Mad Money 08/26/26 | Audio Only

My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cra America. I'll do my friends trying to make a little bit of money. My job, not just entertain teaching tonight. Call me 1800 743 CBC. Tweet me Jim Kramer. When the Treasury Secretary caps long-term rates with stepped up bond repurchases, you need to be ready for opportunities. That's pretty much what Secretary Besson has done, at least temporarily. Decent backdrop despite some muted action today. Dow falling 114 points has to be dipping. 02% NASDAQ edging down. 08% but I have a feeling that'll go a little better more. Can it make you want to buy anything that the Treasury sector is doing? This I'm going to go through the process of picking stocks like a professional hedge miner does. I usually don't talk about like a hedge fund manager. I'm tell but I am going to tonight. I was for 14 years. I retired to become a TV personality or person with Pearson TV which is a little more humble and what my wife started calling me when she's mad a mosquito celebrity. When you're searching for stocks to own, you need a world view. That means first a view on the economy and interest rates. You have to start with the boring stuff. You have to start with that because those are essentials. My view is that we're more or less fine. It's a benign moment unless something goes wrong in Iran or Ukraine. Those are the outliers that can cloud my crystal ball. We do have this really big speech coming up from Fed Chief Kevin Marsh, the new guy. That's that annual Jackson Hole speech on Friday. And that can complicate things if he says he wants to raise rates to stamp out inflation. But I don't think you will do that. Not with the Treasury Secretary moving rates. You can't have one guy raising rates, the other guy lowering rates, even if it turns out that one's the short rates and one's the long. So for the moment, I'm taking the Fed out of the equation and assuming rates stay calm, at least for the relevant time period of my worldview. I believe the economy will have a hard time growing without rate cuts. But I also believe that inflation's peaking which could create a lot of opportunities because peak inflation is always good news for stocks. My evidence for peak inflation oil. I see it going down. Okay. Now we got the worldview pretty much free to examine anything we want. I got to pick sectors. I always start with tech. It's the biggest in an environment where we have minimal growth with slowing inflation. Tech usually works. But tech's got a couple issues right now. First, we know the great data center buildouts become politically toxic. I don't think that means the story's done. Once the election's over, maybe we go back to building them. But now it's tricky. Plus, Salesforce just reported a blowout quarter and a huge partnership with Anthropics cla good news for cloud software. More on that later. At the same time, Nvidia reported magnificent set of numbers and the stocks trading higher, 7% revenue growth. Sensor was for 45. Holy moly. We got both Mark Beny, Salesforce.com CEO, and we got Jensen Wong tonight. This is a smoking hot show. But those stocks, here's the problem. They've already soared after hours. I don't want to buy something abused like you'd have to with those two. I I say that's daylight dollar short. So then you got to say, all right, well, what hasn't moved? Travel leisure. Uh-uh. Look at that. Disney Expedia booking holdings. Even my favorite Viking holdings. Boom. Too much. See, they are already up and I don't have a lot of downside protection if I go after them. And you know, you need that. They require a hefty chunk of disposable income. Not ideal in an anemic economy. You see what I'm going down? I'm doing a checklist just like a quarterback trying to figure out looking at the receivers. So, I go back to the drawing board to the other receivers. Maybe it's worth seeing which stocks just hit a 4% dividend yield. Nice protection. Also benefit from cheaper oil. Who does that? Aha. I recall that PepsiCo said it sales have been held back by high gasoline prices. I think they said it four or five times in the call. Oh, and look at this. It now has an that accidentally high 4% yield. Eureka, it fits. I look at the stock, I say to myself, boy, is that low. See, unlike Salesforce, which is high, unlike Nvidia, which is high, I like them low. Some people like them hot. I like them cool. Low versus the historic valuation, too. I know that co Remo needs to get that stock higher. I know they have a good balance sheet. Maybe he's motivated to do something extreme. most important he emphasized four times that you know what in this environment well there's too much inflation again because of gasoline don't forget they have a lot of convenience store sales now that's the genesis of an idea not a position just an idea I walk you through the starting point of the process of trying to buy a stock that hasn't moved with a good yield after you come up with the idea you have to do the homework study the company over many years check ingredients how it's done over many years you don't have to do it yourself over many years see what management has to do and figure out if they'll do it. The bottom line, we have the start not necessarily of a buy of Nvidia that that's kind of up, not necessarily Salesforce, that's kind of up, but for PepsiCo. For me, the question is, do I put this in the bullpen for the charitable trust? And you know what? If you want to know that answer, you got to join the investing club, which while I mole as I watch the trust stocks tonight that are doing well, Crowd Strike, Salesforce, and Nvidia explode into the stratosphere. Let's go to questions. Let's go to Allan in North Carolina. Allan >> booya Jim I'm an 85y old man who has a real problem I love your show been following for 25 years or so I bought thousand shares of MRNA at 54 about two weeks ago it's now 150 what do I do I'm excited maybe you have a charity I can suggest >> well you're very