Feb 25, 2026 · 44 min
AI upends software while power demand reshapes stock calls
Mad Money w/ Jim Cramer 2/24/26
The episode tests whether AI has weakened the durability of enterprise software while creating new opportunities in power infrastructure and selected health-care businesses.
- 1AI is forcing investors to reconsider whether enterprise software remains a durable secular-growth category.
- 2Data-center construction and power needs strengthen the case for companies supplying generation and infrastructure.
- 3Stock-specific risks range from SoFi’s valuation and AeroVironment’s radar issue to Elanco’s turnaround and innovation pipeline.
Don't miss
Jeff Simmons explains how Elanco is pairing a stronger balance sheet with pet medicines, livestock products, and an innovation pipeline.
The brief
Jim Cramer frames the market turmoil around a changing AI trade: investors are questioning software’s former durability while looking for beneficiaries of data-center power demand.
The stock-by-stock discussion moves from SoFi’s shifting valuation and Bloom Energy’s power opportunity to AeroVironment’s radar problem and the risks investors must monitor.
Elanco CEO Jeff Simmons describes a turnaround built around pet medicines, livestock health, innovation, and a stronger balance sheet as the company serves pets and farm animals.
In the lightning round, Cramer puts Kindrel on watch after accounting issues, favors Eli Lilly over Novo Nordisk, stays cautious on Gartner, and urges partial profit-taking elsewhere.
The episode’s central tension is whether AI will erode enterprise software’s strategic importance—or simply create a new investment landscape around the companies that adapt.
What was said on this episode
34 statements · 19 positive · 12 negative · 3 mixed
Markets are turning against software companies and the former Magnificent Seven.
“the entire market turning against the once beloved software companies and the old Magnificent Seven”
Listen at 0:42
The HALO acronym does not explain what investors currently want.
“I think the HALO acronym misses the point entirely.”
Listen at 1:42
Anthropic can damage companies in industries targeted by its announcements.
“Anthropic can knock off, can wreck with a simple press release.”
Listen at 1:59
Anthropic will replicate IBM-related software capabilities at lower cost.
“Anthropic will mimic it for less money.”
Listen at 3:17
Software-stock rebounds are temporary pauses before further selling.
“The bounces are all relief rallies. A few days or hours reprieved for more selling.”
Listen at 3:53
Investors should sell temporary rebounds in software stocks.
“You should sell the bounces because they're temporary.”
Listen at 4:10
Memory prices can rise sharply because AI customers must purchase the products.
“Memory prices can skyrocket and customers have no choice but to pay up”
Listen at 4:58
Memory and storage face an exceptionally severe shortage.
“This memory storage is the most severe shortage I have ever seen in my career.”
Listen at 5:59
The memory and storage shortage is likely to persist.
“the shortage likely won't end anytime soon.”
Listen at 6:55
Generac’s stock will continue rising significantly.
“it's going to the stars.”
Listen at 10:24
Banks are AI users rather than businesses threatened by AI replacement.
“Banks are not under threat from artificial intelligence. They're consumers of AI, not the prey of it.”
Listen at 12:44
Investors should buy SoFi stock.
“Buy, buy, buy!”
Listen at 16:20
SoFi stock is attractively valued near $18.
“the stock now represents good value down here at $18 and change.”
Listen at 16:28
SoFi trades at an attractive approximately 17-times 2028 earnings multiple.
“the stock's really trading about 17 times its 2028 earnings forecast. That's really good.”
Listen at 17:38
SoFi will not be replaced by Claude or OpenAI because it is a federally chartered bank.
“It's a bank, guys. It has a federal charter. It's not going to get replaced by Claude or OpenAI.”
Listen at 18:15
Bloom Energy’s current growth story is credible.
“I think this one's legit.”
Listen at 20:54
Data-center operators currently have strong demand for on-site power solutions.
“Data center operators are desperate for on-site power solutions.”
Listen at 21:08
Cramer would prefer Bloom after an approximately 20% pullback.
“If we get, say, evidently a 20% pullback, I would feel a lot more comfortable about recommending this one.”
Listen at 25:17
AeroVironment will fix its radar problem.
“they're going to fix it.”
Listen at 26:10
AeroVironment is a well-run, high-quality company.
“this company is a very good company, very well run.”
Listen at 26:21
Elanco has become a sustainable growth company.
“Elanco has transitioned into a sustainable growth company.”
Listen at 28:18
Elanco has six blockbuster products approved in major markets.
“we have six blockbusters approved in major markets.”
Listen at 29:40
Elanco’s oral parasiticide segment is growing 30%.
“that oral pill, that's the fastest growing segment. It's growing at 30%.”
Listen at 30:12
Elanco’s Zenrelia achieved 40% first-year market share in Brazil.
“We've got 40% market share in year one in Brazil.”
Listen at 31:02
The animal-health industry is expected to grow to $60 billion.
“we're going to grow to $60 billion as an industry.”
Listen at 32:42
Elanco’s Experia product grew 80% last year in the U.S. and Canada.
“Experia is used in the beef industry in U.S. and Canada. I grew 80% last year.”
Listen at 33:09
Elanco is benefiting from double-digit international pet-market growth.
“Elanco is capitalizing on double digit growth outside of the U.S. in the pet market.”
Listen at 34:54
Investors should not yet buy Kindrel stock.
“It's too early to recommend the stock.”
Listen at 37:19
Investors should prefer Eli Lilly over Novo Nordisk.
“You don't want to be Novo Nordisk. You want to be Eli Lilly.”
Listen at 37:51
Novo Nordisk competes through price cuts, while Eli Lilly excels at drug development.
“Novo Nordisk is really good at cutting prices. Eli Lilly is great at making drugs.”
Listen at 37:53
Investors should avoid Gartner because AI may threaten it.
“We're going to have to say no to that.”
Listen at 38:18
Investors should sell one-third of their Paul Industries position and hold the remainder.
“I want you to take off one-third of it, then you're playing the rest of the house's money, and don't ever touch it again.”
Listen at 38:56
Enterprise software companies and their financiers will continue suffering losses.
“My forecast for all is pain, and the losses are far from over.”
Listen at 43:28
Investors should reduce enterprise-software exposure during the rebound.
“So use this bounce to lighten up.”
Listen at 43:33
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.