Mad Money w/ Jim Cramer 3/18/25
42:10 Share

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My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a bone working somewhere, and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica from NVIDIA's GPU conference in San Jose. Other people want to make friends. I'm just trying to make you a little money.

My job is not just to entertain, but to educate and teach you. So call me at 1-800-743-CBC or tweet me at Jim Cramer. When your stocks are going down and you don't know why, it's a pretty good bet that everybody else's stocks might be going down too. So do not take it personally. As the people in this hall, the NVIDIA conference.

The GTC convention. No, all too well, as many of the public companies saw their stocks shell mercilessly today for no particular reason. Some of these companies are doing amazingly. Yep, on a day like today when the Dow shed 260 points, S&P lost 1.07%, NASDAQ doubled 1.71%. We're all experiencing what I can only say is some painful shrinkage.

Now, we know in real life, shrinkage can mean a lot of things. Making things smaller, shoplifting, and of course, the classic George Costanza anatomical definition that I don't need to go into any more than that. But in this business, shrinkage means paying less for the same earnings that you were willing to pay up for only just a week or two ago.

You'll also hear this called price-to-earnings multiple compression. And we see it all across this market, notwithstanding the reprieve from selling that we got on Friday and Monday. How about those great days?

So why is this happening to us? Why do our stocks go down when nothing's happened to the companies underneath? Look, when everyone's terrified that a piano is about to fall on their heads, they don't want to get hit by the baby grand. And right now they don't want to own the falling stocks either. So they sell.

But they can't get a good price anymore because too many people want out for the same reasons. They think that stocks are overpriced versus when we consider what could, could lay ahead. Right now, we're in the grips of such fear that after two up days, it's a virtual jailbreak from the get-go as holders of stocks simply aren't interested in anything positive. They know that weakness is coming and they're simply anticipating it no matter what good they might hear. Sure, they can't see the weakness.

But if the administration keeps talking about how we're transitioning, how the economy needs to make some painful adjustments, then any big rally like they had Friday and yesterday will become magnets for sellers. People just don't want to stick around waiting for the next tariff shoe to drop. Even as I think that if we get back to where we were last Thursday when the S&P was down 10 percent, peaked at 12, we are going to have to start buying stocks in a lot of the tech companies that surround me.

How pervasive is the negativity? Well, we had a real test case today, didn't we? Today, Jensen Wang, perhaps the most influential CEO of our era, gave his keynote speech to GTC, which we all know as the Woodstock of AI. But he said it's become more akin to the Super Bowl.

When you put 17,500 NVIDIANS and friends in the SAP arena in San Jose, you'd expect some sort of impact on the stock market, or at least in the stock of NVIDIA, but that sure didn't happen. Today we learned that nothing's more powerful than multiple compression. As NVIDIA's stock actually slid $4.10, it declined 3.4%. I say, ouch!

Okay, I can see a bear case here, although I don't share it. My channel trusts this big position stock. NVIDIA stock isn't cheap unless everything goes right. And in this climate of pure environment, it's hard to see everything going right. Even for a company that is this special. And oh my, after watching today's keynote, always reminds you how special it really is. Just because 17,500 people get together to listen to Jen Simoes, that doesn't mean you're going to get higher stock prices. Sometimes the tape is simply against you. End of story.

At the keynote, Jensen delivered a terrific roadmap for his next generation technology. NVIDIA is in full production for its most lucrative product, the Blackwell. And Blackwell Ultra is on the way, more lucrative. We saw devices that will make self-driving much safer. We saw devices that can reason, make decisions that we can't make because we're humans and we can't

figure them out. We saw technology invent wildfires. We heard about a spectacular partnership with GM to put AI in their cars and trucks. Totally added it. He had some very confident things to say about the data center buildup for AI, which he sees reaching a trillion dollars surprisingly soon. But those didn't matter today.

Jensen told us that he's gearing up for the next big thing in 2026 with the Vera Rubin. He likes to name chips after people, and Vera Rubin's the astronomer who discovered dark matter from Philly. We know that business needs more computing power, and the Rubin has it. Second day after 27, we're going to have the Rubin Ultra with even more compute. The specs were greeted with oohs and ahhs. He talked about how much energy these chips will save, too. He talked about personal AI supercomputers that can do everything humans can do and also play a good game of tennis.

