'Mad Money w/ Jim Cramer 11/5/26

Qnity Electronics

• Jim Cramer · CNBCBullish

  Qnity has proprietary heat-management technology that chipmakers will likely have to adopt.

  Cramer says Qnity is the first company he has heard of that is not in thermal management but still addresses heat. As compute rises, localized hotspots grow, and Qnity's thermal portfolio targets them at the chip, package, board and device levels. The company works with device makers on the system design so performance holds and nothing shuts down. Cramer thinks the technology is one everyone will have to adopt.

  “You're the first company I've heard that is not involved with thermal management that actually addresses the concept of heat. And you have proprietary technology that I think everyone's gonna have to adopt.”at 45:14

• Jim Cramer · CNBCBullish

  Qnity's shares should be higher; the AI sell-off is pushing down a company with improving results.

  Qnity is a crucial supplier of specialty materials for chip manufacturing, and it is a successful DuPont spinoff that Cramer's charitable trust owns. It delivered a strong beat and raise, but the shares fell more than 7% in a day as the AI sell-off and the midterm election weighed on the group. Cramer argues that Qnity sits across the whole chip value chain, not just in AI data centers, which should cushion it. He says results have been getting better since the spinoff, so the stock should be higher.

  “I think your stock would have been up $20 in the old market, and maybe this is a new market... But I find it hard to believe given that these numbers are just getting better and better since the spin off.”at 46:47

Anthropic

Across the shows: 105 speakers in other episodes, 131 bullish and 89 bearish calls, past 30 days

• Jim Cramer · CNBCUncertain

  Anthropic's IPO and its $1.5-2 trillion valuation rumors may not hold up.

  Cramer says Anthropic is supposed to come public this month, but it now seems fair to wonder if that is even possible. He questions whether the company will really be worth the $1.5 to $2 trillion rumored, and asks what happens if it is worth less. Because the private AI labs sit at the end of the data center food chain, he says it is tough to know what everything else in the space is worth until that is known.

  “Will the company really be worth the 2,000,000,000,000 rumor that it was or 1,500,000,000,000 or trillion? I mean, what happens if it's less?”at 7:05

Palo Alto Networks

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

• Jim Cramer · CNBCNeutral

  Don't add to Palo Alto now; high-multiple tech must give back gains in this bear market.

  Cramer says Palo Alto and CrowdStrike were very hurt in the selloff. They are high-priced, high-earnings-multiple stocks, and with the market in bearish mode he does not think investors need to add to any tech right now. He notes Palo Alto has made a lot of money, and that sometimes you have to give some back to make big money.

  “I don't think we need to add to any tech right now.”at 12:25

NVIDIA

Across the shows: 75 speakers in other episodes, 70 bullish and 28 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Nvidia at under 12x next year's earnings is a bargain despite its slump.

  If Nvidia has a good 2027 and meets current estimates, it would be a stock with a 70% growth rate selling for under 12 times next year's earnings, which Cramer calls an incredible bargain. It is now down for the year. The risk is that growth stalls if the US does not permit new data centers as fast as now. Nvidia has a $235 billion buyback already committed, and Cramer argues that if it had clear visibility it would be buying back billions of shares now, so its lack of buying leaves some doubt.

  “I think Nvidia at under 12 times next year's earnings is gonna prove to be a bargain.”at 17:43

Advanced Micro Devices

Across the shows: 13 speakers in other episodes, 13 bullish and 1 bearish calls, past 30 days

• Jim Cramer · CNBCUncertain

  AMD had a spectacular quarter, but its stock, up from $108 to $404, looks awfully high.

  Cramer calls AMD's latest quarter one of the best he has ever seen. CEO Lisa Su sees a trillion-dollar total addressable market for data centers and their accessories, which would make the stock a buy if true. But the stock was at $108 in March and is now at $404, which Cramer finds awfully high, and he suggests that may be the real problem.

  “Seems awfully high to me. Maybe that's the real problem.”at 19:05

Affirm Holdings

Across the shows: 1 speaker in other episodes, 21 bullish and 0 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Affirm's selloff is not a referendum on an excellent company after a strong quarter.

  Affirm delivered a strong fiscal first quarter. Revenue jumped 35% to $1.26 billion, beating expectations, and EPS of 47 cents beat the 38-cent estimate. The company also raised its full-year outlook for purchase volume and profit margins. Shares fell in the miserable market selloff and after hours, but Cramer says investors should not treat that as a verdict on the business.

  “I do not think you should look upon what's happening right now in the market as a referendum on this excellent company.”at 21:12

Airbnb

Across the shows: 2 speakers in other episodes, 33 bullish and 4 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Airbnb had an unbelievable quarter with accelerating revenue and rising profitability.

  Cramer says Airbnb reported a really unbelievable quarter after the close, beating expectations, with revenue continuing to accelerate and the business becoming increasingly profitable. He points to accelerated top-line growth, nice seats booked, and gross booking volumes, and says the company is back in growth mode.

  “Airbnb reported a really unbelievable quarter tonight... revenue continue to accelerate and the business gets increasingly profitable too.”at 28:53

Lam Research

Across the shows: 4 speakers in other episodes, 5 bullish and 1 bearish calls, past 30 days

• Jim Cramer · CNBCBearish

  Lam Research still has more downside; its price history suggests the stock isn't bottomed yet.

