mine is snap i think it's still a net gap from earnings. >> all ight, thus for watching "fast money. we'll see you back here tomorrow at 5:00. michael, great to have you here with us. "mad money" with jim cramer starts right now 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 cramer welcome to "mad money. welcome to cramerica other people make friends. i'm just trying to make you a little money my job is not just to entertain, but the days like today into context. call me at 1-800-743-cnbc or tweet me @jimcramer. everybody thought they could get out of the market and jump right back in at the perfect moment

once we started seeing progress in the debt ceiling front. but when that happened last night, you barely got a chance there was a very small window before stocks caught fire. too small to put money to work especially big money, which is precisely why we had such an amazing rally today with the dugaining 409 points, the s&p 1ing up 1.9% nasdaq only pulled 1.28% too many people they would get an all clear signal and be able to buy stocks at low prices easy as pie how about a pie in your face as is so often the case, the break we got in the debt ceiling, it occurred after hours. the speaker seemed more amenable to a deal than the president who blinked and cut short his trip to east asia they came together to produce an era of let's say relatively good feelings for now, but there was no opportunity to get in because stocks immediately roared in response, as they almost always do of course we're talking about washington here. our politicians are great at posturing, but not so great at

compromising it's certainly they'll drop the ball everything could easily fall apart at the last minute with the government having a to adopt some emergency measure of debt payment that crushes the stock market i know that and you know that. but man, there is a framework. if you're using the 2011 playbook, the last time we had such a standoff, the agreement to create a framework is what ultimately led to a deal back then, even if both sides were very unhappy about it. two prizefighters exhausted, and willing to accept the white flag rather than keep struggling. of course, as i remind you forever, in the 2011 fiasco where the market fell 19% from peak to trough, we thought we were in the clear with the debt ceiling deal, and then we got decked by a downgrade from the standard & poor company that petroleumabled the whole market. that caused, yes, fears of a recession. right in our face. could that happen again? sure but it's unlikely because nothing's happened this time

that didn't happen a dozen years ago. either way, it's been dawning on people all day, unless we get some sort of setback in the talks of real possibility, then the buying opportunity may have come and gone. now i bring all this up because this is a teachable moment this whole debt ceiling exercise shows you how investing really is so hard and why it's hard first lesson, you always have to realize where you are versus the crowd. the crowd being where you don't want to be because when everybody is betting on the same thing, there is rarely much money to be made when you join them and coming into this week, the crowd was extremely negative there was more cash on the sidelines than any point since 2009 hmm. let's think about that what happened in 2009? that was when we got the generational market bottom the time you had to buy everything because people hated stocks the asset class looked as dead as i've ever seen it because of the great recession. we were worried about the fate of the republic, for heaven's

sake and maybe there would be no banks left after they nationalized them that was the worst part of the great recession. right now there is nothing close to that level of harm. yet the cash positions are equal. a crash and the same position as -- no it's unfathomable. and to think that there was less cash on the sidelines back this 2011, the last time we went through the debt ceiling nightmare. i was worried this time would be worse than 2011. but after today, it certainly seems like we're in better shape, and we're certainly better shape than 2009 second lesson, when people get real negative, they're closed off to new ideas until their eyelids are pulled from their heads with pliers. take home depot. the home retailer reported not great, but it was hampered by weather and all reasonable weather is frequently dismissed as a bogus alibi but california, where many of their stores are was hit with torrential rains over a sustained period of time and those storms crushed a huge

percentage of home depot's most important sales. now there were plenty of people who acted like it was the end of the world for home depot, and plenty of others who won't touch home depot because they're so worried about the residential real estate market so the stock plummeted six points in yesterday's session. but students of the great orange know what matters to the sales is the worth of the home and did you know there has been $15 trillion in increase in home value since 2019 that's incredible. yes, this quarter, and perhaps this year people spend more on travel and leisure than homes. we get, that right i keep telling you that people are long on money and short on time but houses need maintenance. they need refurbishment. appliances go wrong. the housing center does not so it will come back 10 points after yesterday after the so-called bad loss in the meantime, 53% yield, great balance sheet. put me up. same thing with target an upside surprise people were way too fearful

