Mad Money 06/17/26 | Audio Only
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer analyzes the new tech leadership that goes beyond the Magnificent Seven, focusing on semiconductor shortages in memory chips, capital equipment, and data center components that are driving massive stock rallies. He highlights Intel as his new favorite stock due to exploding CPU demand for AI and a foundry turnaround. Additional segments cover SLB's digital transformation in oil services, Ford's pivot into battery storage for data centers, Ingredion's transformational merger with Tate & Lyle, and a detailed case for banks becoming the market's new leadership cohort with multiple tailwinds. Lightning round calls address Oracle, CrowdStrike, Vistra, and several other stocks.
- Memory chip makers (Micron, Seagate, Western Digital, SanDisk) are in a severe shortage, driving relentless analyst price target increases and massive stock rallies
- Semiconductor capital equipment stocks (KLA, Lam Research, Applied Materials) benefit from shortages of the equipment needed to make commodity chips, with Applied Materials securing long-term contracts
- Intel is Cramer's favorite stock as CPU-to-GPU ratios in AI data centers move toward 1:1 or even 4:1, plus its foundry business is turning around under new CEO Lip-Bu Tan
- SLB's digital business is a secular growth story with recurring revenue, AI integration, and a 20-year Nvidia partnership, decoupling it from oil price cyclicality
- Ford's new Ford Energy battery storage division for data centers makes the stock more attractive, especially with oil and rates potentially declining
- Ingredion's acquisition of Tate & Lyle creates a global ingredients powerhouse, but the market has not yet recognized the transformational value
- Banks (JPMorgan, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley, Capital One) have emerged as quiet market leaders with strong consumer spending, robust deal fees, lighter regulation, and still-inexpensive valuations
Ideas
Memory chip shortage fuels relentless rally
Memory and data storage semiconductor companies (Micron, Seagate, Western Digital, SanDisk) are benefiting from a spectacular shortage in DRAM and memory chips. They cannot make them fast enough and keep putting through price increases. Apple CEO Tim Cook confirmed Apple will raise prices because of these memory chips. The stocks are in a perpetual rally driven by analysts repeatedly raising price targets in a leapfrog pattern. The normal discipline of avoiding stocks that have already rallied hard does not apply to this group. These stocks make semiconductors for memory and data storage that are less complex than Nvidia's products but are in critical shortage.
Semi equipment shortage drives multi-year growth
Semiconductor capital equipment companies (KLA, Lam Research, Applied Materials) are benefiting from shortages in commodity semiconductors because there are also shortages in the equipment needed to make those commodity semis. Applied Materials has been able to secure long-term contracts for the first time ever, assuring multiple earnings bumps down the road. Analysts are also playing the leapfrog game with price targets on these stocks, pushing them ever higher.
Data center suppliers ride AI infrastructure boom
Data center computer and component suppliers (Dell, Marvell Tech, ARM Holdings) are riding the same wave of analyst price target leapfrogging as the memory and semi equipment stocks. These companies supply the computers and components for the data center buildout and benefit from the insatiable demand for AI infrastructure.
Intel dominates surging CPU demand for AI
Intel is Cramer's new favorite stock in this market. CEO Lip-Bu Tan explained that demand for agentic AI will drive an explosion in CPU demand. The CPU-to-GPU ratio started at 1:8, moved to 1:4, and thanks to inference and agentic AI will reach 1:1 and could go as high as 4 CPUs for every 1 GPU. CPUs are Intel's wheelhouse. Additionally, Intel's foundry business is turning around under the new CEO who has solved the problems of the previous leadership. Taiwan Semi is operating near full capacity, and customers need alternative sources of advanced chipmaking from a US-based supplier to protect against geopolitical risk. Intel has started production of an 18AP chip node that could win orders from Apple. CPUs may end up in shortage like DRAMs, triggering price increases and price target boosts.
Marriott is best-in-class hotel upstock
Marriott is what Cramer calls an 'upstock.' Every time the stock goes down, investors have had to pull the trigger and buy. Looking at the chart confirms this pattern. Marriott is the best hotel company and no other hotel stock behaves this way.
