above store leader and some apprentices that are getting close to being promoted and anybody that worked at our company for more than 20 years so everybody came together and I'll tell you what the energy and the excitement of developing other people is genuine I might have mentioned this to you in the back of our restaurants we have a career road map yes this is great this is really powerful because people that join our company may come in first working on the grill but when they walk into the back of the restaurant and do training they'll see this career road map and some of the restaurants the general manager of the field leader has put pictures of people that have left the restaurant and moved on to these jobs a general manager field leader team director and it's almost kind of like their own family tree of development and it is it's really exciting it's really powerful because when people see others that have succeeded like that they want to be a part of it well this like my Jackie Pearson had the burrito today Regina Gilgan it's possible the person who made the burrito couldn't end up making a huge amount of money in stock in Chipotle and maybe at another point may be that one this happens still this happens all the time and it's really fun to be a part of it and celebrate it without a doubt well that's what we should do we should celebrate celebrate you guys celebrate your team celebrate Jack carton because this is what is the CFO because this is what it's supposed to be about thank you I agree thank you very much that's Brian of was the Chairman's Seal of Chipotle and get their get the stock before it's what it's meant by his back after the break coming up in league with Nvidia this AI play has lapped the market can our next guest get your motor running stick with Kramer everybody's focused on a video seen bottom of artificial intelligence but there are plenty of other companies with a meaningful AI angle take cadence design systems which makes software that helps semiconductor companies design their chips along with helping design other types of electronics including advanced automotive systems and even new drugs most important for the moment their platform helps create the most advanced meeting edge chips that are crucial artificial intelligence now cadence but phenomenal want to perform stocks up 43% since we last saw book the CEO a year ago but recent months it's kind of pulled back from its highs and when cadence last reported in late April it delivered a mixed set of numbers they beat expectations across the board in the first quarter only slightly though but that's not it but it's hung in since them don't take it from it let's take deeper with dr. Andrew into Devgan and Andrew is the president and CEO of cadence design systems and welcome back to everybody Jim great to be here I'm very excited to see you because I think people have to recognize that as great as NVIDIA is what would NVIDIA be if it just sent its plans to Taiwan semiconductor it wouldn't happen would it and video is a great is a remarkable company and a great partner of cadence and you know these chips like the latest chip in video analysis Blackwell has like 200 billion transistors so this is some of the most complicated things you know humans have designed but these chips have to be designed by software they can't be designed you know manually so that's the software we make and products to design these chips and we have had a long partnership within video you know over 20 years and it has really picked up over the last several years given all the AI kind of acceleration and if you also announced a new product in April you know like Blackwell is like 200 billion transistor but our new product that helps design you know Blackwell and Hopper and these chips now can design five time bigger chips up to one trillion transistors that's several generations of you know these next-generation chips you take the point over and over again it's someone who would like me I'm liberal arts teacher we say oh wait a second you say they're too small to do it by hand so they're done mathematically now wait a second how did you do something mathematical well it's a combination of of computer science and mad you know applied to physics you know that's what that's what what we call computational software is these optimization algorithm simulation algorithms that actually physically realize the idea that it engineer has a designer has into you know what it transistors or chip would look like so it's a lot of deep kind of numerical analysis matambulian analysis all these algebra and calculus in there okay but we bet we know from the great companies of many years that we know enterprise software yeah this is not enterprise software you're doing engineering software quite a different art form absolutely and we have big investment in R&D so you know at cadence we have 11,000 people 10,000 our engineer and computer science in half of the ratio yeah half of them have advanced degrees and we also invest you know 35 to 40 percent of revenue in R&D so it's a very R&D intensive activity and that's what gives us a more than long-term differentiation right now you you've been emphasizing many different kinds of uses but this automotive intrigues me because it would seem that that's where the well that's an autonomous machine that it's not a core and maybe you can tell us what that really means for the future absolutely so I think there's a lot of talk of semiconductors going from 500 billion to 1 trillion okay and there are two big drivers of that one of them is data center AI you know and I the other one is automotive and data center you know AI you know we do a lot in that you know you know you're you're no but this but automotive is equally exciting now it's a little bit delay you know come you