What made you confident that you could do something that hadn't been done before? I have no fear of failure. Trailblazing women changing the game. One of my favorite pieces of advice. Think about what your boss's boss needs. Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just got to think big to accomplish big things. Julia Boorstin hosts CNBC Changemakers and Power Players. New episodes every Tuesday wherever you get your podcasts. My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a one-market summary and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer America. Other than my friends, I'm just trying to make a couple of bucks here. My job, not just to entertain, do some teaching. Call me, 1-800-743-CBC. Tweet me at Jim Kramer. Whenever the market gets clobbered and then starts crawling back, you always hold out hope that there'll be a broad advance. Lots of different groups powering higher. Easily accessible to the masses that might have been blown out by the just-insured decline. As we pound our way through our second day of this rally, I can definitively say that, well, this is not one of those moves. This one is limited. It's small. It lacks any real leadership that you can hang your hat on, at least so far. It's worth filling you in on the disappointment. After a seemingly strong day where the gal gained 224 points, it's going to be jump 0.72%, and as that went up 1.16%, because I want you to understand my skepticism now about the rally. I was looking for more today. Why don't we start with a big winner so I can put them in context? They're heavily involved with one industry. I want more than that. The data center, of course. First, we have the big four of memory, Western Digital, SanDisk, Seagate, and Micron. We often hear that the world's short of memory and storage, and what they really mean is that we need to store a lot more data for AI to come through. These four companies make storage. They're a semi-constant presence on the new high list. How come? Because memory was a bad business for so long, almost a pure commodity, low margins. So when it turned out that they were sitting on an old mine, thanks to the rise of the data center, well, they were quite flat-footed. Only Micron is adding capacity and scale, and it's still sold out in your term. Some are the others, although they're trying to build new kinds of storage, but that's for 2028 and 2029. They just can't build capacity fast enough, and until someone can build a different kind of storage, their stocks might continue to go higher. Even as a purist like me doesn't want the market to be led by the stocks of companies that are basically sold out, and can just raise prices but not do more than that. We want to be led by companies like NVIDIA, which are producing product and selling it as soon as it comes out, because it's so desired. NVIDIA deserves a premium price during its multiple. These companies not so much, but NVIDIA really hasn't done much of it. The second group of stocks leading us higher are the fiber optic place that help transport data within the data center. Now we're talking about Lumentum and Coherent and Sienna. They're all part of the data center plumbing. NVIDIA has put $2 billion each into Lumentum and Coherent, cementing the relationships, good investments. Again, not a lot of companies in the fiber network can connect this. Semiconductors and companies related to them are always on the biggest gainers list. This time it's Intel that's leading, because the company's buying back part of an Irish facility. It's sold to private equity when it really needed money. So, you see it's a sign of strength that they're buying it back. Intel's balance sheet, after cheatering for so long, is now rock solid. Then Turdyne squeeze in the top gainers list. That's all about semi-conductor test and measurement equipment. Again, narrow, narrow, narrow. Finally, a low non-data center, non-semiconductor stock, compared to the list, it's Neumann. Neumann mining, what a classic let down to be led by a gold miner. Not even the best one, which is a Nico Eagle. Listen, I love growth stocks. I talk endlessly about the need to invest in growth stocks. Only a handful of these winners are actually growth names. The rest are companies that raise price for a living, because they're benefiting from shortages. So what do I want to see next if this rally is to be believed? Like the rally we had last spring, as the president gradually rolled back his liberation day tariff announcements. Well, the first thing I'd like to see is actual data center leadership. Actual. And that would mean Nvidia, with the stock starting strong today, but then fizzled. Or how about CoreWeave, which builds and manages data centers and barely held its head above water today. Chain Gloss for Amazon, Meta, and Google, and Microsoft, which need data centers and can't stop building them. Today wasn't a bad showing for Amazon, Meta, and Google, but once again, Microsoft failed badly. I can't tell you how worried I am about the stock of Microsoft and what it's up to or not up to. There's a palpable sense that something's very wrong there, that it's lost its way, that the copilot needs to be redone. Now, I don't want to oversimplify things, but if you work in an office, there's a fairly good chance that your procurement company gives you a company that's a computer that's loaded with Microsoft product. There's also a fairly good chance that if you can afford it when you get home, you got an Apple machine. Now think about this. The fact that you're given a machine at the office that's stuffed with everything Microsoft, that you're bombarded by Microsoft's internal and infernal ads, that you're told endlessly to use copilot, that full screens pop up to get you to use various Microsoft products, and the stock still can't go higher, that's just incredible. They have the biggest edge imaginable, a totally captive audience thanks to their dominance with Windows. The idea that people rather pay for their Apple device than use the computer they get for free with all sort of IT help, I find that almost unfathomable. It's downright