Mad Money w/ Jim Cramer 9/18/26

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1:18Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. I don't want to make friends. I'm just trying to make you a little extra money here. My job is not just to entertain, but to teach you. So call me at 1-800-743-CBC or tweet me at Jim Cramer. At last, a quiet week. Even if we didn't gain any ground, I'll take it. Some called it a waste of cab fare and five clean shirts. I love that line. I couldn't agree more. And the volatile closeout with the Dow ultimately dipping 95 points just to be advancing 0.17%. And the Nasdaq rising 0.39. Left us thinking good. And only 12 more days of the hardest month of the year.

1:57Then again, next week may be more of the same. Only a few big companies are important. There's one incredibly important and I think positive analyst meeting that I'm going to cover in a moment. Me? I used the tranquility as an opportunity to go see the exciting new phone launch at the Apple Store in the base of the old GM building today, Midtown. And I was wowed by the iPhone 18, mostly because the bane of my existence dimming battery life. Get this. This new phone gets something like 36 hours per charge before it runs out of juice. The pictures are incredible to me, at least. They look like the professional grade.

2:36But I had the chat sheet between that stupid word aperture that I see all the time because it's one of those terms like misalign. I mean, what does it really mean? If I were a photographer, if I was an aficionado, I'd be dying for this phone. I bought it for the battery life, admittedly, because I'm tired of living in fear that my phone's about to die just when the Eagles score a touchdown and I can't boast E-A-G-L-E-S on X. I live for small things. While I was at the store, I pulled up with Apple CEO John Turnus and CFO Kevin Parrott to take the temperature of the event. They were confident and excited.

3:12But what's basically a double launch. First this phone, and then a month from now, the Duo comes out. And that's the big foldable phone. That's huge. I think the 18 is incremental, but the Duo is revolutionary. And it could become indispensable for all of you who are watching. I got to play with the Duo yesterday. It was kind of astounding. I mean, first, it may be foldable, but there's no crease. I mean, none. I mean, you can't tell. You can't tell it's in one part. That matters because I think if you looked like it was two pieces, it would not be as graceful, Elliot, and it would certainly be distracting.

3:45The screen, gorgeous. The resolution, better than anything I've ever seen. Oh, and those of us who don't like our Kindles because we like turning pages, it's got a page-length screen that lets you do it, like a hardback. It's so impressive. I told both Parekh and Ternus that I intend to buy the Duo as a second phone. That's right, two phones. I can't imagine it ever being off when I'm working or when I'm traveling. I don't want to hop off to take a phone call. In fact, when we get Starlink on an airplane, I say, I bet you'll be able to watch anything perfectly on this pocket screen that unfolds into a very exciting mini television.

4:21I have missed so many Super Bowls, so many Game 7s, that this device may be the end of the tyranny of Wi-Fi. It was odd. When I mentioned buying a second phone, neither man seemed surprised at all, probably because the reviews for the Duo are said to be among the best in Apple's history. Of course, they couldn't assure availability. So I do notice that I should preorder the Duo on October 16th. I don't want to wait until October 23rd, the availability date, because who knows if they even have availability at the time. High quality problem, though. I know the cost is high, but I have a 17 Pro Max, and I have a chance to sell when I price it out.

4:58It might go for$800. That's not so bad. If I switch to T-Mobile, which is my orientation, I can get an even better deal. It drives me crazy when you hear all these Wall Street analysts talking about how Apple's new phones are too expensive because of rising DRAM semiconductor prices. Sure, they're too expensive if you're paying full price, bozo. But who pays full price? Do some work. These things are heavily subsidized by the wireless carriers because they're all commodities anyway. CEO Ternus is continuing the Apple tradition of having the product speak for themselves, which I think is a pretty good idea.

5:26I mean, after all, when you turn the cards over, you don't have to explain that a king beats a queen, right? I mean, plus, I'm a kid in a candy store, a Hershey plant, or even an M &M bag when I go to these events. For those of us who live 24-7 on our Apple's device, there's nothing more fun than discussing the new designs with Apple exec Greg Joswiak, whom we all know as Jos. I always talk to him. He's always there. He's fantastic. He's got so many great ideas. I talk to him about 100 per share, and that's my evergreen joke. He always laughs. These products engender. I don't think I've ever seen Jos more excited about an Apple product than the Duo, though.