Yep, 2027. But what do we care about teraflops or stacked electronics or quantum photonics or daily today? Teraflops might as well be calflops.

Then there are robots. So many cheers, so much excitement. Physical AI, robots of every kind in every industry, training robots requiring huge amounts of data, blueprints built on NVIDIA to make those robots work, helping to solve the chronic labor shortage in this country. They will need so much compute that I can't imagine Jensen will ever meet the demand. Yes, that's right. The orders here are through the roof.

I thought it was dynamite to watch. They are coming. They're around the corner. But in this market, nobody wants to wait for what's around the corner. We're not going to take our, you know what? We're not taking a rain check on even the greatest of robots, which I saw today on the screen at the keynote.

So all these announcements from Nvidia might mean everything for the future, but they meant nothing for the today. New partnership with Disney and Google that creates whole new worlds that everyone loved. We heard about the announcement of Groot and One. Hey, that could be legendary. Didn't matter, other than to make us laugh on a tough day. You know what's most unfortunate? I think Jensen Wang could have raised numbers today if he wanted. He could have taken them up big, right? That's not that kind of conference, but he could have.

but you know what i'm glad he didn't might have meant nothing to stock anyway yes the invisible disease known as mobile compression is just that powerful and it really comes after tech stocks because they tend to be very expensive video stock isn't all that pricey but the expectations for the keynote were high so even though it was spectacular nobody's going to care in this environment who else gets hit besides nvidia how about anyone else involved with ai given that ai is so hard to understand if something is unknown and it costs a lot like a lot of the ai stories

then its stock is going to go lower in a day like today, just like everything in the AI complex has been coming down for weeks. After that, people sell what's known as enterprise software. There are tons of those companies, right? They make businesses run efficiently. We have tons of them. Venture capitalists love to force these upon us when they shouldn't be selling them to other businesses. The way that Wizz sold itself to Alphabet today for $32 billion. Nice. When the market's going up, the growth hounds can't resist buying these enterprise software stocks.

but they can't resist selling them on the way down either. Sell, sell, sell, sell, sell, sell, sell, sell, sell. Especially when they're worried about the economy. Next, they crushed the high price biotech. Remember when those companies, when bringing a lot of revenue but losing a lot of money? Well, we don't care. At least not in this environment. What we think about is sell.

And then they do the same thing to the industrials. As Treasury Secretary Besson keeps talking about a pause, that means we're no longer willing to wait for something around the corner because the street just gets longer and longer and the corner further and further. Here's the bottom line. This latest round of multiple compression came on a day of wonderment about artificial intelligence.

And even with Jensen's fabulous speech, volatile compression was just much more powerful. You know what? It's going to stay that way until we get through this environment, either because the white house backs off or because stocks come down to the point where we simply get used to it. Let's take calls. Let's go to Erica in New Jersey. Erica. Hey, Jim. Thanks for taking my call. Hey, I'm new to your show. Thank you for calling in, Erica. Yeah, I love your show. I'm new to it. Fantastic.

All right. So I want to get your opinion about SoFi. We have a small position in it. I almost sold it last week at 18. Watched it go up. Took a long time. And then I hit the pause button and it plummeted to 12.

Let's not worry. Let's not worry. OK, this is run by Anthony Noto. He's doing a super job. I know that right now stocks are for sale. I don't want you to sell it. It can come down a little bit more. Do not panic. The company's in good hands and the stock was up a great deal not that long ago. I think you're fine. I'm not saying it can't go to 10. I am saying that Noto's money good. All right. Multiple compression ruled the day, even though Jensen gave us a fantastic keynote address.

