'Mad Money w/ Jim Cramer 9/8/26

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1:18Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. My friends, I'm just trying to save a little bit of money here. My job is to just entertain, but to educate, do some teaching. Call me 1-800-743-CNBC. Tweet me at Jim Cramer. Look, there's more to life and investing than the data center. I get it. The money's huge. It's incredibly exciting. Hardly the day it goes by without something big happening. A new model from OpenAI that's been on a tear. A revival of Intel that could be gigantic. I like the philosophical debate about the machines becoming our overlords. However, the endless focus on the data center and the anti-data center backlash is obscuring opportunity after opportunity away from it.

2:03And I am no longer willing to tolerate you missing these. And that's why after a day where the Dow sank 628 points, the S &P shed 0.58 percent, and then the NASDAQ declined 0.32 percent. I want to talk to you about some of the other terrific stories that people are indeed missing out on because of data center obsession. No, I'm not saying that I've lost faith in the data center story. Not at all. I'm quite sanguine about it. And I think the group will start roaring again after the election. I'm not abandoning stocks from my travel trust like Ginovinova, which makes the turbines, they call them turbines, that turn natural gas into electricity, or Intel, which makes CPUs and is raising prices on them because there's so much more demand than there is supply.

2:49We just bought Micron for the Travel Trust after visiting its world headquarters in Boise, Idaho. I'm going to give a CNBC investing talk Thursday noon, which starts with why I actually sold Corning. You certainly don't want to miss that explanation. So I still believe in the data center, but I also want to open your eyes to other opportunities. This morning, for example, GE Aerospace spent nearly$12 billion to buy a castings company called Consolidated Precision Products to integrate this key segment into its supply chain. It's vital for both commercial aircraft and particularly defense, both of which are booming.

3:25Now, on a day where oil's up, you might not want to focus on anything airline related, but travel's been booming the whole time. The whole time the Iranian war's been going on. This acquisition will pay off quickly for GE, making it more likely that they can accelerate production. This is also good news, therefore, for Boeing, a huge customer of GE that needs to boost its production speed. GE's relatively close to its highs, deservedly so. Boeing, nowhere near its high. Yet the order book is full. Last week, there was this negative article about how Boeing's being hurt by the problem-filled Spirit Aerosystems acquisition.

3:59Made that one two years ago. But that acquisition had to be done because Boeing, like GE Aerospace, needs to get better control of its supply chain. Aha, you say. Who needs that kind of problem? Boeing just reported its slowest deliveries in four months. I come back and say, wait a second. First, the problems from the Spirit deal are now behind them. You know what? The story is actually old news. Plus, CEO Kelly Ortberg has made it clear that orders would be lumpy. I knew that. And look, I know the high price of oil, particularly jet fuel, is bad news for the airlines. But the higher price of fuel also makes these new engines and airplanes far more valuable than before.

4:32Why? They're way more energy efficient. It's a good situation that has nothing to do with the data center. It does require more, better tech that AI can help with. Next, have you noticed the incredible run in Robinhood, the stock? I know that a lot's happened here is related to the recent strength in crypto and the excitement of the prediction markets. But that's basically the big picture. Robinhood owns the youth market. Three quarters of its clientele are under 45 years old. The median age is 35. Their deposits are growing at a 28 % clip. Those are staggering figures, as is their 28.4 million funded customers.

5:11Or how about the buy now, pay later business that's a firm? Max Levson's company has 28 million active customers. Affirm has got a who's who of partners, including the biggest, Amazon, Costco, as well as Shopify, Target and Apple, which launches a pricey new phone tomorrow. We just saw their quarter. It was excellent. People are selling Affirm because they fear a rate hike from the Fed. I get that. But people will be paying substantially more for the stock without that worry. What matters is that the quarter had so much momentum that I think you'll see great numbers right through the end of the year, holiday season.

5:46At the same time, there's some tremendous health care companies in bull market mode. Chief among them is a company called Hinge Health, which is a digital physical therapy company. More on that one later. You get the benefit. Your employer pays the bill. Here's one that's a quandary. Medtronic. Medtronic, the medical device company, shocked us with a big upside surprise and a major increase in organic growth. It's separating its worrisome diabetes division by the end of the year. I don't want to be in a diabetes division in a world where GLP-1s are ascended. The stock is now where it was when it reported.

6:16It is a vastly improved year-over-year business. To me, that is just crazy. As long as the war with Iran drags on, it's easy to recommend the refiners like a Valero or a Marathon. I don't see it ending anytime soon. Not with the U.S. and Iran trading volleys this evening at islands and ships in the strait. But how about a pipeline that moves about 30 percent of all crude produced in North America? Now I'm talking about Enbridge, which has a 5.5 percent yield, also has a natural gas. It transports 20 percent of the natural gas that's consumed in America. OK, it's Canadian, but it's not caught up in a tariff fight because slapping tariffs on Canadian energy would be economic suicide for our country.

