Mad Money w/ Jim Cramer 5/28/25
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Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. I'll do my friends. I'm just trying to make you a little money. My job is not just to entertain, but to put it all in context. So call me. 1-800-743-CBC. Tweet me at Jim Kramer.

Every time I think that we are overstating the impact of artificial intelligence, something comes along that tells me we aren't making enough of it on the show. Now, I know that there are plenty of other industries we've got to focus on, which is why I always say a Dow declined 245 points today. S&P dipped 0.56 percent. NASDAQ declined 0.51 percent. They all went down at the end because of some stuff President Trump did about sending Dr. Kasich. But if you want to know what's going to happen in the future,

not the near future, like next week or tomorrow, but next year and beyond, then I think you must factor in artificial intelligence.

When it comes to employment, both public and private, it might be the most important force out there. Fortunately, tonight, we happen to have the godfather of AI, Jensen Wong, CEO of NVIDIA, coming off an excellent quarter, announced this very evening, to talk about both the near-term performance and, much more important, the long-term implications of what NVIDIA is doing for our nation and our world. And we will include China, which the president is very worried about. Now, I'm not a doomsayer, like the CEO of Anthropic, Dario Amadei, but...

He's a brilliant artificial intelligence entrepreneur who, according to a recent interview with Axios, believes that AI could wipe out half the entry level white collar employees in America, half and spike unemployment to 10 to 20 percent in the next one to five years. He's talking about a possible elimination of jobs across technology, finance, law and consulting.

The man behind Claude, yes, Amadé is the godfather of Claude, wants to sound the alarm before 20% of the people in this country don't have jobs.

Now, we need to know what percentage of people will be replaced by agentics, yet robot agents mastered by Salesforce. And, of course, we'll speak to Mark Benioff this evening. We have to know whether NVIDIA will change every aspect of our lives once we get mass adoption of their ultra-powerful chips. Will they let us all drive hands-free everywhere? Will they allow us to have robots at home and at work, doing the jobs that would have previously been done by humans?

or not asked by anthropic CEO, but could they make up for this shortfall in population that could be coming when you look at America's ever declining birth rate, which I think is incredibly important not talked about. And yes, when will they be smarter than us and more useful than us?

And even perhaps obviate us. We always hear not to worry. We're creative. There's room for humans. But where is that room once AI gets good enough? If the CEO of Anthropic is right about where this is going, just think of what the world will look like five, ten years from now. The Fed won't be discussing how tight employment is. Instead, the Facebook will be filled with data about how whole job classes have been obliterated. I've seen the robots that can make the hospital beds, clean the hospital room, fix up the hotel room better than any human. Certainly much cheaper.

I know of the FedEx warehouse where the boxes are unloaded and stacked by robots, not by people. I've seen a box full on the head of a robot. They have to have our form factor because the world's designed for our form factor. The robot was unfazed. A human's neck, definitely broken. Anthropics Amadei focuses on white collar jobs. And we'll know soon enough whether the law and business school graduates can't get a job. Right. How can companies afford to hire them when they might have to fire me a year from now?

I, on the other hand, am fixated on how robots can take over the jobs that no one wants or the jobs that people only do for lots of money because they're so dull, they're so dirty, they're so dangerous.

Why is it so hard to get our arms around what AI can really accomplish? First, I think that no one in the industry, nobody really wants to talk about how many jobs would be wiped out. That's not exactly good PR, is it? And when we speak to Mark Benioff later, the CEO of Salesforce, which reported tonight after the close and delivered some very strong numbers, excellent guidance, he's adamant that his agent force, which uses computers-derived agents or agentics, will put people who are in relatively unproductive positions into much more important revenue-producing positions.

From the looks of his quarter, I got to tell you, I think he's on to something. But when you're a CEO, as I've been, you know what? You're really conscious that workers are expensive. CEOs don't want to bring in a gentic to make their people more productive. They want to bring in a gentic so they can fire people and rack up cost savings. Nobody's going to make that pitch to the general public because it is so unpalatable. It's more like what Amadé says, quote, cancer is cured. The economy grows at 10 percent a year. The balance, the budget is balanced.

And 20% of the people don't have jobs, end quote. That's a lot of positives very much balanced out by one huge negative. Now, obviously, nobody really knows what's going to happen, but we can talk to the people who matter, including Benioff and Jensen Wong, the CEO of NVIDIA, see what they have to say. Unfortunately, in this business, we're desperate to find out what's going to happen 90 days from now, let alone five to 10 years from now, which most people are not interested in. Fortunately...