And I think it unfortunately is going to stay that way. We've got to get through this uncertain environment, but we will get through it. And we'll get through it together. Man, buddy, tonight is day two of Silicon Valley. And I'm sitting down with some of the biggest players in the AI race. Do not miss my exclusive with Dell, Snowflake, and Arm Holdings. Plus, what's the road ahead for American Express as the company celebrates 175 years? I'm bringing you my conversation with its CEO. So stay with Kramer. ♪

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Indeed.com slash madmoney. Terms and conditions apply. Hiring? Indeed is all you need. While we're here at GTC 2025, we got a chance to check in with some of NVIDIA's most important partners, including the iconic Dell Technologies. Like I mentioned last week, I think the stock has come down enough to be enticing. Don't take it from me. Let's dig deeper with the true titan of industry. I'm talking about Michael Dell, the founder, chairman, CEO of Dell Technologies. Mr. Dell, welcome back to Mad Money.

Great to be with you, Jim. Thanks for having me. You know, Michael, first of all, it is a joy to see you because you are a beacon for more than just tech. I'm clearly in for our country and for the world. And I just still am excited as I was the first day I met Jim, the 80s. You are doing some amazing things, including being the person mentioned in the keynote of Jensen Wombat being, I'd say, the key partner. What does it take to become the key partner of perhaps the most influential figure other than you in technology today?

Well, to be able to deliver the kinds of systems that are being talked about here at GTC, not only is there incredible engineering and a ton of innovation that's on display, but you need supply chains, right? You need services, you need the operational discipline and execution, and you need to be able to take it to all the enterprise customers. This past year, we delivered the Dell AI factory to over 2,200 customers around the world.

And all of them sort of recognize that there's an opportunity to make their businesses more efficient, to help them grow, to innovate faster. We added 100 new solutions. I think we're just getting started. I think we're in the kind of first phase

a couple of percentages of the S-curve adoption of AI in the enterprise. Well, when I think about it, fiscal year 2024, I don't think you had any AI. What do you think you're going to do fiscal year 26 in AI alone? So last year was about $10 billion. This year, we've said $15 billion. That was our guidance at the end of the last quarter. This is from nothing.

That's right. It's been growing very fast. And look, our overall infrastructure business last year grew 29%. And we're also number one in enterprise servers, AI accelerated servers, in storage. And the complexity of these systems, it's one thing to talk about them on stage, but to actually deliver millions and millions of these and have them be reliable and supported

That's kind of what we do. - The way I've been thinking of it lately, I call it the distant number one, meaning there's a huge distance between you and number two. - So, you know, this year we've guided to a little over $105 billion in revenues, and we are clearly the number one in enterprise infrastructure and AI PCs as well. - Now, given how everything is so much more comprehensive, but much more complex,

To be even a PC, as we heard today, can be much more complex. I think you have an incredible moat. You have a consistent record of profitable growth with amazing cash flow. And yet I find your stock to be one of the most inexpensive stocks in the entire market. But you do have a large buyback, so you can take advantage of how cheap it is. Well, you know, last quarter, our earnings per share grew 18% year over year.

And we have consistently shown an ability to grow earnings and cash flow

really throughout all sorts of economic cycles. And astute observers would note that we have a share repurchase program that is sensitive to price. Well, at one point you had a share repurchase program that ended up buying the company. That is true. We're not talking about that, Jim. But we have been buying back our stock and certainly we announced an expansion of that.

a $10 billion expansion to the share buyback. And we raised our dividend by 18%, having raised it quite a bit over the last several years. Well, the speed of the growth of AI, I think, has impeded somewhat your gross margins. And some people on Wall Street are, say, pointy-headed enough to think that's all that matters. I get that. Is there a chance in the back half of the year that your gross margins can expand?

So, you know, again, if you look at the ISG business, which includes all these servers we're talking about, right? Last quarter, fourth quarter, we had operating margins of 18%. It's pretty good. Yeah, I'd say so. And, you know, what we've said about all these AI servers is, yes, they're kind of rate dilutive, but they're dollar accretive.

And we think our overall margin rate will be pretty steady from last year to this coming year for the full year, even as we significantly increase the amount of AI servers that we're selling. All right. Now, we know that Client Solutions Group, 48 billion users, but not

No growth yet. But you said it could be delayed. I saw some things today that made me think that maybe it will not be delayed that much longer, that the PCs are so much more compelling that we have to go. We have to upgrade. The office has to upgrade. It's sort of undeniable now that the refresh is starting. Okay, great. There's a large install base.