5:56I don't blame him. I haven't been this excited about an Apple launch since maybe the original iPhone reveal. And that's what I have to say about Apple. Now let's take a look at the game plan for next week. Like I mentioned before, there's not much on the horizon. It looks boring, but we got an action pack. You ever hear like they say, it's a jam-packed day? Like right around like 12 minutes into most shows, it's jam-packed day. I don't say that because sometimes it's jam-packed and sometimes it isn't. Let's start with the most consequential. On Wednesday, we have an Okta analyst, OK? This is it.

6:27Of all the CEOs I had on the show this past week in Silicon Valley, Octa's Todd McKinnon may have been the most enlightening in his own soft, sweet way, actually. He calmly explained that his company specialty, Identity Verification, extends to AI agents, those little gremlins, the ants, the buzz, whatever you want to talk about. He was quite confident he could stop any of these attacks we've been hearing about because he knew the identity of each agent. They do have identities. And once you have the identity, he knows their whereabouts. It wouldn't matter if it was a swarm or a handful. The agents, they'd be stopped.

7:01It got me thinking, how is it possible we have all these real smart people, these AI companies, and they got us all worried about a practical cyber solution? Why don't they, like, talk to the cybersecurity guys? I bet we hear a lot about that on Wednesday. I would do that if I were them. We've got some earnings of consequence, too. On Tuesday, KB Holmes reports, I think it's going to be one more lousy number from a home builder, because how are they supposed to do it well when, like, the Fed's raising rates? I mean, bane of their existence. Mine's battery life. Theirs is like, I don't know, not selling homes.

7:29OK, basically the same thing we heard from Lenar or this week we would probably hear from KB. Wednesday, besides the Okta meeting, we have reports from two companies that are very important to small, medium sized businesses. Cintas, they do uniforms and paychecks. Now, actually, I shouldn't say they do more than uniforms at Cintas. They've got a lot of other things, but it's a pretty good business. Paychecks handles payroll processing and human resources. Both are coming in earnings with a full head of steam. Makes sense. That segment economy remains the hottest and historically won't be hurt by that first rate hike.

8:01General Mills reports, too, one thing I never thought I'd see was a 6.72 percent dividend yield for this very consistent company. But input costs, GOP-1s, processed foods are all taking their toll on the stock, which is how a yield gets so high. What a red flag. I can't recommend it. Thursday, we get results from Darden. OK, what's that about? That's Olive Garden. But anyway, Darden's the parent of Olive Garden and Olive Garden's a gold mine. That said, call me a brinker guy because it's three for me. I like them. They have a smaller, stronger game plan. By the way, that$11 special is very good.

8:33Finally, there's Costco. I report set to the bell on Thursday. Stock's acting poorly and it's a club name and it has not been a good club name. They're having problems getting younger people to re-sign up for membership. The issue, younger people are more likely to shop online at home. They don't really have big houses. and it's this in-store experience that makes Costco so apart from others. And what great samples. You don't eat before you go to Costco. Remember, September is the cruelest month. It's been OK, not great, jam-packed so far. But the good news today is that we are finally oversold.

9:03Yes, officially, minus 5.6. And we may be due for a bounce. But the bottom line, unless the president says something extreme out of pique with Iran, here's hoping we'll have a relatively sedate couple of weeks and get out of this month without it turning into the house of pain. Jason in Pennsylvania. Jason. Jim, good afternoon. I'm a first-time caller, long-time listener. I appreciate everything you do for the individual investor. Oh, thank you, Jason. I appreciate that. In 2014, I bought a position in Minecraft technology. I haven't touched it since. Twelve years later and with the AI boom, that value of my position has increased dramatically.

9:41I don't need the money right now, and I don't want to pay the tax man, but I know what you say about pigs getting slaughtered. Micron reports at the end of the month, the stock crossed$1 ,000 today, but it's still 25 % off its all-time high. Do you think that it's time to ring the register on Micron? No, Jason, I don't. I don't. You're not being... This one sale... The reason I'm saying this is it sells at 13 times earnings, maybe six times that year's earnings. I care about PE multiples, and this is one incredibly cheap stock, which is why we have a giant position for it for the charitable trust.

