Mad Money 05/04/26 | Audio Only
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer discusses market sell-off due to Middle East tensions and rising rates, then interviews Amazon CEO Andy Jassy about AI investments, supply chain, and satellites. He also analyzes galloping storage and CPU stocks driven by AI data center demand, and interviews Federal Realty's CEO about affluent consumer resilience. Lightning round includes Blackstone and TTM Technologies.
- Market dropped on Iran missile reports, but Cramer says stocks are relatively insulated except for oil/rate risk.
- Amazon CEO Andy Jassy details massive AI capex, new supply chain services, and satellite internet ambitions.
- Cramer highlights storage stocks (SanDisk, Western Digital, Seagate) as galloping on AI data center shortages.
- CPU stocks (AMD, Intel) also benefitting from data center-induced CPU shortage; Cramer says use downgrades to buy.
- Federal Realty CEO Don Wood explains how affluent consumer spending drives its mixed-use properties.
- Cramer endorses Blackstone as a buy and likes TTM Technologies for its PCB role in AI.
- The overall theme is the computer-driven economy's resilience and the AI infrastructure buildout.
Trade Ideas
Amazon is the ultimate trade-down play.
Amazon is the ultimate trade-down play because it keeps prices as low as possible, making it resilient even with a crimped consumer. Higher interest rates can hurt many companies, but Amazon is likely the last man standing due to its massive logistics and e-commerce dominance. Cramer owns it for the Charitable Trust and highlights new supply chain services as a growth driver.
Blackstone is a good buy.
Blackstone (BX) is a good situation. After speaking with Jonathan Gray, Cramer is interested in buying more. He likes the stock and thinks it is a strong investment.
Storage stocks benefit from AI data center shortages.
Storage stocks (SanDisk, Western Digital, Seagate) are galloping higher due to AI data center buildout creating a massive shortage of memory and storage. Earnings are skyrocketing, and the stocks still trade at low multiples relative to forward earnings. The shortage is not ending soon, so the run should continue.
CPU stocks benefit from AI data center shortage.
CPU stocks (AMD, Intel) are also galloping because the data center buildout has created a CPU shortage. Despite analyst downgrades, the shortage persists, and estimates are likely too low. Cramer recommends using downgrades to buy. The stocks will continue to run until supply meets demand.
TTM benefits from AI compute change.
TTM Technologies (TTM) is a good stock benefiting from the great change in compute, with printed circuit boards and a partnership with Google. It is part of the AI capex theme.
Federal Realty is cheap with consistent dividends.
Federal Realty (FRT) thrives in uncertain economic times because it serves the affluent consumer, whose net worth allows continued spending. The company's mixed-use properties in sought-after locations create a community experience that drives traffic and tenant demand.
