Sep 26, 2025 · 44 min
Cramer tests the AI boom against company-by-company homework
Mad Money w/ Jim Cramer 9/26/25
The episode weighs broad fears about an AI data-center bubble against the practical question of which individual companies can justify investor attention.
- 1Cramer distinguishes AI investments by examining Credo Technology and Resolve AI rather than treating the sector as one trade.
- 2Johnson & Johnson leadership connects U.S. investment and medical innovation with litigation, valuation, research, and drug affordability.
- 3Cramer closes with positive views on selected lightning-round stocks and a bullish case for Costco’s membership model.
Don't miss
Cramer’s closing Costco case ties the company’s low membership cost, attractive prices, and broad perks to a recurring shopping habit.
The brief
Jim Cramer opens by challenging blanket claims that the AI data-center build-out is a bubble, arguing that research into individual companies matters more than sector-wide labels.
His homework assignments put that argument into practice: Credo Technology represents data-center connectivity, while Resolve AI offers a different kind of AI investment.
The episode’s central interview with Johnson & Johnson leadership moves from U.S. manufacturing and pharmaceutical tariffs to cancer treatment, medical devices, research, litigation, valuation, and affordability.
After calls on Mountain, Salesforce, D-Wave Quantum, American Electric Power, and Oneok, Cramer makes the standout case for Costco, citing its low membership cost, prices, and member perks.
The closing disclaimer underscores that Cramer’s views are his own and are not individualized investment advice, reinforcing the distinction between commentary and personal guidance.
What was said on this episode
31 statements · 23 positive · 6 negative · 1 mixed · 1 neutral
Cramer rejects calling the AI data-center build-out a bubble, trusting Jensen Huang.
“I will not call it a bubble because I trust the judgment of Jensen Wang.”
Listen at 1:35
Cramer believes AI will improve and ultimately justify its spending.
“I believe that AI is getting better and better and better and will be worth every penny when things shake out”
Listen at 2:49
Cramer thinks the current AI race could produce three or four major winners.
“Maybe we can get three or four winners this time around. That wouldn't shock me.”
Listen at 3:37
Cramer predicts companies left behind in AI will not catch up.
“And you know what? They won't.”
Listen at 3:48
Cramer expects cruise-industry strength to continue, led by Royal Caribbean.
“I actually think so, led by Royal, by the way, because consumers know that cruises are relative bargains when it comes to leisure travel.”
Listen at 5:40
Cramer predicts a Nike breakout and recommends buying beforehand.
“there will be a breakout for Nike, and you have to buy it ahead of that”
Listen at 6:52
Cramer says ConAgra needs an upside earnings surprise to reverse its stock decline.
“It is time for a statement, upside surprise, plain and simple from ConAgra.”
Listen at 7:31
Cramer says strong wage growth would force Powell to pause rate cuts.
“So a hot number will put J-PAL back in the box.”
Listen at 8:03
Cramer assesses Powell's recent economic management positively.
“I think he's done a pretty good job so far. Let's hope he can keep it up.”
Listen at 8:39
Cramer thinks he may be wrong about Bristol Myers Squibb and avoids adding shares.
“I have said, and I've been abjected about it, that I think I might be wrong in Bristol. That's why I've not added to it.”
Listen at 9:49
Cramer considers Credo Technology highly attractive near the low $120s.
“I think the stocks become irresistible in the low 120s.”
Listen at 15:59
Cramer says Credo near $120 would offer an especially attractive valuation.
“if the stock pulls back to the lows in the 120 area, I think you're getting that magnificent quarter for free.”
Listen at 17:04
Cramer recommends a small Credo position now, with larger buying near $120.
“You can put on a small position here, that's fine. You really like it? But I suggest waiting for it to come down to the 120s before you really load up.”
Listen at 17:55
Cramer strongly dislikes Resolve AI as an investment.
“I don't like Resolve. Not one bit.”
Listen at 20:26
Cramer expects Resolve AI's upcoming results to show revenue but large losses.
“I'm assuming they'll have decent revenue results, but I suspect that those will be paired with rather large losses.”
Listen at 23:38
Cramer judges Resolve AI's investment risks greater than its potential rewards.
“the risks outweigh the potential rewards.”
Listen at 24:32
Cramer recommends AI investments with earnings over loss-making Resolve AI.
“If you want to play on artificial intelligence, I'm begging you to find one with actual earnings, like the Credo technology group that I just talked about, and not a money loser like Resolve AI.”
Listen at 24:36
Cramer views Mountain's advertiser opportunity favorably despite its weak quarter.
“the opportunities for them to be able to attract very good, small, medium-sized advertisers make me inclined to like the stock here.”
Listen at 25:13
Cramer reserves judgment on Salesforce until further investigation.
“I'm going to reserve judgment until I do more work when I am out there.”
Listen at 26:20
Duato predicts biology, chemistry, and AI will produce cures for many incurable diseases.
“the combination of our advances in biology and chemistry amplified by artificial intelligence are going to give us cures for many diseases that we thought were incurable.”
Listen at 29:39
Duato says Carvykti patients were disease-free five years after one treatment.
“patients that were about to go into hospice are disease-free five years after a single administration, Jim.”
Listen at 30:05
Duato says Inlexo can enable bladder-cancer patients to retain their bladder.
“what is going to make possible is that patients keep their bladder.”
Listen at 31:13
Duato says Abiomed heart-pump patients lived 600 additional days over ten years.
“they were living over a 10-year period 600 days more.”
Listen at 32:17
Duato predicts Johnson & Johnson will remain a healthcare-innovation leader.
“we will remain the leaders as we are today, the undisputed leaders in healthcare innovation.”
Listen at 33:30
Duato expects the Daubert hearing to benefit Johnson & Johnson.
“we think that's going to be positive for us.”
Listen at 34:20
Duato says Johnson & Johnson won 16 of 17 ovarian-cancer cases over eleven years.
“we have won 16 out of 17 cases in the last 11 years.”
Listen at 34:34
Johnson & Johnson expects 2026 to outperform 2025 and 2027 to outperform 2026.
“we believe that 26 is going to be better than 25 and 27 better than 26.”
Listen at 35:49
Cramer recommends removing the cost basis from D-Wave Quantum after its rise.
“I want you to take out your cost basis so you can let the rest run.”
Listen at 37:38
Cramer recommends buying Oneok at its current low price.
“I think that's a buy. I can't believe it's this low.”
Listen at 39:30
Cramer considers Costco inexpensive at $915 per share.
“I think it's cheap for Costco at $915.”
Listen at 43:05
Cramer recommends starting a Costco position.
“If you don't own any Costco, it's time to start buying the best retailer on earth.”
Listen at 43:32
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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