Oct 6, 2025 · 44 min
OpenAI’s AMD bet puts AI growth and power demand under scrutiny
Mad Money w/ Jim Cramer 10/6/25
The episode tests whether AI infrastructure spending can support AMD’s growth while creating a durable investment case for electricity providers.
- 1OpenAI’s multibillion-dollar AMD chip commitment raises questions about whether projected AI growth will translate into purchases and earnings.
- 2Data-center electricity demand strengthens the case for utilities including Entergy, Dominion, and American Electric Power.
- 3Cramer contrasts enthusiasm for gaming and speculative stocks with evidence that high prices are pressuring consumers.
Don't miss
Cramer links the AI infrastructure boom to a potential surge in electricity demand, making utility stocks part of the same trade.
The brief
Jim Cramer opens by asking whether OpenAI will ultimately pay for the billions of dollars of AMD chips it ordered, making the deal a test of AMD’s growth expectations.
The discussion widens from AMD to hyperscaler spending, Goldman Sachs, Take-Two Interactive, and whether a rally built around video games can extend beyond the data-center trade.
Cramer’s central market connection is power: expanding data centers could lift electricity demand and reinforce the case for utility stocks such as Entergy and American Electric Power.
Caller questions bring a more selective tone, from holding profitable Oklo shares after taking gains to caution around Cheniere Energy and several speculative businesses.
The episode closes on the consumer squeeze, weighing rising beef and restaurant prices against the performance of Shake Shack and broader spending evidence.
What was said on this episode
27 statements · 20 positive · 6 negative · 1 mixed
The market believes OpenAI can afford tens of billions in AMD and Nvidia chips.
“the market clearly believes that OpenAI can afford to spend tens of billions of dollars on AMD's highest-end chips in addition to NVIDIA's chips”
Listen at 1:17
Jensen Huang correctly predicted AI’s major impact and Nvidia’s central role.
“His predictions have been right the whole time. He predicted AI would be seismic and his company would be at the heart of it.”
Listen at 2:45
The OpenAI-AMD deal could generate tens of billions for AMD.
“This deal could be worth tens of billions of dollars to AMD and Lisa Su.”
Listen at 3:34
Hyperscalers should continue spending aggressively to defend against OpenAI.
“I think they're right to be afraid. They're right to keep spending. They have to.”
Listen at 8:27
OpenAI can challenge every hyperscaler’s business with its chip purchases.
“given the number of chips it's buying, I think this company can go after everybody's business.”
Listen at 8:59
Bank of America is inexpensive and its stock can rise substantially.
“Let Bank of America ride. It's very inexpensive. I think you can go much higher.”
Listen at 9:43
Investors should buy Goldman Sachs because its valuation remains low.
“Buy. The stock is selling at a ridiculously low multiple still.”
Listen at 10:59
Goldman Sachs stock will rise substantially from its current level.
“It's going to blow through this level, and you're going to wish that you got in right now.”
Listen at 11:05
Take-Two is the only major publicly traded American pure-play game publisher.
“Take-Two is now the only major publicly traded American video game company that's a pure play.”
Listen at 18:01
Take-Two has attractive prospects before Grand Theft Auto 6 launches.
“That's why I'm feeling really positive on Take-Two right now”
Listen at 18:26
Grand Theft Auto 6 will be a major commercial hit.
“Grand Theft Auto 6 is almost guaranteed to be a major hit.”
Listen at 18:48
Investors should expect delays to Grand Theft Auto 6.
“you should expect delays”
Listen at 19:09
More data-center announcements will drive Entergy’s stock higher.
“I expect more data center announcements that will send this thing higher and then higher again.”
Listen at 22:55
AI data-center construction is turning regulated utilities into growth stocks.
“the AI data center build out requires an immense amount of electricity, and that's turning regulated utilities into growth storage practically overnight.”
Listen at 26:07
Entergy, Dominion Energy, and American Electric Power are attractive investments.
“I like energy, Dominion Energy, and American Electric Power, all three.”
Listen at 26:16
The caller should hold their profitable Oklo position unchanged.
“You've got a really good position and you don't mess with it.”
Listen at 26:55
ExxonMobil is unattractive because of concerns about its LNG terminal-services business.
“I just can't be excited about it. I'm sorry. I just can't be.”
Listen at 27:51
Entergy, Dominion, and American Electric Power will rise gradually.
“I think they're going to go up slowly over time.”
Listen at 28:02
Inspire Medical Systems is not currently an attractive investment.
“I can't give InspireMed my blessings.”
Listen at 34:46
GLP-1 drugs may severely damage Inspire Medical Systems.
“the GOP-1s may be eating them alive.”
Listen at 35:21
Remitly’s immigrant-remittance customer group is currently challenged; investors should avoid it.
“I think that is a very challenged group right now. And I don't think you want to be there.”
Listen at 36:17
Upbound Group’s business model is unproven and unattractive.
“has not been a proven model. I do not like it.”
Listen at 36:44
ConstellationScope stock may experience another rally.
“there may be another run in that one.”
Listen at 37:51
The president could take a stake in USAR Rare Earths.
“we recognize that the president at any given moment could take a stake.”
Listen at 38:16
Investors may speculate on USAR based on possible White House support, not earnings.
“You can play that. Remember, that's what you're doing. You're not playing the earnings.”
Listen at 38:33
The U.S. economy remains robust despite concerns about consumers.
“Right now, we're still seeing a robust economy”
Listen at 41:45
The narrative that U.S. consumers are weak should be abandoned.
“the weak consumer narrative should be retired.”
Listen at 43:22
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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