  Cramer notes the stock trades at about 19 times earnings after a steep drop from its earlier highs. He points out that it was at 135 a year ago at this time, so he argues the stock has further to fall even at this lower valuation. He would take only a small position and wait for a lower price. The transcript is garbled on the exact price levels, so the figures are approximate.

  “But it was at a 135 last year at this time. And that means to me that there's still some more downside.”at 39:24

Nextpower

• Jim Cramer · CNBCBullish

  Nextpower is the better way to play a likely new green energy push than First Solar.

  Cramer expects the new Congress to pass environmental or green initiatives within months. He chooses Nextpower over First Solar as the way to play that. He says the stock was down sharply that day, which makes it a good entry point, and it trades at about 21 times earnings. He also says he respects CEO Dan Shugar's thinking.

  “Next power is the way to play it, and the stock was down very badly today, and that's a good opportunity. 21 times earnings.”at 40:34

Vertiv Holdings Co

Across the shows: 5 speakers in other episodes, 8 bullish and 0 bearish calls, past 30 days

• Jim Cramer · CNBCBearish

  Vertiv is doing well, but Cramer wants a lower entry point because the stock is still up for the year.

  Cramer says Vertiv is doing great, but the stock is still up for the year and he does not want to buy a data-center stock that is up that much. Uncertainty has risen, so he wants the shares to fall a lot before he would buy. He had covered Vertiv on the show the week before.

  “I don't want to buy a stock that's up for the year that's in the data center. I want it to come down a lot even though I know it's doing great”at 41:23

AI infrastructure & data centers

• Jim Cramer · CNBC

  Data center suppliers are mostly solid, profitable firms, but the build-out may slow after two years.

  Cramer argues the data center theme is falling apart in price, but most businesses involved are good, solid companies with lots of revenue and plenty of earnings. The problem is that stock prices assumed an endless wave of building. He expects a lot of data center building in the next two years, but after that doubts many speculative projects, which he thinks will be delayed by new regulations after the election.

  “With the exception of these neo cloud companies, most of the businesses involved for the data center are good solid companies with lots of revenue and really plenty of earnings.”at 5:10

• Jim Cramer · CNBC

  Neocloud builders' debt is the real risk; not all of these companies will survive.

  Cramer's chief worry is the huge amount of debt raised to finance the brick-and-mortar side of the data center build-out, especially the billions owed by neocloud builders such as CoreWeave, Iren and others, lent by many finance companies. He thinks the debt is what could really hurt the stock market. He qualifies this: no one of significance is defaulting yet and the debt is not enough to sink the market, but he expects some neocloud companies to fail.

  “I do worry about these companies, and more specifically, the billions of dollars in debt that they have accrued and all the different finance companies that have offered it to them. Not all of these companies are gonna make it.”at 5:30

US stock market outlook

• Jim Cramer · CNBC

  Money is rotating from AI data center momentum stocks into humdrum sectors seeking growth.

  Cramer says for months, since June, money has moved from the red-hot tech momentum stocks, which increasingly concentrate in the lucrative data center trade, into the humdrum section of the market in search of growth. Many traders have concluded that a lot of tech is too risky to own, while others still lust after its thrill and unbooked profits. Yesterday's rally and today's selloff reflect two stock markets operating at once.

  “For months though, since June, we have seen money transfer from the red hot section, which increasingly can concentrate in lucrative data center trade to the humdrum section in search of growth.”at 2:34

AI bubble & tech valuations

• Jim Cramer · CNBC

  Compute is valuable, so AI data center build-out is not a 2000-style bubble of useless products.

  Cramer says the data center premise is not a joke. The companies make compute, which is worth a lot of money in a world where AI is a real part of business, and people are paying fortunes for it. He argues it could even be worth more if fewer new data centers are built. He contrasts this with 2000, when companies made products no one needed, telcos sold products no one wanted, and there were dark fiber and bogus websites. Compute is hard to understand, but that does not make it worthless.

  “These companies make a product called compute, and it's worth a ton of money in a world where artificial intelligence is a real part of business... That to me is the big difference between now and 2000.”at 6:22

US rates & the Fed

• Jim Cramer · CNBC

  Interest rates are well off their highs and heading lower.

  Cramer argues that despite the rough market, interest rates are well off their highs and going lower. He pairs this with a sense that inflation may be getting more tame. He sees the rate direction as a reason to keep some cash rather than rush into bonds.

  “we also know that interest rates are well off their highs and going lower.”at 9:14

AI chips & semiconductors

• Jim Cramer · CNBC

  Chip stocks, especially semis, show no technical support, so today's selloff is not the bottom.

  Cramer says he wishes today's flush were the bottom, but looking at the charts there still seems to be no support for many tech stocks, especially the semiconductor names, because they ran up so much on the way up. He describes the decline as orderly, since these are mostly lucrative companies whose stocks simply went too high.

  “I wish I can say that today's flush was the bottom, but I look at the charts, and there still seems like there's no support for so many tech stocks, especially the semis.”at 9:40

US consumer

• Max Levchin · Affirm

  Expects a healthy holiday season as demand builds and the economy stays fully employed.

  Levchin says that in the last few weeks of the quarter, demand is building. He expects a healthy holiday season for retail partners and sees no reason to believe there will be weakness in the economy. He points to full employment as the key for both lenders and retailers, and says consumers feel good about their ability to earn and are buying for loved ones.

  “I expect a healthy holiday season for our retail partners.”at 26:29