know AI a data center AI will happen first and then automotive always takes a little longer but in the next five to seven years there'll be a massive automotive investment because right now the cars each car has about four hundred dollars of semiconductors and that's projected to go to two to four thousand a per car and there are about hundred million cars sold in a year so that's hundred and billion dollars of semiconductor content driven by you know autonomous systems you know cell driving aid as infotainment so the whole electrification and autonomous driving of cars will will be a big boon for the industry just like data center AI is okay so now I also want to know about what you're doing in terms of platformization I know you're doing semis but the platform is something that only you can do exactly so what we are trying you know what I think is going to happen in all industries and specially we have been doing it for a while is what we call a three layer cake which is a platform three layer stack so the bottom layer is accelerated compute you know used to be CPU now is GPU FPGA custom silicon that's the bottom layer the medical layer middle layer is physical intelligence you know these are things based on actual physics and chemistry and biology of the systems you know and the top layer is AI which is data intelligence and orchestration so these three things have to be done together the reason I call it a cake is when you eat a cake you consume the three layers together so one application of that is chip design right like I talked about right whether it is for data center like within video or for for for cars but there are other applications like for aerospace for digital biology all these things will have to be revolutionized because when we do chip design we do hundred percent of it in in in the computer virtually but when they design planes and cars only 20% is simulated the rest is done by physical test and when we do drug discovery only one percent is simulated the rest is done by physical test so all these industries have to also apply computer science and math and AI to really revolutionize and I think that will happen in the next five and then to go full circle obviously you're creating what's equivalent of a digital twin of what the company might want in this case palladium because they can't just design it without someone a vessel and you're the it's an intelligent vessel and that's your best exact so this AI digital twin and accelerated computing all together enables a lot of use cases of course chip design is a huge one and that's our core business and you know there will be more and more chips consumed in the next five ten years but there are other applications like you mentioned cars planes and biology well look I think that where you want to be right now is engineering software not enterprise software as we saw earlier this evening but I want to thank you so much for coming on andrew devkins the president CEO of cadence design system guys this is such an important company in terms of all the things we talk about it's behind the scenes but you need to know it it's a great company that money spectrum coming up hit us with your best shot and electrified fast fire lightning round is next and then the lighting round is over are you ready to keep that time the light round comes up with Barry in Calpoint Barry hey Jimmy I love you baby how you doing I'm doing well how about you I'm doing great Jimmy this morning I guess this Monday morning I woke up and I had an epiphany I sold my Disney stuff a hundred shares of it I sold it and I did something I hope I don't regret I bought Nvidia I use it all if I am video am I crazy Jimmy no no one's ever crazy by Nvidia now we do know from my friend Scotty Watther that Nelson Peltz is cleared out of trying this cleared out of Disney I've got to tell you I'm in I think it he cleared out my tire I have a big meeting tomorrow at 12 o'clock and I'm gonna tell you why I think Disney is not something you should run away from not telling you to sell the Nvidia to get into Disney but I don't care that Nelson's out because I think that if these prices Nelson would probably join me in wanting to be in a situation let's go to Arshan in California Arshan Arshan yeah you sound good it's Jim oh okay I'll cut straight to it what do you think about MODD Callaway you know I keep things gonna move up and you know what I've decided just better play it with Dix Dix has got golf Dix is better run I'm going with Dix let's go to Walter in New Jersey Walter well Jim I'm gonna make sure of your investing club for a long time and I write tomorrow 12 o'clock meeting I'm counting on you what's going on there you go about a year ago what the money managers don't simply be they all were giving their idea what the best talk was the ladies chose CCI was trading it's 110 it went down to 84 you can barely get back up to 80 110 again it used to be a hundred two hundred eleven dollar stocks you know right here we go all right along with the company the management is it what would they have a good dividend what what what am I not getting this is crown okay here's the problem is no growth and the company has been incredibly poorly managed so I'm gonna have to say stay away I don't want you to hear that stock let's go to Todd and Florida Todd hey Jim I'm calling about O.K.L.O. and as a former nuclear reactor operator I have concerns about an operator list nuclear reactor but it works I think it'd be great I know I actually like to see some humans there I think that just kind of technology that I require humans but I'm doing a GE the Bernova that's the way to play these things that's the best one and you know what it's just better that they got small form reactor I think they're gonna make make good of that go to Jeff in California