6:55When I wrote How to Make Money in Any Market, sending you, by the way, a free signed book if you join the investing club. Now, I didn't know that Enterprise Product Partners was going to be maybe the single biggest pipeline winner in this country thanks to the war. I didn't see that war coming. The CEO of Enterprise, Jim Teague, has raised awareness for the company's profit opportunity because of the Hormuz closing. The margins of some of its liquids like ethane to ethylene, ethylene to polyethylene have soared. As Teague says, the Houston ship channel is now just as important as the Strait of Hormuz.

7:28Now, there's an endorsement. Stock yields 5.8%. Finally, there's Amgen. Admittedly, this one takes a little bit of fortitude. It was down 44 points today. The stock's declining because it has a drug candidate that's similar to a Novartis product, which failed a cardiovascular trial today, setting the stock down$22. Novartis had high hopes for the drug testing for its heart attack and for stroke. We won't get a readout on Amgen's similar pipeline drug until 2027 or 2028. And it's slightly different. But with this decline, Amgen could remove that drug from its portfolio and the stock probably wouldn't go down all that much more.

8:06Now, I'm not saying that every one of these ideas is better than anything data center related. I'm saying that the endless focus on the data center, coupled with the incredible backlash against them, is going to make it for rough sledding between now and the election. We can't have our heads in the sand. But if you diversify away from many things data center, not all, many, I think the next two months will be a happier, more lucrative time for you. Here's the bottom line. If we were playing Am I Diversified tonight, I think you'd hear me recommend selling quite a few data center stories right into strength to make sure that you can't be taken down by the anti-data center groundswell that most people in Wall Street are trying to ignore.

8:43It's just not worth it to load up the boat. Better to have a few than look elsewhere for the many other opportunities that are right in front of you. How about we go to Spencer in Alabama? Spencer. Jimmy Chiu, how are you? Spencer, I am doing well. How about you, Chief? Doing great, man. I'm calling in regards to an AI stock that I own 200 shares of. I could see it being a big player in the AI boom with$60 billion backlog, and the August gross profit improvement feels incredibly undervalued. The stock is SMCI, Jimmy. Okay, so SMCI to me has some irregularities that are related to accounting. I cannot recommend it.

9:23I see the momentum, absolutely. But you know what? I've been saying buy Dell. And I think Dell's better than Supermicro, and I am sticking by that. I think it's quite, even after this big run, it's still very, very attractive. Right, there's a lot of opportunity this morning. You just have to look a little bit harder. And maybe, how about this, outside, pure data center themes? On Man Money tonight, it's time for our annual fantasy football stock draft. Stay tuned for which games I think are going to be the big winners of the season we just mentioned. Ben Marvell sank on earnings, but our investors are looking past this company's potential.

9:55I've got the CEO. And we saw some deal news in the market today, but I think we're due for some more consolidation. That is, if we want to stay afloat. I'll explain why. So stay with Kramer.

10:25Call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.

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11:16Every stock gets three scores. Value, safety, timing. You decide what matters most. Stop overthinking what to buy and sell. Go to VectorVest.com slash mad. Get 30 days for just 99 cents. VectorVest provides stock analysis tools, not personalized investment advice. Terms at VectorVest.com. Ever notice how every new AI tool asks you to explain your business to it all over again? Google Workspace with Gemini skips that. You get Google's AI built right into the premium versions of Gmail, Docs, Sheets, and more. No new tools. No extra logins. Just one subscription that gives you personalized AI right inside your actual workflow.

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12:10We just had our first real weekend of college football, and the new NFL season kickoff is tomorrow. A rematch of the Super Bowl, the defending champion Seattle Seahawks against the New England Patriots. That also means it's time for a new fantasy football season for the Mad Money staff. Tonight, we're holding our draft for the Not Your Average Schlumpedick League. I'm a little despondent about drawing the eighth pick, but I'm trying to stay positive. If you're interested, I'm going to post my final roster for the Ski Daddy's team on X tonight. Oh, and Schlumpedick is a Yiddish term that has nothing to do whatsoever with football.

12:43But a previous commissioner picked it about 15 years ago, and we've been stuck with it. And every time a new season rolls around, I like to play fantasy stock football here on Mad Money. Because picking a fantasy team has a lot in common with putting together a diversified stock portfolio. Hey, by the way, of the 11 stocks I picked last year, they're up more than 31 % on average, trouncing the 18 % gain in the S &P 500 of the same period. That was easy. We know how to draft on mad money, so break out your pen and paper and let's get started. Now, we've got to start with our quarterback in fantasy.