This is mad money. And we got a longer time frame. The time frame that includes the possibility of longer term profit, though. The bottom line, let's see if the agents can do our jobs better than we can. Let's see if we'll even play a role in our own world or whether human workers will become obsolete. And we'll all just watch TV all day. Maybe mad money. I just hope it's still the real Jim Cramer rather than my A.I. replacement. Deepa in California. Deepa.

Thank you for taking my call. I would like to ask a question about one of my favorite dividend stock, that is Chevron, CVX. Since it has fallen quite a bit from its 52-week high, is it a good time to buy back? Okay, I think that you have to have a view on oil when you think about this one, Deepa. And I think that first, I think oil is going lower. I think it goes to the 50s. I think it's part of the president's plan to be able to reduce

the inflation rate. However, it does yield 5%. I don't want to reach for yield. I never want to just say, you know what, I'll take the 5% and not worry about the common stock. You are going to wait till this stock at 136 goes to 130 before you pull the trigger. And not until then. Mike in California. Mike. Hey, Jim. Love the show. Thanks for helping us become better investors. I wanted to get your opinion on which is the better investment right now, Costco or Walmart?

Okay, Costco is about to report tomorrow, and I think that no matter how good the quarter is, the stock will sell off because that's been the pattern now for, I'd say, the majority of quarters. That's just the way it is. So, therefore, I'm going to tell you, take that gun away from my head when it comes to Costco. I like Walmart very, very much. Buy Costco after it declines if it does go down because Costco is actually on fire. It's just that they tell you how each month's going to be already. No surprises there, and people just say, I'm bored. Buy the boredom. Ian in Florida. Ian.

Booyah, Jim, how you doing? Ian, I'm having a good day. How about you? I'm doing great. Thank you, Jim. Thank you. Jim, I'm an Investing Club member, third time caller. Thank you. Woo. Yeah. All right. Love what you do for us. Thank you very much for everything. Thank you.

Jeff, I got a question. It's about a communication stock. It's been kind of, it had really good earnings and it went up quite a bit, but lately it's been really sinking and it's kind of attached a little bit to Google in some ways for advertising. What do you think about Reddit and is it a buy here? Okay, I want you to buy Reddit here. Let me tell you something. This stock has been coming down. It was a short squeeze, went all the way up to 200. That shouldn't have happened. I

I think Steve Huffman is doing a remarkable job and you are on to something. Reddit, I think, is probably the best bang, really the best bang for the buck that there is right now in advertising. And people don't realize that. I've done so much more work on this. I can't even tell you how much work I've done on this. And I keep coming back and it says, you know what? Insta is second.

All right. TikTok second. Kind of even. First is going to be Reddit. Bang for the buck. You're onto something because the verticals are so precise. They're so precise. So anyway, that's my lot. I used to say TikTok first. I used to say Insta first. No, they're backseat to Reddit. You heard it from me. All right. Tonight, I'm finding out what's really going to happen with these agentic robots. Maybe they'll be our coworkers. Maybe they'll replace us. Maybe we'll just all watch Mad Money reruns for the rest of our lives.

Could do worse. My late father would have loved that. On Man Money Tonight, we have a really big show ahead with two of the most important executives in this market. Salesforce turned in results about like that quarter. We got to talk to Mr. Benioff. Got some big customer wins and I think informatic acquisition. Got to be sussed that out. Then NVIDIA reported top and bottom line beat despite China. We have the most anticipated interview in the history of the Western world with Jensen Wang tonight. Plus, we're always on the hunt for opportunity. So I'm seeing if we shouldn't be able to maybe...

I love it. Oh, I'm sorry. That gave it away, didn't it? So stay with Kramer. Don't miss a second of Mad Money. Follow at Jim Kramer on X. Have a question? Tweet Kramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts.

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Only making these numbers from Salesforce, the cloud software titan that's betting big on AI with agentics. After the close, companies reported a strong top and bottom line beat. Management also raising their four-year forecast. But there's always a lot going on under the hood on this one. Let's check in with Mark Benioff. He's the co-founder and chairman and CEO of Salesforce.

Mr. Benioff, welcome back to Mad Money. Mark, welcome back to the show. You've done a remarkable quarter here with just a tremendous raise in the fabulous guidance. So tell me what were the drivers that made it so that you could take numbers up so big? Well, Jim, it just was an incredible quarter. And you're right. We are raising guidance by $400 million. That means we're going to do over $41 billion this year in revenue, Jim. Pretty impressive.