10:12All right, listen to me. September can be a rough, really rough for the market. So here's hoping we have a state couple of weeks coming up. Wouldn't that be great? On Mad Money tonight, jam-packed, Robinhood has captured the young investor. But what is it doing to keep them engaged throughout their lives? I'm learning more from the CEO. Then is it time to get bearish on capper? I'm coming. I'm going off the charts on this non-precious metal that's integral to the economy. And then Siemens is at the forefront of the industrial AI movement. I'm finding out more from the company's top brass. So stay with Kramer.

10:51Don't miss a second of Mad Money. Follow at Jim Kramer on X. Have a question? Tweet Kramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.

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13:04from its March lows, but it's still not back up to where it was trading in its highs in January. Still, there's a lot going on at Robinhood. Earlier this week, when I was out in Silicon Valley, I got to speak with Vlad Tenet, the co-founder, chairman, and CEO of Robinhood Markets at their headquarters in Menlo Park. Take a look. Vlad, it's been a remarkable time. You have kind of captured what people want in different instruments. You're bringing them all. I wanted to ask you, how much of what you do is literally because people want it as opposed to necessarily what you guys sit back in the room and offer.

13:39I think that it's a good mix of both. I think there's a lot of things where, you know, obviously where customers are asking us for more trading assets, international stocks and things of that nature. And we have an endless roadmap from customers. But there's also things where we have an opinion and a point of view and really nobody's asking us for that specific thing. But we think that's where the industry is going to go, that we believe we can build bigger, better products. So, for example, when you look at tokenization and prediction markets, that was just, you know, we had a view of what we wanted the product to be and we built that.

14:23There is one, you know, Robinhood is working on a lot of stuff. Right. We, just as we were talking, went through a long list of different products, credit cards, Trump accounts, tokenization, you know, U.S. equities. And the way I think about it is there's really one idea that's core to everything, and that's ownership. We believe that ownership is essential, not just because if people are owners, they have skin in the game, they can benefit financially, but also a society where more people own high-quality financial assets is inherently a more stable society. And that's kind of underlying everything that we do.

15:08But how do you be sure that there isn't too much gambling? I know that you and I have talked for multiple years. We don't want to encourage gambling. We can't stop it. We want to encourage investing. At what point do you say maybe some of these instruments aren't right for our people? Yeah, and that's a question that we think about a lot. The thing is ownership doesn't work without healthy markets, and markets don't work without traders. So you need traders. Robinhood doesn't work without traders either. If you think about active traders as a part of our business, it's really the engine room and the foundation of our business.

15:50So the products that we build to serve traders allow us to acquire customers and get them into products that, you know, are perhaps a little bit less sexy but long-term more important. I'll give you an example. there's actually one product that we incentivize at robin hood you probably wouldn't uh guess what it was i do not know we incentivize retirement so if you open up a retirement account at robin hood and you're a gold member you get a three percent contribution match which means every hundred dollars you contribute we match out of our corporate balance sheet three percent and And, you know, our view in that was a lot of people now have gone away from the traditional lifelong employment model where you're working at a company, you know, from 18 years old to retirement.

16:43And so people are moving around. The accounts are much more portable. And there's less reliance on the conventional 401k match. Right. So we want to build a product for that. And that's what we incentivize. But what we've also found is that, you know, retirement ads aren't the best at pulling people in. So we actually get customers from a wide variety of different means, including prediction markets, stock trading, crypto. And once they come into Robinhood, we've actually seen that at relatively high rates, they're adopting all of our products and opening up retirement accounts and building a comprehensive financial relationship.

17:26I'll tell you, it's silly because every time I say, OK, they're doing too much, I think it's too close prediction, maybe too much gambling. I then look at a credit card that you do three percent. And that's better than so many credit cards. I look at the what you're doing at the time. I said, well, that's pretty good. And so this is why I start with this, because I think you are in touch with the zeitgeist of all the people, more people in any other firm who are going to get the trillions of dollars from the generational handoff of baby boom to people who are in Gen Z. And you have what they want, although they aren't even sure what they want.