painful. I know of no other product with that kind of head start that isn't the dominant part of your work life. I pay for every service out there except copilot because I just don't see the value versus the others. But you know what? That doesn't mean anything. Here's what means something. A baffle. You know who doesn't seem to realize that things are awry? Microsoft. There's not a peep out of them that anything might be wrong. If you listen to management, they still seem to think they're kings of the world. Why do I own Microsoft for my travel trust at this point? Because the people who run the company really are smart. They really are serious. Surely they're concerned that copilot may not be the answer. Definitely they've got to understand the things that I've said. Do they use Apple at home themselves? Would they lose their job if they did? Either way, I think Microsoft gets its act together. And I am hoping they do. It'd be good for the country. But the stock in my trust portfolio, it's on borrowed time and I've done a bad job owning it. And that's up to me. Like I said yesterday and today with Nike, I screwed up by owning this stock. Made me a lot of money for a long time. What does that mean? Second, I'd love to see some strength in the retailers. Don't look now, but the stock of Walmart is barely up. Alcáceco and Target are both down. Home Depot's up. Loose is down. Pathetic parity of strength. I always want to see some strength in the financials. I'd only want to see if there's a hangover from the problem that caused the downturn, the war with Iran. But JP Morgan and Bank of America barely up. America's press has unchanged. Even as it's down more than 18% for the year, I would have expected more. Finally, because we need rate cuts to sustain this rally, I would have liked to see in the home builders' rally. But other than DR Horton, we're just not getting the pin action. That we need. Remember, housing punches above its weight class in the economy? Because of all the accoutrements that go with a home sale, including RH, by the way, which was down to 27 points, or 90% thanks to a bad quarter last night, RHH has a mountain of debt, 2.4 billion. It missed the quarterly estimates and bought back a lot of stock at higher prices. It's a suboptimal situation. Here's the bottom line. This second day rally isn't necessarily a failure. But students of rallies know that the second day should be powerful, with new leadership and a follow-through that's broad, that lasts until 4 p.m. and doesn't quit in early afternoon. That didn't happen. This rally started losing stream around 1.30 p.m. Still a good day, but it could have been much, much stronger and much, much more powerful. Let's go to Julian in Florida, please. Julian. Hey, Jim. How's it going? Thank you so much for having me on the show. Oh, sure. Thank you. Yeah, yeah, yeah. I just wanted to ask you a question about Snapchat, Inc. and, yeah, just how you feel overall about the future of the company. And I saw there was an update on them charging more for storing memories and just overall on the future growth of the company and the store revenue. This is a company that I've been recommending to short for many, many years. Now it does have an activist investor. Maybe they can get them to do something or even sell themselves. But, you know, five bucks, maybe, I don't know what, a couple bucks up, one down. Not a bad ratio, but nothing I'm interested in. All right, we won a rally with board leadership that lasts throughout the day, not one that quits in the middle. We'll make money tonight. As we cap off the first quarter of the vol a year, I'm taking a look at the leaders and laggers of this market. First, I'm running through the top 10 best performers in the SP to see what's working and whether the teams have any staying power. Then, Tech has been the leader of the lag guards this year, so I'm honing in on the worst of the worst. I'm going to look at the bottom 10 performers in the Nasdaq 100. And private players' semi-analysis become one of the most trusted voices in chips. Don't miss my exclusive with the founder and CEO. Stay with CREAK. 743 CNBC. Miss something? Head to madmoney.cnbc.com. What made you confident that you could do something that hadn't been done before? I have no fear of failure. Trailblazing women changing the game. One of my favorite pieces of advice, think about what your boss's boss needs. Leadership can look in many, many different forms. It really does come down to just trusting yourself. You're like the short and you just got to think big to accomplish big things. Julia Boorstyn hosts CNBC Changemakers and Power Players. New episodes every Tuesday wherever you get your podcasts. Phew. Finally closed the books in a pretty terrible first quarter. Even if yesterday's phenomenal run, the Dow finished the first three months of the year off 3.6%. The S&P tumbled 4.6% and the Nasdaq lost 7.1%. Mostly thanks to the war with Iran causing a monster spike in oil prices. Still, there were some real winners out there even if they were pretty hard to find. Which is why tonight I want to go over the 10 best performers in the SP500 for the first quarter. After the break we're going to come back with the 10 worst performers in the Nasdaq 100. Because that's the tech heavy index where the most heinous declines were in tech. I just felt we should put those two different ones in nice contrast with each other. Let's start with the best of the best before coming back to the worst of the worst after the break. When you look at the SP500's 10 biggest winners over the last three months, it kind of looks like what happened today. Most of them are either tech hardware plays with exposure to the data center, as they talked about at the top of the show, or they're materials and energy stocks that soared thanks to the war with Iran causing shortages. Let's do tech hardware first. The number one performer in the S&P was Sandisk up 167.7%, the maker of flash memory storage products in more than quadruple last year. And it kept running in the first quarter thanks to the data center-induced memory shortage. This