Oct 29, 2026 · 44 min
Memory chips, AI software and defensive stocks face the valuation test
Mad Money w/ Jim Cramer 10/28/26
The episode connects earnings from restaurants, enterprise software, waste management and semiconductors to the broader question of whether strong businesses justify current valuations.
- 1Chipotle’s results put consumer traffic, value perception and lower-income spending at the center of the restaurant outlook.
- 2ServiceNow’s AI momentum and recurring revenue compete with investor concern over a small earnings-per-share miss.
- 3SK Hynix’s memory-chip strength highlights how DRAM and high-bandwidth memory demand is reshaping technology stocks.
Don't miss
The final analysis links SK Hynix’s strong results to the importance of DRAM and high-bandwidth memory in data centers.
The brief
Jim Cramer opens with viewer questions before turning to earnings across restaurants, enterprise software, waste management and technology, using valuation and market context as the common lens.
Chipotle CEO Scott Boatwright discusses traffic, value perception, lower-income consumers, margins, inflation, labor costs and the return of brisket as the company navigates changing demand.
ServiceNow CEO Bill McDermott makes the case for AI governance, cybersecurity acquisitions, an OpenAI partnership and recurring revenue after investors focused on a small EPS miss.
Waste Management CEO Jim Fish describes a business built for defensive growth, with healthcare waste, automation, landfill-gas projects and recession resistance offsetting labor and diesel pressures.
The closing technology discussion turns to SK Hynix’s strong report and explains why DRAM and high-bandwidth memory demand could matter for Samsung, Micron and related stocks.
What was said on this episode
36 statements · 28 positive · 7 negative · 1 mixed
The Federal Reserve will raise interest rates again in December.
“I sense another rate hike in December.”
Listen at 3:51
The recent interest-rate increase is reducing spending and inflation.
“I think the interest rate increase is working.”
Listen at 3:59
Alphabet may currently be overvalued after its disappointing results.
“I am concerned that that could be the case with Alphabet after Google's poor showing tonight.”
Listen at 6:52
Microsoft’s strong results justify its rally since late June.
“Microsoft? It's justifying the monster move it made off the bottom back at the end of June earlier this year.”
Listen at 7:08
Investors should continue holding McCormick shares.
“You stick with it, my friend.”
Listen at 8:03
Investors should buy Palantir shares.
“Buy. They're the smartest guys I've come across.”
Listen at 8:18
Argonne has an exceptionally weak stock chart.
“this is the worst chart I've ever seen. Period. End of story.”
Listen at 9:15
Chipotle’s initiatives will drive customer demand.
“I'm confident in our ability to drive demand through LTO innovation, deeper engagement with our rewards members.”
Listen at 11:54
Chipotle’s lower-income customers outperformed higher-income customers last quarter.
“the lower income cohort outperformed the higher income cohort for the first time last quarter”
Listen at 12:33
Chipotle will continue growing and expanding.
“We're going to continue to grow and expand.”
Listen at 15:00
Chipotle will open approximately one restaurant every 24 hours this year.
“We're going to build a new Chipotle this year about every 24 hours.”
Listen at 15:02
Chipotle’s Ohio and Florida markets generate nearly 80% returns on investment.
“we're still seeing the highest returns in the system out of those markets nearing almost 80 percent year to return on investment”
Listen at 16:14
Chipotle’s Avocado AI assistant improves applicants and shortens hiring time.
“Our Avocado, our AI assistant, has really helped us keep our restaurant staff with better applicants. Shorten the time from application to hire.”
Listen at 17:29
Chipotle guides fourth-quarter comparable sales growth of about 2%.
“We're guiding Q4 to about a 2.”
Listen at 17:58
Chipotle expects year-end growth between 3% and 4%.
“our exit rate on the year is going to be between 3% and 4% growth”
Listen at 18:01
ServiceNow’s results may determine whether its stock rally continues.
“Is it enough to keep the stock in rally mode?”
Listen at 19:40
ServiceNow is an exceptional high-growth company.
“this is a unicorn growth company.”
Listen at 20:15
ServiceNow uniquely combines free-cash-flow and margin growth in enterprise software.
“it's the only company I'm aware of that's doing that in the enterprise software world.”
Listen at 20:59
ServiceNow’s governance system can block AI actions at execution.
“we have a kill switch that can revoke the passport for a person, an agent or a robot and block the action at the point of execution”
Listen at 22:19
ServiceNow’s RPO is $30 billion and growing 23%, with subscription revenue growing 21%.
“Our RPO is growing now to $30 billion at 23%, and our sub-revenues at 21%.”
Listen at 25:21
ServiceNow token consumption is growing 13x year over year and 500% monthly.
“we are growing our consumption on this hockey stick of tokens I have out there. 13x year over year, 500% month over month.”
Listen at 26:32
Higher fuel prices are not a major concern for WM.
“I'm not too worried.”
Listen at 28:26
WM is resistant to economic recessions.
“It is recession resistant.”
Listen at 30:06
Autonomous and remotely operated equipment can address WM’s operator shortages.
“autonomy and remote operations with CAD is a great alternative.”
Listen at 30:55
WM will add two landfill-gas plants next year.
“we'll add two more next year.”
Listen at 31:43
Diesel prices will eventually decline.
“I think it eventually reverses course.”
Listen at 32:29
John Morris will be an excellent successor at WM.
“I think John Morris is going to be tremendous.”
Listen at 33:38
Investors should hold Broadcom and buy Coca-Cola.
“I wouldn't shoot Broadcom, and I would buy Coca-Cola.”
Listen at 35:36
Sea Limited is an unfavorable investment.
“that's the Singapore comedy I've been very negative on.”
Listen at 35:57
The aerospace sector is currently weak.
“the whole aerospace complex right now is looking so weak.”
Listen at 36:46
Concept stocks will not rally without a decisive decline in interest rates.
“they're not going to rally unless rates have a definitive move down.”
Listen at 37:23
Investors should choose Martin Marietta Materials in construction materials.
“you've got to be in Martin Marietta Materials.”
Listen at 37:44
Vicor remains an emerging AI infrastructure winner.
“Yes, it is.”
Listen at 38:39
SK Hynix is the leading supplier of high-bandwidth memory.
“SK Hynix is the number one supplier of high bandwidth memory, HBM.”
Listen at 39:56
SK Hynix’s overnight stock gains usually lift American chip stocks.
“If the stock of Hynix is up overnight, there's a really good chance the whole American chip complex is up.”
Listen at 40:23
Micron is a buy despite its strong prior performance.
“making it a buy despite its already terrific track record.”
Listen at 43:26
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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