18:04You offer the vast panoply and the other guys don't, which is what I'm leading to is why you're so darn successful. Well, we appreciate that. I think there's a lot more to do. I think that we look at all the products that we could offer, that we are offering. I still think there's a lot more to do. I mean, you mentioned it yourself. Over$100 trillion in wealth is passing from older generations to younger. And, you know, when we look at what that means, that's an accelerating and very large asset transfer over the next several decades. And, you know, these customers, their needs evolve. So they start out with relatively simple needs, like, you know, they want a place to buy stocks.

18:55Maybe they'll have an IRA. Over time, they'll get more complex. They start asking for trusts, which we now offer different types of trusts. They want estate planning. They want private wealth management, private banking. And our challenge, and I think this is like an exciting one for me personally, is how can we offer these high net worth quality products to the mass market at very low prices? And I think that's an exciting challenge for me because as an engineer and a technologist, you can actually push pretty hard by using technology. It used to be that you had to go into a building with big columns and talk to expensive people wearing suits in order to get some of these services.

19:44They wouldn't even talk to you if you have less than$250 ,000 with their institution. and, you know, with technology, we can make the front door much bigger and open it up to tens of millions of people. But how do you know, I mean, I've always felt that you were democratizing finance, which is when we first had you on, long before you actually, just when you were an app, we had you on, you were definitely about democratizing finance or manufacturing more things to trade, which I don't know whether you, I think, is actually, point blank, a good thing. We try really hard not to push our customers in one direction or another.

20:22I mean, if there's anything we do incentivize, it's retirement with the 3 % match. That said, we recognize also people trade things. And it's not even two different groups of people. It's not like you have the traders and, you know, the safety seekers. inside every person, inside most people, there's a part of you that wants safety, wants security, and wants to make sure your financial future is secure. Then there's another part that does have a point of view and wants to take a portion of your portfolio and put it in different trades. I know I'm the same. You know I say one-tenth should go. One-tenth should be, because I want people to be in, but they want to speculate.

21:05I call it speculation. I think everyone has a right to speculate. Yeah, it's a very human thing. You know, inside every human, there's sort of like a risk-taking part and also a safety-seeking part. And I think that does intersect in your financial life. Well, that's why it's all under one roof, which is good. I mean, I know that people are going to be in predictions markets. I'd rather have it be in a place where it's, you know, a known place. I don't want it to be in some outfit no one's ever heard of. You have the potential for the ultimate killer app that has everything. Yeah, that's right.

21:39And I think that all of these assets, I think, are very, very useful. I mean, if you look at prediction markets and how that ties into ownership, you can directly, with prediction markets, monetize an idea or an insight. So if you have a particular view on crypto market structure legislation, the Clarity Act, we have a market on that. If you have a view on Fed rates, well, you can trade the Fed rate rather than, you know, trading futures or other products that are tied to it. And there's going to be a huge increase in the types of contracts that people trade. Like we're at the very beginning. We're already seeing some diversification.

22:22A lot of people look at it and say, well, this is just sports. It's all sports. but we're already seeing other categories like crypto taking a disproportionate share. And I think within a few years, sports will actually be in the minority. Similar to active trading at large, sports has been a great tool to bring people in, get liquidity, get interest, establish. It's sort of like a wedge. But I think the industry is also expanding far beyond sports. Just one last thing. How are the Trump accounts doing? because we feel passionately about those on the show. And we know that you're one of the key, well, I bet you'd have more money under the Trump accounts than any other firm.

23:05Well, so currently we're the sole broker and initial trustee of the Trump accounts in partnership with BNY, who's a financial agent, and of course, U.S. Treasury and the administration. So this has been a, we talk about ownership being the one idea that Robinhood's founded on. No better way to make that a reality than to start at birth from age zero. You teach the kids about compound interest. You create a connection with the great companies of this country. And we do it at very, very low cost. So the program's been extraordinarily effective. Seven million signed up pre-launch. and just last week we've seen Michael Dell who kick-started this thing with a massive donation from his foundation.

23:55His funds have started rolling out to the children and what we've seen is more and more things are being built. We're going to have a big employer program so employers will be able to manage the Trump accounts contributions to their employees and we're building that out. donors. It started with Michael Dell, but there's also Grin Shotwell, Brad Gerstner, so many others. I think this could be the best philanthropic platform out there. We may have to leave it at that. There are many more things to talk about. We do have to run, though, but I want to thank you, Vlad. You turn on a lot of people to finance, and in many different ways, if you get them in only to save, and you get them with retirement, and you get them to be able to earn a little more on a credit card, I think that's a great success.

