Jul 29, 2026 · 44 min
Cramer weighs AI spending against a bruising market selloff
Mad Money w/ Jim Cramer 7/29/26
The episode tests whether AI infrastructure demand and select consumer businesses can withstand inflation, higher rates, falling technology stocks, and fragile sentiment.
- 1Chipotle reports improving transactions and execution while managing food costs, affordability pressures, and renewed food-safety scrutiny.
- 2Vertiv raises guidance despite project-timing issues, but its AI infrastructure outlook depends on customers turning heavy spending into profits.
- 3Cramer separates market sentiment from fundamental analysis while defending Ralph Lauren and TJX as longer-term opportunities beyond technology.
Don't miss
Gio Albertazzi argues that Vertiv’s AI infrastructure capacity is being fully utilized, while Cramer presses the question of whether customers can monetize their spending.
The brief
Jim Cramer opens with a market under pressure from inflation, oil prices, higher interest rates, and falling technology stocks, then asks whether sentiment has outrun fundamentals.
Chipotle CEO Scott Boatwright describes improving transactions, technology investments, menu innovation, and high-protein offerings while explaining how food, transportation, utilities, and beef costs pressure margins.
Cramer makes a bullish case for Ralph Lauren before earnings and defends TJX as a decade-scale holding, arguing that strong businesses deserve patience even when peers outperform.
Vertiv CEO Gio Albertazzi says project timing caused a revenue miss, but strong pipelines, new capacity, and raised guidance point to continued AI infrastructure demand.
The central tension is whether AI customers can monetize their spending; Cramer closes by urging investors to understand sentiment without letting it replace fundamental analysis.
What was said on this episode
26 statements · 19 positive · 5 negative · 1 mixed · 1 neutral
The bond market genuinely fears a renewed inflation surge.
“The bond market genuinely fears a real inflation comeback”
Listen at 2:00
Warsh should tighten policy or promise tightening if long rates remain elevated.
“If Warsh wants to calm this bond market, he should have tightened today, or at least promised to tighten if long rates don't go down.”
Listen at 2:15
Sharp increases in long-term rates will pressure much of the stock market.
“Big jumps in long rates like we saw today, long rates being the 20, the 30-year, will impact much of the stock market, making buyers more uncomfortable than if there had been a rate hike.”
Listen at 3:05
Tech hardware stocks could rally after further declines.
“That means the same thing can happen to tech hardware stocks if they keep going lower like they have the last few days.”
Listen at 5:27
Microsoft can lead a recovery in software stocks.
“I think it can start leading the parade of rising software companies.”
Listen at 6:32
Meta should impose greater discipline on spending.
“they need to be more rigorous in their spend”
Listen at 7:47
Cramer recommends continuing to hold Meta stock.
“Right now, we're going to hold it, OK?”
Listen at 7:56
Chipotle expects growth momentum to continue into the third quarter.
“We're also seeing that momentum continue into third quarter, which gives us confidence to raise the full-year guidance.”
Listen at 11:37
Chipotle’s AI-driven Cook to Needs tool improves restaurant operations.
“our new Cook to Needs tool that is now with an AI driven tool behind it”
Listen at 12:29
Chipotle believes it offers the industry’s best proteins.
“We believe we have the best proteins in the industry”
Listen at 13:45
Chipotle’s margin pressure from underpricing inflation will ease by year-end.
“that dislocation is temporary and will taper towards the end of the year as we roll over that pricing strategy.”
Listen at 14:43
Chipotle’s Cyclospora-related setback is temporary.
“We think that's transitory at present.”
Listen at 16:55
Chipotle’s reinforced food-safety procedures will benefit it for years.
“we've doubled down on our efforts. We've re-communicated the importance of our procedures in restaurant, which I think will serve us well for many years to come.”
Listen at 18:24
Cramer recommends Ralph Lauren stock.
“I like Ralph Lauren.”
Listen at 19:47
Ralph Lauren’s business strengths justify buying before earnings.
“Ralph Lauren has so much going for it that I feel comfortable about taking this risk.”
Listen at 26:25
Ralph Lauren will beat expectations and its stock price will rise.
“That's why I expect Ralph Lauren to surprise the upside when it reports next week and you'll be rewarded. with a higher stock price, if it does.”
Listen at 26:34
Vertiv’s long-term trajectory and industry outlook remain strong.
“Nothing has changed in the long term of our trajectory. Indeed, the industry is very strong.”
Listen at 29:52
Vertiv expects more than 40% growth in the second half.
“we believe in a very strong second half as we see more than 40% growth in the second half”
Listen at 31:07
Vertiv’s execution issues will not alter its future trajectory.
“we do not believe that that's something that will influence the future trajectory that we've guided the investors.”
Listen at 32:24
AI capacity demand is a long-term trend.
“We believe that that's a long-term trend.”
Listen at 34:29
Vertiv sees AI-company monetization emerging as a long-term trend.
“we see that monetization come through, and we believe that that's a long-term trend”
Listen at 36:04
Astera Labs is performing well despite its stock price halving.
“That stock has now been cut in half. It is doing well.”
Listen at 37:14
Cramer recommends continuing to own Eli Lilly for years.
“Eli Lilly is a good company, and I want to own that. I've owned it for years. I'm going to continue on it for years because it's a great business with great drugs.”
Listen at 38:57
Most technology stocks currently have strongly negative investor sentiment.
“Most of tech is now hated.”
Listen at 42:26
Investor sentiment toward technology stocks can change rapidly.
“sentiment can turn on a dime.”
Listen at 42:50
Technology stocks are entering August with an unusually negative bias.
“We're going into August, traditionally week, month for tech, with about as negative a bias as I've seen. In decades.”
Listen at 43:14
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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