Mad Money w/ Jim Cramer 10/7/26

Space Exploration Technologies

Across the shows: 5 speakers in other episodes, 6 bullish and 1 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  SpaceX's $40 billion AI-chip borrowing should price close to Treasury rates because of AI demand.

  SpaceX is trying to borrow $40 billion to buy Nvidia chips for data centers that will sell computing power. It is rated triple B, which is not great. Cramer argues that a non-data-center borrower of that size would see its rates skyrocket with weak Treasury auctions. He expects SpaceX not to pay much over Treasuries, because the stock market and bond market consider the future of AI so spectacular.

  “I bet the SpaceX, more on them later, doesn't have to pay that much over treasuries... Because the future for AI is considered so spectacular by the stock market.”at 4:43

• Jim Cramer · CNBCBullish

  SpaceX is a real business despite valuation criticism; Goldman's raised target signals real rigor.

  Cramer has defended SpaceX as a real company with real numbers and a real business, and says he has confidence in Musk's leadership. He cites its compute-rental business, which brings in revenue from Anthropic and Google, and says the company plans to borrow $40 billion to buy more chips. He reads Goldman Sachs raising its 12-month price target from $220 to $230 as evidence that the bullish analysis has rigor rather than made-up numbers. He thinks SpaceX could get to its goals much sooner than Tesla did, and he may buy it for his charitable trust.

  “Now I've been adamant this is a real company with real numbers and a real business, many businesses even. I've defended against endless snipes about how it's overvalued because I have confidence in Elon Musk's leadership.”at 44:57

Paramount Skydance

Across the shows: 2 speakers in other episodes, 0 bullish and 2 bearish calls, past 30 days

• Jim Cramer · CNBCBearish

  Paramount Skydance's heavily indebted bonds are hostage to the economy and were badly sold off.

  Paramount Skydance is heavily indebted and buying Warner Brothers. Cramer says it is totally hostage to the economy, since movies and TV are discretionary spending and cord cutting is hurting TV advertising. It issued bonds of a size similar to SpaceX's, at about 8%, but buyers were immediately clubbed, with horrific losses. Even though the bonds are double B, only a little worse than SpaceX's triple B, no one touched them.

  “Compare that with the bonds just issued by Paramount, now Skydance... Skydance is totally hostage to the economy. The company issued a similar amount of bonds to what SpaceX is looking for.”at 4:48

Western Digital

• Jim Cramer · CNBCBearish

  Western Digital is not as good as Micron; he'd swap out of it after its 135% run.

  Western Digital is up 135% this year, which could make a holder think the easy money has been made. Cramer says it is not as good as Micron, which is much cheaper. He says he would swap Western Digital for Micron.

  “the way I look at Western Digital is it's not as good as Micron. Micron's much cheaper.”at 7:36

Micron Technology

• Jim Cramer · CNBCBullish

  Micron is much cheaper than Western Digital and could go much higher.

  Cramer compares Micron with Western Digital, which is up 135% this year. He says Micron is much cheaper and that the show knows it well and likes it a lot. He thinks it could go much higher, and recommends swapping Western Digital for Micron.

  “Micron's much cheaper. We know Micron really well here. We like it a lot. We think it could go much higher.”at 7:47

Vertiv Holdings Co

• Jim Cramer · CNBCBullish

  Vertiv is a good company with a great order book; he'd buy it on a dip.

  Cramer calls Vertiv a good company with a great order book. He argues that anyone who believes in the data center buildout has to believe in Vertiv. He says he would buy it when it is down, and that if he had to buy one data center name besides GE Vernova that has fallen a lot, it would be Vertiv.

  “I think [Vertiv] is a good company. I think they've got a great order book. I think if you believe in the data center, then I think you have to believe in [Vertiv].”at 8:11

Levi Strauss & Co.

• Jim Cramer · CNBCBullish

  Levi's results were better than the selloff implied; expects a rebound like Constellation's.

  Levi's stock had sold off for two months along with consumer discretionary names, on fears that high gas prices would hurt it. Cramer says the quarter was technically mixed but pretty darn positive. The revenue miss was partly currency, which is outside management's control, and organic growth was in line. The EPS beat was partly from tariff refunds, and the full-year EPS forecast was raised, though by less than some expected. He compares it with Constellation, whose stock rallied after reassuring commentary, and says the same thing will happen with Levi's.

  “Everybody assumed Levi's would be crushed by high gas prices, but not all apparel companies are equal. Tonight, the company reported a technically mixed quarter that I thought was pretty darn positive.”at 11:27

Constellation Brands

• Jim Cramer · CNBCBullish

  Constellation's quarter and reassuring guidance commentary make him feel much better about the stock.

  Cramer says Constellation beat expectations, with beer shipments up 5.5% and wine and spirits shipments up 15.4%, versus an expected 0.4% decline. Tequila brand Mecampo was up 51%. Management did not raise its full-year guidance, but said it expects the high end of the range if September trends continue, which informally lifts the low end. Inventory is healthy. The stock trades at about 10 times this year's earnings. Cramer says the secular headwinds are real: GLP-1 drugs, younger consumers, cannabis legalization and the immigration crackdown. He says it is far too soon to call the worst behind the company and he is not ready to pound the table, but the quarter was the best update he has had from the company in a long time.

  “While I'm not ready to start pounding the table on Constellation again, let's just say this. I feel much better about this stock than I did twenty four hours ago.”at 29:05

Chipotle Mexican Grill

• Jim Cramer · CNBCBullish

  Restaurant sell-off is overblown; he sees $30 as a good level to buy Chipotle.