kind but here's what I would do I think that you have to take a little bit off but I have also um because of my daughter who had melanoma and fortunately beat it. Done a huge amount of work on the vaccine and I got to tell you I would hold on to this stock because I think the vaccine is very for real. Let's go to Alex in my home state of New Jersey. Alex, >> hey Jimmy, how we doing? Greens from the Jersey Shore. >> Oh man, you know what? I I got to get down there. My kids are down there and I've been going to this the fancy Hampton stuff. I'm a t-shirt guy. I'm a t-shirt and shorts guy. I got to wear like a suit when I go around the Hamptons. What's up? >> I know how it is, brother. Hey, I'm so I'm calling about a stock my neighbors are giving me concern over. All right. A third of my block rent their houses out in the summer at the shore. You know how it is. >> They're pissed about a policy change that the platform they list on is mandating next month. The 15% fee the company charges renters will now be hidden in owners listing prices, making their rates look more expensive. My neighbors and others are are cutting ties to the company. Should I do the same and swap my 5% of Airbnb with Toll Brothers or wait? Well, I do like Toll Brothers very much, but I have to tell you, I think you're an outlier. As I know the Jersey beaches, they're always trying to figure out how to stop the party houses. I wouldn't worry. Internationally, Airbnb is smoking it. I say you stay long that stock. And thank you, Alex. Okay. A World View helps you find opportunities that work for the moment. Pepsi is one. It's kind of what I'm thinking. It's real down. It's got a 4% yield. Unexiting? I don't care. Stay tuned to see what we do with it for the trust, man. Money tonight. Salesforce is on the move after earnings. I'm going one-on-one with the CEO to find out the latest on the quarter. Then, as I mentioned, the most important company in the market just reported earnings. I've got an exclusive with CEO Jensen Wong. I don't think you want to miss that, do you? And William has been one of the best performing retailers this year. Well, how's that happening? I'm going to find out when we talk to the company's top brand. So, stick with Kramer. Don't miss a second of mad money. Follow Jim Kramer on X. Have a question? Tweet Kramer #madmentions. Send Jim an email to madmoney@cnbc.com or give us a call at 1800743CNBC. Miss something? Head to madmoney.cnbc.com. Look at the stock of Salesforce run. After the close, the cloud software Kingpin reported a gigantic blowout quarter also out a major expansion of their partnership with Anthropics where they'll be embedding their customer relationship management software in Anthropics cla Wall Street was terrified that companies like Salesforce will be eaten alive by AI competition. But this partnership puts these worries to bed maybe permanently. Earlier this afternoon, I got to speak with Salesforce co-founder and CEO Mark Beni off and anthropic co-founder and CEO Dario Amadec about their new partnership on closing bell overtime. But now I want to bring Mark Beni off to go into more detail on his amazing quarter. Mark, welcome back to Mad Money. >> Jim, it is always great to be with you and uh welcome and thank you from San Francisco. >> All right, let's just go right to it. Mark, this was a fantastic second half acceleration guidance moment because that's what people are worried about. Is it going to accelerate? Tell us how come you're able to accelerate the way we uh had hoped. Jim, you know this SAS apocalypse narrative has been such nonsense. I mean, I've heard you say it yourself many times. And here you can see, Jim, net new AOV growth is the strongest in four years. Skeptics said seats would decline, Jim, and agent force sales and service and Slack all grew seats year-over-year. Skeptics said customers are going to leave and attrition is near its lowest level ever. And Jim, skeptics said pricing power would erode. And here we are with our A1E and A4X bundles. Bookings more than doubled quarter over quarter. And Jim, contract length terms improved across all segments, new business and renewals. Agentic use of the platform has surged six times. Six times, Jim. Because agents are using more Salesforce than ever via our model contact protocol calls and apps are not dying. They are growing. Nine out of the 10 top AI companies, most of them are within one block of us here as you're going to see at Dreamforce. Jim, nine out of those top 10 AI companies use Salesforce and Slack. Their spend, Jim, 435% year-over-year growth. Frontier models depend on CRM. They don't replace it. You just heard from Daario, the covenantropic, the number one AI in the world, how he's standardized on Salesforce, uses it every day, and now together we've built Claw Force, so you can build the next generation of enterprise apps. >> Some of the nonsense I heard, let's let's Hey, while we're on a roll here, let's defeat all the nonsense. People said, "Slack's not working that well." This was blowout Slack. >> Sl Jim, I I can't describe the success of Slack. It's like nothing I've ever seen in the industry. We saw some tripledigit bookings growth from Slack in the quarter. But you can see the numbers are just awesome. And it's because every new company in AI is built on Slack. Slack also. We also got some great replacements. I was just with one of our customers, Nike. Great company. I love the products. I use them every day myself. They're standardized on Slack. General Motors is standardized on Slack. Um we're having just tremendous success uh with Slack all all over the place. Incredible. >> Now these new customers are are quite exciting. Look, we could start with FIFA because World Cup just happened. Cisco, the SY kind because they're the largest >> also standardized on Slack. >> Exactly. And then but I want to mention one that many of our many of our viewers use and I think they're going to be surprised that you and Robin Hood have teamed up which I