Oct 19, 2026 · 44 min
Listen from 26:42
Listen at 26:42
Cramer questions AI data-center debt as tech stocks slide
Mad Money w/ Jim Cramer 10/19/26
The episode tests whether AI infrastructure spending can withstand expensive financing while investors manage volatility across technology and other sectors.
- 1CoreWeave’s borrowing costs and reliance on favorable rates expose a central risk in the AI data-center trade.
- 2Cramer recommends managing CrowdStrike gains carefully rather than treating the cybersecurity stock as a risk-free buy.
- 3Paychex CEO John Gibson describes how proprietary data and AI are driving productivity and expansion across business services.
Don't miss
Cramer argues that CoreWeave’s roughly 15 percent borrowing cost for NVIDIA GPUs could undermine the economics of the AI data-center boom.
The brief
Cramer opens with questions on SoFi and Allstate before turning to the technology sell-off and the market’s growing doubts about AI data-center spending.
The central concern is CoreWeave: borrowing near 15 percent to buy NVIDIA GPUs could make adequate returns difficult, especially if financing conditions worsen.
For a CrowdStrike investor sitting on substantial gains, Cramer argues that withdrawing the original investment can preserve flexibility while reducing downside pressure.
Paychex CEO John Gibson links the company’s growth to an AI engine, a large data set, and productivity gains across payroll, HR, insurance, and retirement services.
The Lightning Round favors Vale and Cintas, rejects MFA Financial and defense stocks, sees limited upside in Twilio, and urges caution on speculative biotech.
What was said on this episode
42 statements · 15 positive · 20 negative · 1 mixed · 6 neutral
SoFi will not rise until other bank stocks recover.
“It's not going to go up until we see the other bank stocks go up, because that's what it's trading with.”
Listen at 7:49
SoFi is unlikely to rally without a major big-bank move higher.
“I would not expect any big rally now unless we get some sort of huge move up in the big banks.”
Listen at 7:59
Investors should not increase their Allstate position now.
“I don't want you to.”
Listen at 8:29
Investors should wait for Allstate earnings before adding shares.
“Let's see how the earnings go, all right?”
Listen at 8:51
Rising interest rates make capital costly for the multi-trillion-dollar AI build-out.
“In a world of rising interest rates, the cost of capital is a major problem when we're talking about a multi-trillion dollar cycle.”
Listen at 10:48
CoreWeave shares fell more than 15% after financing concerns intensified.
“the stock plunged more than 15% on Wednesday.”
Listen at 12:24
Perplexity’s cybersecurity project will not harm cybersecurity companies’ businesses.
“It won't hurt their businesses”
Listen at 14:15
Apple and Alphabet will perform very well together.
“I think the duo is going to be terrific.”
Listen at 18:04
Investors should buy Apple shares.
“buy Apple.”
Listen at 18:09
AI data-center stocks will struggle to stabilize in the near term.
“I think that this group will struggle to find its footing for the moment”
Listen at 18:58
A double-top chart pattern usually leads to lower prices.
“It almost always leads to lower prices.”
Listen at 19:45
Some AI data-center stocks with head-and-shoulders patterns may continue falling.
“the only way out seems to be lower.”
Listen at 20:04
Hyperscalers need to maintain massive capital spending for AI data centers.
“these companies need to maintain their gigantic capital spending.”
Listen at 21:35
Reduced hyperscaler investment would sharply hurt AI data-center stocks.
“if they start to signal that they're preparing to dial back their investments, the whole group's going to get whacked.”
Listen at 21:40
2027 will bring abundant economic returns from AI.
“2027 will be the year of the bountiful AI harvest.”
Listen at 21:56
AI data-center stocks will not form a sustainable bottom before the midterm election.
“I don't think the AI data center cohort can put in a sustainable bottom until after the midterm election.”
Listen at 23:02
Democrats are likely to perform well in the midterm elections.
“the polling suggests they'll likely do pretty well.”
Listen at 23:25
Democrats have high odds of winning the House and a decent Senate chance.
“Very high odds of taking the House, decent chance of taking the Senate.”
Listen at 23:27
Anthropic should complete its IPO.
“I just want to see the deal happen.”
Listen at 24:44
A successful Anthropic IPO would increase confidence in AI data-center investments.
“If there's enough demand that Anthropics IPO is successful, that will give investors much more confidence that the AI data center theme has legs”
Listen at 25:28
It is too early to buy the hardest-hit AI data-center stocks aggressively.
“I still think it. It's just a little too early to say that the coast is clear and it's safe to dive back into the hardest hit AI data center stocks.”
Listen at 25:46
Aggressive bullishness should wait for better charts, earnings, elections, and Anthropic’s IPO.
“I just don't think it's safe to be aggressively bullish on the group until the charts improve, the hyperscales report and the elections in the review mirror and anthropics manage to come public.”
Listen at 25:54
CrowdStrike shares have a good chance of rising further.
“where it's going, I think you have a good chance it's going to go higher.”
Listen at 26:42
It is too soon to consider CrowdStrike safe to buy aggressively.
“Even after today's bounce, I think it's too soon to say, hey, it's safe to die back.”
Listen at 26:55
Paychex is well positioned for AI-driven human capital management.
“we're very well positioned going into the AI era of human capital management.”
Listen at 30:06
Paychex’s large clean dataset is a key advantage for applying AI.
“We have 800,000 customers. We've been doing this for 50 years. We have a large clean data set. That is the key to AI.”
Listen at 33:22
AppLovin faces competitive risk from Alphabet and Google.
“app loving is in the crosshairs of Alphabet and Google. And I don't want to be there”
Listen at 35:48
Vale is a good investment and a hedge against inflation.
“I think that's a good idea. Nice head against inflation, too.”
Listen at 36:09
Investors should not own MFA Financial.
“do not own that stock.”
Listen at 36:49
Investors should avoid defense stocks.
“I don't want to touch the defense stocks.”
Listen at 37:09
Twilio is fairly valued.
“I think it's valued correctly.”
Listen at 37:36
Twilio has neither clear upside nor downside.
“Therefore, I don't see any upside or downside that I can make that.”
Listen at 37:38
Investors may take a small speculative position awaiting psilocybin approval.
“You can spec, small position, spec that they get approval, but it's very, very difficult.”
Listen at 38:25
Brain-related drug development is particularly difficult.
“Anything brain is really hard.”
Listen at 38:30
Investors should own Cintas.
“We want to own Cintas”
Listen at 38:58
Cintas is attractive to buy on a pullback.
“I want to buy Cintas right now, but if it comes in, I do.”
Listen at 39:01
CoreWeave cannot earn enough return when borrowing at 15% to buy NVIDIA GPUs.
“The return on the investment is simply not big enough for CoreWeave to make money if they're borrowing at 15 percent to buy NVIDIA GPUs.”
Listen at 40:20
NVIDIA GPUs purchased by CoreWeave will retain more than their value.
“I actually think that the chips they buy will more than hold their value.”
Listen at 40:33
A 30-year Treasury yield above 6% would create serious market risk.
“If the yield on the 30-year Treasury goes north of 6%, it's currently at 5.47%, then look out.”
Listen at 42:32
Another rate hike would make CoreWeave’s fundraising difficult.
“If we get another rate hike soon, then I believe Corwin will have a difficult time raising money.”
Listen at 42:37
CoreWeave should be fine if interest rates decline.
“If rates come down, I bet Corwin is fine.”
Listen at 43:11
Interest rates materially affect the AI data-center market.
“we kid ourselves if we don't think that rates matter.”
Listen at 43:27
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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