13:16Boy, you're typically only playing one quarterback per week, and what you want here is consistent production. That's why for the past several years, I've picked Apple as my fantasy stock football QB. As always, own it, don't trade it. Not only does Apple make the most beloved products in the world, they're playing a very different game from their mega cap peers. Everybody else is spending hundreds of billions of dollars on AI. Apple's spending next to nothing just partnering with AI companies. They desperately want access to Apple's massive user base. To me, that makes Apple a lot less risky than the other members of the Magnificent Seven.

13:47To put that in NFL terms, Apple reminds me of Josh Allen, the quarterback for the Buffalo Bills. Allen's a known quantity. He was the league MVP two years ago. Then last year, he had 25 passing touchdowns, 14 rushing touchdowns, which, well, it gives you more points in fantasy football. But the main parallel is that both Apple and Allen are now under new management. For the first time in 15 years, Apple has a new CEO, John Ternus, who officially took over from Tim Cook last week. Similarly, at the end of last season, the Buffalo Bills let go of former head coach Sean McDermott. Nine seasons. Promoting former offensive coordinator Joe Brady to the position.

14:26Next, let's talk running backs. Key position. In fantasy, what you want are the equivalent of compounders. Stocks that can consistently grow and grow and grow over time. Basically, you want a running back like NVIDIA. The other stock on my own-it-don't-trade-it list. Now, in the past, I've called NVIDIA a wide receiver for your portfolio, more of a rapid growth name. But at this point, it's mature enough to be a running back. That said, NVIDIA is still on track to put up 70 percent revenue growth next year. Don't worry about today's action. It was just crazy down. For the NFL analog, I like probably the best player in the game, Jameer Gibbs, the thrilling running back for the Detroit Lions, who can stack up yards and touchdowns, both by running the ball and catching passes.

15:05He's the complete package, just like NVIDIA's advanced computing platforms, which combine chips, networking equipment and software. Both Gibbs and NVIDIA are known for their speed. But overall, this is a comparison all about quality. Just as NVIDIA should be one of the first stocks someone buys when starting to build a portfolio, Gibbs is going to be one of the first few players taken in any fantasy draft. Put it this way. I have the eighth pick in my league's draft, and there's no way I'm going to be able to get Gibbs. I'm lucky if I get Cam Scadabo.

15:38Beyond that, I've got a couple more running backs. Eli Lilly has become a great compounder thanks to his booming GOP-1 weight loss business. For an NFL comparison, we're going to have to stay in Indianapolis where Lilly's base and give you Colts running back Jonathan Taylor entering his seventh season with more than 7 ,500 career rushing yards already under his belt. Taylor isn't going to catch anyone by surprise anymore like Lilly. But you can probably get Taylor with a mid to late first round pick just like you can now buy Lilly at just over 30 times earnings. That's down from 45 times earnings at the beginning of the year.

16:09Both represent decent value. For my third running back, let's bring in some new blood, please. I'm bringing in Medline, the largest IPO of 2025. This is a distributor of medical surgical products. I know it sounds like Beckham Dickinson. Growing business, selling its own medical devices, consumables. Came public last December. After a hot start, it's cooled off significantly. Pulling back from a high of 50 in February to the mid-30s now, only slightly above where it came public. But for those who have patience, I think Medline could be a long-term compounder. It's a real sleeper. Hey, NFL analog.

16:41How about the Arizona Cardinals rookie running back Jeremiah Love, the third overall pick in April's NFL draft? Beyond both being new, I think the analogy holds because both Medline and Love have temporary question marks. Medline's well off its highs, in part thanks to a warehouse fire in June. Love has a great track record at Notre Dame, but now he's got an ankle injury. I think these are temporary issues for both. Sometimes it's best just to go off the beaten path. Adam Schefter would love Medline. How about some wide receivers? In terms of your stock portfolio, wide receivers are the equivalent of pure growth stocks.

17:15They could explode for huge point outputs in any given week if they have a bunch of catches and score a few long touchdowns. But they're a lot more hit or miss than a running back. What does it sound like? Palantir! That's right, Palantir Technologies, a software company with a stock that was white hot in late 2024 and most of 2025 before getting ice cold for the first half of this year and only recently turned hot again, rallying more than 60 % from shooting lows. Not bad. When it's working, though, there have been few stocks better than Palantir. They recently poured a magnificent quarter, but the stock also sells for more than 100 times this year's earnings estimates.

17:49Not cheap. Best NFL analog for Palantir? Well, there, I like Jamar Chase from the Cincinnati Bengals. One of the best receivers in the league, even as he's coming off a down year last season. Chase also has some injury concerns, making him more risky, like Palantir's high-priced earnings multiple. Next, for a less risky wide receiver, how about Amazon? Their Amazon Web Services business is on fire. The stock's gotten pretty cheap. It's trading at 20 times this year's earnings estimates. Not many times I remember having it that low. We're going to stay in Seattle for the Amazon analog Seahawks receiver Jackson Smith Najigma, who had a breakout season last year and earned NFL Offensive Player of the Year.