know from the very beginning it could happen but now is a reality and I'll tell you about Robin Hood. Well, first of all, you know how I feel that Vlad is, you know, I think very much the Steve Jobs of our time and financial services. I have never met an entrepreneur quite like that before. I've known him for a long time and you may remember he went through an horrible crisis but it transformed him. He became a great executive and yes he's standardized on Salesforce and he uses Slack as well and you know I I have a huge amount of respect for him and the company and everything he's doing. It's so exciting and I'll tell you it's not just Robin Hood in financial services. It's many other companies as well who've all made these deep commitments to Salesforce like JP Morgan, like Bank of America. All of the largest financial institutions, Jim, are built on Salesforce. >> Department of the Army on top of uh what veterans these are very big contracts. >> All 15 of US agencies use Salesforce. And you're right, the Army runs it. And we're also rebuilding the IRS as well. I mean there's huge opportunities for efficiency and automation inside the US government and the idea that we can start to take and advance some of those older systems and update them to kind of these AI based systems like Salesforce. This is a tremendous opportunity for the US government. I could not be more excited. You know the secretary of the army took me aside and he said I have completed my recruiting four months early because of Salesforce. So, not only do they have human agents, he hit his numbers four months early. >> The folks who he hit his numbers four months early. >> It's very hard to do >> because not only does he have human agents, but he also has AI agents. So, he's able to recruit more people than ever before. And now, human resource command in the army, they expect to drive 55 million agent force conversations every single month. No. >> 55 million, Jim. I mean, that's be all you can be. >> I like that. Yeah. You're an army of one yourself, Mark. Now, the one thing I when I listen to these contracts, the first thing I think of is it can't just be your silo. It can't just be sales. You must be doing things that the other guys you you must be taking share inside the organization from some of these other companies that maybe really are a little more sassized. >> Well, Jim, I'm super excited about, you know, the success of Salesforce's ITSM product. You know, what we're doing in IT systems is very exciting. We have more than 450 companies now on Salesforce's ITSM offering and we had a huge um conversion uh this this month from service now uh from McAfee. So I think we're going to have a lot more as well uh to talk about but we're very excited in ITSM and service overall is a huge area. I think you know I've done more than 5 million autonomous service completions myself using agent force. Jim, if you just look at help.salesforce.com, you can see that and for the 5 million that I completed, well, 2.5 million that required humans were auto escalated from the AI agent right into the human call center. That's really the way it should happen. That was really a powerful moment for me to seeing, you know, that this is really working. >> Now, speaking of really working, we had a chance to speak with Dary earlier. Uh, this is anthropic. A lot of people feel like the reason why they were afraid of being in Salesforce was because of Anthropic. I think what they should be afraid of is being in a company that is not Salesforce because this does sound like a very good tie-up. I know it's the first of many. I know that it's not necessarily exclusive, but it's going to be very additive in the future because you might not have those customers otherwise. Jim, you have to remember Salesforce is first and foremost in the data business. We're helping our customers to build data lakes to integrate their data, federate their data, harmonize their data. You may remember Jim, we bought Informatica last year. That data foundation is critical not only to Enthropic, but to every single one of our customers. And then we have in the applications business too in sales, in service, in marketing, in commerce, in analytics tableau that you know so well. But those applications are not just applications anymore. They're also semantic foundations for these AI models. These AI models need this level of intelligence, security, the controls for users, what we call user models, sharing models. And then we put the agent model on top of that. And then this new UI, you mentioned it, cloud force. >> It can bring all of that together and release all this trapped value that enterprises have had in their systems. all can get revealed in this next generation AI user interface and that is going to take the investment that all these companies have made. Yes, you made you mentioned FIFA, Deutsche, Telecom, Army, Athena Health, Uber, all the ones that we closed this this quarter or this year. Let me tell you what's going to happen, Jim. By putting cloud force on top of these systems, they get another level of value, another level of capability. They can build all kinds of next generation applications that were just never possible before. >> Well, no, this is it's a great combination. Now, Mark, I'm glad that my chapel trust owns Salesforce as it has for I don't know. I mean, when did we start the char trust? I want to thank you for coming on. I want to congratulate you for a great course >> since 2009. Jim, I think you had me on the show. I don't think we've done a billion in revenue yet, Jim. >> Now, we're doing almost 47 billion in revenue. >> Nice work, Mark. It's been quite a >> Thanks for your support, Jim. We're so grateful to you. >> Of course, Mark, and right back at you and we'll see you. I'll see you at Dreamforce. >> Jim, you're you're going to love what's going to happen at Dreamforce. We have incredible things to talk about. New products like >> like Claw Force, Slack Code, and a lot more there. >> I can't