ADM and Tyson now worth buying
Cramer now likes both Archer Daniels Midland and Tyson Foods for the first time after having hated them for a very long time. The thesis is that sometimes you have to stop thinking about where a stock has been and start thinking about where it is going, otherwise you could miss out on big gains. He explicitly recommends both stocks.
SLB digital business is secular growth engine
SLB's digital business is a secular growth trend, not cyclical. The digital platform provides annual recurring revenue that allows modeling independent of oil prices. It carries higher margins than the rest of the company, is growing rapidly, and adds a new durable earnings growth engine. SLB has a 20-year partnership with Nvidia for AI and high-performance computing. The digital transformation enables autonomous drilling, faster well times, and greater recovery. SLB is by far the best in the oil services industry. The company is celebrating its 100th anniversary and remains a special organization.
Ford battery pivot plus lower rates opportunity
Ford's new Ford Energy battery storage division makes the stock more attractive longer term. After the EV push failed, Ford pivoted its Kentucky battery plant to supply energy storage for data centers and the electric grid, planning at least 20 GWh per year with first deliveries in late 2027. The stock rallied from $12 to $18 on the news, then pulled back to under $14. At $13.96, with oil and interest rates likely coming down on Middle East peace hopes, Ford now gets Cramer's blessing to buy for the first time in many years. The core auto business trades at just over 8x earnings with a 4.3% dividend yield. Cheaper oil means cheaper gasoline and potentially lower rates, both tailwinds for an automaker selling gas-powered trucks and SUVs.
Oracle is fine despite high debt
Oracle has a lot of debt but is fine as an investment. When compared to CoreWeave which also carries heavy debt, Cramer picks Oracle as the acceptable choice. If an investor wants some upside leverage, Oracle works.
CrowdStrike second half will be strong
CrowdStrike's MOS-related impact was already reflected in Q1 earnings this year rather than being a future headwind. The company's sales are long-cycle, meaning the real recovery and stronger business momentum will show up in the second half of the year. The stock sold off after Q1 earnings despite decent results, creating an opportunity ahead of second-half improvement.
Ingredion merger creates ingredients powerhouse
Ingredion's acquisition of Tate & Lyle is a transformational merger that the market has failed to appreciate. The combined company will have 65 plants, 800 food scientists, and more than 50 idea labs worldwide. Ingredion has been transforming from a commodity company to a texture and healthful solutions provider. Currently 33% of revenue comes from texture and healthful solutions; the deal will push this past 55%. The merger creates the most important company in the food ingredients industry with synergies in sugar reduction, protein fortification, and fiber fortification. Cramer believes the market got it wrong by not reacting positively to the deal.
Vistra overshot, now cheap enough to buy
Vistra got overextended and overshot to the upside, but has now pulled back roughly 60 to 80 points from its high and has become too low. It has fallen enough to be attractive again. However, it remains a falling knife, so Cramer advises putting on only about 25% of a full position rather than going all in at once.
Banks have multiple tailwinds, still cheap
Banks have quietly become new market leadership with staying power this time. Four tailwinds: (1) moderately higher short-term rates let banks charge borrowers more than they pay depositors, boosting earnings; (2) surprisingly strong consumer with healthy retail sales and tame delinquencies; (3) stupendous bond and stock issuance generating advisory fees, with Goldman Sachs and Morgan Stanley crushing it, plus $1.2 trillion in M&A in the first five months of the year; (4) lighter regulation under the current administration. Bank stocks are still inexpensive. JP Morgan, Bank of America, and Wells Fargo can go up much more before being considered even reasonably priced. Capital One benefits from higher-rate credit cards. Bank mergers could be an additional catalyst.
Up Next
This CNBC video, published June 17, 2026, features Jim Cramer discussing MU, STX, WDC, SNDK, KLAC, LRCX, AMAT, DELL, MRVL, ARM, INTC, MAR, ADM, TSN, SLB, F, ORCL, CRWD, IGR, VST, JPM, BAC, WFC, GS, MS, COF. 13 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Jim Cramer · Tickers: MU, STX, WDC, SNDK, KLAC, LRCX, AMAT, DELL, MRVL, ARM, INTC, MAR, ADM, TSN, SLB, F, ORCL, CRWD, IGR, VST, JPM, BAC, WFC, GS, MS, COF