Awesome for Salesforce. We're so proud of our team here. And I'll tell you, a lot of it has to do with the customer success that we're seeing. And we've got some great stories about the quarter. It does seem like a lot of people have been saying, all right, well, when is Agentics going to really be in the numbers? When is it going to matter? To me, this quarter looks like an Agentics quarter and that the other things that you have, let's call it old Salesforce just for a second, all augment each other. It's not like different silos. Am I right? Absolutely.

Jim, you really understand what's going on with Salesforce. We have so many exciting things happening, especially with AgentForce. As you know, every company can now transform themselves with AI. I mean, this is really what AI was meant to be. And you look at a huge deal in the quarter was with Pepsi. Now, Jim, you know Pepsi very well and their CEO, Ramon. He's incredible. He's a good friend of mine. And now they're using 11 of our clouds and now led by AgentForce and our data cloud to

to really transform Ada, transform Pepsi. And that means that they can really bring together their snack business, their beverage business, all as one customer information system. And that idea that it's all then interfaced directly with our agents and agent force, that's just an awesome vision and dream. Who is talking to them? I know Ramon will. I'm trying to figure out at what point, what stage does the customer get involved? It's obviously not the retail customer. Is it the retailers worldwide? Because PepsiCo is a worldwide retailer.

Jim, this is everywhere. Everything from order placement to inventory checks to even consumers being able to kind of learn and interact with the product. So you're talking about the Frito-Lay division, which sends a truck every minute to another store. You're in on that.

Yeah. Jim, this is Pepsi. This is Lay's. This is Doritos. This is going to be every part of the company. This can be about creating one Pepsi. And that's one thing I'm really excited about what's going on right now. Let's talk about what would happen if you happen to have Informatica layered on. I like metadata because I like indices. I like to be able to look at data and make decisions. What would what would Informatica do right now for Raymond LaGuarta at PepsiCo?

Well, Jim, as we said, this is all about AI. It's about agent force. It's about our data cloud. But if our customers don't have their data together, it makes it a little bit more of a challenge for them. So you have to have the data. It's not like consumer AI. Consumer AI, you've already got all the data put together. For enterprise AI, they have to put their own data together. And that means they have to understand their data lineage first.

They have to have a master data management. They have to be able to have all the connectivity and the homogenization of their data, and ultimately, their data has to be in harmony. That's what Informatica does with Salesforce. That's why we're so excited to announce just yesterday the acquisition of Salesforce.

Buying Informatica for $8 billion, this is really exciting. All right, so last year it was a dalliance, didn't happen. What made it happen this year, and why do you need it, given the fact that you have a lot of smart guys? You said it yourself. My thought could have developed a very similar metadata approach without Informatica.

We're very disciplined, Jim, in our acquisition strategies. You know, it had to be accretive. It has to be non-dilutive. It has to make sense for our customers. It has to make sense for our investors. And everything really lined up this year. We love the company. I mean, I've been working with the company, Jim, since 2006. I know. You made me sit down with them. They're smart guys. I've always loved. They're smart guys. I love this. They understand banking, and you need some more banking. Do you think that they will be able to get you to be in the door to do the other side? Right now, you do a lot of banks, I know.

But regulation has kept it from being able to be the agentic situation. Same thing with health care. I see the possibility that you're going to be able to do agentics for banks and health care. Those are the two largest verticals and that you'll have them.

Well, Jim, we're doing that. We've talked about what we're doing with RBC and so many other banks as well. Some of them don't want us to talk about that quite yet. Yeah, I know. But we're talking now. Jim, you have to realize AgentForce is now over a $100 million ARR product just six months after we introduced it.

Our data cloud and our agent force product together is more than a billion dollars now in ARR. These are our fastest growing products that we've ever seen in the history of the company. Well, don't you think that some of the upside surprise actually came from these? Because when I look at the other verticals, they're all good. But you had a big number of those. Absolutely, Jim. Jim, more than 8,000 agent force customers. The 4,000 of those are already gone.

basically paying and fully involved. And some of those stories, Jim, we've been talking about, but they're still unfolding. So we look at booking and what's happened with Glenn and how he's really rolled out agent force in this really smart way, first with the restaurants, then with the employees. Now he's talking directly to his consumers with the agent platform. Plus he has all of our clouds and

you know right behind all of that so whether it's doing sales or service or marketing you know field service even commerce all of these things can basically be tied together and then delivered through this agenda tell me how much more thorough and how much more accurate an agentic sales force is than if you i hate to say it because people are human right but how much better this is than humans

Jim, I'll do that through a story. And Jim, I don't know. We've never talked about Flabella before, but Flabella is amazing. I mean, that's the largest department store in South America. Okay, well, you already know, so I can't surprise you. But anyway, this is like the Nordstroms of Latin America. And we started with Agent Force with them in their Columbia operations.