wait. Thank you so much, Mark. Benny, have come. >> Bring your whole team. We can't wait to see all of you. >> I'll bring my wife. Why not? I mean, let's really go there, huh? Okay. >> Bring everyone. Mark is the co-founder, chair and CEO of Salesforce. Congratulations, Mark. Great to see you. May back after the break. >> Coming up, when Invidia reports, the world listens. So listen up because Jensen Wong is speaking with Kramer. What exactly does Nvidia need to do to impress this market? Tonight we got that answer that because when the world's largest company reported it was a magnificent top and bottom line beat both sales and earnings more than doubling year-over-year and management saying they expect 70% revenue growth in 2028 fiscal year. That's the next one. That's incredible. Just incredible. Oh, initially the stock sold off but then it started soaring. Can it keep running? Let's check in with Jensen Wong. He's the founder, president, CEO of Nvidia to find out. Mr. Wong, welcome back to Mad Money. >> Hi Jim. Great to see Well, I got to tell you, Jensen, tonight was a very exciting conference call and one of the reasons was you did something you guys never do. You gave a forecast about revenue that was frankly blowout. You expect to grow about 70% in fiscal 2028. The street was looking for roughly 45%. What gives you that confidence? And how the heck could you do it? Well, it's not easy, but uh let's say first of all, demand is super strong and incredibly it's accelerating. You know, obviously we're already a very large company, but to be able to grow continuously and now to accelerate our growth is pretty extraordinary. Now, what's happening underneath the the things that are going on number one is that AI is now useful. It's doing productive work and the tokens that are being generated by these AI labs are now profitable. people are paying good money to use it because it's really productive. It's helping them, you know, do things and be more productive and and so the amount of tokens they want to generate is increasing because of use. The amount of tokens they're generating is increasing because the AI models are more complicated. And then now because it's profitable, they have so many more customers want to use it. The thing that's holding them back is compute. And so that's literally one pillar of what's happening in our business. And then after that uh we're seeing AI being adopted all over the world. Every single country wants to get involved. Every country needs to every company wants to get involved. And so half of our business is in the hyperscalers and the other half of our business is everything else. It's neoclouds and sovereign clouds and enterprise companies. And all of this is all growing at the same time. And this is all happening of course at a time when we're rolling out Vera Rubin, our next generation product. It's going to be the fastest ramping product in our history. It's really exciting. >> I want to go back to what you said about an asset we call compute. When I was at Goldman Sachs in the 80s, someone said, "You know what? We ought to bundle a lot of auto loans, make them into an asset." Everyone laughed, thought it was really stupid. It's now the second biggest market. I think compute, what you're talking about with the 500 billion, the people who are getting together on Wall Street, comput one day, don't you think? >> Oh, no question about it. Uh first of all this is not compute as in your cell phone or your your PCs um that are that the moment that you buy them you know it's it's becoming obsolete. Uh this is part of your infrastructure and it's productive infrastructure. It's making money for you. One of the things that's really different about Nvidia is that we are funible meaning that you can use NVIDIA across the entire life cycle of AI from data processing pre-training post-training all the way to deploying the AI agents. That's number one. Number two, we literally run every single model. We're the only company that I know that runs every single Frontier model, every closed model, every open model. It's built on Nvidia. It runs on Nvidia. And because of that, we're fungeable. You could use us across all these different use cases. And because we have so many developers, our ecosystem is so large and we're used all over the world. The asset is durable. It's long life. It's fungeable. And therefore, you know, it's rentable. People are renting it for great money these days. And so that's that's the reason why it's an investable asset. >> Did you even know at one point that your say 2023 edition might be worth more uh now than they were when they came out? Like some sort of fine wine. >> It is true. In fact, uh this it's some of the CSPs have already been talking about that that that the the infrastructure that they paid for um paying Nvidia's uh prices that they built is now worth more than when they first paid for it. Um and and the reason for that of course is that Nvidia's architecture is softwaredefined because of CUDA. Our software is getting better all the time. We ship the hardware in the beginning. We we sell you the hardware but we continuously improve the algorithms underneath so that the machinery gets better and better and better over time. So over over the history I think um Cororey Weave Mike over at Cororeweave recently said that A100 is going to be sold for nine years of its life. And the thing that's really incredible is during that nine years time, even though the hardware didn't change, we improved and introduced all kinds of new algorithms and software that we continuously enhance that infrastructure completely for free over over its entire life. And so that's the reason why the hardware what the infrastructure just seems to get better and better and better over time, just like just like fine wine. >> All right. Now, that cures one misperception, which is that yours were supposed to be written off in three or four years. That let's take that off the table. The other thing that