We're seeing it definitely start. And now with all the new capabilities that we have with AI PCs, today here at GTC, you heard about the GB10 chip, right, in the little box that Jensen showed. That's also going to be in the Dell Pro Max notebook and desktops. And we're going to have the GB300 super chip in our Dell Pro Max notebook.

you know high-end high-end workstations and so all that is supportive of growing our commercial pc business particularly as we get to this october you know windows 10 end of life and the you know 1.7 billion pcs that that are in the install base that need and a lot of them need to be replaced i think that's great we have a minute left but i just uh wanted you to you're an optimist i've known you i've known

I've known you since the damn betting days of gold. Could you please tell me something that's going right in the world so we can feel better because you've done so much for so many people? Well, so all you really have to know about all this AI stuff is there's an explosion in data because everything is...

generating data and connected, and there's incredible advances in the algorithms. And so that ultimately drives enormous demand for servers and data storage. Those are the businesses fundamentally that we're in, and all that power is being unlocked. And it's a wave of productivity that I think it will

ultimately drive incredible growth in the overall economy. I'm super bullish about the market for technology infrastructure, of which we are a leader. Because the multiples have shrunk so badly. They're shrunk. The stuff's being given away. These stocks are being given away at your level.

Well, that just means the buyback buys shares back at a greater rate. But we focus on the long term and continue to grow. And I think we'll have another great year. All right. That says it all. Michael Dell has always been conservative, by the way. He's the founder, chairman, and CEO of Dell Technologies. And we'll be right back. Experience the performance of Lexus Racing, the thunderous V8 engine.

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While we're out here in Silicon Valley for GTC, we'd like to check in with some of the great companies that come to this West Coast Woodstock for AI. And that's why earlier today we sat down with Sridhar Ramaswamy. He's the CEO of Snowflake, the data analytics software powerhouse with a really huge AI kicker. Take a look.

Sridhar, we're at the capital of AI and if anything, I think that you represent the fundament of AI. You have pivoted so dramatically. I now associate you with what I want to do if I want to hire and learn about AI. It's great to be back at the NVIDIA conference talking to you, Jim. Yes, last year has been pivotal for us because we retooled the company, retooled our products, brought an incredible number of AI products to market.

and have thousands of customers using them week on week. Amazing brand names like Disney, ExxonMobil, the London Stock Exchange. But what we also did was make AI easy to use. We made it very efficient so people don't have to spend a lot of money. But most of all, we made AI trustworthy so people can actually believe the results. These are AI products that know what they're supposed to answer and don't answer questions that they are not supposed to answer.

It's that combination of things that I think is well on its way to making Snowflake the definitive data and AI company on the planet. Well, what's important for me to let people know, huge number of customers, those customers can go anywhere. They could go to Amazon. They could go to Google. They chose to go to you. But

What really is happening, you were offering a tremendous number of product. I remember when I first met you, you had a good product background. We were worried about whether you could get the sales going. The sales are following this amazing product that you're putting out. Well, it's a structure that you put in place. We made sure that we went through a very deliberate process of educating our salespeople about AI products.

Just like we want to demystify AI for our customers, we demystified AI for our own salespeople. We trained a bunch of people so that they became experts. In turn, they taught the larger sales team. Our curriculum now, for example, for the salespeople has AI in it. We are creating tools for them. They're in fact our most enthusiastic adopters

of AI products that we are creating with Snowflake. That's where momentum begets momentum. And these folks now go and happily tell their customers how excited they are about Snowflake AI. It's been pretty infectious. - Well, I was gonna say there's a contagion. Watch a tremendous video.

about if you were running the Citibank company, which is our, the city bike business is really kind of, turns out to be much more complicated than I thought. Got to figure out usage patterns, got to figure out who's using it. Well, what did they do? They went to Snowflake. And Snowflake gave them a very inexpensive way to find out everything. It works so perfectly.

That's right. And there are tons of examples like this. One of my favorites is T-Mobile, the largest carrier in the country. They used Snowflake to figure out how to optimize their networks for the Macy's Thanksgiving Day Parade. As you know, there's a lot of folks out there

and they wanted to make sure that they got great coverage through the entirety of that. Big event, big event, they go down. We all know that. Well, last year I was there, they didn't go down because they pre-optimized a whole bunch of things using Snowflake AI. How did they know to go to you? How did they know that your people could solve it?