until they weren't and the stock was down big at one point. had a nice rally don't worry. as we told investing club members at our noon club call, you can still buy the stock of tjx, which had the best quarter of the entire group. you know that offprice sector is so good. now, if you want to know more, just go to the replay of today's monthly club call. it's real good join up by opening the camera on your phone, all right, and pointing at the qr code that's right here you won't be disappointed, unless you don't know how to use a qr code, and then you got to go to the cnbc.com website third lesson we had half a dozen billionaires come on our network and give interviews, all within the last five days and all they wanted to talk about is how everything is so awful and terrell and dangerous. >> sell, sell, sell! >> the house of pain >> they're not just grottening

about the debt ceiling they always hate the market, always well, i got to ask, is it more dangerous now, less dangerous, or were they just wrong? now if you want to understand the bad advice from the billionaires issue, hey, it's nothing new. you need to go back in history to learn about what the first super wealthy americans thought of the supermarket i went to the house of morgan, an amazing book by one one of my favorite writers ron chernow to see how the morgans invested in the 1800s. smart guys the father of jpmorgan became one of the richest men on earth with a philosophy that it's not even worth talking about, investing unless you know for sure you'll get your money back. he only wanted sure things and stocks are not a sure thing. today's millionaires aren't any different, was they have more ways to share the perspective. these guys have no need to take any risk because you only need to get risk one. unless you're super rich already, that perspective is meaningless to you these people, like junius morgan

are, not here to help you make money. they are here to tell you they don't need risk because they have lots of money already if that's you, then fine you're still going to need the show me, i'm still trying to help like others helped me. that's what i do finally, i want to remind people that you do not need to fret the amazing thing about the market it is always gives you opportunities. heck, individual stocks, stocks like caterpillar gave you a chance this morning because very little of the $1.2 trillion in infrastructure spending has been given out yet. or how about first horizon this bank is very familiar with viewers. it's a bank that's doing fabulously and yet its stock has lost more than half its value because a suitor was forced the drop its bid. first horizon so darn cheap, i'd buy it today bottom line, the answer to all these issues is hidden in plain sight, like poe's purloined letter stay invested but keep a nice chunk of cash to buy more into weakness if you haven't already put that

to work at lower levels you might wan to leave some on the sidelines for the moment, wait for things to cool down or buy up some of the individual stocks i've said are still good both in today's club call and just now keith in wisconsin, keith? >> caller: hi, jim it's great to talk to you again. >> thank you for calling >> caller: i think what i've got is a fairly high class problem my biggest portion of -- my biggest holding in my portfolio is a stock that you call a don't trade it, hold it don't trade it and it's become the biggest stock in my portfolio by far. >> okay. >> and it's all the house's money. >> fantastic. >> caller: i trimmed and trimmed. it's all the house's money my question is, do i given the market, do i trim some more, or do i just say it's the house's money and leave it be big?

>> and the stock is? >> caller: i can't tell you. nicole won't let me. >> oh, you can't tell me okay, no problem if you play with the house's money, if you've made all the sales, the reason why that's been my philosophy all my life is that you never touch it again. you've won you can't lose it's the house's money you let it run okay this whole debt ceiling exercise shows you why investing is so hard i say the hardest thing is stay invested, but keep a nice chunk of cash to buy more into weakness on "mad money" tonight, we're continuing our opportunity for opportunity by looking at three sectors of the market, starting with suemiconductors. can the chips keep avoiding a dip? i'm finding out. and the defense contractor has been awful performers in 2023, of course thanks to the debt ceiling crisis. but with the market heading higher today, what could it mean

for the sector and i'm giving my take on big tech stock that once again is look down after hours, and that's the stock of cisco. but what are its earnings really signaling? why don't we wait and talk to the ceo fresh off the report so stay with cramer. ♪ don't miss a so effected "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. ♪ this is the all new, all electric lucid air. a car that goes as far as it does fast. as sleek as it is...

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we've seen a remarkable comeback in the semiconductor space this year, although some have come back a lot harder than others take on semiconductor the maker of power management and signal amplification chips with a focus on the automotive and industrial markets, red hot here is stock that nearly doubled from last year's lows in just ten months' time. at the beginning of the month, excellent guidance so good it sent the stock soaring in a single session. and i just won't stop thanks to a very well attended analyst day that yesterday management announced some incredibly encouraging long-term financial targets we're going to get into. so can the stock keep climbing let's check in with hassan al kouri, the president and ceo of on semi. kouri, welcome back to "mad money." >> thank you, thank you. it's good to be back >> you have set out some goals that i don't think people realize are incredibly aggressive growth of 10 to 12% you're looking for over the next five years. tell me how that's possible.