bothers me, it kind of wrangles me is that I read in the journal, Nvidia has become a banker of the AI boom, putting in putting it on dangerous ground. If dangerous ground is investing in on the ground floor of some incredible companies, well, I I want to be dangerous, but is it possible that maybe the we should distinguish between the investments and the backs stops and help me to try to figure out where this kind of story is just plain wrong, frankly. >> Yeah, I think they're missing a very big point. First of all, um, this is the first generation of startups that needed tens of billions of dollars to get funded. When was the last time anybody heard of a startup that needed billions of dollars to get off the ground and needed tens of billions of dollars to become profitable? That just never happened. But that's really the nature of AI. The cost of building AI, the cost of deploying AI, just it's very capital intensive. And there are several companies, these Frontier AI labs that are once in a generation companies and we want to be investors in them. We want to support them. We want to be a partner to them. We would love for them to build their ecosystem on top of us, of course, and then scale up their business along with us. And so the opportunity to invest in them in the beginning was a great opportunity. Frankly, I just wish I invested more. And now that they're scaling up, the tokens they're generating are profitable, their services are profitable, the number of customers is is growing incredibly. The only thing holding them back out now is compute. But even during this time, they're not investment grade. They just don't they don't have the track record, the the capital track record, the financial track record to be able to capture or secure uh capital at a low cost. And this is where Nvidia could be helpful. we could be supportive of them to help them grow at a time when everything they make, their tokens generated are so profitable. This is really the time when we can help them with their flywheel. And so, as far as I'm concerned, this is one of the best investments ever. It's a once in a generation, once in a technology generation opportunity. And then this lastly, the risk for us because of the nature of Nvidia's architecture because it's fungeable and it's durable. the risk to us is still in the worst case scenario. We'll just use it for another customer in another use case. And so um I think the backs stop is is um uh we're thoughtful about it. We're disciplined about it and we're supporting extraordinary companies as they're becoming profitable and as we know uh you know there hopefully they'll be soon there'll be there'll be public companies and people will all get the opportunity to see you know what we see and why we're so excited about them. And but anyways, this this is a really great investment and I think the risk is is low. >> Okay, let me ask you something. It's a kind of a personal question. If if you gave me, let's say you invested $30 billion in me and then I called you and I said, "You know what? I the whole time I've been working on on something a chip that I think could really hurt you. It's called jalapeno. I don't know. Let's call it, I don't know, tomatillaa." And you said to me, "Well, that's fine." Would you really say that's fine? is I personally would be hurt if Open AI did to what they do to Nvidia if they did to me. >> You know, I'm okay with it, Jim. I There's so many XPUs that are being announced and as we know, it's not easy doing what we do. We've been doing this for 33 years and so lots of projects get started, a lots of projects get gets cancelled. Um, we're we're here we're here to support our partners and and um we're going to build the world's best technology. I have every confidence in that. Uh, we're going to be the most productive infrastructure that they have. I have every confidence in that. Um, we have the supply chain and the technology scale to be their largest supplier. I have every confidence in that. And so, you know, I I don't I don't have to take anything personally because I've got so much confidence in what we we're able to deliver. And look at look at all of the XPU announcements and all the startups that have been announced. And yet today, Nvidia is increasing our market share of the AI market. We're our growth is accelerating. Our technology leadership is extending. And so I'm very comfortable with all the competition. >> Okay. And I also thought it was interesting, you know, Andy Jass, he loves you, okay? But he's all building his own chips and good for him. But when they wanted to expand Amazon Web Services, they they bought two million more Nvidia GPUs. That's quite a commitment from someone who uh in some places is considered to be a competitor. They're going to buy 2 million GPUs. They're going to buy millions of CPUs and they're going to uh build their robotics fleet on Nvidia's physical AI systems. They're going to host Nvidia's Neotron open models on Bedrock and Sage Maker. Yeah. So, this is going to be a great partnership. Um, you know, I I think it's just really important that people realize that Nvidia is the only computing platform that is a full stack AI factory. We're the only computing platform that is in every single cloud on prem at the edge and sovereign sovereign AI clouds and neo clouds. We're the only platform that's in that way that's everywhere. And because of that, we attract all of the world's AI startups. In this last six months, $400 billion dollars of venture capital went into startups because of AI. This is a once in a generation technology platform shift. Everybody wants to be part of it. $400 billion of investment into AI AI startups and all of them are probably using Nvidia. And so if any of the clouds would like to attract any of those AI startups, having Nvidia in their cloud is going to make make that their clouds much more attractive. >> And so I and however you think about it, whether we have the best technology, the most productive