And they want to do it in a completely new way all through WhatsApp. So we're like, yeah, we're going to do that. It's going to be great. You know, we're willing to do whatever you need. And their major use case, Jim, is this. Where is my order? So here you are. You're talking to the agent. You want to be able to, like, get your order. It was such a success, Jim.

They immediately completed the trial and said, we're going throughout all of Latin America. So now all of Falabella is on AgentForce, on DataCloud, on our SalesCloud, our ServiceCloud, our MarketingCloud. Should we go to Bentonville? Is it time to go to Bentonville?

Talk to Walmart? Jim, you know Walmart is a huge customer. I know, but I want them to do that. This is the biggest use case for Walmart in the world. It would be amazing. I think I hope I'm going to be seeing Doug actually tomorrow. But, yeah, he's done a great job. And, by the way, not just that. Did you know that Walmart also makes enterprise software for retailers? And we have a great partnership with Walmart where they've taken our products and actually they deliver them to,

to their customers in enterprise software. It's an incredible, all the things that he's done. - Let me ask you, there are people who are saying, look, the big gain here was currency. When I back out, you know, it did go from a headwind to tailwind, but it still doesn't account for the entire bump in guidance that you get. - Jim, you're right. Currency was working in our favor. Bookings are working in our favor. Revenue is working in our favor. Everything is working in our favor. And sometimes when everything is going well for you,

it's all good. And you know that sometimes everything is not going well. But right now, we are just going to have a great year. And Jim, how many software companies are delivering for you this year? Forty one point three billion in revenue. But I know that one service now says to me, look, we can come into that vertical of your friends, Benioff. I mean, ServiceNow has decided that they they can be in your vertical. Correct. You've seen them.

Jim, one of the most exciting things about Salesforce is our size and scale. And I think you know that we're about five times larger than them. Fair enough. OK, how about consumer sentiment? How are you feeling right now about both our country and also a lot of people feel that you detect sometimes that there's a sense that maybe the nation is not as united and strong as you'd like it to be. Where are we as a country as you see? You have better barometer than everybody.

Jim, I really think the economy is going incredibly well. I see things worldwide actually doing really well. Everywhere I go, I was in Japan last week, there's tariff anxiety. It doesn't matter what CEO you're talking to in what country. They just want to know what the rules are and how to play. And I think tariff anxiety comes from there's been so much change

in the last few months that it doesn't matter where you are in the world that these CEOs all have a little bit of tariff anxiety and so they're just slightly adjusting. But let me give you an example where that has not been as true, which is, and you know that Salesforce does business in sales, in the small business marketplace, in this medium, in commercial, in the mid-market, in the high enterprise.

In these lower end markets, in the small business market and the mid market, those are double digit growth markets for us in the quarter. So we saw really strong performance in the mid market. And those are not as impacted by this. It's these CEOs of these very large companies, okay,

who are like very hypersensitive to what is going on in the political situation. That is what's happening. That's not just true in our country. That is true in every country. But I will say this. I will say this, Mark. I will say that when big companies make a choice when it comes to enterprise software, they're not holding back when it comes to buying your product.

And they are in many others. I'm going to congratulate you on an excellent quarter. Mark Benioff, founder and chair. Thanks so much. It's great to see you again. I hope to see you soon, Jim. Absolutely. Thank you, Mark. Good to talk to you. Matt Mike's back in for the break. Coming up, the quarter all of Wall Street has its eye on. NVIDIA CEO Jensen Huang joins Kramer to discuss the earnings that move the tape like no other. Next.

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts.

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Tonight, we've got the single most important quarter of this entire earnings season when NVIDIA reported. There's a lot of hand-wringing about this one, as usual, but NVIDIA delivered a huge set of numbers, including a sizable top and bottom line beat, healthy revenue guidance for the current quarter, even after taking an $8 billion sales hit on those export controls that prevent him from doing lots of business in China. So how'd they pull it off? Let's go straight to the source with the man I call the modern-day Leonardo da Vinci, Jensen Wong, the co-founder, president, CEO of NVIDIA. Well, Jensen, welcome back to Mad Money.