>> when we are targeting the sustainable ecosystem that i presented yesterday, vehicle electrification, electrification in the infrastructure to support electric vehicles, all of these growing above 20%. so when you pack the whole company and douple down on the sector with the mega trends, we'll end up growing at 3 x the market that is forecast at 4 for us to 12 just by being more in line with the sustainable ecosystem. >> and with that growth, you're talking about some margin improvement that i think like the old days when intel was the only game in town. you have a fab right strategy. that's new to me i don't know that. >> so we -- when we started this journey, we talked about fab lighter, which is really resizing our fab footprint we've done that, mission accomplished fab right is now taking the existing what we have and making it right meaning get the mix right in every fab to get the bes products out at the right cost

targets. because every fab is very different on the products you put in it. some are better at 8 inch, some better at 12 that's the fab right is getting everything where it belongs the right way. >> now you must be doing it right, because i talk to all automobile maker, and you were one part of the problem that wasn't part of the problem you always gave the auto companies what they needed how you capable of meeting that demand >> looking back at the last two years, when we started this journey, auto industrial was about 60% of our total revenue last reported quarter we were 79%. we made hard choices to walk away and de-emphasize other markets to prioritize the auto industrial because that is our strategy and that's how we're going forward. >> i'm looking at these companies. neo, everyone is crazy about neo. but you've got volkswagen just the largest. it's ncredible but then zeke or bmw, mercedes-benz, you've got all the marquee names. >> premium business drives

premium results. and you get to play with the premium brands >> all right but wait a second. tesla commented at one point not that long ago, tesla executives set, their analysts said a new design for one of the future power trains would use 75% fewer sic chips in current models. your stock took a hit. does it make sense that it took a hit? >> it made sense that it took a hit because of misunderstanding. >> explain it us to. >> when they got it, it recovered and then some and we got back above where we were even when that came up if you think about what they said, 75% less, but it's a different platform they're talking about a very accessible, price accessible vehicle, which means higher volume that is not in the plans today, which is incremental for us the other thing people don't realize for on semi, we do silicon power, igbts we're the only company that has vertical integrated silicon and igbt which means we can give an optimized solution for the

customer on either one or together, which have been in production for the last three years, and we're the only company who does a hybrid module with both technologies. >> and you're doing that with longer term agreements so you money is there for a long time. >> that's exactly it that's the predictable of the results we want to achieve. >> well, how about the evs, the fisker, rivian, tesla, these are very, very good companies, but they're very speculative -- well, tesla is no longer speculative. but the other ones, can they really -- they need a lot of capital. >> they do, but for us, our focus is on having the technology, the future of ev technology accessible to all of them the market will decide but for us, it's the level playing ground that we want the give everybody the technology and the innovation that we provide. we make it accessible to everybody. that's why we are a very broad geographical distribution and a customer distribution that also derisks our long-term view of the market >> one of the things that's

happened which very exciting for me, when we first had you on, the stock was in the teens, and a lot of people didn't believe i came away with the impression holy cow i think the set of assets is about to be turbocharged by you. how about now? what is the difference do you get a lot more people come and listen to you >> right now oversubscribed. weed a our analyst days yesterday, room full of people tremendous energy. it's more important for me our teams and our worldwide team a lot of them were with the company before i joined. just the energy, the transformation and that's what's going to carry that momentum. and that's to be honest with you, it's a very contagious, which is great >> and one last thing, i know you're thinking about the future penn state has a remarkable engineering school and does materials. you just made a memorandum of understanding with them for $8 million to teach a collaboration. what can that do out in your year four, five, six >> looking at how we look at our strategic view, automotive

industrial talking three to five years out, what is beyond that what is the next material? that's where our engagement with penn state is very important, not just for r&d, and for material science for wide band gap, but also for us it's important on the workforce planning that we need for the future that we are planning on heading towards. so it's a both it's the technology and a workforce training >> well, how right that is i've heard way too many semiconductor companies use the exact same material and then they get passed by and you're not going to let that happen to you. >> no way. >> that's hassane el-khoury, the president and ceo. i've liked this for years. i've liked him for years "mad money" is back after the break. coming up, forget zone or man-to-man, cramer is running a stock to stock defense, next