technology, the most rentable technology, you know, in every single case, Nvidia is a great partner of yours. >> Hey, let me ask you something. uh because I think that you are a leader of all those different companies you mentioned whether it be the 50% that is not hypers scale or 50% that are you're the leader would you offer us a code of conduct for your customers so that they don't do crazy things they worry about water more they worry about air more they worry about electricity more so that we could say listen we're good citizens you should want us we we because I think you're the only person that has the gravitas to do We have to do a better job the technology industry um the builders and have to do a much better job working with the communities to get prepared for this AI infrastructure buildout. Taking a step back, this is America's great opportunity. This is an extraordinary opportunity. AI data centers, AI factories are generating so many jobs all across America. Hundreds of thousands of jobs. They're improving communities because they're bringing a lot of tax dollars. They're bringing a lot of economy into communities. It is also the case, this is the first time in probably the last century that we're able to invest in sustainable energy, invest in improving our energy grid, securing our energy supply, reducing the cost of energy across the country. This is the first time in history that we're able to do that because of the enormous market dynamics, the market forces that are able to invest in the energy ecosystem. It is the reason why all the energy company stock prices are up and all the power generator stock prices are up. I mean, everybody is doing well because we are helping United States, helping America enhance its energy position. And so, I I hope that people take a step back and realize that this is creating jobs. is going to re-industrialize the United States. The manufacturing sector that we've lost over the last 50 years has an opportunity to come back. And then lastly, a great opportunity for us to invest in America's energy sector, our energy grid, like we've never been able. >> Well, it does sound like it's gotten too political, right? I mean, it's too political. We should just be take the moral high ground. Another big country that's our competitor is not, I think, when it comes to the environment. This is our chance, right? This is our chance to do it. It's also our chance if we do open source to go against that other in a competitive way that that again that I think environmental destroyer that is China. This is our opportunity for world leadership, isn't it? >> There's no question this is a great opportunity. Hey, listen. This is a technology that was invented here. This is a technology that has been advanced here. We have to make sure that our communities, our society, all of our companies, all of our people in the United States embrace this technology so that we can take advantage of what this technology could do for all of our ecosystems, all of our economy, and all of our societies. And so this is one extraordinary opportunity. We can't we can't allow AI to not diffuse across all of the industries, right? We must we must make sure we embrace this technology, adopt it, and take advantage of it. Okay? Otherwise, we're going to get left behind. >> I know. Now, Apple, a company I know you have tremendous respect for it. Uh they felt like you that their stock was very undervalued. I mean, yours is selling arguably at 16 times 28 earnings. That seems ridiculous to me. Is it time to make that buyback much bigger than the roughly $98.5 billion left to buy? Why not double that? Why not do what Luca Mistri did? He's such a great CFO. You have such a great CFO, Colette Crest. Huddle with her. you know, just huddle with her and come up with a number more befitting of how of how cheap your stock is. Best investment of all these things you're talking about. >> We we are going to I appreciate that. Um we are going to uh uh return cash to our shareholders. We're going to buy back stock um and buy back stock uh all the excess cash net of what we need for strategy and operations. And we are going to generate a lot more free cash flow next year than this year. >> Oh, good. >> Furthermore, furthermore, um, this year we have several very large investments and those large investments in the AI labs are not going to repeat. You know, the opportunity for me to invest in these frontier labs is not going to happen again. And the reason for that is because I expect them to go public. And so our the money we've invested is going to get is going to generate tremendous returns. Um, but I doubt that I'll have the opportunity to invest more. And so next year we're going to have tremendous amount of free cash flow. Uh we this last quarter bought back 60%. And we're going to increase that uh going forward. So so I I think uh I think we're we're we feel the same way. Um buying back Nvidia stock is a tremendous opportunity, >> cheapest asset out there. Well, look, Jensen, I wanted to thank you. Just a remarkable quarter and thank you for explaining all that stuff about you being the financier. I mean to me, you've been one unbelievable investor in all the years I've known you. You've got the best record of all of everyone I've ever talked to. So why shouldn't you do investing? Thank you so much for coming on the show. I really appreciate it. It's great to see you, sir. >> Great to see you, Joe. >> Excellent. Okay, that's Jensen Wong, CEO and founder of Nvidia after a quarter. That only takes it to $219. Are you kidding? I can't believe where this stock can go and I'm so glad that I still believe. Own it. Do not trade it. Jensen Rock Money's back after the break. Heat. Heat. Coming up, he's the fastest mind on Wall Street, so we're putting him to the test with your help. Bring on the lightning round. It is time for round by car and then the lighting round is over. Are you ready? Ski don live. We're going to start with Jack in Pennsylvania. Jack, >> good