18:28He might not have the absolute upside, but I think he's more dependable than other top flight options. Call Amazon a sleep at night growth stock. JSN offers the same thing for your fantasy team. I love that kid. Finally, I like Dell Technologies for a wide receiver spot, riding a wave of insatiable demand for its AI servers. Hence why the stock's more than quadrupled for the year. The NFL equivalent? Look, I'd say CeeDee Lamb, the Cowboys wide receiver, feels underappreciated this year, just like Dell was entering 2026. Lamb's got a great track record, but last year the Cowboys picked up George Pickens, and he did even better.

19:03So people are sleeping on Lamb coming into the season. I think he's ready to reassert himself, just like Dell's been reasserting himself in tech. He can't double-team Dell. Here's the bottom line. For this year's Fantasy Stock Football Draft, I've given you a quarterback, three running backs, three wide receivers. Stick around after the break for the rest of the draft. Matt Money is back after the break. Coming up, you can't have a full team without great role players. So Kramer's rounding out his fantasy stock roster next.

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20:19VectorVest doesn't. Every stock gets three scores. Value. Safety. Timing. You decide what matters most. Stop overthinking what to buy and sell. Go to VectorVest.com slash mad. Get 30 days for just 99 cents. VectorVest provides stock analysis tools, not personalized investment advice. Terms at VectorVest.com. Ever notice how every new AI tool asks you to explain your business to it all over again? Google Workspace with Gemini skips that. You get Google's AI built right into the premium versions of Gmail, Docs, Sheets, and more. No new tools, no extra logins, just one subscription that gives you personalized AI right inside your actual workflow.

21:01Make work less work. Try Google Workspace with Gemini at goo.gle slash workspace with Gemini.

21:16Before the break, we kicked off our annual fantasy stock football special where I draft a portfolio of stocks. same way I'd be drafting my fantasy team for the Slum, particularly later tonight. Their two great tastes taste great together. Just as you need different kinds of players to balance out your team, you need different kinds of stocks to diversify your portfolio. That's why I love doing this exercise. So far, I give you a quarterback, three wide receivers, and three running backs. Those are the core of your team. Now let's fill out the roster with the rest of the positions. First, you need a tight end.

21:46This is a hybrid offensive position. On some plays, the tight end acts like an offensive lineman, charged only with blocking. On other plays, the tight end is in a single zone from a wide receiver. They're out running routes, catching passes, scoring touchdowns. For the tight end equivalent of our fantasy stock football portfolio, I'm going to pick a new one here. Hinge Health, a relatively new medical technology company that came public last year. After a quiet first year of trading, it's had a major breakout, more than tripling from its February lows. Yet it still remains an under-the-radar sleeper.

22:17Hinge Health is effectively telemedicine for musculoskeletal issues. Employers and managed care companies pay for their services for their employees and members because it's much cheaper than traditional physical therapy and much more convenient for patients. It's part health care, part technology. Hinge Health is on track to put up nearly 50 percent revenue growth this year, but it's not a growth at any cost operation. The company's profitable, still sells for 40 times earnings, even after the stocks tripled since February. OK, so who's the NFL analog for Hinge Health? Yeah, I'm thinking Indianapolis Colts tight end Tyler Warren for this one.

22:53First of all, they're both second-year players. Hinge is a class of 2025 IPO, a name that recently exploded higher. Warren's a Penn State product, was a rookie last year, put up some solid numbers, over 800 yards, four touchdowns. But I'm hoping he can break out in the second NFL season just like Hinge did. Next, the final offensive spot on the roster is typically the flex position. This is a concept that's unique to fantasy football. The Flex spot can be filled with a running back, a wide receiver, or a tight end. Basically, you just want points from that player. As many as you can. Any way you can.

23:23For me, I want to play SpaceX for the Flex spot. This new IPO is the stock that we want growth from, no matter how we get it. The Flex term even feels appropriate for SpaceX, doesn't it? I mean, because this is a company that's hard to put in one box. Their oldest and most advanced divisions, Rockets, the launch for hire business. Their most lucrative division, at least for now, is the Starling satellite internet business. But if you're a long-term bull, then you're probably most interested and excited about the company's AI business. At the end of the day, though, the shareholders just want to see the stock put some points on the board.

23:58Anyway, again, although I acknowledge this one might take a little longer to pay off, especially given that a bunch of restricted SpaceX stock is unlocking as early as tomorrow. So who's the SpaceX equivalent in the NFL? Well, I'm being real charitable here. I think it's Atlanta Falcons running back B. John Robinson making the most sense. Like SpaceX, Robinson's multifaceted. In addition, nearly 1 ,500 yards rushing, seven rushing touchdowns last year. He had over 800 yards receiving and four touchdown catches hard to bring down. He's even dabbled a bit in acting with a minor, well, a couple of minor roles.

