Mad Money w/ Jim Cramer 10/9/26

The Goldman Sachs Group

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Goldman is oversold at $895 and has more earnings drivers than IPOs and M&A, so it can rally.

  Cramer says Goldman's stock has fallen from $1,153 to $895 and that the banks are priced for disappointment. He argues Goldman is more than IPOs and M&A, which have been scarce. Its bond issuance and trading should benefit from the very high volatility in the market, which he thinks should help the bottom line. He says the Charitable Trust owns the stock and the club is positioned for a rebound on Tuesday's earnings.

  “There's bond issuance and trading in an environment where the volatility has been so incredible.”at 3:11

Wells Fargo & Company

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Wells Fargo trades near 10x next-year earnings and is ready to roll on growth and margins.

  Cramer says Wells Fargo has been clubbed lately, but the stock sells at just over 10 times next year's earnings estimates, which makes it one of the cheapest stocks. He expects growth and better net interest margin, and believes the CEO is ready to deliver. The stock is a CNBC investing club holding.

  “yet I believe that this stock, another CNBC investing club name, is truly ready to roll.”at 3:35

JPMorgan Chase & Co.

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Jim Cramer · CNBCNeutral

  JPMorgan's stock is priced for consistency, making it dicier than peers ahead of earnings.

  Cramer says JPMorgan consistently does well, but its stock is already priced for consistency. That makes it riskier than other banks. He also fears CEO Jamie Dimon will make apocalyptic-sounding remarks on the conference call if asked about AI. Later, he says JPMorgan should post a good quarter, but the stock is a little too high relative to the others.

  “And that makes it a little bit dicier than the others.”at 4:04

Citigroup

• Jim Cramer · CNBCBullish

  Citigroup is a long-held pick to own, with CEO Jane Fraser's turnaround still in progress.

  Cramer says he has long recommended Citigroup as the one to own in any season, though his last call went wrong. He credits CEO Jane Fraser with a remarkable turnaround. Last quarter was just okay, so he wants to see whether the bank can regroup on this report.

  “Next, I've been telling you about the Citigroup is the one to own for any season.”at 4:26

UnitedHealth Group

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  UnitedHealth is ready to return to its beat-and-raise pattern on its upcoming results.

  Cramer says UnitedHealth is ready to go back to its old beat-and-raise greatness, and that results come out Tuesday. He gives little evidence beyond the expectation, and jokes that the headlines are written before the report.

  “I think that company's ready to return to its old beat and raise greatness.”at 4:50

Johnson & Johnson

• Jim Cramer · CNBCBullish

  J&J is a top company with 18 blockbuster-pipeline drugs; buy it after the earnings-driven selloff.

  Cramer calls J&J a top 20 US company, though he says the stock is a terrible trader around earnings. It jumps on the release, then slides through the call before buying returns. He says the company has 18 potential blockbuster drugs in the pipeline across its cardio and oncology franchises. Because of that pipeline, he says investors should buy when the stock is crushed after the numbers. The Giant position in the Charitable Trust has been held for ages.

  “J and J needs to be bought when the stock gets crushed. You need to be nimble.”at 5:48

ASML Holding

Across the shows: 1 speaker in other episodes, past 30 days

• Jim Cramer · CNBCBullish

  ASML is a buy if it raises guidance and reports solid demand for its chipmaking machines.

  Cramer describes ASML as the Dutch maker of huge machines used to manufacture semiconductors, which he saw at a Micron foundry in Idaho. He says that if ASML raises guidance and talks about solid demand, investors should be ready to buy. The view is conditional on the report.

  “If ASML raises guidance and talks about solid demand, then you need to be ready to do some buying.”at 6:58

Applied Materials

• Jim Cramer · CNBCBullish

  Applied Materials is one of Cramer's two favorite US semiconductor capital equipment stocks.

  Cramer names Applied Materials, with Lam Research, as a pick to buy on a positive ASML report. He calls them his two favorite semiconductor capital equipment stocks in America. The view depends on ASML's read-through to chip equipment demand.

  “the ones you wanna pick up are Lam Research Applied Materials. Those are my two favorite semi capital equipment stocks in America.”at 6:58

Lam Research

• Jim Cramer · CNBCBullish

  Lam Research is one of Cramer's two favorite US semiconductor capital equipment stocks.

  Cramer says that if ASML reports raised guidance and solid demand, investors should buy Lam Research and Applied Materials. He calls them his two favorite semiconductor capital equipment stocks in America. He gives little company-specific evidence beyond ASML's read-through.

  “the ones you wanna pick up are Lam Research Applied Materials. Those are my two favorite semi capital equipment stocks in America.”at 6:58

Morgan Stanley

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Morgan Stanley is more than an investment bank: a large wealth franchise with young and rich clients.

  Cramer argues that many people wrongly see Morgan Stanley as just an investment bank. He says it is one of the biggest holders of people's wealth and has been very successful drawing young long-term investors. It also has many super-rich clients. He expects its report, which is coming up, to be good.

