Trade Ideas
A new bearish thesis suggests AI will allow clients to build software in-house, destroying the pricing power of legacy SaaS companies (e.g., moving from 4-year contracts with 5% hikes to 2-year flat contracts). While Kramer doubts the "total destruction" narrative, he acknowledges that the "price-to-earnings multiples" are too high for a sector facing this narrative headwinds. The market is repricing the risk of AI deflation. AVOID. The stocks are undergoing severe multiple compression. The AI threat proves overblown quickly, leading to a sharp relief rally.
Cybersecurity stocks crashed after Anthropic announced Claude can write secure code, implying less need for security software. Kramer argues this is a misunderstanding of the business—Claude finds bugs during coding; CrowdStrike protects against active threats. However, the "multiple compression" is real and dangerous in the short term. WATCH. Fundamentally bullish ("AI increases the need for security"), but price action is "hideous" due to multiple compression. Look for a floor. Market sentiment ignores the nuance and continues to de-rate high-multiple tech.
Blue Owl (OWL) has restricted withdrawals (gating) on some funds and is trading at a massive discount to Net Asset Value. Private credit firms have significant exposure to software companies (approx. 20% of loans). If AI hurts software cash flows, these loans become toxic. OWL is the "canary in the coal mine" for the broader private credit/equity space. SHORT / AVOID. Kramer explicitly states, "I am a seller, not a buyer of fraught situations." The redemption issues at Blue Owl prove idiosyncratic rather than systemic to the sector.
These stocks were hammered by "vague AI fears" (e.g., AI tax planning hurting Schwab, AI coding hurting gaming). The sell-off is "lunacy." AI is a tool for these industries, not a replacement. Schwab is trading at <16x earnings (historic low). Exchanges (ICE/NDAQ) are infrastructure that AI cannot replace. LONG. These are "AI Refugees" where the sell-off has created deep value. AI actually does disrupt their core fee models faster than anticipated.
BWX Technologies reported 95% growth in its commercial nuclear business and is the sole manufacturer of nuclear reactors for the US Navy. The intersection of "National Security" (Navy shipbuilding) and "Energy Security" (AI data centers needing nuclear power) creates a dual tailwind. These are "tangible" industries immune to AI displacement. LONG. Kramer calls BWXT an "extraordinary story" and HII the "best thing we have when it comes to the Navy." Regulatory hurdles for new nuclear builds or cuts to the defense budget.
Chevron has a strong 3.85% yield and solid management under Mike Wirth. Despite the run-up, the dividend provides safety and the energy supercycle supports the valuation. LONG / HOLD. Oil price collapse.
A caller asked about Rambus (RMBS). Kramer believes Rambus has "not kept pace" and prefers the higher quality, broader analog chip manufacturers. LONG TXN/ADI (and sell RMBS). Cyclical downturn in the semiconductor industry.
A caller asked about buying the dip on Super Micro. Kramer views the stock as too risky/volatile compared to peers. AVOID ("No-fly zone"). He prefers DELL for this exposure. SMCI resolves its accounting/governance issues and rallies.
A caller asked about data center plays; Vertiv is a leader in power/cooling. As AI compute grows, physical infrastructure (cooling/power) is the bottleneck and cannot be coded away. LONG. "I love Vertiv." Valuation is high after a big run-up.
This CNBC video, published February 24, 2026,
features Jim Cramer
discussing CRM, ADBE, NOW, SNOW, PANW, CRWD, OWL, BX, KKR, APO, ARES, TPG, NDAQ, TTWO, SCHW, ICE, BWXT, GEV, HII, CVX, TXN, ADI, SMCI, VRT.
9 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Jim Cramer
· Tickers:
CRM,
ADBE,
NOW,
SNOW,
PANW,
CRWD,
OWL,
BX,
KKR,
APO,
ARES,
TPG,
NDAQ,
TTWO,
SCHW,
ICE,
BWXT,
GEV,
HII,
CVX,
TXN,
ADI,
SMCI,
VRT