time Sandisk broke away from the rest of the pack, Western Digital Seagate and Micron, which are up 18 to 57%. It's still pretty darn good, but nowhere near close to Sandisk. The thing is, while the memory stocks were all white hot in January, them resilient in February and early March, they did get obliterated over the last couple of weeks. Micron, for example, reported an incredible quarter of mid-March, but its stock fell from 461 on March 18th, all the way down to 321 on Monday, even though it was a good quarter. Can these stocks recover from the recent pullbacks and start moving higher? Well, if your memory bold, the last two days have been pretty darn encouraging. As soon as President Trump started talking about unilaterally ending the war, Sandisk and his compadres just caught fire. I always tell you this is inherently a boom and bust industry, but we've only had four quarters in the boom so far. Historically, I've found that they tend to last at least six. Still, my guess is that the easy money's already been made here. I don't blame if you want to try to be in, but it's not my style. Next up, the second best performer in SB was Lumentum Holdings. That's a fiber optics play that just got added to the index last week. Hence the 90.7% gain in the first quarter after the stock quadrupled last year. As long as the AI data center buildup continues on a bit, I think these fiber optics stocks can keep winning. Although, maybe not as much as they've been winning over the last 15 months, still good for them. Welcome to the big show Lumentum. Going further down the list, the eighth best performer, Sienna. It's in the same boat. It's another fiber optics play that's up 66%. Thanks to Surgeon Demand for networking from the data center. Sienna also returned to its place in the SB 500 back in February, as long as we keep building these things to their new companies like Sienna. So again, you see the pattern that I'm concerned about? These stocks just came right back today and they provided the leadership to the first two days of today and then the last day of the quarter. Here's the problem. We know how bad the last quarter was, right? So therefore we know these don't have a lot of followers, and they don't have a lot of followers even today. Let's talk about the next group, the companies that benefited from Iran's shutdown of the straight-up remuners. You got Lyon, Elbezel, it's 86%. It's Plastics. Dow up 78% polyethylene, chiefly. They make a lot of this, but that's really the driver. The third and fourth best performers in the SB. These are two commodity chemical companies, and their stocks were some of the worst performers in the index last year. But they are already starting bouncing back in January, weeks before the war with Iran kicked off, because everybody thought we'd get multiple rate cuts this year, and that's sort of for textbook, simple stocks like the petrochemicals. Turns out they benefit even more from petrochemical shortages caused by the Iranian government. I think Dow and Lyon, Elbezel might be at risk of a pullback of the war ends and the straight reopens, but then again, there's a real possibility Iran will keep the straight closed after we leave, just to show us they mean business. I really don't want to mess with these stuff. I think you should kitching kitching. The seventh best performing in the SB was CF Industries, up nearly 68%, which makes some of the key inputs for fertilizer. Even before the war, we had the beginning of a bull market in agriculture. Then when the Persian Gulf got blocked off, we realized there would be a fertilizer shortage. Now that's a path for just about everybody, including you, because the food price is going to go up, but it's sort of for CF Industries and its compadres. Not that many of them though. Next up, I was a little surprised that the crude oil up more than 70% year to date. There were only three oil plays among the SB's top ten performers. APA, Texas Pacific Land, which you know we've liked a lot, and Oxygen and petroleum, which frankly we haven't liked at all. APA, the older patchy, finished the quarter up nearly 75%. That's good for fifth place in the index. This is a major independent oil and gas producer that's been a long-term underperformer, but crucially they have no exposure to the Persian Gulf. Texas Pacific Land, that's a quirky story. It's had 65% gain making it the ninth best performed in the SB. These guys own a bunch of land in the Permian Basin, and while they don't own the mineral rights, they lease their surface holdings to energy companies that want to drill, while also selling them water, which is essential for fracking. But the stock's down more than 14% this week, which is what you would expect if the war ends. This is kind of a prelude. The straight reopens and the price of oil comes down. How about Oxygen? Oxygen on petroleum is up 58%. Ever since Oxygen is known, acquired at Anadarko nearly seven years ago, it became the higher risk way to play the price of crude. People do that instead of buying a crude index they buy Occidental. When oil goes higher, this stock rallies hard, but when oil comes down, the stock gets pulverized. Basically, Oxygen is a big loser if peace breaks out and a big winner if uranium is in the system, keeping the straight clues. Finally, aside from the data center plays and the commodity plays, there's a one-off in the top 10 list, and that's Moderna. Up 72% in the first quarter, the sixth best performing the S&P. Moderna cleaned up during the pandemic, but then spent years lost in the wilderness as they never came up with anything that could replace the COVID vaccine. Lately, though, the stock's been breaking out, settling key lawsuits that have been in overhang, getting its new flu vaccine reviewed by previously hostile FDA. And then last month, we learned that Dr. Vinay Prasad, that's the vaccine skeptic, who RFK Junior put in charge of the vaccines at the FDA. He'll be leaving at the end of this month. Greatness for Moderna, which is primarily a vaccine company. So here's the bottom line. When you look at the top 10 best performers of the S&P 