Mad Money 03/10/26 | Audio Only
Speakers
Jim Cramer — Host, Mad Money
— CNBC host, Mad Money
Summary
- Geopolitical tensions and oil market volatility are creating a chaotic environment, making it dangerous for investors to trade actively.
- Individual investors have an edge over hedge funds right now because they are not forced to trade daily and can simply "sit on their hands."
- Corporate spin-offs are unlocking hidden value, specifically in the medical device sector where shedding slow-growth units highlights core business acceleration.
- The data center build-out continues to drive massive demand, creating multi-year tailwinds for memory chips and optical networking components.
- Private credit firms are facing increased scrutiny regarding the quality of their loan portfolios, with Wall Street demanding they prove liquidity by selling loans to meet redemptions.
Trade Ideas
The CEO of Hewlett Packard Enterprise said last night on his conference call that there would be no letup in the memory shortage. A sustained memory shortage gives semiconductor and storage companies massive pricing power, allowing them to practically print money as data center demand remains insatiable. LONG because the fundamental demand for data center memory is overpowering short-term macro market noise. Geopolitical shocks or a sudden drop in enterprise tech spending could derail the data center thesis.
It's been this price earnings multiples been going down, down, down because frankly, it's just not that good a company. Structural challenges in the core business mean that even a successful new CEO from a major tech company will struggle to execute a quick turnaround. AVOID because the company is fundamentally flawed and the declining valuation multiple reflects a broken business model, not a value opportunity. The new CEO successfully restructures the company and accelerates growth, causing a rapid multiple expansion.
It went way up, but now it's way down over 50% from its all-time highs... Steve Huffman's doing a really good job. It's a terrific product. The core product remains highly engaging with a loyal user base, meaning the massive 50% selloff is a market overreaction rather than a reflection of the company's underlying value. LONG because the platform's stickiness and strong leadership make the discounted share price an attractive entry point. Social media ad spending could slow down, or the stock's high volatility could lead to further short-term drawdowns.
Nvidia cemented the story. They're investing $2 billion into Coherent as part of a broader push into advanced optical technologies. As data centers require faster and more power-efficient connections, optical photonics replaces traditional copper. Nvidia's massive investment and long-term supply agreement validate Coherent's technology and guarantee future revenue streams. LONG because the company is a critical, US-based supplier for the next generation of AI data center architecture. The stock has run up significantly year-to-date, making it vulnerable to a pullback if data center capital expenditures slow down.
With the spin-off of the diabetes division, Metronic can now focus on its three remaining business... At these levels, I think the stock simply too cheap to ignore. Shedding the slow-growth diabetes unit removes a major drag on the company, allowing the market to finally recognize and properly value Medtronic's accelerating cardiovascular and med-surg businesses. LONG because it is a highly profitable, recession-proof medical device company trading at a cheap valuation (under 15x next year's earnings) with a solid 3.2% dividend yield. The remaining neuroscience division continues to decelerate, or the broader market ignores the value unlocked by the spin-off.
With the Medicare Advantage rates about to be get renegotiated here in a couple weeks... I'm just afraid that this thing is just too topsy turvy. Regulatory and rate pressures in the Medicare and Medicaid space create massive headline risk, which can trigger sudden and severe stock drops regardless of the company's overall quality. AVOID because the unpredictable nature of government rate negotiations makes the stock too dangerous to hold right now. Medicare Advantage rates come in better than expected, sparking a massive relief rally in managed care stocks.
Celsius shot up after earnings only to fall alongside the rest of the consumer stocks over the past week. I think you're getting that spectacular quarter for free. The underlying business is expanding rapidly through new demographics, international markets, and Pepsi's distribution network. The recent 20% stock drop was driven by macro fears, not company fundamentals. LONG because the macro-driven selloff provides a rare opportunity to buy a hyper-growth consumer brand at a discount. A severe consumer recession could cause a real slowdown in energy drink consumption, validating the recent selloff.
People have the long knives out for American Express. This at 303. It's all the way down from 387... Go against the sellers. The market is overly punishing a high-quality financial franchise. Scaling into a position by buying some now and leaving room to buy more if it drops further is a smart contrarian strategy. LONG because the underlying business remains strong despite the severe technical breakdown in the stock price. A rise in consumer defaults or a slowdown in travel and entertainment spending could further compress earnings.
Company's the largest... Oh my, what a home run right here because of polyethylene. You're in a good one. I'm gonna give you a twofer. I'm going to throw in Dow. Strong demand and pricing power for core chemical products like polyethylene are driving significant fundamental outperformance for top-tier chemical manufacturers. LONG because these companies are successfully capitalizing on specific material demand cycles. A global industrial slowdown or a spike in raw energy input costs could squeeze chemical manufacturing margins.
I don't like private credit because I think your upside is pretty capped and your downside can be huge if a company defaults... I wouldn't buy the stock of the company either. If private credit firms cannot easily sell their loans to meet investor redemptions, the market will heavily question the true quality and liquidity of their underlying assets. AVOID because the structural risks of private credit portfolios in a volatile economic environment outweigh the potential yield benefits. The private credit market remains resilient, defaults stay low, and the firms successfully navigate redemptions, causing the stock to rally.
Up Next
This CNBC video, published March 12, 2026, features Jim Cramer discussing STX, WDC, MU, PYPL, RDDT, COHR, MDT, UNH, CELH, AXP, LYB, DOW, OWL. 10 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Jim Cramer · Tickers: STX, WDC, MU, PYPL, RDDT, COHR, MDT, UNH, CELH, AXP, LYB, DOW, OWL