24:30One, Netflix's Outer Banks and some Disney Channel show. Robinson's truly a jack of all trades. Of course, both SpaceX and Robinson are expensive in their own way. SpaceX is expensive because the company's currently losing money, and the stock's trading at basically 50 times this year's earnings estimates. I'm sorry, sales estimates. Robbins is expensive because he'll probably cost you a top five pick in your fantasy draft. But both are about as exciting as it gets in their respective fields. Beyond the offense, there's a spot on your roster for something called a defense slash special teams pick in fantasy football.

25:01And for the most part, what you want from your fantasy football defense is very straightforward. You want them to give up as few points as possible. But defense in fantasy is a bit different because you can also get upside from sacks, turnovers, and especially defense and special teams touchdowns. So for our stock market equivalent, I think that Merck's a good fit. As a drug company, Merck's inherently defensive in nature. It does fine, even a bad economy. Good if the Fed chooses to jack up rates, right? At the same time, it can also give you real upside. as we saw when Merck's partner Moderna put up some promising melanoma vaccine results.

25:37There's a reason Merck's now up 41 % year to date. In terms of the NFL, that reminds me of the LA Rams defense. The only concern is age. The Rams have to do well this year because it's a ticking clock for them, given that the team has so many older players. Merck, too, is racing against the clock to build a pipeline of new drugs that could offset some big upcoming patent explorations from their fantastic Keytruda oncology platform. Finally, we have to round out our fantasy roster with a kicker. In fantasy football, a kicker can get negative points if they miss extra points or field goals. So you really got to have some with accuracy.

26:11But you can also get a nice bundle of points for a long field goal. So a kicker with range is a nice bonus. As I see it, a kicker is kind of like a good energy stock. It's like Chevron. It usually doesn't trade with the rest of the market because higher oil is bad for everybody else's business. Plus, it's got an excellent 3.4 % yield. Well, that's like a steady flow of extra point kicks. But as we've seen, there are times like this year where oil prices are rising and Chevron can give you great returns. So far this year, the stock is up nearly 40 percent. That's like a season when your kicker hits a couple of 60 plus yard field goals and earns you a surprise win or two.

26:50A couple of years ago, Chevron officially moved its corporate headquarters from California to Houston, Texas. So we think a good analog is Houston Texans kicker Kimmy Fairbairn. He's the second best kicker in fantasy football last year. Fairbairn was perfect with his extra point kicks last season and went 44 for 48 on field goals with the four misses all coming from over 50 yards. Pretty reasonable. You won't catch me reasoning for a kicker in tonight's draft. I'm far too disciplined for that. But if I did, Fairbairn is one of the few kickers who might be worth it. The bottom line, that's a wrap for our annual fantasy stock football draft.

27:28Now it's time for me to buckle down because the not your average slump of dick starts in about an hour and a half. And our draft, well, let's just say I got to get to work building my own championship team. And I've won a couple of times. Let's go to Dan in Pennsylvania. Dan. Jim, how are you? Thank you for taking my call. Long time listener, first time caller. Oh, great, Dan. Thank you. What's going on? My question is Lululemon. Is there any chance for that company to come back? I know they have a low P &E. They have a new CEO coming in. But it seems to me as though they have lost their way. And is it a whole buy or sell?

28:09I think that this year, whatever's going on at that company is just abysmal. Whether it be the board, whether it be the execution, whether it be the way that the message. I don't like it. I don't like it even right here because it's still got a lot of points that it can fall. I think that it's, you know, look, it's a 10 times earnings, but I don't think it's going to make those earnings. So at 103, no, I'm going to stay, say, maybe, I don't know, 85. It's a, it's, I don't want to say it's a bad company, but it is executing really poorly. All right. Just like you always need a well-rounded fantasy football team, you need a well-rounded portfolio.

28:47So hopefully looking at your stocks in this clinical way, you can evaluate your positions. That's what I want. And diversification, of course. Watch where we have money at, including my exclusive with Marvell. And this market is in need of one big thing. And without it, everything's at risk. And while we pull back some of our positions for the Travel Trust and all your calls, of course, rapid fire, tonight's edition of The Lightning Round. So stay with Kramer.

29:21What the heck just happened to the stock of Marvell when it reported a week and a half ago? This semiconductor company with a major data center exposure reported a healthy beat raise. Yet the stock plunged more than 10 % the next day. Seems silly. Why did it get hit so hard? Some of that's because the expectations were extremely high since the stock's been on fire. Some of it's because we got more color on Marvell's collaboration with Google. They're making chips to rival NVIDIA's. But it turns out it'll be years before they really start boosting the numbers. Still, the company's making fortunes versus what we thought it could not that long ago.