Hey, Jim. It's great to be here. All right. So let's go to it's a remarkable quarter in every single way. But you do say I'm going to go right there, that China is positioned to lead globally. And you do not think that unless you can sell to China, you can necessarily lead with them. And I look at this market and I'm saying there's 50 billion dollars up for grab. I actually think it could literally be all yours if there weren't export controls. Am I wrong? And how much of that money would flow back to the United States if you could do the sales?

NVIDIA's market share in China was about 95% four years ago. It's about 50% today because of the limitations on the products that we sell. $50 billion a year market today. It's growing just like AI is growing everywhere. Over the course of the next, this four years, the president's administration, we're probably talking about a few hundred billion dollars worth of revenues to NVIDIA, probably $1

Tens of billions of dollars of taxes, revenues to the country, thousands of jobs, incredible, incredible opportunity. But more strategically, more importantly, this is very important. First of all, the China market is, of course, very large, but it's also the home of 50% of the world's AI researchers. The platform that succeeds is the platform with the most developers.

Just like iPhone's successful because of lots of developers, Windows is successful because of lots of developers, all these platforms succeed because there are a lot of developers. China is home to 50% of the AI researchers in the world. We want the world to build on American technology stack.

We want every developer in the world to prefer the American technology stacks. Once that happens, the tech developers develop on American technology stacks, American technology stacks will run AI the best all over the world.

And so this is—that's probably the most important strategic reason to be in China, because there are so many developers there and because the world is going to adopt technology from one country or another, and we prefer it to be at the American technology stack. Well, you know the president has a plan. You say that. He has a vision, and you trust him. You say that.

I have to believe that you think that he has to either see the light or he has and that things that look so dire right now in China may not be as dire. And there could be even as soon as next quarter, more business being done than we thought after tonight. It's hard to tell. But the most important thing is this, Jim, our president wants America to win.

He also recognizes that this is an important market, it's a very large market, and the revenues that it could generate for the United States is significant. It's just incredible. $50 billion this year, look, we're talking about the size of a Boeing, not a Boeing plane, Boeing the company. This is an enormous market. I think the opportunity left behind is quite substantial.

This is also an excellent way to to improve our trade deficit. It would also seem to me that there must be some people who think that they can militarize our your chips. I can't imagine a scenario where they would decide, you know what, we're going to use NVIDIA chips in our aircraft carriers. We put them in our submarines. Wouldn't that be foolhardy? We would never use Huawei chips in our in our missiles.

That's exactly right. They have plenty of chips themselves. Obviously, we're losing market share to chips that are built locally. China is an extraordinary manufacturing company.

capability. And they are doubling the number of chips that they're building every single year. The technology that's being offered by Huawei is extraordinary. This is an extraordinary technology company. And so we have plenty of competition there. Chinese government has plenty of choices with indigenous technology, which is their preference.

And so so I think that the idea that any anyhow, go ahead. But isn't it true that the president has helped you immeasurably? The huge business that you're doing in the Gulf states, when you see him, he obviously is many ways NVIDIA's number one salesperson. Is it asking too much to be able to say, and not only that, Mr. President, I also want you to open China.

Well, we're going to keep our dialogue going with the administration. And I believe that what we're explaining is ground truth. And we understand the technology best, and we understand how computing works. We understand how AI works. And we've been in China for 30 years. And so this is an area that we have a lot of expertise, and we're going to continue to share that. But let me tell you this, Jim. Listen, the president laid out a bold vision

for the United States, for America to re-industrialize the onshore manufacturing so that we can have a more resilient supply chain, so that we can create jobs locally, very importantly, so that we become great at manufacturing again at a time when manufacturing isn't about labor, but it's about labor only, but it's about technology.

And so, that vision is incredible. This is going to be-- this initiative by the president is likely going to set the United States up for a century. For this century to come, this is going to be a very big deal. I also think that he was-- when he rescinded the AI diffusion rule, it was a visionary move. It was a bold move. And he recognizes that there's an AI race and we're not alone. And he wants America to win.

And so it's not about AI diffusion limitation. It's about AI diffusion maximizing American technology. And so he sees that. Okay, so let's talk about the Blackwell ramp, which was amazing. And, of course, we're going to have Ultra, which is incredible. And the demand. Is the demand, as when I saw you the last few times, it sounds like you're running out of superlatives, but demand seems even stronger than GTC. Even stronger than Computex.