24:42and through tokenization. Do it all over the world. Okay. That's Vlad Tent of Chairman, President, and CEO of Robinhood. Thanks for having me, sir. Appreciate it. Coming up, copper has been pushing for record highs, but it may not last for long. Kramer's got the charts to prove it. Next.

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26:41Lately, the price of copper has been hanging around within spitting distance of more of your highs. Normally, that's a sign of strength for the economy because you need a lot of copper for any kind of construction, including the data center. But sometimes the price can get so high that it becomes self-defeating. Have we reached that point now? Tonight, we're going off the charts with Larry Williams. He's that legendary technician and market historian who's been the best in the business since before I learned how to drive. Because he's got an answer to this question that's fascinating. Remember, Larry's had a truly incredible track record with us in recent years.

27:10He called the COVID bottom in April of 2020, one of the greatest calls ever. Everyone else still thought the economy was collapsing. Five months ago, he told us to steer clear of gold before it got slammed in May and June. And now, he says, the coppers entered a vulnerable phase of extreme overvaluation. Lately, commercial hedgers have been selling copper futures like crazy, while both large and small investors have accumulated enormous net long positions. As Larry sees it, this is a case where the public versus the professionals is all about the most important thing you need to know, and the professionals are the commercial hedgers, and he always wants to go with the pros, the commercial hedgers.

27:48What's the issue here? For starters, the hyperscalers have started replacing copper with fiber optic cable, which is both faster and cheaper to use. On top of that, once the Federal Reserve starts raising interest rates, it eventually tends to have a pretty negative impact on commodity prices, although that can take some time to play out, as will the copper being pulled out of a data center. Slow. At the end of August, we heard from another chartist, Bob Lang, who was very bullish on copper. But that was before the Fed got serious about stamping out inflation. It was also before OpenAI and Anthropic started talking about the need for an AI slowdown, pacing.

28:18We're in a very different world now. At the same time, the charts, well, they don't look pretty. First, check out this weekly chart of copper with Larry's valuation model down at the bottom in black. The model shows you the valuation of copper versus the dollar index. Whenever it reaches overvalued levels where the black valuation line goes above the red one right here, it tends to trigger a sell off in the underlying metal. We've seen this over and over and over again in the last couple of years. Some of these declines were a lot more extreme than others. But either way, this indicator reaching overvalued levels has been a pretty darn bad sign.

28:56Whoa. Then there's the issue who's buying copper to send it up to these levels. Take a look at this weekly chart of the copper futures. OK, now this is important. This CFTC's commitment of traders data is down at the bottom. That's the cot report. OK, this is a survey that shows you how large speculators, small speculators and commercial hedgers position. Large speculators are professional money managers, small speculators are home gamers, maybe like you. And commercial hedgers are businesses that actually deal in copper, either as producer or consumer. Larry likes to bet with the commercial hedgers, OK, because they're the ones who best understand the industry.

29:33They're in it every day. At the same time, he's very skeptical of the large and small speculators, especially when the positions start getting extreme. When you look at the bottom, you can see two lines. Black shows open interest, OK? Meaning the total market action, the copper futures. The blue line shows small speculators, generally the least informed. Lately, small speculators have become heavy, heavy buyers of copper to the point where it's driven up the open interest substantially. But the last couple of times we saw small speculators get very bullish on copper, well, it led to some serious declines.

30:06Now, let's take a broader view. This next chart shows you copper versus the commitments of traders data for all three groups. Commercial hedgers are in red. Speculators are in green. and large speculators are in blue. Lowry points out that both kinds of speculators have large net long positions in copper, but the commercial hedgers? Uh-uh. See, they've been the largest net short position in years. Oh, boy, is this important. Who's left to buy? Lowry thinks that both speculators have exhausted themselves and the commercial hedgers aren't going to turn positive with copper prices at their highest level in years.