Because we have their usage data. They put a lot of data on Snowflake. It is there. The data has gravity. T-Mobile actually both uses Snowflake and also has created products on top of Snowflake that they sell to other people. It's getting value from that data. If you have it, then the AI comes naturally because data has so much gravity.

When we go on AI ourselves, I find I'm in many places where it tells me what I want to hear, not what the reality is. If I go to Snowflake, does it have the guts to tell me, you know what, we don't know that answer? And stop, so I don't keep paying attention

To me, reliability is something that the AI industry simply does not take into account. So when we created products like Cortex Analyst, which is about getting structured information about your business, we actually make sure that that product knows what questions to not answer. The first question anyone asks when you give them a chatbot is, they ask you,

how much revenue will I make in 10 years or 15 years? Which you know is not exactly answerable. So these products will tell you, well, I don't know how to answer that question. To me, that modesty, that reserve for knowing what you know and knowing what you shouldn't answer is a really important component of every product, especially an AI product, which as you know, has a habit of just like going on and on about stuff it should not say anything about. Well, I think it's why you become a leader in AI.

because you are not afraid to tell the client how best to use it and how not best to use it. Everybody else is just tabula rasa every single day. It's not like that with you. We don't sell AI contracts. AI comes as part of Snowflake. I tell people you can create a chatbot on Snowflake for $10. If it gets a lot of usage and you make a lot of money, you will pay more. But experimenting with AI is not hard. It's the combination of ease of use and that efficiency. You don't have to spend a lot of money.

combined with reliability, where products know their place in the overall customer ecosystem, to me, I think that's the one, two, three combination that's winning for us. I think you guys are fast. You're tough. You're almost clairvoyant about where you had to go. I want to congratulate you for everything that you've accomplished in an incredibly short time. Sridhar Ramaswamy, Snowflake CEO. Wow. You kind of blew me away, partner. Thank you. Thank you, Jim. That was great. Thank you so much.

Now that GTC is upon us, can some of the beaten down tech stocks I like so much finally get their footing? Take Arm Holdings as a semiconductor architecture powerhouse, which is now down roughly 35% from its January highs. What is that about? This is despite the fact that Arm reported a fantastic quarter in February, even raised the full year forecast. So could the market be giving you a rare discount here, or do we need to worry about the environment? Let's go straight to this work with Ray Haas. He's the CEO of Arm Holdings. We'll have more with Mr. Haas. Welcome back to Man Fighting. Thanks.

Thank you, Jim. Now, Rene, I watched the keynote. You watched the keynote. I saw the fingerprints of ARM everywhere. And I think they're only going to get more pervasive as the curve goes up that Jensen traced out. How big are you in the new chips? And how about next year in the year end? Yeah, it was quite a keynote, a couple hours long, I think, in duration. But

A lot of Arm in there. Some public, some behind the curtain. For starters, Blackwell Ultra, based on Arm. And next generation Vera Rubin, as Jensen mentioned, is also Arm-based. But I think one number that might have been lost on folks, Jim, was the growth that Jensen talked about from Hopper.

To Blackwell? Previous generation to the new. That's right. So 1.3 million units, I think he showed, of Hopper. 3.6 million on Blackwell. That's very significant growth. But for ARM, far more significant. Because on Hopper, we literally had no exposure. You were talking about AMD and Intel. Most of that's AMD and Intel. Going to Blackwell, the vast majority is what's called Grace Blackwell. ARM CPU...

So the growth of Blackwell and then onto Ruben, it's great for ARM. - Now people have to understand you can't do without CPUs. We'd love to think, oh, GPU, that's fantastic. That's the whole conference, but nothing works without CPU. - Of course, they work in tandem. The CPU does all of the major software, the operating system, the hypervisor. It works together with the GPU. But more importantly, when you go from 1.3 million to 3.6 million, that's three X the energy. And,

Power is everything in these data centers. As Jensen mentioned, these power constraints. It's a great place for Arm. We're the world's most efficient processor on the planet. And that's why the transition. So people ask, why Arm?