The demand keeps growing because there are just more companies. Number one, inference has taken off. That is number one. Inference has taken off. This reasoning AI capability is genuinely a breakthrough. It is now so popular, solving so many problems. The amount of computation necessary for reasoning, for thinking is 100 times, 1,000 times more than a couple of years ago when ChatGPT was a one-shot

answer AI. And so now these reasoning AIs requires a lot of thinking, a lot of compute. The demand is just incredible. Now, you're telling me even since GTC... Of course, we're getting more customers. But even since GTC, you just increased it. It was 100 times less than GTC. Now it's possibly even 1,000. How is this possible, Jensen? Why are there still people who are holding back and not seeing what you're doing? We will all have robots. We will all have hands-free driving.

All this is going to come about much faster than people realize because of what you're working on. It's completely true. It's completely... Robotics is definitely within the next three to four or five years.

The technology works today. It's starting to work very well today. Now, once a technology becomes realized, becomes possible, it's only a couple of two, three ticks for an engineer to crank it and turn it into something that could be really scaled out in volume. And so, self-driving cars are here. That we know. Robotics is going to be right around the corner.

robotic factories being built around the world. Yeah, this is the next great growth opportunity. All right, so let's talk software. I don't think enough is talked about software. I don't think we're not talking about omniverse enough. And we're not talking about the idea that you're just not selling these devices. You're selling a full platform that's not duplicable, which is why you're so far ahead of everybody else. It's not just about the hardware. We used to be a chip company, and then we became a systems company.

And Jim, you know now we're an entire infrastructure company. If you take a look at what we build, it's an entire factory. And you can't just load up a factory with chips. You've got computing systems, you've got networking systems and switches. But what you have mostly is a mountain of software to get it all to run. When you've got a $50 billion infrastructure, the software necessary to keep it humming,

and to make the utilization and the efficiency and its throughput as high as possible, that piece of software is invaluable. If the utilization was 10% off, that's worth $5 billion.

And so this is a very big deal now. Software is just a giant part of our business. OK, how about what we have to talk about society and when I hear what you can do, when I hear what the robots can do, when I know what Boston Dynamics, 1X, when I see what these companies can do, I wonder, is the CEO of Anthropic going to be right when he talks about a bloodbath of white collar workers, unemployment spiking 10 to 20 percent, mass elimination of jobs?

Or isn't your vision that productivity, like whether it be the loom, whether it be the canal, whether it be the steam engine, these were all generators of jobs, not retractors of jobs? It's a generator of jobs. There are surely different views. Let me give you this view. Okay. There's a labor shortage between now and the end of the decade that's measured in some 30, 40, 50 million short. If you just translate 50 million people short in labor force,

and translate that to GDP growth is extraordinary. It's approximately about the size of the United States. The ability for us to expand what is today a limited and short labor shortage, we around the world should be able to expand our GDP. That's our future, to be able to turn these

agents, which are essentially workforce robots, information robots and human robots, you know, physical robots to expand the world's GDP. All right. One last question from me. I want to be sure that we have a smooth transition to the next iteration to ultra and then even to Ruben. How are we feeling? Because I know that there was a glitch. I got a little too aggressive in thinking everything would be smooth. I got ahead. I don't want to get ahead of myself this time. We looking good.

Well, first of all, Jim, remember, we made last quarter, we made the quarter before that. It was not easy. Let me tell you why it wasn't easy. In the case of Grace Blackwell, because of this thinking machine we wanted to create, this reasoning AI factory we wanted to create, we changed the architecture of these AI supercomputers. The architecture is completely different and it's extraordinarily complex.

And so anyways, now the entire supply chain, not only that, we enabled a very, very large supply chain to be able to build these things. Every ODM, every OEM, CSPs, they've now got it up and running. Now, here's the really great thing. Ultra is exactly the same architecture, exactly the same chassis. And so we'll just slip it right in and keep running. We're going to leave it there.

I wish you the best of luck. Congratulations on an amazing quarter. And let's see if the president's plan includes opening China back for you. Thank you so much, Jensen Wong. Thank you, Jim. Absolutely. President, founder, CEO. Off to races. All right. Thank you so much for coming on the show. Appreciate it. Thank you, Jim. OK, see you. Matt, Mike's back after the break.

This week, we're going through some of the hardest hit apparel stocks in the market, searching for potential opportunities. Not all of them work right here. I mean, last night I told you, a little tough right now to get involved with VF Corp, although I am indeed hopeful.