evening to you. Jim Kramer, big booya to you. Fantastic show, fantastic book, and you do a fantastic job. >> Thank you very much. Thank you. >> My hats off to you. Uh my your take on Billion 21 B LN, please. >> You know, we we did a big piece on this and we decided, you know, it's pretty darn good company. I know it's expensive, but you know what? Look, genetic diagnostic. I mean, that's what I used to go to Dan her for. I think you got a good one. Let's go to uh Moses in Texas. Moses. >> Booyah. Jim. >> Booyah. >> Hit me. >> Uh Jim, I Yeah, I'm checking on Ethon Pharmaceutical. E N. I got the stock at 30. Now it's at 65. Is it the time for me to cut it off or does it have more potential? I >> I I I think you take some profits. I mean, they've had, you know, look, they've had an exciting run. Uh, they they do have stuff. I mean, it's not like they're like they, you know, they're it's a biotech that's been a winner. Okay. I like to take a little bit off of the biotech winner and then let the rest run. Mark in New York. Mark, >> hi Jim. Thanks for taking my call. >> Of course. >> Uh, I'm calling regarding Babcock and Willox. Kicker signed BW in mid. you introduce I don't know why I know but they're not losing they're they're losing so much money I thought that things would turn when we had Kenny on you're absolutely right I got to get him back on okay I get Kenny back on you know he told a pretty good story but so far the story has not panned out so you have absolutely every reason to say I owe you one and that's what we're going to do let's go to Bruce in Pennsylvania Bruce >> how you doing Mr. clamor. It's >> I am doing well, Bruce. >> Oh, same. >> Uh, but I was going to ask you about the Smithfield Foods, what you thought of them. >> You know, it's a very inexpensive stock, but it's it's like this is a commodity product, but I am willing to bet at eight times earnings that you're not going to lose money and you could make some money with a 5.6% yield. And uh let's go to Steve in Florida. Steve, >> who are Jim, long time listener, >> I'm so glad you called. >> That's a long time. Okay, >> we're looking at this consolidator. They're putting together an industry. They got a proven CEO that's done this before. What's going on with Brad Jacobs and QXO? Okay, first of all, I think you should buy it. I'm just going to say that point blank. I mean, he's putting together a conglomerate for building products, uh, mostly roofing at a time when people hate building products. But what happens when the Fed finally has to cut rates because housing's so bad, which I think can happen. Well, I'll tell you what happens. That stock goes from 14 to 24. That's why I think you should own it. Let's go to Mark in California. Mark, >> Jim, greetings from Northern California. >> Oh, thank you. I miss it very much out there. What's going on? >> Uh, I just want to say thanks to you and your staffs. You guys are great. My question today is about Holdings. The ticker is an American >> wiring company. Well, you know, look, here's, you know, look, I've been dealing with this, uh, the slowdown of the data centers, you know, that comes from political approval. Uh, but this is a very interesting data communications company that's been brought down recently with it, and I don't think that makes sense. I think you've got a good one. And that, ladies and gentlemen, we're pushing up the lightning round. >> The lightning round is sponsored by Charles Schwab. Coming up, was William Sonoma able to design the beautiful quarter? Kramer's asking the CEO next. At this point, we got results from one of the best performing retailers of the year. It's William Snowman, which is also the parent company of Pottery Barn and West among others. They posted a healthy top and bottom line beat raised fullear forecast across the board. But initially the stock sold off hard. That was wrong. It opened down 5%. That was stupid. Uh because the stock was already up 31%. Maybe that's what was going on. Or maybe somebody didn't understand the noise from tariffs. Eventually though, buyers came around. Stock finished up 1% for the day. So let's take a closer look with Laura Albert, the president co of William Sonoma to learn more. Miss Albert, welcome back to Man Money. >> Thanks. >> All right. So Laura, I was going to ask you like what how's William Sonoma doing during these headwinds and broadbased strength. No, I'm going to cut to it. I think I need you to speak to something I've never point dish about. Isn't it because doesn't everything start because the quality is the best. >> I think so. I mean, I think you know customers know what they want and they want furniture to last from us and they they want great design. They want us to be relevant and they want to make their decorating process easy, not intimidating, but easy and fun. And you know, there's a lot of different looks out there. And what we are doing well is delivering on many aesthetics um and very high quality furniture and accessories and homegoods and housewares. And I think a big part of that is that, you know, we are developing the product oursel. It's our designs and we're going directly to the factories. There's nobody else involved. So the costs are great and the bigger we are the better the cost we get and the customer really notices. Now I like this that in terms of the growth initiatives one of the things channel excellence we all want that business business brand heat what's brand heat >> brand heat is you think of us when you think about buying a new bedroom set you think about us when you're having a dinner party you think about us um for your new um home office and you're we're top of mind and we also are the kind of um store that you want to just go in and browse you know you want to smell you want to see what's do and you think of us as your brand. And the great news is you might not have to you might not think of every one of our brands as your brand, but I guarantee there's a couple that really resonate with with