30:43The commercials are betting that those prices will come down, And historically, Larry says they have a better track record than either kind of speculator. So this is another sign that copper could be approaching its peak. What else is going on here? OK, Larry always looking for patterns that repeat themselves. Now, get this. Take a look at this weekly chart of copper. OK, it's Williams trading cycles. At the past action here, he's detected a dominant cycle that repeats itself every 300 days. We saw it in 2024. We saw it in 2025. And it fits the action surprisingly well. Most of the major moves coincide with peaks or troughs in the cycle forecast.

31:30So what does the cycle tell us at this present moment? I want you to check out the recent chart with the cycle forecast projected into the future. As of right now, copper is at a high point in the cycle, which is about to turn very negative. Given Larry's track record, I would not come in here and start buying this right now. This is where it is. OK, when it gets up to this height, you sell it. OK, gets up this height, you sell it right here. We're at the worst possible level to buy. And everybody's so bullish on copper. How about if we drill down on copper's daily chart? All right. This past week, the red metal completed one of Larry's most reliable patterns.

32:04This copper broke out of a trading range with a new high close, then immediately broke to the downside. Right now, Larry wants to wait for one last short-term rally in the hope that copper goes to overbought levels. Because up there, he thinks shorting it would be like shooting fish in a bow. Here's the bottom line. The charts interpreted by Larry Williams suggest that copper prices are poised to roll over. Given that the Fed's now in tightening mode, I think that makes a lot of sense. When the Fed is no longer your friend, the path of least resistance for copper is lower. Those were some of the most damning charts I've ever seen.

32:39If I were in copper and I sold that, or by the way, FCX or Southern, I guess I'd sell it on Monday. We have money back here after the break. Coming up, Kramer's sitting down with the CEO of Siemens to learn more about how the company is benefiting from the rise of AI. Next.

33:04When I was in Salesforce's annual Dreamforce conference, I got the chance to catch up with Siemens, the German industrial powerhouse, biggest industrial in Europe. Lately, Siemens has been benefiting from the great data center build-out. Lots of orders for electrification and climate control products, and their industrial automation business, it's on fire. I got to dig deep with Dr. Roland Bush, the president and CEO of Siemens, Take a look. Dr. Bush, welcome to Man Money. Thanks for having me. Thanks for having me. Well, I'm so excited. First of all, you are the largest industrial company in Europe, but I think you may also be the most forward when it comes to using artificial intelligence.

33:44Your entire company has been reinvented because of it. Yes, indeed. Actually, our theme is, our strategy is in one sentence we combine the real and the digital worlds we do that industrial age so that means ai is accelerating our strategy and that's super exciting so it's really all about industrial ai that when a non-deterministic technology hits a deterministic world which is the real world i mean we cannot allow hallucination on our shop floor when you automate a plant. So, and that's a big theme, and I believe this is a VFF share to play here, because we know the real world, we know how to automate factories, we know how to build trains, but we also know how to build digital twins, and we can bring this together.

34:30When Jens introduced that idea, I said, well, it's going to be only work for companies that have massive, massive factories to build, and it turned out to be you. It works perfect for you oh yeah absolutely so in we have 250 000 people and siemens alone with house in here 300 20 000 we are we are operating stuff so every i mean actually every third line in the world is automated by siemens technology every third line oh my we know we know your competitors in fact they're a fraction of your size now one of the things that i think is very exciting when you were talking with mark at the keynote yes it is very clear a lot of people think that what what's they're using AI for call centers.

35:13Yes. You know, I did a call center job. I have many friends who have them. But they're not the highest in terms of intellectual property. You, on the other hand, are using it for engineering-grade answers. Now, that's a gutsy thing to do. Is it working? Exactly. And this takes place in the way how you design products, how you manufacture them, and how you operate them. In all phases, you see a tremendous change when you use digital technologies and AI technologies. Let me give you an idea of a design of a product. So first it starts, guess what, with the data. So with Teamcenter, this is our PLM software, product lifecycle management software.

35:58They hold the data. And this is super interesting because number one is most of the models didn't see these data yet. They can even not read them because they are design data, engineering data. They also trace what you changed. Change is super interesting because the model can learn why you changed something. And it's also the serviceability of how you orient the instructions for your manufacturing. So this is a single sort of truth. And if you put now our engineering software on top, you can design products. But with AI and a gigantic AI, you can accelerate. And you really can even learn from your older designs and create new ones.