Power efficiency. And that makes all the difference here. Now, let's transition for a second with that same thought in mind. Mary Barra from GM told me she's very excited about their partnership about GM with Jensen. You're in there too, of course. Of course. Yes, we are. We've worked for many, many years with Cruise. And Cruise, I think, is the platform that a lot of the GM hardware is based on.

NVIDIA GPU, ARM CPU. We've been working with NVIDIA for almost a decade, I would say, on this. - Oh, and you know NVIDIA well. - I know them well, having spent some time there. But most importantly, again, what matters in an automotive application? Power efficiency. - Right. - You have to run, if you're running off a battery, battery is everything relative to miles and distance.

you have to have efficiency and the CPU controls everything in the automobile. And yes, we are involved in that as well. In fact, Jim, I will say we were involved in literally about every announcement that was made today by Nvidia. - I thought so. Okay, I'm glad you bring that out because it's not, look, it's not Arm Day, but it could as easily be Arm Day because you had 310 plus billion arm based ships shipped since inception. That is amazing.

It's a number that's kind of hard to put your head around. Just to give you a context, last year, 30 billion plus chips. Laptops per year, about 200 million. So you think about 200 million laptops, again, a lot of those are now ARM-based. Right.

But that's a fraction of our 30 billion. We're in everything you can imagine. Earbuds, security cameras, automobiles, AI data centers, general purpose data centers, health monitors. It's pretty hard to find something that doesn't have ARM inside. Now, can you help us? There's something that I often try to get across and I fail.

When you have that gigantic reach, when you're everywhere, you are able to get people to write for you, software people. You've got software developers on ARM, maybe the most, maybe, I don't know whether you rival Apple. Will you please tell people what it means for a software developer to be on ARM?

So we have the world's largest software developer system, over 20 million developers plus that develop on ARM. That means all the applications, the operating system, they're all written and ported to ARM. But the way to think about software, Jim, is not the software so much as it's written today, it's the software that's written today on top of the software that was written yesterday, five years ago, 10 years ago, 15 years ago, that needs to be upgraded, maintained.

Jensen used a quote in a discussion I had with him once, which I think is very valid here, software never dies. Right. It has to be maintained, upgraded. Yeah, that was a great podcast. And as a result, that's why ARM is so ubiquitous because we are ingrained in all these systems and developers will then ultimately migrate to, you know,

You know, candidly, the path of least resistance. I'm going to write my application to Arm. Arm is already there and it builds on itself. And now with AI, you're finding people trying to write all these AI algorithms that can run in a power efficient way, not just in the data center, either in a PC, in a robot, even all the way down to the smallest devices like wearables.

You know, I struggle to find a better word than ubiquity. If you're ubiquitous in anything involving tech and are scaling and putting in more high-end devices, it's very hard to keep you down.

I would argue we're in this huge show floor here in the convention center, which is full of NVIDIA promotion and hardware, and it's their show. I'd argue there's more ARM inside this conference hall than there is NVIDIA. Let's leave it right there. I like that, Rene, very much. That's Rene Haas. He's the CEO of ARM Holding. Now, I've been telling you, I think this stock should not be where it is, that it should be higher. I'm reiterating that right now. May I buy these back after the break?

It is time. It's time for the lightning round. We're going to start with Mike in Pennsylvania. Mike. Hey, Jim. Mike from Philly. How are you? Oh, man, Mike, I am doing fantastic. Because I got Howie Roseman doing my bidding. What's shaking with you?

Nice, nice, nice. Hey, I'm doing well, too. Love Howie Rosen. Hey, so my question, I'll get right to it. So Uber. I love the fact they're doing it in India. Now, Uber's a buy. You want to buy Uber right here. I'm telling you, stop this fall. I'm going to Phil in North Carolina. Phil! Hey, Jim. Philly. Speak to me. How are you doing today? You're up. Couldn't be better. How about you? Shine on my day. How about you?

I'm fair to Midland. You know me. Okay. Fair to Midland. Fair enough. Okay, fair to Midland. I've been talking to you for many, many, many years and listen even longer than that. One day, could you have your cameraman show us a picture of your board, you know, with all the buttons on it? Yeah. I would like to see that. Oh, my God. I love the board. I've got the small board. We'll get the big board when I get back to New York. All right? How about that?