But what about Lululemon Athletica, the athleisure kingpin? For years, this is one of the best performing stocks in the market, but it peaked at the end of 2023. It spent most of last year getting clobbered. Just when the stock started to find its footing again, we got hit with those Liberation Day tariffs and Lulu went right back down. Like everything else, it's been able to bounce off those lows, but the stock's still down more than 25% from its late January highs. What do we do with this one?

Lulu reports next week, which means we've got to do a little guesswork. But let's start with the last quarter, delivered in late March, the one that caused the stock to plunge 14% the next day. But I thought...

I actually thought the results were okay. Lululemon delivered better than expected sales, even if the same store sales came in soft. And they posted a 29-cent earnings beat off a 585 basis. The thing is, we already knew the results would be good because the management had raised this guidance. They preannounced in mid-January, effectively telling you that the holiday season was good. That's rearview mirror, isn't it? And that's why Wall Street focused on the guidance. And that came in well below expectations, both for the current quarter and the full year.

for a year. So the stock sold off hard, then sold off some more after Liberation Day because Lulu has a huge manufacturing presence in Vietnam, which was said to be hit with a 46% tariff. A lot of people feel that China sends things through Vietnam to here. Once those reciprocal tariffs got delayed, Lulu was able to mount a comeback. But can this rebound continue? I'm cautiously optimistic. I'm going to tell you why.

First, I'm still hopeful that the tariffs on Vietnam won't end up being anywhere near that 46% level that was announced on Liberation Day. This is a place where many companies moved their manufacturing to get out of China, doing exactly what they thought the Trump administration would want. Plus, we kept hearing that trade talks with Vietnam are progressing well. Their government just fast-tracked a new Trump golf course. I mean, that can't hurt.

Second, I also believe that the consumer is doing better than most of Wall Street seems to assume and keeping it that much stronger than expected consumer sentiment number we just got yesterday. Even when consumer sentiment looked horrible, actual consumer spending never really took a hit, though.

Now, with Lululemon stock trading primarily based on macro headlines about tariffs and the consumer, it's easy to forget that this company is not totally hostage to the big picture. The company has a strategic plan in place, which is focused on product innovation, the guest experience, and the market expansion. They're very rigorous about this. They've been doing this for a couple of years. It's been paying off.

Well, then what about the disappointing guidance the last time these guys reported? Look, I think there's actually a strong chance that management was simply being conservative at a tricky moment. I like this. Consider, when Lululemon reported in early December, they projected they'd earn $5.56, $5.64 per share in the next quarter. But in the end, they actually earned $6.14. And this isn't some one-off example. Lululemon's got a long track record of beating the numbers, in part because they tend to sandbag you with lowball guidance.

Maybe Wall Street doesn't think they can outperform their guide again this year, given everything that's going on. But don't be surprised if they pull it off. And that brings me to my final point, which is that unlike the setup for the previous quarter, where expectations were sky high after Lulu had raised its outlook just a couple of weeks before the quarter ended, expectations feel very low right now. Oh, I like this setup. Even though the stock's been bouncing back for most of April and May, when you look at the analyst coverage heading into the earnings, all of it seems to be analysts slashing their price targets.

The latest example came just this morning when Morgan Stanley cut their price target on Lulu from 373 to 346. But you know what? That report is actually more positive than the price target cut would make you believe. The analysts said they expect an upside surprise for earnings per share and also for sales in the Americas. They're even betting on higher than expected same-store sales for the region. And perhaps more important, the analyst at Morgan Stanley says that if that happens, and even if Lululemon really reiterates its four-year outlook with such a beat, that could send the stock higher. I think it could send the stock soaring.

I like the setup for Lululemon heading into next week's earnings report. I think it should be bought, given that expectations for the company are now lower than at any point dating back to mid-2024, which was a great time, by the way, to buy Lululemon. This is reflected in the company's forward-priced earnings ratio, which currently stands at just 21 times earnings. That's nearly a 50% discount to the stock's average valuation over the past five years.

Good timing. So the bottom line, Lululemon is a beaten down retail that I think can continue making a comeback. We'll see what happens next week. But for the time being, I am inclined to take a chance here. Maybe do it with call options, deepen the money. Why not? The expectations for Lululemon are so low that the risk reward seems pretty skewed to the upside. Yeah. Yeah, money's back in for the break. Coming up, Kramer takes your calls and the sky's the limit. It's a fast fire lightning round. Next. Next.

♪♪♪

My interviews with Salesforce and NVIDIA may be over, but the work's just getting started. The Investing Club team is diving deep into the numbers, breaking down the earnings, mapping out a game plan on how to invest in these two companies. You know we are in and like them, and we're not done yet. Tomorrow brings another big club named Costco. Now is the perfect time to join the club with my special offer. I want you to head to cnbc.com slash Kramer Club or scan the QR code on your screen.

