Oct 13, 2025 · 44 min
Cramer weighs AI bets against earnings and valuation
Mad Money w/ Jim Cramer 10/13/25
The episode tests whether a market rally led by speculative stocks can withstand scrutiny from earnings, valuation, and business fundamentals.
- 1Broadcom’s OpenAI deal highlights surging demand for custom AI infrastructure, power, and compute.
- 2Levi Strauss is pushing beyond denim while balancing international growth, direct sales, pricing, tariffs, and weaker guidance.
- 3Rubrik argues cyber resilience depends on rapid recovery from ransomware, credential theft, and AI-assisted attacks.
Don't miss
Hock Tan explains how Broadcom’s OpenAI deal connects custom AI accelerators with power availability, compute demand, and OpenAI’s economics.
The brief
Jim Cramer opens with a market reversal and viewer calls, using Dutch Bros and Southern to argue that valuation, growth, and taking profits still matter.
Broadcom CEO Hock Tan explains the company’s OpenAI deal, including custom AI accelerators, power constraints, compute demand, and the economics behind the expansion.
Levi Strauss CEO Michelle Gass makes the case for a broader apparel business beyond denim, while confronting disappointing guidance, tariffs, pricing, and holiday uncertainty.
Rubrik CEO Bipul Sinha shifts the cybersecurity frame from preventing every attack to recovering quickly, including from ransomware and unwanted AI-agent actions.
Cramer closes on the market’s speculative leadership, contrasting unprofitable winners with companies backed by earnings and valuation—and explaining why the divergence troubles fundamental investors.
What was said on this episode
34 statements · 23 positive · 11 negative
China’s export growth suggests it may be adapting to reduced U.S. trade.
“China's total exports in September rose 8%, the highest of the year, which just may be they're learning to live without us.”
Listen at 2:07
OpenAI needs substantial computing power because ChatGPT demand is tremendous.
“OpenAI needs all this computing power because there's tremendous demand for ChatGPT in all its different phases.”
Listen at 3:21
Bloom Energy appears to have reached commercial maturity after decades of development.
“Bloom's been working on it for the better part of a quarter of a century. It seems to have come into its own”
Listen at 3:49
Dutch Bros’ decline is creating a buying opportunity.
“I think Dutch Bros, the decline is actually creating that opportunity.”
Listen at 6:31
Dutch Bros is expanding regionally and nationally and can be bought now.
“this is a growth company that's going regional and national, and therefore it can be bought right here.”
Listen at 6:38
Investors should take partial profits in Southern stock.
“You got to take some Southern off the table.”
Listen at 7:14
Broadcom’s selected customers primarily lack compute capacity.
“the biggest thing they're short of is compute capacity.”
Listen at 10:07
The United States has substantial available power for AI infrastructure.
“there is a lot of power out there even in America.”
Listen at 10:29
OpenAI’s revenue is growing at a very strong rate.
“their revenue is growing at a very strong rate.”
Listen at 14:08
Broadcom works closely with about seven AI players, four of which are production customers.
“we picked about seven players today that we are working very closely with and four of them are now real customers”
Listen at 15:35
Foundation-model compute requirements are more than doubling annually.
“The requirements for capacity and compute as you deploy, as you push the envelope on a foundation model is more than doubling every year.”
Listen at 18:12
Generative AI-related knowledge industries could grow from 30% to 40% of global GDP.
“That 30%, say, will grow to 40% of all GDP.”
Listen at 20:17
Women’s products should reach 50% of Levi Strauss’s business.
“women's is only 37% of our business. That should be 50% easily.”
Listen at 22:41
The Levi’s brand is currently stronger than ever.
“the Levi's brand has never been stronger.”
Listen at 23:57
Levi Strauss achieved a fourth consecutive quarter of high-single-digit growth.
“we had another great quarter. I mean, this was our fourth consecutive quarter of high single-digit growth.”
Listen at 24:21
Levi Strauss is experiencing double-digit growth in Asian markets.
“Double-digit growth.”
Listen at 24:47
Levi Strauss’s direct-to-consumer share is near 50% and may rise.
“we're approaching about 50 dtc i think that can get a little higher”
Listen at 27:11
Levi Strauss expects to reach $10 billion in revenue.
“we got a long road to 10 billion and uh one i'm confident we're all confident we're gonna be there”
Listen at 27:17
Levi Strauss is optimistic about the holiday season.
“we're optimistic.”
Listen at 29:48
Organizations cannot prevent every cyberattack.
“you can't prevent the unpreventable.”
Listen at 32:02
Credential-based attacks are currently the leading attack vector.
“credential-based attacks are the number one attack vector.”
Listen at 32:37
Rubrik grew revenue over 50% and generated a 19% free-cash-flow margin.
“We grew top line more than 50% and generated 19% free cash flow margins.”
Listen at 33:14
Cyber resilience is the leading cybersecurity category, and Rubrik leads it.
“Cyber resilience is the number one cybersecurity category, and we are leading that category.”
Listen at 33:32
AI-assisted attacks can give attackers extensive knowledge of a business.
“AI-assisted coding and AI-assisted social engineering, they know more about your business than some of your own people do.”
Listen at 33:58
Businesses should avoid paying ransom and rely on resilience against ransomware.
“do not pay ransom. Keep your business up and running because at the end of the day, resilience is the only answer to cyber attacks such as ransomware.”
Listen at 35:09
AI agents can cause ten times more damage in one-tenth the time.
“they can do 10x more damage in one-tenth of the time.”
Listen at 36:30
Rubrik’s rewind feature lets customers undo unwanted AI-agent changes.
“That rewind button lets our customers undo undesirable change by agents.”
Listen at 36:43
FactSet is undervalued, though Cramer does not explicitly recommend buying.
“I like it. Can't tell you to buy it, but holy cow, it's way too cheap.”
Listen at 38:38
Indonesia is unlikely to expropriate Freeport-McMoRan’s mine, and the stock is fine.
“I don't think so. I think they're fine in the stock.”
Listen at 39:59
Many speculative loss-making stocks cannot grow into their current valuations.
“many of which are loss makers that are so hopelessly overvalued that they'll never be able to grow into their current market capitalizations.”
Listen at 41:00
Many speculative stocks are currently in bubble territory.
“I think many of the speculative stocks are in bubble mode.”
Listen at 41:17
AI stocks are more legitimate because earnings support them.
“The AI stocks are much more legitimate. Why? Because they're backed up by earnings.”
Listen at 41:20
A dot-com-style collapse in speculative stocks remains a feared possibility.
“I don't want to see a dot-com style collapse.”
Listen at 41:57
Investors should take profits in speculative stocks during strength.
“which is why you need to ring the register on some of these speculative stocks into strength.”
Listen at 43:19
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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