36:38much faster. It shortens your cycle time and eventually gives you a better outcome faster. Now, I know you do that for others. You do it for yourself. I have to believe that when you save that money, it isn't necessarily a deadweight loss for workers. I think it might be the other. You have an ability to hire and grow and do more things with AI. Oh, yes. I mean, I'm not so much concerned about losing jobs. For me, the point is that jobs do change. So if you're in a position like us, if you grow, you have an opportunity to create new jobs. But once you train your people on using technology, you can really find new jobs, you lose some, that's clear.

37:19But even on the shop floor, when we are running, let me, autonomous manufacturing sites, that's what we are heading for. You will see still people working there. You have a lot of contextualization. You have the human in the loop always. I mean, and even if you have hundreds of robots running there, to some extent, you need to orchestrate them. So, therefore, there will be new jobs. We invest a lot in training and education. And by doing that, you can drive productivity much, much faster. Okay. Now, you have 53 % of your business most recently in Europe, 28%, 24 % in America. Is your goal to have more business in America?

37:55I mean, number one, it's the goal. And number two, we even cannot avoid it. So, it's not the market. You're a diplomat, too. You have many different hats. Let me tell you, the American market is really the fastest growing market. It's not only data center. It's a lot which comes together. Also, they take great on software, new technologies, AI technologies. So we are now in a quarter of our business country in the United States, and this is increasing. Now, which ones, where's the percentage? Digital industries or smart infrastructure or mobility? Are they all in the United States? They're all in the United States.

38:34Really? So mobility, because our country is so bad at rail. Are we going to get better? Yes. Really? With our trains, absolutely. That would be nice. One of our largest manufacturing sites for trains sits in Sacramento. We added a new one now on the East Coast. So therefore, we are investing. We build trains. Amtrak is renewing their fleet with our trains. So therefore, a very strong footprint. but also on the electrification side. We just invested another 200 million in expanding our electrification site for medium voltage, low voltage. So it's a lot of money. Within the last, I think, last 10 years, we invested in, by the way, software.

39:13Our software business is headed in the United States. It comes from a lot of acquisitions. Over the course of the last 20 and so years, we invested 30 billion. Most of that, and just M &A, most of that is in the United States, and we keep on investing here. Well, if you do that, I have to tell you, one of the things I'm going to put a sales pitch for America here. 80 hours are fine. That's what you traded, but very little trade. You should come and list in America, list on the New York Stock Exchange, because you're the biggest industrial company in Europe. And Europe's been, I don't think people realize, but Europe's been red hot.

39:44Yeah. Your market's better than ours. Yes. You have a point here. I sure do. Let me digest it. Look, I want to thank Roland Bush, the CEO of Siemens. You know what? I can't believe I got to meet you because your company is so amazing. Thank you very much. Thanks for having me. Thank you. Man, I'll be back in a moment. 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 next.

40:19It is time. It's time for the Light Bound. It's time for Raph. I'll do it. We'll see you next time. Bye-bye.

40:32I'm going to start with Rick in the museum. Rick. Hey, Booyah, Jim. Long-time listener, first-time caller, and a huge fan. Sensational. Thanks for doing everything you do for investors. Well, thank you for calling. Hey, I'm president of the United Real Estate Company, and I'm involved in all things housing. But today I'm calling about Rocket Mortgage, Rockets facing headwinds for sure in the housing sector. But they have a tremendous mortgage platform, and I think they're taking share. I need to know if I should continue building. I mean, I got to tell you, be honest, look. I mean, the rate hike is the worst thing for these guys.

41:12And, you know, the stock is predicting a rate hike, but now we have to have multiple rate hikes. It's not predicting multiple rate hikes. So therefore I think I cannot recommend this story. I'm sorry. How about Jerry in Illinois? Jerry. Jim, I'm a big fan of your show and CNBC. I try to buy and hold my stock. Last year I purchased this stock after they partnered with NVIDIA. It's called Navita. N-V-T-F. Do you think Navita is a long old time? Right. Special materials, semi. And I will tell you, I think it's a good spec, not a great one, because they're not making money. And I don't like to buy, recommend stocks in a rate cycle with companies that aren't making money.

41:50And Zach, let's jump good at the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, we've learned one big thing on our trip to San Francisco. Tech leaders don't fear AI. We've got a recap next.