29:53Earlier today, we spoke with Matt Murphy. He's the chairman and CEO of Marvell to get a better sense of what's happening here. Take a look. All right. So, Matt, welcome to New York. This has been a remarkable time for the company. I've never seen these many great things happen at your company right now. Yeah, thanks, Jim. I mean, it's been a it's been a lot of change this year in the positive sense. I mean, when I was on your show in December, I think in some ways I was on the defense and you asked me some very pointed questions about competition and things like that. Turns out all that was overblown completely.

30:29And these repressed comments that said that you were going to lose certain contracts that were just untrue, frankly. Right. Exactly. So we've moved past that. And actually, I was looking back at that time. We were guiding this year to be 10 billion in revenue. And next year, 2027 at 13 and a half. We're now at 12 for this year and 18 for next year. So we've gone from 23 and a half billion last December over the two year period to 30. And we're just in September right now. So that's up like almost 30 percent in that time frame. So clearly things have gone well. We announced a huge partnership with NVIDIA, which Jensen and I came on your show to talk about.

31:05Including a stake. And including an equity investment. and then also recently a partnership with a Warren agreement with Google. So a lot of good stuff's been happening. The numbers have been great. Companies firing on all cylinders. All right. Well, we're going to go into this. But first, everyone's excited about October 6th, which is your meeting. I'm excited about an October 6th meeting you gave five years ago where you told me what could happen. And you told me that almost no one believed you. It turned out to be much bigger than even you thought, didn't it? Right. It did. I mean, I'll give you kind of two data points.

31:44Five years ago, we had our last full-blown investor day. And we talked about a growth rate for like a three-year period of 15 % to 20 % per year with operating margins in the 38 % to 40 % range, that type of thing. It's five years later. If you look at the$12 billion, we would have grown over 20 % a year compounded for the last five years. We said we'd hit the operating margin target range in Q4. So we did what we said. Two years ago, we did a very specific AI investor event in New York. And at that time, things had gotten better. We had talked about doing$15 billion in data center revenue in 2028 off a$2 billion base from 2023.

32:29Okay, where we're at right now, if you look at the$18 billion total Marvell for next year, over$15 billion of that's going to be from data center. So basically, we've come in a full year and taken the company from$2 billion and change in data center revenue in 2023 to$15,$16 billion next year. So it's gone very well. It's been fantastic. It was a big ramp. No, it's been the biggest I've seen. But let's talk about the one that may be, and I've discussed with you offline, when someone says you're the next trillion-dollar company and your company in the dollar bed is$219, what do you do? And I'm talking about Jensen Wang anointing you because it had to be a surprise.

33:12And holy cow, I mean, you could argue it's a target on your back, or you could say, I'm going to live up to that man. Where are we? Right. Yeah. So at Computex in June, I gave a keynote presentation. my first one, and Jensen was one of the guest speakers I had. And we were talking at that time about how in the AI cycle, we've had the compute wave, right, which was all the GPU, XBU companies. That was a huge ramp two, three years ago. It's still going. Then we had the memory cycle. And then what I was talking about was the connectivity wave, right, which is now all the connectivity required to connect all the memory and the compute together.

33:49And then Jensen came on stage and, you know, I think backed up that vision and certainly had high hopes for the company. Look, I would say this. We're driving the company to levels that I probably couldn't have imagined 10 years when I became CEO. But the future is very exciting. And Vessor asked me the same thing recently. Hey, how do you get from here to there? Which is like, say, four times the valuation increase, roughly four or five times. And I said, look, when I became CEO in 2016, our valuation, our market cap is up like almost 40x since that time. So, look, we got another four to go and it's not easy.

34:32And, you know, that's I think there's an aspirational number out there for sure. We're just focused on driving the business. Of course. Right. Creating the value for the shareholders along the way. And I'm very excited about this October 6th to give our kind of new five year marker, four to five year marker of where we can go. Yeah, and I'm going to believe you and then some of you had listened to previously. Now, when Google comes in, Alphabet, and they want basically 59 million, you could argue, Marvell shares, roughly 7 % of the company. Don't you say to yourself, guys, look, you don't need to do this.

35:05We're thrilled just doing the business. Obviously, they want a partnership very, very badly. You could have just taken a contract. Right. Right. Yeah. I mean, so if you back up, so we have a longstanding history with them. I think if you look at the economics and what was put on the table and you look at the total value of the warrant, which is$120 billion total cumulative revenue to go get the 6.5%, we felt that that trade was well worth it. I mean, what it really says at a high level is we have customers that want to partner with right and they want to be part of our success. And I think some of it, frankly, I've known you for a very long time.

35:52They do want to be part of your success. You've been straightforward. You've come out of nowhere. You've done an amazing job. They want to partner with Matt Murphy. Well, I think so. I think they want to partner. I'll tell you this, in this market, these large hyperscale customers and the ecosystem around it, it's really based on trust in the end. Can you trust the engineering team and the company is going to deliver the chip? Can you trust the management team that they're going to shoot you straight? Can you trust that the capacity and the supply is going to be there? And can you trust the CEO at the end of the day that's going to do right by you?

