Jim Cramer

1. THE FACT: OpenAI might be worth as much as $750B, or even $830B. 2. THE BRIDGE: If OpenAI's valuation is indeed that high, Nvidia, as a potential owner of OpenAI stock, could make a fortune. 3. THE VERDICT: Nvidia could benefit significantly from its potential ownership in a highly valued OpenAI.

1. THE FACT: "MU--no one knew how big this will be." 2. THE BRIDGE: This implies that the market is underestimating the future growth or impact of Micron Technology, suggesting significant upside potential. 3. THE VERDICT: MU's potential is not fully priced in, indicating a strong long opportunity.

Cramer said Intel is leading due to buying back a facility, which is a sign of strength, and its balance sheet is now rock solid. The buyback indicates improved financial health and confidence, likely leading to positive stock performance. LONG based on strengthened fundamentals and balance sheet. Competitive pressures or execution missteps.

Cramer notes a severe shortage of memory devices for AI, with companies allocating orders carefully. He mentions a report suggesting to "dump SanDisk" (WDC) but views the resulting dip as a buying opportunity. AI data needs processing and storage, creating an "ocean of demand" with no destruction in sight. Prices will skyrocket, and customers have no choice but to pay. Buy these memory/storage plays as they have immense pricing power. Potential for future supply gluts, though Cramer believes demand is currently too strong.

A massive "program" trade is indiscriminately selling semiconductor and hardware stocks. Nvidia reported a "spectacular quarter" with great guidance, yet the stock was "butchered" along with peers like Broadcom, Micron, and Western Digital. This selling is based on portfolio rebalancing (selling winners to buy losers) rather than fundamentals. The underlying business for these companies remains strong (AI demand, cash flows). LONG. "Own Nvidia, don't trade it." Use the artificial sell-off created by the program to buy these high-quality stocks at a discount. The rotation from hardware to software could persist in the short term regardless of fundamentals.

Cybersecurity stocks have been dragged down with the general software slump, but this is a mistake. AI does not replace cybersecurity; it makes it *more* critical. Bad actors will use AI to launch more sophisticated attacks, requiring the advanced defense tools provided by these consolidators. AI models (like Anthropic) cannot replicate the entrenched security infrastructure of Palo Alto or CrowdStrike. CrowdStrike and Palo Alto are top consolidators. Okta is essential for securing AI agents within enterprises. High valuations compared to the broader market.

Enterprise software stocks have been decimated (down 30-70%) due to fears that Generative AI will allow companies to write their own code and replace SaaS providers. The sell-off is overdone for profitable companies with strong growth. * Intuit (INTU): AI is not a threat to the consumer TurboTax business or SMBs who cannot afford to build internal software. * Salesforce (CRM): Trading at its lowest P/E multiple in history (14x), cheaper than during the 2008 recession. * ServiceNow (NOW): Strong growth (19%) and a massive buyback program ($2B). * Box (BOX): Cheap (16x earnings) with consistent execution. * Atlassian (TEAM): Down 70% from highs but growing earnings at 30%. * Workday (WDAY): Trading at less than 15x earnings despite 18% expected growth. A proprietary screen identified these specific names as having >25% drawdowns but above-market earnings growth and profitability. The market may continue to punish software stocks irrationaly in the short term if AI fears persist.

"Data centers would be our largest business... driven by all this demand for power efficiency." The CEO states the demand outlook is stronger than two years ago. ARM's power-efficient CPU designs are becoming central to AI data centers and "physical AI" (robotics, cars) where local, efficient processing is required. The stock's stagnation does not reflect this significantly expanded total addressable market beyond smartphones. ARM is a key beneficiary of the AI shift towards agentic and edge computing, and its stock is undervalued given its growth trajectory in data centers and new AI applications. Competition from x86 architecture (Intel, AMD) in data centers, execution in capturing the new markets, and potential share sales by major stakeholder SoftBank creating overhang.

1. THE FACT: Disturbing data about ChatGPT's growth versus Gemini and others. The research says bots are turning into commodities, which plays into Gemini's strong suit. 2. THE BRIDGE: Gemini (Google's AI) is gaining ground against ChatGPT, and the commoditization of AI favors Gemini's position. 3. THE VERDICT: Gemini's strong performance and the commoditization of AI bots are bullish for Google.

The market recovered from a 2% pre-market drop to close green, with Cramer comparing the sentiment to the 1991 Gulf War where stocks "roared" once uncertainty was removed. The "War" is being perceived as a "Quick Win" (removing uncertainty) rather than a quagmire. Combined with US energy independence, the geopolitical discount is being removed from US equities. LONG US Indices on the "Buy the Invasion" logic. The conflict expands into a long-term war of attrition or terrorism, dragging down sentiment.

Cramer states, "I'm not going to be pessimistic when OpenAI... got the money... and I'm not going to be negative because [of] what Dell did." Intrator adds, "The demand for the infrastructure has been relentless... We are constrained by our ability to deliver more capacity." The market has been selling off AI stocks (NVDA mentioned as "down very badly") due to fears of ROI and overspending. However, the CEO of a major GPU aggregator confirms that demand still exceeds supply and is broadening to sovereigns/enterprises. If CoreWeave is maxing out capacity, they must continue buying chips (NVDA) and servers (DELL) aggressively. The sell-off disconnects from the fundamental order flow. LONG. The "AI CapEx cliff" fear is premature if the end-users (CoreWeave) are still supply-constrained. A sudden deceleration in enterprise adoption or sovereign spending would leave infrastructure providers with overcapacity.

Cramer advises investors to "avoid stuff we can't or don't comprehend" and buy companies that "make things and do stuff." These tangible businesses (Consumer Staples, Industrials, Retail) are understandable and less vulnerable to immediate disruption by AI agents compared to complex software companies. Long understandable value and tangible goods. Inflation or consumer spending slowdowns.

The recommendation is to hold Amazon stock despite acknowledging headwinds from diminished free cash flow and a higher valuation.

1. THE FACT: This Apple Google partnership is very strong. Google pays little and Siri gets better. 2. THE BRIDGE: The partnership benefits both companies, with Google getting a good deal and Apple improving Siri, leading to higher stock prices. 3. THE VERDICT: The Apple-Google partnership is mutually beneficial and should drive both stocks higher.

Marvell reports earnings next week. They have partnerships with hyperscalers, notably Amazon Web Services (AWS). AWS is selling out of Marvell's chips. Cramer expects CEO Matt Murphy to deliver a "big number" and potentially detail a massive deal with Amazon. Buy ahead of the quarter. If it dips, buy more. High expectations going into the print.