Mad Money 05/06/26 | Audio Only
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer rallies viewers to embrace AI hardware stocks, dismissing skeptics. He interviews CEOs of CVS, Kraft Heinz, and Solstice, then recommends buying Meta, Arista, Shopify, and several lightning-round picks. The episode emphasizes buying high-quality stocks during temporary weakness.
- Cramer argues that the AI data-center buildout is real and that tech hardware stocks are still undervalued.
- He retracts earlier negativity on Meta and calls it a buy given accelerating growth.
- Arista Networks and Shopify are highlighted as buying opportunities after post-earnings drops.
- CVS Health reports a strong quarter; Cramer says the stock is actually cheaper after the rally.
- Kraft Heinz CEO Steve Cahillane details a brand-turnaround strategy; Cramer endorses the stock.
- Solstice Advanced Materials (nuclear, electronics, refrigerants) is praised as a unique secular-growth play.
- Lightning round includes bullish calls on Goldman Sachs, Taiwan Semi, D-Wave Quantum, and Thermo Fisher.
- Cramer urges investors to ignore doomsayers and stick with AI winners despite volatility.
Trade Ideas
AI hardware sector is a must-own.
The AI revolution is the greatest trend of our lifetimes. Data centers are being built, customers are already paying, and demand is overwhelming. Tech hardware stocks (storage, memory, processing) are undervalued given the massive secular shift. Investors should own semiconductors broadly to participate.
AMD CPU growth much higher than expected.
AMD's CPU market is growing at 35% vs earlier estimate of 18%, and a recent analyst downgrade before earnings was completely wrong. The stock has more upside because demand from AI is accelerating and the company is not capacity-constrained as some fear.
CVS is cheaper after earnings beat.
CVS Health reported a huge earnings beat and raised full-year guidance. CEO David Joiner is executing a successful turnaround, improving Medicare Advantage pricing and reducing friction. Despite the stock's 7.7% jump, earnings growth makes it cheaper, not more expensive. It's the right thing to buy.
KHC's new CEO makes it a winner.
Kraft Heinz is a winner under new CEO Steve Cahillane, who successfully turned around Kellogg. He is investing in brands like Heinz and Mac & Cheese, and has launched an NFL partnership. The stock is poised to follow a similar path of growth and value creation.
Solstice is a unique secular growth play.
Solstice Advanced Materials (spun off from Honeywell) is undervalued and benefits from secular growth in nuclear (only US uranium hexafluoride converter), electronics (chip cooling), and refrigerants. The stock has run from ~$49 to $83 but remains attractive given its unique, profitable positions in high-demand markets.
GS wins from IPO/M&A wave.
Goldman Sachs will be the biggest beneficiary of the massive IPO pipeline and M&A activity. Cramer has a large position in his charitable trust and expects the stock to go higher.
TSM has insatiable demand for chips.
Taiwan Semiconductor has more business than it can handle, with strong demand from AI and other chips. Even ARM Holdings noted they can't get enough supply from TSM. This pricing power and capacity advantage make it a strong buy.
D-Wave is top quantum stock.
D-Wave Quantum is the best pure-play quantum computing stock. Cramer identifies it as the leader in the space, noting that IBM and Honeywell are also involved but D-Wave is the one he likes most.
TMO cheap at 19x earnings.
Thermo Fisher is a buy at 19 times earnings. The wave of IPOs will require its lab equipment and machines, and the valuation is surprisingly cheap for a high-quality life sciences tools company.
Meta's growth accelerates; time to buy.
Meta reported 33% revenue growth, the fastest in five years, with 3.5 billion daily active users. It is spending heavily on data centers that will generate huge returns. CEO Mark Zuckerberg is a proven leader. After initially being negative, Cramer now says it's time to stop worrying and start buying.
Arista supply constraints are temporary opportunity.
Arista Networks beat earnings but fell 13.6% because it didn't raise guidance due to supply constraints, not lack of demand. The company has more demand than it can handle for 1-2 years, a high-quality problem. CEO Jayshree Ullal will solve it, and the stock now reflects those fears, making it a buy.
Shopify's pullback offers a great entry.
Shopify reported 34% revenue growth and remains the go-to e-commerce platform for small businesses and Gen Z entrepreneurs. The stock has fallen from $182 to $105, de-risking the story. The business is still excellent, and this pullback is a buying opportunity for a durable winner.
Up Next
This CNBC video, published May 07, 2026, features Jim Cramer discussing SMH, AMD, CVS, KHC, SOLS, GS, TSM, QBTS, TMO, META, ANET, SHOP. 12 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Jim Cramer · Tickers: SMH, AMD, CVS, KHC, SOLS, GS, TSM, QBTS, TMO, META, ANET, SHOP