36:28And I think we spent 10 years building the business here. This is no fly by night new thing that we just got into. We called out this data infrastructure opportunity in 2016 is the next big wave. OK, and so I've been building this company from a very different point of view from 10 years ago into one that's focused on that market. And I think trust has been a huge part of it and our brand and our credibility. Now, is trust tougher with Amazon, which you have an amazing relationship? When they turn around, they do a deal with Qualcomm that arguably could have gone to you or because your stock is up.

37:05Maybe I'm making the wrong judgment. Maybe that's a separate kind of business. Yeah, well, I'd say this. I think it's a it's a competitive market. And kind of per my earlier comment, A.I. has now become the market to be in. Yes. But this is the market we identified 10 years ago. So we've been quietly and slowly and now more publicly because we've gotten bigger, building that business up. We have meaningful relationships with all the big four hyperscalers. We actually do custom silicon, Jim, for all four. On optical connectivity, we are the market category leader. We effectively invented the category with Infi, which is a great company that we merged with and acquired in 2021.

37:48That team has done phenomenal. And that connectivity supplies across the entire ecosystem. So we're very confident in our position and how we've evolved in this market across all the U.S. hyperscalers and the entire ecosystem. Well, we should also talk about, I mean, I was shocked you were gave a terrific intro to LipButan in 2022 for the Noyce Award. Right. So it's not just optic and it's not just AI. You have tremendous relationships, even, say, with Intel. Absolutely. We are basically the Switzerland of this entire market right now. We work with everybody. And I think the fact that we are agnostic to the XPU or the GPU, and because we're the leader in optical connectivity, which is effectively a merchant product, it sells across all of the different customers and the different types of connectivity.

38:45So we have the broadest product line with the highest performance and that's very valuable to these customers well look i want to congratulate you on all your success including coming on here when the stock was appreciably lower having bought a lot of stock and just faced the music and said basically yes you're the signal the rest was noise those who believed you caught a triple those who didn't i have nothing to say to them hey a bunch of us you know myself my cfo and my two group presidents we all bought stock in the mid-70s. Well, people should look for that when you're trying to find a stock.

39:18Look for a conviction. Matt Murphy, Marvell Chairman and CEO, congratulations. And we'll look forward to October 6th. Thanks, Tim. Thank you. Yeah, my second. 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.

39:48quick reminder this limited time labor day opportunity to join cbc investing club ends soon and of course what do you get you had a signed copy of my latest book how to make money any market so here's what you got to do you got to open your phone got to scan the qr code or write this one down, visit CNBC.com slash Kramer Club. CNBC.com slash Kramer Club. And do it today, please. Limited time only. And now it is time. It's time for the lightning round. Question. My story. I'm Rob Colson. You must talk to him. I'm a vice. I'll send him. Don't be a no-college. I'm a vice. I'm going to play this now.

40:25And then the lightning round is over. Are you ready? Skiing down. To the lightning round. Question. I'm on the story with Darren in California. Darren. Hey, how are you doing, Jim? I am doing well. Booyah! What's going on? Hey, I wanted to know about Joby Aviation. Okay, I've been against Joby because it's losing a lot of money, and I'm going to stick with that position. It's an interesting spec, but I would not put my money in it. Let's go to Sam in Massachusetts. Sam. Jim, listen, with all the shortage in munitions, I've been looking at the steel industry, specifically RS. The stock has outperformed the S &P, and I think it's plated to do well as many times as they expand.

41:00You're right! RS is It's terrific. I prefer Nucor, but you're absolutely right to bring me RS. It's a very, very good company. Now we're going to go to Tony in Florida. Tony. Hey, Jim. Thank you. I'm a club member since day one, and everything's been great. Thank you, buddy. Thank you very much. I want to ask you about a company that owns a bunch of walls, because we go there every weekend. We go to TJ Maxx, and we go to HomeGoods. It's the Simon Properties Group. Should I buy more? Oh, my God. Simon Properties, 4.25 % yield. It is so great. I'll give you two. I also like Federal Realty. Both of them are excellent.

41:38Let's go to Federal Realty and Shopping Centers. Let's go to Bob in Ohio. Bob. Hey, good evening, Jim, and thank you for taking my call. Of course. Thank you. My question is about a company that operates in Southeast Asia and is a hybrid of both the Uber and DoorDash business models. They also have a growing fintech banking segment embedded in the business. Grab Holdings had$3.4 billion in revenue last year and a net profit of$260 billion. Okay, well, I'm going to interrupt you. I have never liked Grab Holdings. I have said that I did not think it was a situation that is worth our investing time.

