Oct 29, 2025 · 44 min
Cramer separates real AI demand from speculative excess
Mad Money w/ Jim Cramer 10/29/25
The episode tests whether rate cuts and AI investment are creating durable opportunities or inflating another market bubble.
- 1ServiceNow presents enterprise AI as a platform-driven growth opportunity despite pressure on software stocks.
- 2Brinker and Otis point to value-seeking consumers and modernization demand as distinct sources of business growth.
- 3Cramer backs data-center investment while urging investors to distinguish transformative companies from speculative names.
Don't miss
Cramer argues that fear of an AI bubble should not hide genuine data-center and accelerated-computing opportunities, while still warning against speculation.
The brief
Jim Cramer opens with the Federal Reserve’s quarter-point rate cut, then fields questions spanning American Express, Klarna, DraftKings, and other stocks.
ServiceNow CEO Bill McDermott argues that enterprise AI is becoming a platform opportunity, even as investors punish software stocks and debate whether the boom is overheated.
Brinker CEO Kevin Hochman describes Chili’s growth through value-oriented customers, menu changes, and social-media feedback, while trying to revive Maggiano’s without diluting the core business.
Otis CEO Judy Marks links elevator growth to service and modernization demand, including major projects, while discussing North America, China, dividends, and buybacks.
The episode’s central argument arrives in the data-center discussion: bubble fears should not obscure genuine AI opportunities, but speculative stocks still demand discipline.
What was said on this episode
45 statements · 40 positive · 1 negative · 2 mixed · 2 neutral
The Fed’s rate cut should lower borrowing costs for shorter-term loans
“A quarter point rate cut from the Fed, which should immediately translate into lower borrowing costs for a variety of shorter term loans”
Listen at 0:42
AI-related job anxiety appears avoidable in the short term
“the angst seems shorter term avoidable”
Listen at 1:48
NVIDIA’s technology improves productivity and cognitive performance
“NVIDIA is simply an intellectual engine. It makes you more productive, smarter, thinking better.”
Listen at 1:53
Alphabet integrated Gemini to expand beyond search
“Alphabet, parent of Google, wasn't content to just dominate search. Instead, they integrated Gemini, their generative AI platform.”
Listen at 2:38
Gemini has not cannibalized Alphabet’s core search business
“No cannibalism from Gemini.”
Listen at 3:45
Alphabet’s quarter was strong and its stock will lead comparable companies
“Alphabet's capital expenditures were in line. It was really good. And I got to tell you, it's going to be the star.”
Listen at 4:03
Microsoft delivered a strong quarterly performance
“Microsoft, point of what I thought was a truly strong quarter.”
Listen at 5:17
Real-economy companies with data-center exposure perform best
“the best performing companies in the real economy are the ones that also have a ton of exposure to the data center economy.”
Listen at 7:21
Alphabet leads Microsoft among the reported technology stocks
“Alphabet's the winner. Microsoft's trying to take second place.”
Listen at 7:29
Cramer recommends keeping American Express rather than swapping to Klarna
“I won't let you do that.”
Listen at 8:44
American Express executive Stephen Squeri understands younger consumers
“I think he's actually a – I think he, in his own way, is a genius. He's figured out what younger people want.”
Listen at 8:47
Cramer likes DraftKings as an investment
“I happen to like DraftKings very much.”
Listen at 9:56
DraftKings would benefit substantially from entering Texas, Florida, and California
“if they get Texas, Florida, and California, wow, it'll be terrific.”
Listen at 10:18
AI has not yet harmed ServiceNow’s earnings
“We haven't seen any signs of artificial intelligence impacting their earnings.”
Listen at 12:05
ServiceNow is the only AI platform for business transformation
“there's only one AI platform for business transformation”
Listen at 13:29
ServiceNow workflows process over one trillion real-time transactions
“we have 75 billion of them running in real time right now, doing more than a trillion transactions across all industries”
Listen at 13:49
ServiceNow’s AI assists increased 55-fold within months
“we have 55x improvement in the number of assists in just a few short months. So the hockey stick is kicking in.”
Listen at 15:56
General-purpose AI providers cannot handle complex regulated enterprise processes
“they're not going to do. regulatory environment processes for financial services firms with 60 years of legacy technology and the complexity that goes along with it.”
Listen at 17:19
Only ServiceNow offers a seamlessly integrated common enterprise platform
“It's not available on the market, except from ServiceNow.”