  “So many people think Morgan Stanley is just an investment bank. Wrong. It's also one of the biggest repositories of people's wealth.”at 7:10

Intel

Across the shows: 4 speakers in other episodes, 1 bullish and 2 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Intel is a terrible trader around earnings, but still a buy through the report.

  Cramer tells a caller to buy through Intel's earnings at month-end. He says the stock falls hard around results, dropping from $115 to $104, and that it is a lousy trader that goes down more when things are bad. He notes the company cannot buy back stock and recently issued a lot of shares, though the CEO bought stock. He says he is not crazy about the trading pattern, but still likes the company.

  “No. You buy through earnings. ... I'm not crazy about that, but that doesn't mean I don't like the company, and that's what I care about.”at 9:21

Anthropic

Across the shows: 22 speakers in other episodes, 9 bullish and 36 bearish calls, past 30 days

• Jim Cramer · CNBCNeutral

  Anthropic books third-party cloud sales gross, so its revenue is not comparable to OpenAI's.

  Cramer explains that when customers buy access to Claude or ChatGPT through AWS, Microsoft or Google Cloud, the cloud firm takes a cut. Anthropic counts the full third-party sale as its own revenue and records the cut as an expense. OpenAI only recognizes the amount it collects. This makes the two companies' revenue figures apples to oranges. He also says Anthropic's IPO is expected in mid-November and its prospectus could reveal the numbers.

  “Anthropic includes all the revenue from that type of third party sale as its own revenue.”at 15:41

OpenAI

Across the shows: 23 speakers in other episodes, 11 bullish and 27 bearish calls, past 30 days

• Jim Cramer · CNBCNeutral

  OpenAI's reported revenue shortfall is a gross-versus-net mix-up; the business isn't worse.

  Cramer says the reported $20 billion shortfall, from roughly $70 billion to $50 billion, is not an apples-to-apples comparison. The $70 billion is OpenAI's gross revenue, which it doesn't use in its own financials, while the $50 billion is net revenue, which it does use. He says the confusion came from a mix-up in reporting, and that the business isn't doing worse than thought. He adds that his checking suggested results were better than expected. He still wants more detail on the AI labs' financials.

  “The $70,000,000,000 is OpenAI's gross revenue, which it doesn't use for its own financials, and the $50,000,000,000 is its net revenue, which it does use.”at 17:06

Delta Air Lines

Across the shows: 6 speakers in other episodes, 6 bullish and 0 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Delta's premium demand and fuel offsets mean it will profit once crude prices fall.

  Cramer says Delta cut its full-year earnings outlook on high fuel costs, which Wall Street expected, but the stock turned positive. He points to premium revenue up 18% to $66.8 billion, with premium load factors rising. He notes corporate sales grew at double-digit rates, loyalty spending and the maintenance business are growing, and the fourth quarter was over 60% booked. He says the refinery and fare increases offset much of the fuel shock. He is not rushing to buy an airline, but says once fuel and the Iran war-related oil spike ease, Delta will profit strongly.

  “Once the price of crude comes back down, I think they'll make out like bandits.”at 30:10

Otis Worldwide

• Jim Cramer · CNBCNeutral

  Otis is weak on China exposure and lacks a catalyst, so cheapness alone isn't enough.

  Cramer says China has not been great for Otis, which is more of a service revenue business. The stock is down 24% for the year. He sees no catalyst, and says he cannot recommend a stock just because it is cheap.

  “Without a catalyst, I can't recommend a stock just because it's cheap.”at 31:08

Verizon Communications

• Jim Cramer · CNBCBearish

  Verizon was hit as SpaceX moves into urban skyscraper markets, a competitive threat.

  Cramer says Verizon was crushed by news that SpaceX is moving into inner cities and skyscrapers. The implied mechanism is satellite connectivity competing with Verizon's urban wireless business. The point is brief and the transcript is cut off, so it is a weakly supported view.

  “we saw how they were crushed today by the fact that SpaceX is going into the inner cities, which is gonna be in skyscrapers and everything.”at 37:09

Jazz Pharmaceuticals

• Jim Cramer · CNBCBullish

  Likes Jazz Pharmaceuticals because it actually makes money, unlike speculative biotech, and expects biotech to rally.

  Cramer contrasts Jazz with speculative biotech situations. He says Jazz is not speculative because it already earns profits. He also expects biotech stocks broadly to do very well between now and the JP Morgan healthcare conference, which gives the call a near-term window. He gives no company-specific numbers, so the case rests on profitability and his sector timing view.

  “Now you're starting to go into a very speculative situation where they actually do make money, though. I'm going to say yes to Jazz Pharmaceuticals.”at 42:47

US Treasuries & yields

• Jim Cramer · CNBC

  The 30-year Treasury yield is heading to about 6% as heavy supply outpaces demand for bonds.