And now it is time for the lightning round. And then the lightning round is over. Are you ready? It's sunny from Massachusetts. Sunny. Hey, Jim, I'm a club member and my kids think you're the funniest guy on TV. They want to know when you, Jeff and Ben are going to write a dad joke book.

You know what? We may have to do something. I'm looking at Chef Ben right now thinking that he's all set for a couple of jokes. But Chef Jeff is working on a couple of things for the club. How can I help you? Tell me your thoughts on LVOS. LVOS? Leidos? I like it. Look, I am worried that the defense budget may be cut. But this is Homeland Security. I think it's a good opportunity. The stocks come down a great deal. Let's pull the trigger. OK, I want to go to Mark in Texas. Mark.

Booyah, Jim. How you doing from South Texas? Oh, man, I love South Texas. Let's hippie, hippie, hippie. Come on. I've got IBKR. Should I start a position? Oh, the brokerage firm that is very, very smart and very well run. And I do like brokers, typically those that are able to let us do what we want. And that's one of them. I say bye. Let's go to Barton, Washington. Barton.

Hey, Jim, just wanted to get your insight on SMR. But why don't we just buy GE Vrnova? I mean, you know, it's been a winner for the club. I think it can go higher. I really like it. Look, they're both parabolic. New Scale's been straight up, and so's GE Vrnova. But GE Vrnova's got a book of business. That's what I like. And that, ladies and gentlemen, is the conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab.

Jim Cramer, the diehard of the doll. Hey, Jimmy, love the show. My five-year-old grandson loves to watch your show. I have to thank you for making us money when it's there to be made. Our world is a better place with you in it. If you can't beat them, then at least stop judging them. That's what I thought when I read this morning that Toyota had put $250 million into Joby Aviation, the profitless electric helicopter company.

Joby wants this money to help develop its battery-powered vehicle that can take people short distances. Kind of a car helicopter. Sort of a taxi car helicopter. Even though this Toyota money was well-known, they've been investing hundreds of millions of dollars into Joby for years. It didn't matter. Joby's stock still roared over 28% today. Nobody cared that the news was old. It might as well be fresh as a daisy to these buyers. And that's at the crux of why you can't sniff at Joby or its competitor Archer with a similar business that's backed by BlackRock and Stellantis.

among others, which, again, put hundreds of millions of dollars into this technology. I'm confident that if we read a headline that Archer just got more money from one of these partners, that stock would have a similar reaction. But.

So how can you be critical of anyone who's buying these flying car stocks with the possibility that they'll keep flying every time their deep pocketed partners dole out more money, even if the money was expected? And look, it's not just flying cars. When you hear anything about quantum computing, any capital infusion into them because they're all burning money like there's no tomorrow, these names get a huge lift. Again, though, why not?

Who's to say that quantum computing won't be the next technology? The naysayers tell us it'll take decades before any of this is useful, but the naysayers are not in control anymore. Same deal with nuclear.

Even though there's really only one company that's ready to profit from new nuclear reactors, and that's G.Vernova, any company that's working in the field, in any sort of adjacent field, will rally on even the thinnest good news. There are other speculative areas that excite people, even if the companies in question are burning money, because so many of them are money losers. Most of the excitement comes from capital infusions. The worse they do, it seems, the better the stocks go.

I've steadfastly tried to warn people about the dangers of these two prospective stocks, including many that I am constantly being asked about. I mean, constantly. My caution has been a sane stance at times. But because of the persistent adulation for these industries, I fear I've become too much of a scolder, a curmudgeon even, in light of how easy it is to move these stocks higher. It is not my job to keep people out of stocks that can go higher at the drop of a hat. After this joey jump, I'm not going to lower my standards, but I am going to have to change them.

I think something can go up on what looks like old news. I have to relent and recognize that these stocks represent some sort of new class of equities, ones where no one minds if they never make money. So my role going forward will be to recognize which stocks can go higher on good news and accept that that's the market's judgment, even if it's not mine. Just please, when you get a big gain in these speculative names, promise me this. You'll take a little something off the table. Like I said, it's always a bull market summary. I promise you I'll find it just for you right here on MadMoney. I'm Drew Kramer, and I will see you next time.

tomorrow.

You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Cramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money Disclaimer, please visit cnbc.com forward slash madmoneydisclaimer.

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