most of our customers. And we see that in our data and um one one of the ways we've done this is, you know, the amazing service in our stores, the stores, the billboards. People love to come in. They're interactive. And then of course um the product and the storytelling online and cataloges and you I think retail is great when it is dreamy and it takes you away and it makes you think of a different time and it creates memories and sense of place and that's what we've been really working on. We've been working on the product. We've been working on the service and the quality but also the storytelling. the storytelling is equally important and that is something that I think we've done a better job lately um of than we were before and that is also what's attracting many new customers back to our brand new many new customers to our brands and then bringing people back to our brands. >> I think we should mention uh you're digital some other companies are digital but if I really want to pay up for something I got to look at I got to sit in it I got to see how it looks like in my room. I've done that with your stuff. Digital first not digital only. >> Right. So we do, you know, more volume online, but of course the stores give you the sense of the quality. So you can sit in a sofa in Potterburn and know that that's going to be the quality of the sofas even though you might not see the exact sofa you want. But you know, we also have swatches. We have wood swatches and all sorts of different materials in our stores. So that even though the store is not so big that it houses everything, they do really help you make those decisions better. >> All right. So I do want to put uh paid to this tariff issue. I I don't think that you It's a little bit noisy. I want people to understand who are trying to figure out whether to buy or sell the stock. It really didn't impact the the the company's bottom line the way a lot of people might have thought it would have. >> Yeah. I mean, we just decided, look, we're thrilled to have the money back. We are really proud to pay our stakeholders back. It's a big deal for us and people really stood by us and our vendors. I mean, they gave us discounts. They were there with us. We had to resource move things around. They helped us move things around and to give that money back to them. I mean, they can't believe it. I don't think anybody else in the whole industry is doing it. Frankly, I haven't heard and frankly it doesn't matter. I think it's the right thing to do. And at the same time, to be able to say thank you to our eligible employees who did such a hard, you know, they did so much good work and managing this and mitigating costs and doing without and to be able to give them, we gave each employee who is eligible $1,000 gym in their 401k. If they didn't have one, we opened one for them. And that is a >> that's pretty darn good. >> It's a big deal. It was $10 million. And that's a huge deal. And the other thing we decided that isn't as common is we decided to non-Gap it. We just wanted to we think our investors like our transparency. And so we just wanted to put it in a nice little package and put it over here so you could see the earnings without it. And so that next year you can also have an easier compare and not try to muddy other things with it and try to, you know, tease it out next year. So, we did non-Gap it and maybe that caused confusion. I don't know. But I think it's the right thing to do and I'm proud of of, you know, what the company has done with the money and for the rest of the money, you know, we'll see. We have always invested in our future, right? We've been able to cash flow and we've we have a great balance sheet and we invest um where we need to invest and we've had great ROIC and this allows us the opportunity to do a little bit more if the opportunities come, but we're going to be disciplined. We're not just going to spend it for spend sake. And uh you know it's it's a big deal. I I really I really am looking forward to the tariff stabilizing. >> Excellent. >> If they just stay in one place, it's going to be a lot easier for everybody, including our investor. >> I think for everybody in business. Now, we we know Pottery Barn, we know William Sonoma, we know West Elm, maybe it's a parlor game, but uh Non-Gap, my wife, uh Rejuvenation, could that be the next brand that we think of as a major flagship brand? >> I I mean, it's it's a lot bigger now, >> right? I mean, should we be thinking that's the one? >> Yeah. I mean, I think so. We don't have that many stores. We can have more stores. It's growing double digits. It's profitable. It's unique. And it's just it's very it's beautiful, high quality home parts and hardware. And, you know, they do have furniture and really beautiful bedding. That's, you know, it's the one dining table you'll ever need to buy. You know, mindsets. Very beautiful product. And we keep adding different house parts and completing the whole look. And I think the reason people love it is, you know, when you redo your kitchen and then the adjacent rooms, you want all the finishes to match. You want the brass to be exact. And because we're finishing it in Oregon, we're controlling the finishes. So you're not you don't have that slightly off color when you put it together from other people. That's the big deal. That's why trade loves it. That's it's a big trade business for us to rejuvenate. >> Okay. Well, look, I do hope you we see it in stores. Maybe Simon Property Group. There's a lot of those great ones around and they do have places to put you. I want to congratulate you again on a great quarter and so far a fantastic year. That's Laura Albert, the president of William Sonoma. Laura, I love it when you come on. Thank you so much. >> Thank you, Jim. >> Absolutely. I like to say there's always a more market somewhere. I promise I'd find it just for you right here on Man Money. I'm Jim Kramer. I'll see you tomorrow. 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