  Cramer says investors must accept a plus-6% long bond, meaning the 30-year Treasury. He attributes this to heavy demand for money from both the Treasury and private enterprise, including data center investment. He says there is too much bond supply and not enough demand for the moment, and that this colors everything in the market.

  “we have to start accepting that we're gonna have a plus six percent long bond. That's the thirty year treasury because of demand for money from both the treasury and private enterprise... When it comes to bonds, there's too much supply and not enough demand for the moment.”at 8:07

• Jim Cramer · CNBC

  Thinks rates can climb to 6%, which would rule out owning rate-sensitive hotel REITs.

  A caller asked about a REIT that owns about 220 hotels in urban areas. Cramer says that if rates go to 6%, he cannot own that stock, and the investor would likely lose money buying it. His reasoning is that rates can reach 6%, and at that level the rate-sensitive REIT model fails. He gives no date for the move.

  “If I think rates are going to go to 6%. If I think rates are going go to 6% then I can't own that. I can't own that stock. You're going to end up losing money to buy that stock. And I think rates can go to 6%.”at 41:15

Market sentiment, positioning & volatility

• Jim Cramer · CNBC

  Individual investors are becoming a real force, moving the averages and buying idea stocks.

  Cramer says individual investors have become a real force in this market in a way not seen since the dot-com era. He says they have moved the averages and are buying lots of idea stocks. He is pleased by this and notes Charles Schwab's earnings call will reveal more.

  “Individual investors become real force in this market.”at 8:07

• Jim Cramer · CNBC

  Leveraged forced selling by one hedge fund temporarily crushed AI stocks; any stock can fall this way.

  Cramer says a hedge fund that imploded in July, Situational Awareness, used far too much leverage. It controlled tens of billions of dollars through margin and temporarily crushed the whole AI complex. That made the group look fragile, but Cramer's point is mechanical: any stock can be pushed down when a large, borrowed position is forced to sell all at once. He treats the episode as a leverage problem rather than evidence that AI stocks are fragile.

  “But that fund controlled billions... Tens of billions of dollars by using margin. They bought stock on margin. They didn't really understand it. And in that way, it is possible to bring any stock down if the stock starts going down once you have a huge position on borrowed money and then get forced to sell it all at once.”at 45:14

AI infrastructure & data centers

• Jim Cramer · CNBC

  Trillions in AI infrastructure spending is not a fool's game; the largest companies are committing to it.

  Cramer argues the persistent idea that trillions of dollars of AI infrastructure spending will prove the biggest fool's game of the century should be rejected. His evidence is that Mark Zuckerberg, Elon Musk, Satya Nadella and Microsoft have decided to spend big money to meet AI demand. He says he is tired of hedge fund managers declaring the trade over, when the largest companies on earth are still spending.

  “I think we need to rebel against the persistent idea that somehow all these trillions of dollars in AI infrastructure spending will prove to be the biggest fools game of the century.”at 2:03

US inflation

• Jim Cramer · CNBC

  Inflation is starting to come under control outside oil, and CPI could be a nicer start than expected.

  Cramer says he agrees with the Fed chief's push to shrink inflation. He sees early signs the Fed is getting inflation under control, excluding oil. He thinks one 25-basis-point rate hike may be too early to have the needed impact. He suggests the CPI report could still be a nicer start than people expect.

  “I'm with him. And believe it or not, I'm starting to see some signs that he's getting it under control, excluding oil.”at 5:57

AI pricing & unit economics

• Jim Cramer · CNBC

  AI labs' consumption-based sales are not recurring revenue, so they shouldn't be called ARR.

  Cramer says reporters wrongly call AI labs' revenue annual recurring revenue. Labs have some subscriptions, such as Claude and ChatGPT, but many customer arrangements are consumption-based, where the amount paid equals the amount used. That is not recurring revenue. Because recurring revenue gets a higher valuation multiple than episodic revenue, mislabeling it could lead investors to overvalue the companies. He notes the true ARR is the monthly revenue multiplied by 12, which is a different measure.

  “They also have many customer arrangements that are basically consumption based. The amount you pay is basically the amount you use. And you know what? That's not recurring revenue.”at 18:06

AI: overall outlook

• Jim Cramer · CNBC

  AI is a durable industry investment, not a trade, and won't unwind over one failed IPO or headline.

  Cramer argues the 'AI trade' label is wrong. He cites a poorly structured Australian data center builder IPO that was pulled, and an alleged OpenAI slowdown, as noise. He says the largest companies are spending hundreds of billions because they are certain it will make money, and that they know their business better than traders do. He compares AI to Standard Oil: a pervasive, infrastructure-heavy technology that became a universal input and was an investment rather than a trade. Cramer says it will keep spreading across data centers, power, components and storage, and that its growth is not going away.

  “AI is in the oil. It too is an investment. Let's call it that and recognize that it isn't going away whether some Australian IPO doesn't do well or we have a bad headline for the financial times.”at 46:56