Oct 13, 2026 · 44 min
Cramer maps the sell-off from chips to power stocks
Mad Money w/ Jim Cramer 10/13/26
The episode tests whether investors should treat market weakness as a broad warning or distinguish durable businesses from overheated trades.
- 1Rising rates, oil prices, and semiconductor weakness drive the market decline, but chip investors should examine real products and businesses.
- 2Data-center construction is increasing electricity demand, supporting Cramer’s case for power-generation companies despite their pullback from summer highs.
- 3Cramer treats stock-specific setbacks differently, defending Johnson & Johnson while urging caution on speculative names and trimming oversized positions.
Don't miss
Cramer connects data-center construction to a renewed surge in electricity demand and argues that power-generation stocks remain attractive after their pullback.
The brief
Jim Cramer opens with a market sell-off tied to higher interest rates, rising oil prices, and semiconductor weakness, including pressure from Korean chipmaker SK Hynix.
His semiconductor argument is less about following an index than examining the devices and businesses chips support, with Apple and memory-chip competition from China as context.
The episode then moves across Ross, TJX, Johnson & Johnson, and Palo Alto Networks, weighing operational strength, post-earnings trading, and portfolio concentration.
Cramer sees data-center construction driving a power-generation renaissance, arguing that electricity demand could keep the sector attractive after its retreat from summer highs.
The lightning round turns cautious on several speculative names, favors Waste Management, and calls Mastec a buy after its steep decline before highlighting rebounds in enterprise software.
What was said on this episode
29 statements · 20 positive · 5 negative · 1 mixed · 3 neutral
Wells Fargo should have gained rather than declined.
“I'd argue the Wells Fargo should have been a winner, not a loser”
Listen at 1:54
Interest rates will rise next year.
“We are going to see rates go higher next year.”
Listen at 2:11
Semiconductor downturns typically last longer than investors expect.
“when the semis roll over, it tends to last for much longer than you might hope.”
Listen at 3:21
SK Hynix is the key driver of semiconductor stocks, not Nvidia.
“SK Hynix is so big that it's become the key to the semiconductor solar system, not NVIDIA.”
Listen at 4:05
Apple stock is a buy ahead of the iPhone Duo launch.
“I know that the stock's a buy ahead of the iPhone Duo”
Listen at 5:35
Reputable U.S. companies will avoid Chinese memory chips over confidentiality concerns.
“no U.S.-based company of any repute will accept Chinese memory without worrying about confidentiality.”
Listen at 6:11
Micron has 26 take-or-pay contracts covering revenue through 2030.
“How about 26, which cover revenue until 2030? Take or pay.”
Listen at 6:36
Apple’s new devices will sell strongly.
“These are going to be big sellers.”
Listen at 7:35
Investors should focus on devices and businesses rather than semiconductor indexes.
“Don't watch the semiconductor index. Watch the devices. Watch the business.”
Listen at 8:22
TJX will recover from its current weakness.
“I'm betting the TGX turns this around.”
Listen at 9:39
The power-generation renaissance will persist.
“I think the energy renaissance is here to stay”
Listen at 11:25
Electricity demand is expected to grow 4.1% annually for four years.
“the overall demand is expected to increase about 4.1% compound annual growth rate for the next four years.”
Listen at 12:02
Worldwide electricity consumption will rise 165% by 2030.
“Worldwide electric consumption is set to rise 165% from 2023 to 2030.”
Listen at 12:31
Johnson & Johnson’s post-earnings decline was unjustified.
“I don't believe J&J deserved to get hit like this.”
Listen at 19:54
Johnson & Johnson has one of the industry’s best drug portfolios.
“I think this company is one of the best drug portfolios in the industry.”
Listen at 24:50
Johnson & Johnson is an attractive buying opportunity.
“The bottom line, I think this is a good chance to get into one of the best-performing pharma names out there”
Listen at 25:50
Investors should use Johnson & Johnson’s pullback to buy.
“I think this pullback in J&J is actually a great chance to get in on one of the best-performing pharma stocks on the market right now.”
Listen at 27:11
Investors should watch Accelivation before buying.
“For now, I say, why don't we do this? Let's put Acceleration on our watch list, see if management can deliver before we pull the trigger.”
Listen at 34:57
Waste Management is preferable to the comparable waste-services company.
“I'm still going to send you to Waste Management. It's just WM. I just think it's a better company”
Listen at 35:59
Investors should hold Element Solutions.
“Element Solutions, hold on to Melon Solutions.”
Listen at 36:40
SailPoint is an unattractive company.
“I don't like the company”
Listen at 37:13
CoreWeave is the preferred neocloud investment.
“the only one that I trust and want to be in is CoreWeave.”
Listen at 37:41
Investors should avoid Starwood Property Trust.
“I don't want to own that.”
Listen at 38:10
Investors can buy Penguin Solutions.
“I'm going to say you can buy it.”
Listen at 38:50
Investors should buy Mastec.
“I'm going to say you buy Mastec.”
Listen at 39:21
The enterprise-software sell-off was an excellent buying opportunity.
“When the enterprise software stock sold off hard earlier this year, that turned out to be a fantastic buying opportunity.”
Listen at 40:31
The anticipated private-credit collapse did not occur.
“the private credit collapse we were warned of never came true.”
Listen at 41:41
Enterprise-software companies are performing very strongly.
“the enterprise software companies are all doing incredibly well.”
Listen at 42:45
Blackstone’s private-credit investments appear reasonably sound unless rates surge.
“unless rates shoot up dramatically from here, it sure looks like they've stumbled on some pretty decent paper.”
Listen at 43:16
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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