42:11Booyah, Jim Kramer. I'm a first-time caller, a happy club member. I want to thank you for being the biggest champion of investment. Thank you for helping me become a millionaire.

42:42I couldn't end today without reflecting back on the great week I had out in San Francisco. While I was out west, AI safety was at the forefront of everyone's minds. And I had one big question. Are we all going to die by 2030? Victims of a hostile artificial intelligence attack? Take a look at the answers. Are we all going to die in 2030? Maybe it won't matter. We're not going to die in 2030. There are so many people in the world who are going to build AI properly. We're going to have all kinds of guardrails, invent all kinds of technology for safety. and security. All of that is happening around the world.

43:19It's not just two companies building things. There are thousands of companies building things. And so we're going to create AI that's incredibly useful. It's going to be incredibly helpful and it'll be incredibly safe. We could have all of that at the same time. We do need to take safety seriously. And if it means we have to pace the frontier and slow down, absolutely. We're going to listen to our researchers and do that. And that's why I wouldn't call it, you know, that we don't need to be worried about safety and alignment. But I think we need to do it the right way to be kind of moderate and pragmatic about it.

43:51Keep the optimism, which Jensen has, but also be pragmatic about the fact there are real risks here. I'm not a doomerism type guy. I'm the glass is half full. And I think there are plenty of technology specifically around cybersecurity that can help these agents from going rogue. And, you know, when someone is trying to come up with these predictions of 10 percent in 2030, if that was so accurate, you know, they should be working on playing the stock market. I mean, I don't know how you can come up with these sort of predictions. What I do know is that the agents are dangerous. The agents need to be controlled.

44:24You need to have visibility and you need to be able to protect your organization. All that is true. But at the end of the day, what the agents are doing, they've only been trained to do. AI is an amazing technology. I think what we have in front of us is once in a lifetime opportunity to embrace something that is going to be so impactful across the board. And I don't see how it's going to slow down. I don't see researchers not wanting to win. As I said, there's no competitive sport where I found people saying, oh, wait a minute, let's all take a break together because we should slow it down. I think the right conversation is how do you make sure that AI can be delivered safely and securely so we can use it for good things?

45:02That's the conversation to have. I think the idea that we should be fearful of AI and we should wait and we should slow down, it's just antithetical to what's going to happen. We know that there's tremendous potential in AI technology. And the way you make it more powerful is you give it more data. You give it more connections. You give it more power. You give it more capability. And I want that to happen. And I want the benefits to accrue to everyone's company and everyone's organizations. I want America to win. I want the world to win. But the only way to do that while also mitigating the risks is visibility and control.

45:33And we're in a perfect situation because the key to visibility and control is identity. You have to know where these agents are. We want AI to take care of these things and be held responsible and take care of these actions and be ethical. And the heart of ethics is responsibility. But we really look at a light on our brethren here in San Francisco and all over the world and say, we want you to be ethical in your actions and how you take care of your communities and the world because this technology is very powerful. It is a tool. We use that tool. People use that tool. And like any tool, yeah, it's important to put governances, safeguards on how we use the tool.

46:17But it is still, at the end of the day, a tool that will make our society, humanity, reach a better level of living. but still a tool. It's not a live animal that will run wild by itself. My view on it is that ultimately any company that's putting out a product needs to stand behind the quality, reliability, and safety. I mean that's a kind of a fundamental table stakes issue. Companies need to get it right. Governments don't get it right. 15 companies don't get it right. It's kind of the hygiene of what you're doing building a company. These are young companies developing products really, really fast, and the advancements are taking place very, very quickly.

47:01All that means is, as a product company, there's the hygiene you put in place through engineering, quality, reliability, safety. They'll figure it out, but the answer is not, let's all collectively tap on the brakes, because I don't even know how one product solves that versus another. Safety is an engineering problem. Testing is an engineering problem. We should create products and properly test them. And if they're not ready to be released, just hold on to it and keep testing it and keep engineering until it's ready. I like to say there's always a bull market somewhere and I promise to try to find it just for you right here on Mad Money.

47:40I'm Jim Cramer. See you next time. All opinions expressed by Jim Cramer on this podcast are solely Cramer's opinions and do not reflect the opinions of CNPC or its parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such.

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