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after roaring higher last year, the defense contractors have been awful performers in 2023 that's not because the geopolitical situation has changed. the war in ukraine is still raging it shows no signs of ending any time soon. it's because of the debt ceiling crisis everybody is worried that it would include major cuts to defense spending because that's what happened in 2011. back then, the democrats and republicans knew ultimately they had to compromise on something they compromised $2 trillion in deficit reduction over the following ten years. the sequester, they called it. and that included taking a meat cleaver to the defense budget. in fact, i bet you didn't realize it, but the defense budget didn't return to 2011 levels until 2020. so it's no wonder lockheed marton and raytheon and northrop

grumman, they've seen their stocks get hit in recent months pretty terribly. if we end up with another round of across the board budget cuts like 2011, the whole industry is going to make less money plus given they were up huge last year, mostly because of the russia-ukraine war, you to ring your register and protect profits. make no mistake. nobody is selling the defense stocks in response to bad results. the results have been excellent. lockheed martin posted a much higher than expected backlog the stock initially jumped in response, but since then has given up all its gains and then some because nobody cares. raytheon delivered a really impressive set of numbers three weeks ago and northrop grumman did just fine, even raised their full year earnings forecast. again and again, though, the stocks just haven't been able to get any traction at all. i think that's a mistake as see it, people are way too t terrified. they think it will be end of the world for defense contractors,

but it's simply not true it's not just look at whathad in the years after 2011 when defense spending took a beating thanks to the budget control act. by now you definitely heard me tell you about the market's broader performance during the debt ceiling so often in the summer of 2011 the s&p 500 plunged 19% from peak to trough in a matter of months, but then erased the losses and some. when you look at lockheed northrop grumman, raytheon, general doyms and huntington ingalls, they all got hit really hard on average 31% lockheed in line with the s&p 500 while the smaller huntington ingalls nearly got cut in half, but roundly 20 lockheed martin jumpeded 22% from the lows through the end. northrop grumman rallied almost 19%. the old raytheon jumped 26%.

general dynamics gained. when you look at how the defense stocks performed during the years when the defense budget was actually being cut, most of them significantly outperformed the s&p 500. it's counter intuitive, but it's what happened. i got the number in 2012, northrop grumman, lockheed and huntle on the ingles all crownsed the s&p. northrop grumman up 152% lockheed up 138% general dynamics, look at this, general dynamics up 107% hunting on the ingalls were 260% all when the s&p was up 64%. that's some outperformance when you look at the actual data from the years of lower defense spending, it tells you you want to be a bir of the defense contract fors if they keep gettg

hit. especially the kind of sharp emotional sell-off we saw in 2011 sure, there are differences between now and then for example, it's not encouraging that there seems to be more republicans looking to cut defense spending than any other time in recent history back in 2011, military spending was still sacrosanct, and it still got cut. so maybe the compromise this time ends up being worse for the military industrial complex. wouldn't that be something but the other big difference from 2011 cuts in a much more bullish direction. back then we were still in team america world police mode. our wealthy allies all thought they were protected by the wealthy american national security umbrella. they couldn't imagine defending themselves so naturally didn't spend much on military hardware. that's no longer the case. we have a conventional land war going on in europe i think it will be far more difficult to push through deep cuts in the defense budget at a time when russia is opening a hostile west and fears china might take a swing at taiwan, especially if russia gets away

with their invasion of ukraine belief me, they're watching. as we explained before, much of the military comes from the stockpiles in the united states and our allies so then it needs to get back filled in the coming years that means much more spending by government and our allies. otherwise we won't have the hardware we need to protect ourselves. so regardless of what happens with the debt ceiling, russia's invasion of ukraine will be a multi-year tailwind for the defense contractor, even if the war somehow ends tomorrow. we're going have to spend a fortune just to rebuild our stockpiles just this past weekend, germany announced a new $3 billion package and military aid for ukraine, including tanks, anti-aircraft systems and ammunition not only is that a positive for ukraine and military, it also represents future sales for the defense industry as the germans need to replace this stuff for their own use and our debt ceiling negotiations have nothing to do with our newly imperiled european allies. acting as a kind of proving ground for all kinds of new weapon systems think those shoulder-mounted

javelin missiles that helped take out russian tanks early on, that's a lockheed martin-raytheon joint venture, or how about raytheon's patriot missile defense system just yesterday it defended kyiv from a barrage of russian missiles, including their widely touted hypersonic missiles, which got knocked out of the sky like everything else because of a software adjustment by raytheon amazing. you can argue the war in ukraine is the best advertisement these companies have i know that's a terrible way to put it but in the end, these are indeed merchants of war we're talking about. at least this time the products are being put to use for an unambiguously good cause here is the bottom line. if 2011 is any guide, things could get really bad for the defense stocks over the next couple of weeks as we get closer to the conclusion. but if they come down, their stocks are worth buying. i think some are worth buying now. ep-3 if we ultimately get a

