Apr 22, 2026 · 44 min
AI infrastructure powers a broader stock-market reckoning
Mad Money w/ Jim Cramer 4/22/26
The episode tests whether AI-linked growth can outweigh valuation concerns while housing, travel, healthcare, and power stocks rotate beneath the market surface.
- 1ServiceNow’s strong results face a skeptical market as investors reassess AI growth, margins, acquisitions, and traditional performance measures.
- 2Vertiv’s data-center power and cooling demand shows how AI spending is creating opportunities beyond chipmakers and software companies.
- 3D.R. Horton, Airbnb, and GE Vernova point to improving housing, travel, and power trends despite uneven investor sentiment.
Don't miss
Gio Albertazzi connects AI’s expansion to the less visible power and cooling systems required to operate next-generation data centers.
The brief
Jim Cramer opens by reviewing stocks he failed to buy, framing missed opportunities as an exercise in investor education rather than hindsight alone.
Viewer questions on BlackBerry and Merck turn to valuation, downside risk, and the discipline of leaving room to add as healthcare stocks rotate.
Bill McDermott defends ServiceNow’s AI-driven growth after a disappointing stock reaction, while the discussion tests whether margins and the rule of 50 still matter.
Gio Albertazzi describes Vertiv’s data-center power and cooling boom, including partnerships with NVIDIA and Caterpillar and the demands of next-generation AI systems.
Housing and travel receive a more constructive reading through D.R. Horton and Airbnb, before GE Vernova’s breakout quarter closes the investment case.
What was said on this episode
28 statements · 23 positive · 2 negative · 2 mixed · 1 neutral
Most missed stocks are tied to data centers and artificial intelligence.
“almost all of them are related to the data center and the artificial intelligence revolution.”
Listen at 2:49
Memory producers will need years to build capacity sufficient for AI demand.
“It'll take them years to build out enough production capacity to meet the demand.”
Listen at 4:58
Agentic AI’s semiconductor bottleneck is CPUs rather than NVIDIA GPUs.
“The bottleneck here is not GPUs from NVIDIA. They need better CPUs.”
Listen at 5:16
Hot stocks may continue making money if bonds remain stable and investors diversify.
“As long as the bond market stays stable and you stay diversified, I think the red us can keep making money.”
Listen at 9:10
Merck is fundamentally attractive but could decline another five dollars.
“I think Merck is terrific. I don't think that matters at all. I think the stock could drop another five.”
Listen at 11:04
Investors should buy some Merck while leaving room to add later.
“So you want to buy some and then leave. I like to say leave room.”
Listen at 11:08
ServiceNow addresses a $600 billion total market.
“we're a 600 billion TAM company.”
Listen at 13:45
Increasing AI adoption benefits ServiceNow because AI workflows run through its platform.
“The more AI that happens, whether it's a hyperscaler, these fantastic language model companies, or even the systems of record that are even getting the AI memo, everything runs through ServiceNow.”
Listen at 14:21
ServiceNow’s operating margins and free cash flow will recover within three or four months.
“the next three or four months, that'll be right back on track with the acceleration of our operating margins and our free cash flow.”
Listen at 15:54
ServiceNow will soon reach the rule of 60.
“ServiceNow, that is going to be operating at the rule of 60 very soon”
Listen at 16:06
Major language-model companies’ systems run through ServiceNow.
“every language model company. OpenAI, Anthropic, et cetera, Gemini, great Gemini announcement today. They're all going through service now.”
Listen at 18:54
AI is driving ServiceNow’s growth trajectory and future prospects.
“The A.I. is what is the tailwind behind our growth trajectory and the bright future that we have.”
Listen at 20:22
Traditional growth metrics may regain relevance when ServiceNow’s stock becomes cheap.
“I think they become relevant again when your stock's as cheap.”
Listen at 22:33
Another rate cut could boost the homebuilding industry.
“if we can get another rate cut. From the incoming Fed chief, this entire industry could get a real boost.”
Listen at 23:33
Homebuilder recovery is sustainable only if interest rates continue falling.
“this comeback in G.R. Horton and the rest of the homebuilders is only sustainable if rates keep coming down.”
Listen at 28:19
Lower-rate Federal Reserve policy could begin another strong advance for Horton and homebuilders.
“this could just be the beginning of a fabulous next leg for Horton and the homebuilders”
Listen at 28:48
Airbnb is expected to perform very well and is a buy.
“I think it is going to do incredibly well. And this is a buy.”
Listen at 30:28
Brian Chesky is viewed as a credible, authentic CEO.
“Brian Chesky is real.”
Listen at 30:35
Vertiv’s CEO remains optimistic about the market and the company’s position.
“continue to be optimistic about the market, the direction of travel, and certainly very optimistic about our position in the market.”
Listen at 32:52
Vertiv’s technology, scale, service, and relationships are difficult to replicate.
“This is very hard to replicate. Now, of course, the industry is... It's interesting. People like the industry, but I think our position is very, very strong.”
Listen at 34:00
Vertiv partnerships enable data centers to bring their own power and reduce power constraints.
“the partnership you were mentioning with Kat and others, with Oklo and other partnerships that we have are exactly in the direction of enabling the industry. to bring your own power and addressing the power challenges to another level to remove that constraint for the industry.”
Listen at 34:59
Off-grid data centers are becoming mainstream, with Vertiv playing a primary role.
“There are a lot of off-the-grid data centers that are being designed and commissioning. So that's certainly something that is becoming mainstream in the industry. And we have a primary role in making that happen.”
Listen at 35:50
Vertiv usually has power and cooling technology ready when NVIDIA systems reach market.
“when their technology. comes available in the market, starts to be installed and commissioned, we have the technology most of the time already available and installed to take care of the power and the cooling that that infrastructure needs.”
Listen at 37:31
Arm CEO Rene Haas is expected to perform well, supported by substantial CPU business.
“I think Rene's going to do a great job. He's got a lot of business. It's a CPU company that was up 20.”
Listen at 39:10
Alphabet’s stock is expected to reach $400.
“I think Alphabet's going to $400.”
Listen at 39:38
GE Vernova’s market capitalization exceeded GE’s at $303 billion versus $289 billion.
“GE Vinova's market cap just passed namesake GE itself, the aerospace company. $303 billion versus $289 billion.”
Listen at 40:46
GE Vernova is the only serious nuclear-energy builder.
“GE Vernova is the only serious nuclear energy builder”
Listen at 42:38
GE Vernova’s growth is likely only beginning.
“I think it's just beginning.”
Listen at 43:05
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.
Books & mentions
Some links are affiliate links — PodLume may earn a commission if you buy.
Weekly email
State of the Pod, every Monday
The week's most-discussed names and stories from podcasts, with the moments behind them. Free, five minutes, unsubscribe in one click.