Mad Money 02/25/26 | Audio Only
Speakers
Jim Cramer — Host, Mad Money
— CNBC host, Mad Money
Summary
- The "Program" Trade: Cramer identifies a massive, algorithmic rotation ("The Program") dominating the market. Institutional sellers are dumping high-flying hardware/semiconductor stocks (NVDA, AMD, MU) regardless of strong fundamentals, simply because they are "expensive." They are swapping into "left-for-dead" enterprise software stocks (CRM, WDAY, INTU) perceived as value plays.
- Artificial Price Action: Cramer argues this movement is "artifice" and not based on individual company performance. He notes that Nvidia reported a "spectacular quarter" but was sold off anyway, while software stocks with mixed or poor guidance (like Workday) rallied.
- Strategic Response: Investors should not be fooled by the rotation but should use the manufactured dip in high-quality hardware stocks to buy. Conversely, while skeptical of the broad software rally, Cramer finds specific value in Salesforce and Intuit due to buybacks and AI integration.
Trade Ideas
A massive "program" trade is indiscriminately selling semiconductor and hardware stocks. Nvidia reported a "spectacular quarter" with great guidance, yet the stock was "butchered" along with peers like Broadcom, Micron, and Western Digital. This selling is based on portfolio rebalancing (selling winners to buy losers) rather than fundamentals. The underlying business for these companies remains strong (AI demand, cash flows). LONG. "Own Nvidia, don't trade it." Use the artificial sell-off created by the program to buy these high-quality stocks at a discount. The rotation from hardware to software could persist in the short term regardless of fundamentals.
Salesforce stock rallied despite the "SaaS apocalypse" narrative. CEO Mark Benioff announced a massive $50 billion buyback and highlighted the success of "Agent Force" (AI agents). While Cramer is skeptical of the broader software rally, he believes Salesforce is different. The massive buyback puts a floor under the stock, and the company is successfully pivoting to an AI-agent model that combats the deflationary pressures of AI on traditional SaaS pricing. LONG. Cramer is "convinced they can pull it off." Continued skepticism about "seat-based" software pricing models in an AI world.
A caller asked about GE Aerospace after a drop. Cramer views this as a premier industrial stock. LONG. "It's just a long-term buy... buy any dip that is any sizable at all." Supply chain issues in aerospace.
McDonald's reported 5.7% global same-store sales growth and is seeing success with its value menu strategy ($5 meal deal). The stock is at an all-time high. After struggling with pricing power in previous years, McDonald's has "got its groove back" by focusing on value, winning back low-income consumers. It is a "real company that makes things" and is insulated from AI disruption. LONG. "I'm still loving it... I'd be a buyer." Continued inflation in beef prices or GLP-1 weight loss drug impact (though Cramer dismisses the latter).
Intuit stock is down significantly YTD (mentioned as ~40% down). The company reported strong earnings but gave conservative guidance, which is "standard practice" for them before tax season. The market fears AI will disrupt Intuit's tax/accounting business, but Cramer and CEO Sassan Goodarzi argue that AI (via their "assisted" model) actually increases retention and pricing power. The sell-off offers a value entry point. LONG. Cramer remains a believer in the company's innovation and defensive moat. AI disruption narratives continuing to weigh on valuation multiples.
Watts Water Technologies is up nearly 55% over the past year. They are a key player in data center liquid cooling, shifting from air to liquid systems. As data centers demand more efficient cooling for AI chips, Watts Water provides the necessary "blocking and tackling" hardware (valves, drainage). It is a "buy and homework" stock. LONG. Slowdown in data center construction.
A caller asked about Archer Aviation. Cramer believes the "year of magical investing" for speculative stocks like flying taxis is over. AVOID. "Don't want to participate in that anymore." N/A (Avoid).
A caller asked about Ford. Cramer believes the company is "coming back" and "starting to really chug along" under CEO Farley. LONG. "Going higher." Cyclical auto industry downturns.
A caller asked about Universal Display. While Cramer implies it might be a buy eventually, he explicitly states "that time is not yet." WATCH. Timing the entry incorrectly.
A caller asked about Intercontinental Exchange (ICE), but Cramer pivoted to comparing indices. Cramer explicitly prefers MSCI over SPGI or ICE, noting its recent drop was due to "AI fears that were dead wrong." LONG. Financial market downturns reducing asset-based fees.
Jim Cramer
Host, Mad Money
Reddit had a great quarter and initiated a buyback, but the stock was hit on growth concerns. Cramer believes the market is undervaluing the asset. LONG. "I think it's worth so much more than what it's selling for." Volatility in ad spending or user growth.
Jim Cramer
Host, Mad Money
Chipotle stock has been sliding, and a caller worried about store experience. Cramer believes management is "turning the ship" and the current price represents a bottom. LONG. "This is the level that you got to pull the trigger." Execution risk on improving store throughput.
Jim Cramer
Host, Mad Money
Palantir stock had run up significantly and then pulled back. The company has a "great business model" and smart leadership, though the stock got "way ahead of itself." LONG/HOLD. "Palantir is a very long-term hold." Valuation remains high relative to traditional metrics.
Jim Cramer
Host, Mad Money
A caller asked about "USO" but Cramer identified the company as "Brad Jacobs's company... roofing." (Brad Jacobs is the Chairman of QXO, a building products distribution company). Cramer's rule is simple: "I don't bet against Brad [Jacobs]." LONG. Cyclicality in the construction/roofing market.
Up Next
This CNBC video, published February 27, 2026, features Jim Cramer discussing NVDA, LRCX, AVGO, KLAC, AMD, WDC, MU, CRM, GE, MCD, INTU, WTS, ACHR, JOBY, F, OLED, MSCI, RDDT, CMG, PLTR, QXO. 14 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Jim Cramer · Tickers: NVDA, LRCX, AVGO, KLAC, AMD, WDC, MU, CRM, GE, MCD, INTU, WTS, ACHR, JOBY, F, OLED, MSCI, RDDT, CMG, PLTR, QXO