42:11It is now down to$3. I think it's a$3 spec. Remember, stocks do stop at zero. Let's go to Bill in Texas. Bill. Booyah, Jim. Booyah, Bill. You the man. Oh, thank you, man. Thank you. Thank you so much for all your wisdom and expertise. Thank you. Thank you, Bill. Thank you. I was wondering if after a pretty significant pullback, would now be a good time to take a look at Trinity Industries TRM? Yes. Yes. Rail car shouldn't be down this much. I like your thinking. You waited for the big hit. Now it's in a good place. I would pull the trigger. Let's go to Spencer in Alabama. Spencer. sir. I love the things that have been happening in the medical community, especially with the advancements with breast cancer and COPD with AstraZeneca.

43:02What's a long-term play? Right now, AstraZeneca reminds me of a company. It's not unlike Novartis. I'm a little nervous about it. It's been missing some of its trials. I don't think a COPD is enough to change my mind, by the way. I do think GLP-1 has been really good on COPD. I am not going to put my money on AstraZeneca. And that, Ladies and gentlemen, to the conclusion of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, there's one thing Kramer thinks this market desperately needs ASAP. He's explaining what it is next.

43:44Booyah, 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.

44:06This market needs some consolidation, and we need it fast. I want more deals like we got today when GE Aerospace bought consolidated precision products for$11.75 billion, in part to boost its defense business. Jeep bought this one from a pair of private equity firms. Of course, it'd be better if it got some acquisitions of publicly traded companies because there's just too much stock for sale out there. Right now, the most salient part of the tape is the ongoing rollout of SpaceX. They've been unlocking their shares gradually. A new tranche comes off restriction tomorrow. 319 million shares are 7 % of the shares that are subject to the early lockup period.

44:39Currently, only 1.87 billion shares of 14 % of the company is now free to trade. There seems to be an endless amount of supply that stages at the market. So far, there's been far less supply than feared, though. That's because while the stock's up nicely from the IPO, it's not up enough to trigger on additional lockup expirations that could have happened. Plus, people seem to have a lot of faith in Elon Musk, don't they? So they're sitting on their shares, even if they don't have to. But over the next year, we're looking at massive amounts of stock coming off the sidelines here. Meanwhile, the underwriters are teeing up an IPO for Aura.

45:12That's that smart ringmaker. It's a deal that could value the company at$16 billion. I've seen that SB Energy, a deal backed by SoftBank for powering data centers, is in the hopper,$5 billion offering possibly, as well as a small deal for Wella. Yeah, the consumer products gem might come public this fall, be it KKR deal. But lurking is anthropic, and perhaps more important, anthropics, numbers. If it's solidly probable, the kind of revenue growth we've heard about, it could be a gigantic IPO. And investors will sell all sorts of other stocks in order to raise money to participate. Right on top of that, there's OpenAI, which just put out a new model called Astra that seems to rival Antropoc's most powerful offerings.

45:50By this time in the year, you'd usually expect some takeovers that would free up some cash, though, to allow managers to partake in these coming deals, probably all vying to be the largest ever. We were supposed to be in the golden era of mergers and acquisitions, weren't we? Plyant regulators, so far we have little to show for it. Question is why. First, just because the federal regulators are on board, that doesn't mean the states are. 12 states' attorney general are suing to block that Paramount Warner Brothers deal. It's not clear what would appease them, but they're holding up an$81 billion transaction, not including debt.

46:18Second, Wall Street isn't exactly wrapping these deals up. When we learned that Solstice Advanced Materials was buying Element Solutions for$14.5 billion in cash in stock recently, the deal fell apart. Shareholders hated it. Solstice saw its stock crush. Seven weeks later, they canceled the merger. Stocks came roaring back. Finally, the feds have shown no sign that they're eager to block bank deals, where there could be hundreds of mergers to consolidate a very unconsolidated industry. They quickly bust the biggest deal, Santander's$12.3 billion purchase of Webster. That's a terrific bank headquarter in Stanford, 95 branches of Connecticut, 76 in New York, and 18 in Massachusetts.

46:54This deal could increase competition in these areas. But more important, it was seen as the beginning of a new wave of bank mergers. So far, that hasn't happened. Of course, look, this year hasn't been a bust for M &A. It's well ahead of last year, more than$1.1 trillion of transactions. But many of the biggest deals have yet to close, including next year, Dominion and Fox Roku. More important, I'm not hearing anything new in the works right now. None of this would matter if interest rates were as low as they used to be. But when you get a 5.2 percent return for a 30-year piece of paper that's almost risk-free, that represents serious competition in the stock market.

47:26And with the next data center equity deal always just a few feet away, I don't know about you. I'm growing weary of all this new stock. It's something you need to watch because, as I always say, nothing stops a bull like too much new stock supply and not enough spare cash to handle it. Like I said, there's always a bull market somewhere I promise you to find just for your hero man money. I'm Jim Cramer. See you tomorrow.

48:02You 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. To view the full Mad Money Disclaimer, please visit CNBC.com forward slash Mad Money Disclaimer.

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