  Chipotle trades near February 2021 levels. Cramer says restaurants are out of favor because of gas prices and inflation, and because consumers think any dinner costing more than $15 is too expensive. He thinks this will pass and that $30 is a good level to buy CMG, though he expects few people to agree. He still backs CEO Scott Boatwright.

  “Me, I think this too shall pass, but I know I'm [alone], probably very one of the few people who thinks that $30 is a good level to buy CMG.”at 29:49

Veeva Systems

• Jim Cramer · CNBCBullish

  Veeva's business is hard to disrupt; the AI-disruption fears were baseless and the stock is still undervalued.

  Software stocks rebounded this summer after an indiscriminate selloff over fears that AI would let customers write their own software. Cramer says Veeva's software runs the clinical trial process, where mistakes have serious consequences, so it was never going to be easy to disrupt. Veeva reported a strong quarter, the stock rose 15% in one session and nearly 50% over three months, and it is winning business from Eli Lilly, Amgen, Biogen and Regeneron. Cramer says the vibe-coding fear had not an ounce of truth. He also says that if Veeva reaches a $6 billion revenue run rate, the stock would be very undervalued even after its run.

  “Their platform helps capture the whole clinical trial process where mistakes have really serious consequences. This was never going to be an easy business to disrupt.”at 30:59

L3Harris Technologies

• Jim Cramer · CNBCBullish

  L3Harris is not that bad; trading at a discount to the S&P, it shouldn't keep falling.

  Cramer says he has been saying L3Harris 'just isn't that bad' and has been looking at it. He cites a discount to the S&P 500 valuation and argues the stock shouldn't keep going down. He suggests buying in stages, averaging down as it falls, and says he thinks a bottom is forming. A caller had pointed to a new CEO and a $6 billion federal government contract.

  “Actually, I kinda like [L3Harris] to tell you the truth. I actually been looking at it, and I've been saying this. It just isn't that bad.”at 39:37

Archer-Daniels-Midland Company

• Jim Cramer · CNBCBullish

  Archer Daniels has done nothing for years, but its time has come; he likes the ag business.

  Cramer says Archer Daniels has done nothing for a very long time until now, and he thinks it is a terrific idea for the caller. He likes the agriculture business, and says that is not just because of the midterm elections. He says the company's time has come and he has long waited for it to happen. He gives no numbers, so the case rests on the sector and the stock's long period of underperformance.

  “Archer Daniels has kind of done nothing for a very long time until now... I like the ag business not just because it's midterm elections. I think Archer Daniels time has come.”at 42:08

NVIDIA

Across the shows: 13 speakers in other episodes, 12 bullish and 3 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  SpaceX's $40 billion chip-buying plan could make it NVIDIA's largest client; good for both.

  Cramer says SpaceX is renting out its excess computing power, makes money from it, and plans to borrow $40 billion to buy more NVIDIA chips. Musk can monetize the chips right away, so SpaceX could end up as NVIDIA's largest client at this pace. He calls that fantastic news for both sides. He also says Musk bought NVIDIA chips at what he regards as almost extortionate prices, a point that cuts against the margin but does not change his view of the demand.

  “SpaceX could end up being NVIDIA's largest client at this pace. That's fantastic news for both sides.”at 46:55

US Treasuries & yields

• Jim Cramer · CNBC

  Weak Treasury auctions lift rates and hit most S&P 500 companies, which still depend on credit.

  Cramer says a bad Treasury auction sends rates instantly higher and stocks lower, as it did when companies depended on credit. Today, that dependence remains for the vast majority of the S&P 500, which is old-school and finds credit hard to get and more expensive when auctions go sour. Only AI-related companies and a few others are insulated from this.

  “old school companies that need credit and suddenly find it hard to get, all the while paying more for it if the auctions go sour, and that's the vast majority of S and P 500.”at 3:39

AI infrastructure & data centers

• Jim Cramer · CNBC

  AI data-center names are insulated from Treasury auction results and the cost of government borrowing.

  Cramer says AI names can borrow at their leisure and crowd out other borrowers, with the exception of Oracle, which is considered a terrific payer. Weak Treasury auctions hit most companies, but AI data-center stocks have nothing to do with what the government pays to borrow. Their prospects are seen as so bright that they obscure any problems. He says investors do not need to wait for Treasury auction results before buying them.

  “The AI data center stocks, maybe aside from Oracle, have nothing to do with what price the federal government borrows at. They only have to do with the future that's considered so bright that it obscures any problems.”at 6:46

US consumer

• Michelle Gass · Levi Strauss & Co.

  The US consumer remains resilient despite high gas prices and still spends when tighter.

  Asked whether gas prices are hurting apparel demand, Gass says the consumer continues to prove resilient. Her US problems were in DTC, while US wholesale was positive in the quarter. Even when things get tighter, consumers still spend, so brands must be more relevant and innovative to win that spending.

  “No. Our consumer continues to prove resilient. ... even when things get tighter you have to work harder because they're still gonna spend.”at 18:26

AI: overall outlook

• Peter Gassner · Veeva Systems

  AI hardware and software is the biggest tech disruption he has ever seen.

  Gassner, who says he has been in tech since the mainframe, calls AI hardware and software the biggest tech disruption he has seen. He acknowledges real problems but says the technology can be used for the good of customers, and Veeva is building industry-specific AI for life sciences.

  “this AI hardware and software, it's the biggest tech disruption we've ever seen.”at 34:19