500 last quarter, you find a few IT hardware names, some commodity chemicals and energy stocks that benefit from high prices thanks to the Iran and Deux shortages, and then Moderna, which had one positive catalyst after another. But what about the underperformers? I want you to stick around after the break. I'm going to go over the worst of the worst in the Nasdaq 100. A little bit eye-opening. Mad Money is back after the break. Coming up, amid a tough first quarter for the Nasdaq, which stocks were the worst of the worst? Kramer's revealing the bottom 10. Next. Breakups, that is a tricky one. That's why EE is the only major provider who'll give you up to £300 to switch. You'll get full fibre, but you'll also get EE's most powerful Wi-Fi 7 as standard. So the whole house can do more like streaming that series. Watch the work calls, stay crystal clear. Switch to EE today. Up to £300 credited to your EE account, verify at EE.cuddy.co.uk to new BT Group customers only. 62% availability terms apply. At 2E, we give you more. More outfit choices with 20kg of luggage allowance as standard. More hotels built around what you love, like that swim-up suite. More race you to the bottom, water parks on site. More, ooh, that looks good. Food options from poolside snacks to ala cart dining. Book on app, in-store or online. You book it, 2E sort it. At all and after protected, keys and Cs apply, selected hotels only. See website for details. For the break, I went through the top 10 performers in the SP500 during the first quarter, but the winners really don't tell you the full story, especially when the quarter was pretty terrible for the market. Now, we also need to focus on the losers for the first quarter. They're the worst performers, it was very tech heavy, and that's why we want to go with the NASDAQ 100. That's the 100 largest non-financial companies in the NASDAQ composite. Every single one of these, this is amazing. Every single one of these is an AI displacement story. Even a competition from AI hasn't really started hurting them yet. It's premature, but Wall Street's convinced the damage is coming, and I've got to tell you. I'm starting to agree with them. The worst NASDAQ 100 stock, first quarter, wide margin, atlassian, down nearly 58%. The company makes collaboration software, particularly for software developers, hence its symbol team, TAM. Given that AI has gotten very good at writing code, that's the basis of the AI displacement narrative, atlassian is basically ground zero. Investors think that there's no need for software developers to work together on atlassian tools. Oh, God, they were so popular at one point. In fact, they may not need to work together at all. They can all just work with Claude. Of course, atlassian is still doing fine now. Their quarter of a race, quarter of February. But good luck telling the sellers that. There are places where I'm going to stick my neck out and bet against the AI displacement trade. This is not one of them. I think it feels too darn risky. Second worst performer, wow, much loved company, Apple Oven, down almost 41%. This is a former market darling which helps mobile game developers and other digital businesses to grow their reach and monetize their platforms through advertising, and have the business to itself. So, honestly, it is a very fine business, by the way, with fantastic growth and impressive profitability. But the stock got really expensive. Entering this year, it was selling for more than 45 time servings. That left the stock of Apple Oven very vulnerable. If your stock has a high multiple and there's even a whiff of concern that it could be displaced by AI, then investors will sell first, sell, sell, sell, and ask questions later. Third worst was one I really wasn't that familiar with. It's called co-star group, down 40%. Now, you can think of it as kind of a zillow of commercial real estate. Problem is this quarter was brutal for companies that compile and organize useful data, a business model that can easily be duplicated by the big AI platforms. Is that the right read, though? Doesn't really matter for now. The fourth worst name in the Nasdaq 100 was a company that I used to adored. It's called Workday and its stock was down 40%. The company makes enterprise software for corporate finance and human capital management. Hey, you know what? This is another double ME situation. It's an enterprise software company, Strike One, and it's focused on human capital management tools. Strike Two, you know why? Because the rise of AI means layoffs. I have a lot of respect for work data. I'd like to say that the concerns here are overblown, but I tried to say that at the end of January, and then almost immediately the company's CEO at that point, Carl Aschenbach, stepped down and worked at a quarter and mixed quarter with plenty of issues for the bearers to pick at. I've learned my lesson. Don't try to be a hero in this quarter. The fifth worst in Nasdaq 100, wow, you've seen this fellow on Zscaler, down almost 38% in the first quarter. Zscaler is a cybersecurity play, and Wall Street's convinced that cybersecurity is vulnerable to AI displacement as any other kind of enterprise software. Now, as you heard directly from CrowdStrike's George Curtis last week, Palo Alto's Nikeshwara last night, that's actually dead wrong, and here I will draw the line. It's dead wrong. Of course, if you want to bet on cybersecurity, I might try their own CrowdStrike or Palo Alto Networks. Then Zscaler, we own both the Travel Trust, but in fairness, Zscaler shouldn't have been at all that hard. Sixth worst, another one I want to kind of stick my neck out a little bit here, Intuit. It was down really 35% in the first quarter. I'm only going to stick my neck out. Why for Intuit? Because even if the AI platforms can develop similar software, they don't have the brand that consumers and small business owners know and trust, nor do they have Intuit's network of experts that can get you out of a jam. And by the way, the account's likened to it. Remember that. This stock got hit hardest in January and February, but then actually up 8% since