May 26, 2026 · 44 min
AI reshapes market leadership as SpaceX tests investor conviction
'Mad Money w/ Jim Cramer 5/26/26
The episode connects the AI hardware boom, a high-stakes SpaceX IPO, healthcare automation, and data-center criticism to competing ideas about where investment value lies.
- 1Micron’s rise into the trillion-dollar club reflects a market increasingly rewarding AI hardware and infrastructure.
- 2SpaceX’s prospective IPO pits enormous valuation and losses against Elon Musk’s technology-driven growth narrative.
- 3Abridge shows how clinical AI can reduce documentation burdens while giving healthcare workers more room for patient interaction.
Don't miss
Shiv Rao explains how Abridge turns clinical conversations into useful documentation, reducing paperwork while improving patient interaction.
The brief
Micron’s jump into the trillion-dollar club becomes Cramer’s opening evidence that AI is changing market leadership, favoring hardware, semiconductors, networking, and data-center infrastructure.
SpaceX presents the episode’s central investment tension: its prospective IPO combines extraordinary valuation and losses with powerful technology, ambition, and Elon Musk’s long-term growth story.
A caller’s comparison of NVIDIA, Arista, Broadcom, and Micron turns the AI trade into a question of durability, as Cramer weighs underlying strength against muted stock reactions.
Abridge CEO Shiv Rao explains how AI converts clinical conversations into documentation, reducing clerical work and helping restore attention and empathy to patient care.
Cramer closes by defending data centers against media negativity, then gives rapid-fire stock views and names Toll Brothers his preferred homebuilder.
What was said on this episode
39 statements · 27 positive · 10 negative · 2 mixed
Micron makes leading high-bandwidth memory chips for data centers.
“You make the best high bandwidth memory chips, the kind that go into the data center.”
Listen at 0:36
Micron’s memory-chip boom appears likely to continue without interruption.
“the boom seems unrelenting”
Listen at 1:18
NVIDIA reported strong quarterly results, but its stock declined afterward.
“It reported a fabulous quarter last week, yet its stock went down anyway.”
Listen at 1:50
NVIDIA’s stock has declined after earnings in each of the last four quarters.
“It's traded lower on earnings the last four quarters.”
Listen at 1:59
NVIDIA should sell some winning portfolio holdings to fund further capital deployment.
“It should also trim some of the biggest winners in its stock portfolio for additional firepower.”
Listen at 2:42
NVIDIA repurchasing its own shares would be an excellent use of capital.
“I think that is a fabulous use of capital.”
Listen at 2:55
Google Cloud is Cramer’s preferred cloud business to invest in.
“Google Cloud, which is the best horse that I want to bet on.”
Listen at 3:10
Amazon’s semiconductor business could reach $50 billion independently.
“which could be a $50 billion standalone business.”
Listen at 4:39
Amazon’s new chips will retain their value for several years.
“the new chips actually most certainly will hold their value for several years.”
Listen at 4:52
Tesla’s self-driving vehicles and robots will become its major growth engines.
“we really should be thinking about self-driving vehicles and robots, which will be the big growth engines.”
Listen at 5:33
Investors may lose interest in Berkshire Hathaway after Buffett’s departure.
“people are going to get bored with earning this stock”
Listen at 6:35
Eli Lilly’s recent growth has been driven by diabetes and weight-loss drugs.
“the strength of the GOP-1 drugs for diabetes and weight loss.”
Listen at 7:02
AI may make trillion-dollar market-cap status easier to achieve.
“the trillion-dollar club may be a heck of a lot easier to join than in the old days”
Listen at 8:23
Toll Brothers is a solid company.
“I think it's a solid company.”
Listen at 9:25
Mega-IPOs from SpaceX, OpenAI, and Anthropic could drain market capital and cause broad weakness.
“My main fear is that they will suck all of the money out of the rest of the market, causing weakness throughout.”
Listen at 11:20
SpaceX is currently unprofitable under strict GAAP accounting.
“SpaceX is currently losing money.”
Listen at 12:51
Starlink is the main financial engine supporting SpaceX.
“Starlink's the engine that powers all of SpaceX”
Listen at 16:02
SpaceX investors receive profitable Starlink alongside uncertain money-losing businesses.
“you're getting Starlink. and then a bunch of money losers that may or may not pay off in the future.”
Listen at 16:12
SpaceX’s AI segment is currently a major cash drain.
“Right now, it's a money pit.”
Listen at 16:24
SpaceX’s financials do not justify a $2 trillion valuation.
“Purely from the numbers, it's very difficult to justify giving SpaceX a $2 trillion valuation.”
Listen at 17:52
SpaceX’s Anthropic compute deal could transform its AI division into a profitable business.
“This anthropic deal alone dramatically changes the economics of the AI division, potentially transforming it from a money pit to a money maker.”
Listen at 21:38
Betting against Elon Musk has historically been unsuccessful.
“Historically, it's rarely paid to bet against Elon Musk.”
Listen at 25:02
Investors may want to delay buying SpaceX after its IPO.
“you might not want to buy it right away.”
Listen at 25:12
“I simply can't justify paying any more than that”
Listen at 25:32
NVIDIA’s stock price does not reflect the company’s underlying strength.
“NVIDIA currently is not reflecting the strength of the company.”
Listen at 26:18
NVIDIA is doing an excellent job strengthening its business.
“They're doing a great job of that.”
Listen at 26:39
Abridge’s AI can bring clinicians and patients closer by reducing clerical work.
“if we can bring them closer together by unburdening clinicians like me”
Listen at 28:56
Abridge can generate clinical documentation and perform clinicians’ clerical work.
“we're going to create all of those artifacts. We're going to do all of that clerical work for you.”
Listen at 30:36
Abridge operates across more than 300 large health systems.
“A bridge is live across well over 300 of the largest health systems now.”
Listen at 32:28
Abridge expects to reach more than 100 million patients within twelve months.
“we're going to be touching well over 100 million patients over this next 12 months.”
Listen at 32:32
Abridge partners and integrates with Epic’s electronic medical-record system.
“We partner with them. We integrate with Epic.”
Listen at 33:41
Abridge can enable doctors to be more empathetic with patients.
“this sounds like they can be much more empathetic.”
Listen at 35:22
Cramer endorses Boost Run for investors willing to speculate.
“if you're willing to speculate, I'm willing to bless it.”
Listen at 36:12
Cramer recommends buying DoorDash.
“I think DoorDash is a buy.”
Listen at 36:57
Cramer recommends buying Latos Holdings.
“I say bye.”
Listen at 37:35
Flex could rise another 50% without difficulty.
“This is a perfect example of what could still go up another 50% without a problem.”
Listen at 37:55
Toll Brothers is Cramer’s preferred homebuilder stock to buy.
“I think that stock is the one to buy if you're going to buy a home builder.”
Listen at 38:42
Data-center builders receive large payments for infrastructure expected to operate for decades.
“the companies involved in the data center build-out are getting paid enormous sums to lay down structures that will be used for decades.”
Listen at 42:43
Data-center electricity consumption will likely decline as chips become more efficient.
“The electric use will probably go down as we get chips that are more efficient.”
Listen at 42:49
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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