Jeff hey Jimmy chill I really want to buy this stock called app loving app loving that a great quarter I know people are at love and love it and I'm not gonna fight you on it was great and I don't like enterprise software and that ladies almost including of the lightning round the lightning round is sponsored by Charles Schwab coming up three retailers of a different stripe and all of them winners Kramer explains the big moves max three different retailers put up numbers say they were nothing short of extraordinary so we got to drill down to see how they made you so much money given the prevailing weakness that we see in the moles and shopping centers across America talk about the stocks of pet provider chewy up 27% today Dick sporting goods up 16% and Abercrombie fish up 24% you don't get those kinds of moves without a takeover or monster up surprise what the heck's going on here now Texas Abercrombie and clear winners all year in fact Dick's sporting goods now up almost 54% for 2024 while Abercrombie's more than double and that's after the stock for 25% last year chewy still down 9% for the year but it's made a remarkable comeback from the table those how to happen first in the case of Abercrombie and Dick's we have first class management teams that have created amazing places to shop both Abercrombie and Hollister their other big brand or key destinations at the mall now some may say that the mall is dead along with everything in it but maybe you just need to make your stores more attractive both millennials and Gen Zers are joined to this company's stores and that's how Abercrombie could earn two dollars and 14 cents per share Street was going to go for buck 76 that's how you get 21% same store sales growth Street was looking for 10.2% that's extraordinary government people also going to the online options this company has a very powerful on the channel business and it's got novel the CEO Fran Horwitz recognized for instance that weddings are no longer one day events but multiple days so she has a wedding store that's catering to that listen to this she says quote the launch of the wedding shop has clearly exceeded her expectations from the beginning and the wedding season hasn't even technically started yet and quote how about this right this remarkable story of reinvention these giant house of sport locations are drawing crowds as are the 50,000 square foot stores and a story of technology they have remarkable on the channel business and they've invested a huge amount of money in it plus don't forget about the incredible and I mean incredible and I think also under utilized game changer app which allows you to live stream sporty events I would have given anything to see my daughter play goalie in the field hockey championship game but I was stuck at the office with the market falling apart a mistake that I you the deeply were get to this day with game changer at least I could have watched her from anywhere choice a comeback score the company had position itself as the ultimate online pet store with its popular auto shipping option insurance relevance even against Amazon stocks soared during the pandemic along with pet adoption but that adoption fell off and so did chewy's business now the adoption versus relinquished numbers yes that's an actual metric have improved and chewy's ready for it having started its own veterinary clinics to reduce pet care costs anyone with a pet knows how we're diggously expensive that's are chewy's tempting to bring down these costs what stands out to me with all three of these success stories execution there are plenty of the parallel chains out there they're doing terribly and they blame their woes and the consumer maybe they don't understand fresh new like apple crummy anyone in the morning or Gen Z cohort knows that weddings have become moldy day affairs but who else is capitalized love it dicks is embrace differentiated product disorders and deep engagement with its own brands as well as popular third-party ones like on and hokka and of course Nike their bigger stores are blast someone make something anyone can tell you to use the post pandemic throughout to get better cross margins have expanded I sense the growth spur coming from CEO summits saying that we you know he predicted it when he came on the show back in December 14th and now it's happening what a comeback it doesn't hurt the issues establishes tremendous balance sheet which allows them to spend heavily on the best technology that's essential if you're trying to fend off Amazon isn't it chewy's past so much money that I'm now some 500 million dollar buyback three retailers bucking the trend three that join Williamson oh my I'm just a Ralph Lauren and overcoming the week this we keep hearing about maybe it just have to be different maybe you have to be exciting and enjoyable to survive and thrive to which I think most of us would say hey no kidding but it turns out to be a lot harder than people think no wonder so many retailers go under they just can't compete with these great operators and maybe just maybe they never will I like to say there's always more market somewhere I've pumped out if I just fewer here on my money I'm Kramer see you tomorrow last ball 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 forward slash mad money disclaimer Norman we need to pause this surgery what doctor because Xfinity Mobile just got even better now you're automatically connected to Wi-Fi speeds up to a gig while you're on the go plus Xfinity internet customers can buy one unlimited line and get one free for a year visit Xfinity Mobile.com to learn more offer N621 restrictions apply Xfinity internet service and two nil limited lines require reduce speeds after 30 gigabytes of usage per line data threshold tiberi actual Wi-Fi speeds very not guaranteed