Feb 27, 2026 · 44 min
AI selloff tests software, infrastructure and consumer stocks
Mad Money w/ Jim Cramer 2/26/26
The episode contrasts AI disruption fears with evidence of demand and resilience across software, water infrastructure and restaurants.
- 1Cramer frames the technology-led selloff as a test of long-term convictions across hardware, software and selected consumer stocks.
- 2Intuit defends regulated, human-supported AI while maintaining its tax-season focus despite strong results and unchanged guidance.
- 3Watts Water Technologies links durable repair demand and data-center construction to water efficiency and infrastructure spending.
Don't miss
Bob Pagano connects Watts Water Technologies’ durable repair business and data-center construction exposure to rising attention on water efficiency.
The brief
A selloff in NVIDIA and hardware technology stocks sets the tone, but Cramer quickly shifts to longer-term calls on GE Aerospace, Palantir and Hinge Health.
Intuit CEO Sasan Goodarzi explains the company’s regulated, human-supported approach to AI, its language-model partnerships and the tax-season outlook after a strong quarter.
McDonald’s becomes Cramer’s consumer-stock counterpoint: renewed operating momentum, an all-time high and a recovery from years of stagnation support his bullish view.
Watts Water Technologies CEO Bob Pagano makes the infrastructure case, tying repair-and-replacement demand, water efficiency and data-center construction to durable contractor activity.
The closing software debate asks whether AI will replace traditional SaaS companies, with Salesforce CEO Marc Benioff defending the business against recurring disruption predictions.
What was said on this episode
22 statements · 17 positive · 4 negative · 1 neutral
NVIDIA’s earnings will continue improving.
“The amount of money NVIDIA's making is extraordinary, and it's only going to get better.”
Listen at 5:29
Investors should use program-driven declines to buy favored stocks cheaply.
“I'd use the program to buy the stocks you'd like at discounted prices to where they should be.”
Listen at 7:24
GE Aerospace is a long-term buy.
“I think that it's just a long term buy.”
Listen at 8:18
Palantir should be held for the long term.
“But Palantir is a very long-term hold.”
Listen at 9:22
Palantir has a strong business model and capable employees.
“But they have a great business model. They have really smart people.”
Listen at 9:29
Hinge Health should be bought and held for long-term gains.
“I just say buy that one and put it away. I think that one's going to do well for a long time.”
Listen at 10:37
McDonald’s has recovered its operating momentum.
“I think it's pretty clear that the Golden Arches really got its groove back.”
Listen at 20:33
McDonald’s trades at roughly 25 times current-year earnings estimates.
“McDonald's sells roughly 25 times this year's earnings estimates”
Listen at 26:24
McDonald’s remains attractive in the current market.
“I'm still loving it.”
Listen at 26:40
Investors should buy Chipotle at its current level.
“this is the level that you've got to pull the trigger and buy some Chipotle.”
Listen at 27:46
Investors should own Watts Water Technologies stock.
“this is the kind of stock you need to own.”
Listen at 35:00
Investors can buy QXO because Brad Jacobs will succeed.
“Jacobs will pull it off. You can buy it.”
Listen at 35:46
Investors should buy Reddit.
“I think you buy Reddit.”
Listen at 36:07
Reddit is worth substantially more than its current market price.
“I think it's worth so much more than what it's selling for.”
Listen at 36:14
Investors should avoid Archer Aviation and Joby after speculative investing ended.
“we don't want to participate in that anymore.”
Listen at 36:56
Ford is recovering and currently looks attractive.
“Ford's coming back, man. Ford's been looking real good of late.”
Listen at 37:09
Ford will successfully execute its recovery.
“And this is going to pull it off.”
Listen at 37:20
Universal Display is not yet ready for a recommendation.
“that time is not yet near.”
Listen at 37:42
MSCI is preferable to S&P Global.
“the one MSCI is the one I prefer.”
Listen at 38:12
MSCI’s stock decline was caused by incorrect AI-related peer comparisons.
“The stock was down on some sort of AI peers that were dead wrong.”
Listen at 38:18
AI could replace user seats and reduce Salesforce revenue per client.
“AI can take the place of many of those seats so Salesforce will make a lot less money per client.”
Listen at 40:43
Salesforce can successfully transition toward an agent-heavy model.
“I'm now convinced that they can pull it off”
Listen at 43:18
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
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