May 27, 2026 · 44 min
Cramer tests AI valuations against earnings and hardware demand
Mad Money w/ Jim Cramer 5/27/26
The episode weighs whether software companies can convert AI enthusiasm into durable growth while semiconductor gains reset investor expectations.
- 1Investors should judge stocks by current prospects rather than anchoring on prices that once seemed attractive.
- 2Salesforce and Snowflake show different paths for monetizing enterprise AI through agents, governed data, partnerships, and customer deployments.
- 3Micron’s rapid rise to a trillion-dollar valuation sharpens the question of whether AI-driven hardware momentum can last.
Don't miss
Cramer examines how quickly Micron reached a trillion-dollar market value and begins testing whether its AI-fueled surge is justified.
The brief
Cramer opens by warning investors not to anchor on a stock’s past price, using semiconductor gains and a missed opportunity to frame the episode’s valuation lesson.
ServiceNow’s lower valuation draws interest, but Cramer favors hardware companies benefiting more directly from accelerated computing as uncertainty persists around AI software.
Marc Benioff makes the case for Salesforce’s AI strategy, discussing Agentforce adoption, token usage, customer deployments, Tableau, Slack, and second-half growth.
Snowflake’s earnings beat and bullish guidance lead to a discussion with CEO Sridhar Ramaswamy about governed data, application context, partnerships, and enterprise AI products.
The lightning round covers Mattel, Pool, and Realty Income before Cramer turns to Micron’s rapid rise and asks whether its momentum is justified.
What was said on this episode
19 statements · 14 positive · 3 negative · 2 mixed
Investors should focus on a stock’s future rather than its past price.
“You can't worry. about where a stock's been. Just focus on where it's going.”
Listen at 0:31
Corning remained undervalued after doubling, helped by Nvidia’s $3.2 billion investment agreement.
“Even after it doubled, it turned out to be cheap as NVIDIA bought the right to take a stake in Corning for $3.2 billion.”
Listen at 3:23
Growing data-center CPU demand drove Arm’s stock sharply higher.
“as people realize that we're going to need more CPUs in the data center, ARM at $172 when I purchased it. proceeded to roar right to $302.”
Listen at 4:39
ServiceNow may be bottoming but is unlikely to have a very strong year.
“I think the stock is bottoming. I don't think that it's going to have a huge year because I do think that in the end, people want hardware.”
Listen at 10:06
Hardware is currently benefiting most from the AI-driven accelerated-computing trend.
“What I really want to be in is hardware, because that is what's moving in this new era of artificial intelligence, accelerated computing.”
Listen at 10:25
Snowflake exceeded earnings expectations and grew revenue 33% year over year.
“This company shot the lights out after the bail reporting a 7-cent earnings beat off a 32-cent basis with higher than expected revenue up. 33% year over year.”
Listen at 22:03
Snowflake is capturing the software market’s AI-driven money and growth.
“Snowflake has it. I wish others did too.”
Listen at 29:40
TJX is the strongest operator in off-price retail.
“Nobody does off-price better than TJX.”
Listen at 30:53
Walmart’s pullback represents a rare buying opportunity.
“In the long run, look, I think Walmart's fine. I see the pullback. Rare buying opportunity.”
Listen at 33:00
Target’s quarterly results make the stock a buy.
“To me, that was a home run and a buy.”
Listen at 33:24
Home Depot stock will likely suffer if interest rates are not cut.
“Without rate cuts, the stock will probably hurt you.”
Listen at 34:34
TJX and Ralph Lauren shares will continue rising.
“both TJX and Ralph Lauren, while up, will keep going higher.”
Listen at 36:13
Investors should buy TJX and Ralph Lauren.
“Those are the ones I would buy.”
Listen at 36:20
Mattel is a buy at current levels and may be forming a bottom.
“I think the stock should be bought. I think it's bottoming here. I think you have a good one. I like Mattel at these levels.”
Listen at 37:16
Some software businesses are being disrupted by artificial intelligence.
“that's software. The kind of software that's being disrupted by the artificial intelligence world.”
Listen at 38:29
Realty Income offers an attractive dividend and its stock should rise.
“I like that idea. You got a nice dividend. I think it's going to go higher. That's a terrific situation.”
Listen at 39:30
Insatiable data-center demand is driving Micron’s high-bandwidth-memory business.
“Here it's insatiable because Micron makes high bandwidth memory exactly the kind of hardware that the data center desperately needs.”
Listen at 41:19
Micron can continue rising if new memory-production machinery does not come online.
“If there's no new machinery coming on line to make memory, then yeah, and I don't see any. Micron can keep flying”
Listen at 42:57
Micron is not worth the risk at its current elevated price.
“I simply don't think Micron's worth the risk up here.”
Listen at 43:20
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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