That's great. That's great. All right. Let's make money together. What do we have? Okay. All right. Both of us. Okay. All right. Uh-huh. All right. Uh-huh. That was good. Okay. Oh, boy. Okay. I'm going to give you the name of the stock quick, but please let me just have my say on it. This way you'll understand more. All right. DJ Maxx, okay? Yeah.

TJ Maxx. I love TJ Maxx. I mean, come on. I bought some of this for the Chapel Trust. I think it's terrific. I think it's going right back to 125. And I like your spirit. I think it's commendable. I need to go to Hannah in New York. Hannah. Oh, come on. Let me do this. Hannah. Hannah, how are you? Hi, Hannah. Go ahead, Hannah. You're up. Yes. This is an amazing day. An amazing day. What are you thinking? I was wondering what your opinion of Steel Dynamics is.

I think Steel Dynamics is going to be a winner under President Trump's tariffs against the companies that are subsidized by the Japanese and the Chinese. And I totally support him on this. And I think you should buy, buy, buy Steel Dynamics. And that, ladies and gentlemen, is the conclusion of the lightning round.

While we're out of town for GTC, American Express came to our usual home, the New York Stock Exchange, earlier today to ring the opening bell for its 175th anniversary. Fortunately, before we decamped for California, we got a chance to sit down with Steve Squeary, the chairman and CEO of American Express, at his headquarters in New York City. Take a look.

See, this is no ordinary company. It's a story company. It's been around longer than almost every other company in America. How's that possible? Well, look, we've been around 175 years, which is pretty incredible. And, you know, the only way you stay around for 175 years is you've got to deliver for your customers. You have to know what your customers want. You have to anticipate

what your customers are going to want. You've got to innovate, you've got to adapt. I mean, look at this company. This company started 175 years ago as a freight forwarding company. We were FedEx and UPS before they were, right?

And so how do you become and go from being a freight forwarding company or a delivery company to the premium global financial and lifestyle company? And what you do, that's through innovation. And this is a company that, you know, we started as, you know, messengers and freight forwarding and so forth. We got into financial services through money order in the late 1890s.

We made money orders better because we what we did is we we made sure that they were You know secure then we invented the travelers check and then you know when you look at the history of this company It's been a situation where people have had big ideas had big challenges and had big innovations and Management has been able to help navigate that for example once we were into the delivery business and

Our managers in Europe said, you know, we get people that come in and want travel advice. Why don't we open travel offices? Headquarters didn't want to do it. So it worked backwards. And they pushed. It worked backwards. And so what happened was you look at this and you see travel delivery to travel services. And it was very fortuitous because...

The government nationalized the railroads. We were out of the delivery business. And for the next 60 years, travel, travelers' checks and money orders, until we became a credit card company. But through that all, through that all, the brand, trust, service, and security, and we've always backed our customers. Let's talk about trust because it goes through. It is probably the deepest element that I see. How did we...

as a people, decide that we're going to trust a piece of paper that wasn't backed by the government and feel better and safer with it because it had your name on it. Yeah, well, it's what you do, right? It's what you do when people are looking for help and down and out. And so they knew...

From our early beginnings, we took their goods, delivered it, and if we didn't, we made good on it. They knew that when they got into, we had the money order. If it was lost or stolen, and think about when we had Carl Malden, when we did the traveler's checks. If they're lost or stolen, we made good on those traveler's checks. How did we all remember don't leave home without it? Don't leave home without it. How old are you?

years ago was that and it's still in our heads. You know, that's over 60 years ago. It was don't leave home without them. And then it became don't leave home without it. And what's interesting about this is that even today, you know, you have a problem as a card member, you'll call us, you know that we'll stand behind you. You may not always win a dispute, but you know we'll represent your best interest, that we have your best interest at heart. Well, if I'm overseas, Iowa

I always see my parents said I was going to the State Department. They said, no, if you're in trouble, you go to American Express. I said, well, because I have a card. And they said, no, because they help. They help. They help. Go back in our history. World War One, 1914, people crowding the London office. We help people get home. Great Depression. We were open. Banks were closed. We're cashing traveler's checks. We have through our history have been there to help people.