CEO Sasung Gdharji spoke to us in February 26th. I'm hoping that's a start of a larger comeback that I think it deserves to, but I know it's going to take time because people have ridden it off. Number seven, odd one, DoorDash, down nearly 34% in the first quarter. That's right, DoorDash. AI displacement bears have been coming for all the sorts of online marketplace stocks. Why? A company like DoorDash is all about network effects. But the AI doomers say these network effects go away once all information is available to everyone via AI platforms. I don't buy that. Once the user base is there, I think it's very hard for these marketplaces to be toppled. And DoorDash is now the cheapest it's ever been. I like it. I think the stock of DoorDash can be bought here. The eighth worst name in the NASDAQ 100 was Thompson Reuters, down nearly 32%. And this is another example of business services play getting hit by AI competition fears. Thompson makes soap for the compiled financial data, which we use here at Med Money, and they also own Westlaw, a similarly essential online legal research service. You don't need Westlaw, though, if you have a system that can come through all the decisions that were written in just a few seconds. Can Claude do all the things these platforms do? Wrong question. The right question is, do you want to stick with Thompson Reuters while we wait to find out? Money managers won't do that. The ninth worst decline is Adobe, which was down over 30% in the first quarter. But that's really just the latest indignation, indignity, I should say, for this snake-bitten former Claude King, which everyone knows is, or at least they assume, is toast. At $241 in change, Adobe is down more than 65% from its all-time high, set in November 2021. Stock now trades at just 10 times this year's earnings estimates. It's trading like a home-builder, for heaven's sake. But any time OpenAI, Anthropoc, or Gemini comes out with some new design tool, Adobe Stock goes lower. They now have new competition, Figma, which has also been terrible, too, the stock. Canva, that's an ultra-cheap option. So who am I to say that Adobe Stock's gotten too cheap? It can always get cheaper. One day, the design schools will leave behind Adobe and start their students on Canva. That will make the end of Adobe's design dominance, and it could be existential from there. Finally, there's Shopify down 26% in the first quarter. This one's like Apple oven. It's got a great business with tremendous growth and impressive profitability, but its stock just got too high. Even here, it sells for 64 times this year's earnings estimate. Frankly, I don't think there's a compelling AI disruption case against Shopify. These guys are mission-critical for small, medium-sized businesses that operate online. Unfortunately, money managers are no longer willing to pay a premium multiple for this kind of company, and 64 times earnings ain't cheap. Here's the bottom line. The biggest losers of the first quarter were nearly all victims of AI displacement worries, even if some of those worries are less legitimate than others. So, unlike the word, this is a problem that's not going away. Iran might stop shooting at oil tankers and the straight-up remover, but Anthropoc will never stop gunning for the enterprise software plays. Let's go to Chuck in Florida, Chuck. Dr. Kramer, a big, big, big snowbird, buckeye, booyah to you. Well, I'm liking that, and I like the spirit of it. I like the intent of it. How can I help you? Well, first let me let you know I'm a club member and I'm digging it. Oh, fantastic. Jeff Marks and I work pretty darn hard and it's obviously well-received. I know we're doing a promotion for the club that I'll probably talk about at one point, if I haven't already. Okay, let's go to work. Yes, sir. Hey, my question is about that rule of 40 juggernaut, Palantir. Why do you know what Palantir right now? I have to tell you, here's what's going on with Palantir, Chuck. It was a very hot stock. It's a great company, first of all. I mean, a great company. And sometimes stocks mirror how stocks do it. Sometimes stocks just get overheated and sellers come out. Palantir is basically building a new base because, boy, their business is strong. I'm relying on the customers. The customers love them and therefore I think they've got a great product and therefore I think they will have a great 2026 and 2027. Anyway, the biggest, and thank you for the nice comments, the biggest losers of the first quarter were nearly all victims of AI displacement worries. I think this is a problem that's not going to go away and I'm going to keep highlighting for you in all this year because you need to know why these stocks are going down. Now, there's much more mad money ahead, including my exclusive with Semi-Analysis. The founder of this research company has become a go-to voice in the chip industry with his work reaching all the way up to Jensen Wong. Don't miss our wide-ranging conversation. Then big news out of Eli Lilly is pushing the GOP-1 space further into the future. I'm giving you my takeaways and, of course, your calls rapid fire in tonight's edition of the Lightning Round. So stay with Free Park. I think this is going to be a terrific segment. When you look at the best performers from the first quarter like we did earlier, you should never have done our AI data center plays. When you look at the worst performers, well, they're practically all victims of AI displacement. That means it pays to know more about the entire AI supply chain, which brings me to Semi-Analysis. That's an independent research company specializing in chips and AI. They've formed from a substack account into a global team of analysts and engineers that recently got a shout-out from the Nvidia's Jensen Wong at the keynote speech at GTC. These guys are the gospel. So let's check in with Dylan Patelies, the founder, chief analyst and CEO of Semi-Analysis, to get a better read on the industry. Mr. Patel, welcome to ManMoney. Thank you for having me. I don't know if you're the gospel, but certainly I'm happy to be here in April. Fools, especially