Listen at 18:49
ServiceNow is ready to attract more individual investors
“we're right now ready for more than just institutional investors. We know the consumer investor wants in.”
Listen at 20:03
ServiceNow’s five-for-one split will improve individual-investor access
“a five for one split will get you in the sweet spot of being able to buy many shares from ServiceNow and participate in this great growth story.”
Listen at 20:14
Chili’s sales rose 21 percent and traffic 13 percent year over year
“We're plus 21 percent on sales, 13 percent on traffic. Our EPS was more than double a year ago.”
Listen at 22:28
Chili’s is on track for mid-single-digit comparable sales growth
“we're on track for mid single digits for the entire quarter.”
Listen at 24:12
Chili’s is gaining market share among lower-income consumers
“we're winning market share”
Listen at 25:13
Chili’s will bring back skillet queso in December
“if skillet queso is a part of that to keep them coming back, we're going to bring it back. And it should be back sometime in December.”
Listen at 26:28
Maggiano’s could become a meaningful part of Brinker’s business
“Maybe it won't be as fast and as robust as Chili's, but there certainly could be a meaningful part of our business.”
Listen at 27:16
Brinker will successfully revive Maggiano’s over several quarters
“I'm very confident we'll get there. It might take a few quarters, but we are going to get there.”
Listen at 27:21
Otis modernization orders rose 27 percent and organic sales 14 percent
“the modernization business, the refurbishment business, keeping elevators not just safe, but modern technologically energy efficient. That was up 27 percent this quarter with 14 percent organic sales.”
Listen at 30:06
Eight million of 22 million global elevators are over 20 years old and need modernization
“There are 8 million buildings and 8 million, excuse me, 8 million elevators in the world out of the 22 million that are over 20 years old and in need of modernization.”
Listen at 30:22
Otis’s Compass system uses AI to manage elevator traffic in real time
“it has our most recent and our first instance. of Compass with the destination dispatch, Infinity, which basically real-time manages traffic flow with an AI algorithm”
Listen at 31:00
Otis new-equipment orders rose for a fifth consecutive quarter in North America
“Fifth quarter in a row, our new equipment orders are up in the U.S. and Canada.”
Listen at 31:42
Otis modernization orders in China rose 150 percent
“In China alone, our modernization orders were up 150 percent this quarter”
Listen at 32:48
Otis’s China business is stabilizing
“So I'm calling it stabilization.”
Listen at 33:57
Otis raised its dividend nearly 8 percent and repurchased $250 million of stock
“Our dividend was up almost 8% this year, and we bought back about $250 million of stock in the third quarter.”
Listen at 34:49
Otis plans or expects $800 million in share buybacks this year
“$800 million of share buybacks this year.”
Listen at 35:03
Cramer likes Energy Transfer as an investment
“I like energy transfer very much.”
Listen at 37:04
Cramer recommends buying Toast after its November 4 earnings report
“I would be a buyer of Toast, but only after they report on November 4th.”
Listen at 38:01
Cramer recommends taking partial profits in DVLT immediately
“I would take off a little, let the rest run. Your cost base has got to come out right now.”
Listen at 38:26
Cramer declines to offer an opinion on SEALSQ
“I am not going to opine on something where this man is an expert, and I am an amateur.”
Listen at 39:25
AI and accelerated computing are among the biggest developments of Cramer’s lifetime
“the rise of both AI and accelerated computing are two of the biggest developments of my lifetime.”
Listen at 40:11
AI and accelerated computing have not already peaked
“To think that they have somehow already peaked is downright fatuous.”
Listen at 40:16
The government’s Westinghouse partnership supports an $80 billion data-center-driven nuclear buildout
“the government decides to partner up with Westinghouse for an $80 billion nuclear buildout, all driven by power demand for the data center.”
Listen at 41:10
Bloom Energy is now the data-center industry standard for on-premise clean energy
“Bloom's now the industry standard on on-prem, clean, non-combustible energy at the data center.”
Listen at 41:41
AI will surpass humans at the current pace within two years
“At this pace, in two years, it'll be better than us.”
Listen at 42:13
Investors should limit speculative exposure to one position worth at most 10 percent
“I just want you to do what I recommend and how to make money in any market. Speculate wisely because it's worth trying to participate in these huge gains as long as you limit it to no more than one position that's 10% of your entire portfolio.”
Listen at 43:08
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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