Now, how is it possible that millennials, that Gen Zers know this passed down tradition about your company? They may not know about the traveler's check. And when you say about the traveler's check to a millennial at Gen Z, they look at you like you've got two heads.

But what they know is they know from history, they know from their parents that American Express will always have your back. But it's more than that for millennials and Gen Zs because what they want is value, right? And so the challenge has been how do you innovate a product that is 60 years old? And the way you innovate a product that's 60 years old is what you do is you make sure you're always focused on what your customers want and what you think they may want instead

And you bring in the world's most talented colleagues and let them challenge the status quo. I think you sell yourself short. When I got mine, okay, and I'm up to platinum. Mine is from, never since 81. Like I am. Okay. And I said to my kids, one day you can work yourself up to this. This is something that you should be proud of. And they said, Dad, it's all the things you get with it. I said, tell me what you get with it. It turns out nothing.

You offer a huge number. Exactly right. So what we decided back 2017, 2018, 2019 is why have them work their way up to it?

Let them come in because what we know is when you're engaged in the product, you're going to spend more. And when you think about the value that comes with a gold card or a platinum card, access to the Global Dining Access Program, fine hotels and resorts, Uber credits, streaming credits, so forth and so on. Why not have them use that from the get-go versus a fee-free product where they were only getting the points? And it's more than points. If you want points, you can get points, lots of other cards.

But it's this whole basket. I get the points because my wife spends. We get the cards. What is that with the points? You have to spend a lot to get the points. You've got to spend a lot to get the points, but it's more than just the points, right? I mean, it's all the other. It's the experience. It's the value that we provide. It's the partnerships that we have where our partners see the value of our customers and are providing value offers to them.

I remember when we started Centurion and I said, they'll never be able to blow this out. It's in an airport. You can't do it. It can't be worthwhile. Then it turns out to be something everybody knows. Yeah. I mean, when you look at you look at the Centurion lounges that are out there, another big debate within the company, should we invest in the real estate? And now you look at it and say, well, these are the travel offices of the past. Right. Except instead of going to the office to book your trip, you did it all online.

It's how do you have how do you have access along the journey? And airport travel is, you know, can be complicated. And we want respites for our travelers. And, you know, we're trying to stay ahead of the competition in that area as well. Now, I have to ask you, I can't avoid restaurants, travel post-COVID. It never went away. People just realize that life is short. They're long on money and short on time, which means they need American Express.

Yeah, I mean, look, you know, I think what was key during COVID was, you know, we continue to invest in our customers. We can both merchants and and our cardholders. We didn't know when it was going to be over, but you knew it would be over at some point. And when you look at restaurants now, restaurants are the the largest T&E category that we have. It's one of the fastest growing categories that we have. If you look at our T or look at our restaurant growth, it is double what the restaurant growth industry has been since 2019.

And millennials and Gen Zs, 70% more transactions than boomers or Gen Xs. Well, what you've done, what the company's done, storied great, always about trust.

Yeah, it's, you know, you have to have your company, you know, the powerful backing of American Express. And, you know, you want somebody you can trust. And one of the best things that I ever hear, I hear all the time is that somebody said, you know, I've been a member since 2000 and I've never been disappointed till now. And then...

We fix it. OK. And so it's they don't expect to be disappointed by us. Right. It's not you know, I didn't expect they don't expect anything but the best for American Express. Did you buy American Express? We can take care of it. Yes, I did. Thank heavens. What would happen if you use cash? What if I'm using another card?

That's you guys. Well, that's us. I mean, we stand behind our customers and we stand behind our cardholders. We stand behind our merchants. You want a trusted source and we are that trusted source. Well, I think that's a great place to end other than the fact that you and I are both in the same American Express class. Congratulations. 1981. Congratulations. Steve Scrier, American Express, AXP Chairman and CEO. It's good to be with you, Jim. Thank you.

I like to say there's always a bull market somewhere, and I promise you I'll find it just for you right here on Mad Money. I'm Jim Cramer. See you 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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