to thank all the fools who have sold memory the last few weeks. I like that. I like it because you're iconoclastic, but you're accurate. You do the benchmarking, which is the most important thing. So, yes, do regard you as gospel. And what a gospel in your position, I think, can help us. Is there a misconception between what Wall Street thinks of tech and what you know to be the case when it comes to actual tech? I think absolutely. The street often overreacts to a lot of things that are happening. Some of those things include, you know, the last few weeks, a lot of the compute names have fallen. Of course, there's volatility and worldwide panic and geopolitics happening. But in many cases, it's like, well, the last few weeks, the price of H100s have gone up. Empirically within the market, everyone sees the compute crunch happening. And yet, for some reason, the cloud stocks are going down. It's things that Wall Street versus what the actual technology and what's actually happening in the market differ. Well, do you find things too doctrinaire? For instance, when you talk with people on Wall Street, they'll say, SaaS is finished. There's no value to SaaS. Any of the companies that were taken private that are SaaS are finished and they're part of the private credit morass, whereas other companies that, you know, anthropic and open AI, seemingly can do no wrong. I mean, I think we were some of the first people to push this narrative. You know, even late last year, we were talking about how the cost of software is collapsing. And so it really depends on what the software business is. If your customer acquisition cost is extremely high, then the companies that have existing customer bases are worth something. If your customer acquisition cost is not high, then your business is finished because your product can be replicated at a much lower cost than the customer base. If your customer acquisition cost is not high, then your business is finished because your product can be replicated at a much lower cost than the R&D you spent over the last, you know, X amount of period of time. Well, I can tell you Dylan, that that is a metric that doesn't get much attention on Wall Street. We do ARR and we talk about who's got the best promoter and who's the most exciting. But that is a terrific metric that I have to start incorporating. See, this is why I wanted you to want. We make, we oftentimes judge companies by how they were in the past. And we don't think about how they will be in the future and how they will be in the future is about scale. And they can't have scale if they charge too much. I'm going to ask you about the most controversial stock that we think. Adobe. We don't understand how Adobe can still be, say, a hundred billion dollar company close to it when they're charging so much and people are willing to get a product that's very similar for far less. What happens? Adobe is the funniest one because we see it oscillate between being, you know, oh my God, they're dead from AI. Oh my God, they're incorporating AI so fast. They're great. Oh my God, they're dead from AI. And I think right now it's still, you know, they're great because they're incorporating AI quickly. It's pretty abundantly obvious that the average user no longer needs Adobe subscriptions. And what's actually happening is that a lot of video production and video editing is starting to require it less and less as well. Now, Adobe thankfully has this entrenched market position and so, and people are pretty stubborn in terms of moving off tools. A lot of their markets actually hate AI so they have some durability here. But ultimately at the end of the day, people are going to be transitioning away from using a lot of these classical style video editing. Adobe has to reinvent themselves. Now, will they? I think they're trying really hard. I think they recognize they have to reinvent themselves. But today, the cost of editing video and image is much lower than it was even two years ago. Well, thank you. And that is a real impact on their values. Totally right. Totally right. There's just been this legacy of love that doesn't work. Now, when I was at GTC, I was watching Jensen and he was trying to figure out how we could describe that he understands inference when a lot of people feel it. I don't want to get too in the weeds for our audience, but that he's training and inference is so important. He used you, your date, he used your benchmarking to show that he was the king of inference. What did that feel like for you? Because I know that was not why you did it. So to recap, right, we run over $50 million of GPUs that are provided to us from companies like OpenAI, Microsoft, Cusso, Oracle, CoreReeve, etc. They donate the GPUs to us for this open source benchmark where we run all the world's open source models and we run them every night because software changes every day. And we didn't expect Jensen to call us out, but hey, he called us out and it felt surreal to be recognized by one of the world's most important executives, most important people to recognize the work that we do. A lot of it for free is so exciting and it took so much blood, sweat, and tears from the team to build this benchmark that we open source entirely so we didn't even make money off of it. Of course, it spawns all this other consulting and data business downstream, but ultimately it's something that we give away to the world for free. And so it's really amazing that people recognize that free work. Well, it's an honor to serve. No one else is doing the kind of work you're doing. I want to ask you about another misconception that comes to Wall Street. We just quite up to talk about it. I'll put we in because I do mouth some of what Wall Street says. I admit that these companies are overspending and that the CapEx is a disaster. And yet I look and see, well, you can't even spend as much money as they're talking about, but I need you to tell me whether we are over focused on overspend. You know, this is the this is CapEx is sort of like the bullwhip. And at the end of the day, right now, every dollar they put to work, they're getting