Mad Money 05/14/26 | Audio Only
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer discusses the overvalued Cerebras IPO, warns of 1999-style mania, and highlights buying opportunities in Cisco, Nvidia, Schwab, and Train Technologies. He also interviews CEOs of Schwab and Train, and runs a lightning round with picks like SIMO and Billion to One.
- Cerebras IPO surged 68% on debut, but Cramer calls it a mania with 111x sales.
- Cisco reported strong earnings and Cramer believes the 13% rally is justified.
- Nvidia is now cheaper than the S&P 500 on forward earnings, a buy opportunity.
- Charles Schwab trades at 12.5x forward earnings despite 16% bottom-line growth.
- Train Technologies benefits from data center buildout with record $10.7B backlog.
- Lightning round includes bullish calls on SIMO, MRVL, and Billion to One.
- Cramer warns against buying Cerebras at current prices, urges discipline.
- China AI chip access debate continues, but Nvidia's competitive lead remains substantial.
Trade Ideas
Avoid Cerebras, valuation too extreme.
Cerebras IPO is wildly overvalued at 111x trailing sales, reminiscent of the 1999 dot-com mania. Despite real technology and contracts, the stock is too expensive relative to profitable peers like Nvidia, AMD, and Broadcom. Investors should avoid buying at these levels and wait for a significant pullback.
Cisco rally justified, buy.
Cisco reported incredible acceleration in both sales and earnings, and the 13% rally today is completely justified. The company is a real business with strong fundamentals, not a speculative mania like the dot-com era.
Nvidia cheap relative to S&P.
Nvidia is now cheaper than the average S&P 500 stock on forward earnings estimates despite growing much faster. This is an absurd valuation disconnect, making Nvidia a compelling buy. It is cheaper than Intel, AMD, and Broadcom.
Schwab undervalued, buy.
Charles Schwab is misjudged by the market. The company trades at only 12.5x consensus forward earnings while growing bottom line 16% per year. AI cash-sweep fears are overblown. The franchise is undervalued and should be bought.
Marvell cheap, can go higher.
Marvell Technology (MRVL) is dramatically cheaper than the hyped Cerebras stock. It hit a 52-week high and can go higher. CEO Matt Murphy has executed well, including the optical business acquisition.
Train data center demand strong.
Train Technologies benefits from a massive data center buildout. Backlog reached a record $10.7 billion, orders up 24% in Q1, and the data center pipeline is more robust than ever. The stock has strong momentum and deserves to be owned.
Buy SIMO, wait for pullback.
Silicom Motion (SIMO) is a good call. The stock has moved a lot, so investors should buy some now and wait for a pullback to add more. The company has exposure to Micron and the semiconductor space.
Buy Billion to One stock.
Billion to One is a real diagnostics company. Despite a silly name, the company has potential and Jim Cramer says 'BUY IT'.