multi-year contracts with gross margins that are pretty good, whether it be a core wave or a Microsoft or an Oracle or an Amazon or Google. These companies are putting money to work and they're getting really attractive returns from it. It could be one day, all of a sudden as this, you know, they're spending, you know, 30% or more each year on year. At one point, the amount of money they're spending could not have a contract backing it and then it all collapses. But currently, there is no compute in the market. The price of compute is going up for old compute because there is no supply, even though we're building hundreds of billions of dollars of capacity is here. So right now, every every dollar they put to work is them winning the future. And when you look at, hey, Amazon 200 billion Google $180 billion of CapEx, you look at Microsoft, they're being much more tepid. Is Microsoft correct or is Google and Amazon correct? And I think in my view, Google and Amazon are the ones that are right because they're going to win the future and they're going to get good returns on that capital. And the real scary thing that the public market still haven't recognized yet is draw the line. Look at look at how many data centers Amazon, Google, Meta and Microsoft are all building next year. Google's free cash flow will be basically zero next year. I don't think the market is ready for this revelation. And at the end of the day, I actually think that's the correct decision because these are the best capital allocators in the world. These are the best returning businesses that the history of humanity has ever made. And today they stand here and look at us and say, this is the most important thing that we can do. And this is going to accelerate our earnings in the future. And if you don't agree with them, that's great. But you're on Wall Street. You're not the one who actually understands the technology. And not to say that the markets aren't efficient. The markets are smart and efficient. But I trust what they see more than what Wall Street sees. Well, I've been schooled by Ruth Porat many times from Google. So I know that you're absolutely right. Now, one last thing I saw a little post that you made about Microsoft 365. I'm not as big a fan. Obviously, your comments just indicate the same. I find co-pilot to be just unusable. And I wanted to know where you came down versus say the others that we all tend to use, whether it be Plexi or Grock, I've been in a comfortable with Gemini. ChatGPT is too chummy with me. How do you rate co-pilot as part of the mix? I think co-pilot, you know, Microsoft, if they executed, they would be in a golden spot. They'd own and win everything, but they've just failed at executing. And it's really sad. When I look at my company's total spend on wages, it is 20 to 25 million dollars. And when I look at my company spend now on AI, primarily Claude Code, it is five million dollars. And so we're at 20% of my spend, 20 to 25% of my spend is actually on AI now as a percentage of total. And none of that goes to Microsoft. Basically none of it. I just buy Microsoft 365 licenses and that's it. Oh my God, that's devastating. It's not. It's devastating. I mean, it's fantastic for me because my business is accelerating faster than ever because we're able to do more work than ever. But the fact that Microsoft solutions are just a bare minimum now, they are there, right? I do need SharePoint for everyone. I need Excel for everyone. But more and more, I have people who have worked as hedge fund analysts or financial analysts in the past. It's about a third of my company who barely use Excel to make charts, barely use Excel to run regressions. They actually just took Claude Code to point at this data set, look at the CSV and do it. And it's better, more efficient, faster, and we're able to get more work done. And so the tools are changing of the trade. And Excel and Microsoft 365 were made in an era where humans worked with computers, but now humans tell the computer what work to do. And that terminal, that vision, Microsoft has had that base layer for everyone. And as we go forward, they don't. And what are they going to do to regain it? It's a truly scary situation for them. I've been feeling it's existential too. I was actually kind of looking for a little bit more hope than I feel about it, but I can't get that. Because in the end... Hey, I mean, I will pay Microsoft, I will pay Microsoft $20 per user or $40 per user. Look, you're not a sproker. I mean, there's a lot of people who need business from Microsoft. You're not one of them. You're just someone who looks at the facts. And the facts are obviously not in their favor. They're a big customer? They're not in your favor. They're a big customer, but people pay us for being truthful. Absolutely. Well, look, I hope you come back, Dylan. You're a great true sayer. And I'm saying gospel. Whether you think that that's too extreme or not, I'm going with the Dope of Tells, the founder CEO. And Chief Analyst of Semi-Analysis, by the way, guys, if you get it, you can learn so much from Semi-Analysis. It is serious. Mad Money is back yet. Coming up, you've got questions. Cramer's got the answers. Charged up for a fast-fire lightning round. Next. It is time to talk about the lightning round. Cramer's got the question, what's up with the standard by the best cell system? It's Cramer's head of time. I'm going to start with the correct answer. We're going to play in the sound. And then the lightning round is over. Are you ready? Skate, deck, high-level, and Cramer's got the question. I'm going to show you what's up with Bill. Not just Bill. Jimmy Jans, how are you today? I am doing well. Bill, how about you today? Hey, I wanted to make a quick comment on how to make money in any market. I really enjoyed Mr. Hank. I enjoyed the 10 lessons. I enjoyed the whole book. I just wanted you to know that. Thank you. Thank you very much. Yeah, there's a story about me and Pap and how Pap bought the wrong stock and Mr. Hank bought the right stock. Thank you very much. How can I help you? Beautiful, beautiful story. Jimbo, should I at this point still add to my Boeing? Yes, I think Boeing is going to be Bill, one of the big stocks of 2026. I think it can run. I was talking about with Jeff Marks yesterday. Of course, my colleague on the Chapel Trust that I just felt when it was up to six, I couldn't pull the trigger. But this thing is going up much higher. It's refreshed and ready. Let's go to Alex in Oregon. Alex. Booyah, Jim. Thanks for taking my call and thank you to your team for always being awesome. The company I'm calling about today is kind of under the radar, civil infrastructure software companies. With the staff of the talk club going on, I wonder if it's worth to go along with some of these. They do have kind of a cool mode with their like digital twin. I'm calling about Bentley Systems, the ticker symbol is B.S.Y. Okay, this is one of those that I've got to tell you, Alex. It should work theoretically, but you know how people feel if it's a software company, they think it can be disintermediated by AI. And there's just no turning back. They're not going to let it go up. So I'm going to have to say no. Let's go to Andrew in California, Andrew. Hi Jim. Thanks for taking my call. Of course. What's happening? Hey, I was wondering with Silver going up, if VZLA business stock with a time to get bullish. No, no, we're late in the game there. And if you still want to go long term, you want to go Eagle. I don't want you to own that stock. I think it's a Vancouver risky stock. Let's go to Joe in New Jersey. Joe. Hello, Mr. Kramer. And thank you for taking my call. Of course, Joe. Good to have you back on the show. What's happening? Yes. I bought a third of the position in ACM. Should I continue? I think AECOM is a great company. I'm surprised to see it's so low. People like Quanta and people like the letter J. AECOM, they think it's too expensive. There's nothing I can do about it. Ladies and gentlemen, conclusion of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, Kramer's tracking the latest developments at Eli Lilly, including approval for its new GLP one pill, which could completely change the game. Next. Oh, yeah, Jim Kramer. I'm a first time caller, a happy club member. I want to thank you for being the Peacus Champion of investing. Thank you for helping me become a millionaire. Today we got big news from Eli Lilly. The Indianapolis Colossus got approval for Foundail, which is now the only GLP-1 weight loss pill that can be taken any time of day without food or water restrictions. It's almost as strong as the injections. It starts at $25 per month of commercial coverage, which can be $349 per month if you're paying out of pocket. When plays head to head against the competing pill from Novo Nordus, I think Lilly's got to win him. Novo's pill has a bit of an edge in terms of weight loss, but you have to take it in the morning and you can't take it on a full stomach among other restrictions. Lilly's pill you can take whenever regardless of what you've eaten. These little things do add up to a gigantic advantage. Now we know the old GLP-1 shots have been a big impediment to getting people to take this stuff. Nobody wants to get an injection if there's a pill available. Plus the pill is much, much cheaper. You don't have to store it in your fridge. There's a reason Lilly pre-built inventory for this thing. They are ready for the onslaught. Ironically though, the biggest news from Lilly may have been something that happened yesterday. That's the acquisition of Centessa Pharmaceuticals, a biotech company for $7.8 billion. Centessa is trying to combat narcolepsy and other neurological disorders. They're working on a neuropeptide called arexin, which is apparently something that people with narcolepsy are missing or don't have a lot of. It's possible that arexin can be used for much more than narcolepsy. It could potentially treat drug and alcohol addiction. It may also be used to combat mood disorders, which are all related to sleep in one form or another. Whether it's a pressure, anxiety, or bipolar disorder, they rarely come with a healthy sleep cycle. I like what Lilly's doing here. It's tapping some of the hardest to treat illnesses, ones that have often baffled and befuddled these drug companies that have attempted to beat mental illness. The path towards successful neurological treatment is littered with failures. The money that Lilly gets from its weight loss drug is being used wisely to come up with breakthrough drugs. As a one-time spokesperson for the American Brain Foundation, I can't stress enough just how important Lilly's work is. Not that long ago, I went out west to check in on some of the incredible things that NVIDIA is working on in healthcare. He let Lilly's partners with them for the intractables, treatments that can only be discovered by using AI. It's expensive to develop drugs for diseases where so many have failed. The hope for their partnership is to look through millions of pieces of data to find out something that might be workable. Let's hope that the NVIDIA Lilly partnership bears fruit. Let's hope that the peptide erection helps treat suffers of narcolepsy and so many other mental illnesses. And let's praise Lilly for going after health issues that few else would attempt to try. Most importantly though, let's own the stock because I think this weight loss pill will be a blockbuster. And that's why we've stuck with EL with Eli Lilly for the travel trust. Hey, by the way, we're running a special promotion right now where you can save $100 on annual membership and you also get a signed copy of my new book, How to Make Money in Any Market. Just scan the QR code or head to cmc slash Kramer book. Pretty simple. I think. I like to say this always a moment to tell my promise to the finnishers for your money. I'll see you tomorrow. What made you confident that you could do something that hadn't been done before? I have no fear of failure. Trailblazing women changing the game. One of my favorite pieces of advice. Think about what your boss's boss needs. Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just got to think big to accomplish big things.