spending deal that includes a big hit to the defense budget like in 2011, the defense contractors can still beat the market it happened before and i bet it happens again let's go to steve in georgia steve? >> caller: yes, sir, thanks, jim. >> hey, steve. what's up? >> caller: in 2021, i got excited about an aerospace design and small launch vehicle service called rocket lab. i bought a few shares at $15 the price has basically been going down ever since. i have purchased a few more shares from time to time but they're at 4.5 today >> right >> caller: i still like what i read about the company, but i'm beginning to wonder if i'm wasting my time. >> i know this is a critical judgment but i do believe you are wasting your time. and the reason i say that is because no company that is losing money gets recommended on this show that is "mad money."

and rocket lab isn't making money. i prefer to see you -- i'd rather see you in raytheon technologies, which is a very good company whose stock is down a lot. but because it has a large dollar amount handle so to speak in the 90s, people don't want to buy it that's wrong i would rather by one share of that than ten shares of this let's go to andrew in new york andrew >> caller: hi, jim how you? >> i am good how about you? >> caller: good. thank you for taking the time to have me on the show. >> i'm thrilled that you called. >> caller: so i wanted the ask you about boeing and when do you think it will return to precovid levels of demand for airliners >> i'll tell you, the answer is that it already has when it comes to demand. the problem is the supply or making them. and they keep having problems. now i will tell you that phil lebeau, who follows it closely, has really explained a lot of it

to us. things are getting better at boeing why are we not buying boeing for our charitable trust as i told club members today in our club call, we prefer honeywell. why? consistency. and you get the cockpits from both airbus and boeing honeywell is the way to go i told the club, and i'm telling you. look, if 2011 is anybody's -- as the defense contractors come down and they have been, i think their stocks are -- buy, buy, buy! >> pretty simple much more "mad money" ahead, including how about this debt ceiling standoff it's beginning to reverberate in silicon valley i'm sitting down with the ceo of cisco after earnings to find out what he is seeing. then i'm giving you my take on some of the wildest answers we got from elon musk in his wide-ranging interview with my friend, colleague and partner david faber last night and calls in rapid-fire in tonight's edition of the "lightning round" so, stay with cramer

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all right. what do we make of these results that cisco reported after the close? the networking kingpin with the software and security kicker has been struggling for a little bit. by the time they got their supply chain in order post-covid and the european and chinese economies come back to life, investors started worrying that cisco was only living off its backlog. once the backlog runs out, people say we'll start seeing weaker earnings and sales. i'm note so sure i'm worried the bears did get extra ammunition while cisco delivered the

strongest ever revenue and operating cash flow, even raising their full year sales and forecast, during the conference call, and what was because of a one line, it was line about product order decline of 23% that's a lot, we know, but we got to find out more about it. cisco is not taking this thing lying down they think they can return to growth next year, and they're substantially raising the buyback. so let's go straight to source with chuck robbins, the chairman and ceo of cisco to learn more mr. robbins, welcome back to "mad money." >> hey, jim. thanks for having me it's good to be with you today. >> thank you for coming on, chuck. i just kind of laid it out as being there is so much good here i love operating cash flow at big records, revenue being great. it's so clear that cisco is doing well but you did, let's go right to it, give what a lot of people thought was downbeat number about orders and we've got to solve that before people say you know what, at 45, 46 i'm going to buy the stock. >> yeah, jim, thank you for that look, we talked about several quarters back, we talked about

our order growth at the time it with husband in the 30s and upwards of 30% on any given quarter. and we actually said at some point, today our revenue is running lower than our bookings and our order rate and at some point in the future, our revenues will begin to exceed and our order rate will be much lower. that's where we are. there are three factors that are happening. number one, customers are digesting all the shipments we're sending them to right now. so they're busy implementing the technology that they ordered the second time is lead time our lead times have come down 40% in the last two quarters so that's reducing the need for our customers to place these long outbound orders that they need a year from now and the third is obviously the macro situation. so from a sequential perspective from q2 to q 3, we didn't see any real shift in demand momentum from our customer, and we don't see any as we enter the next quarter so we'll see how it goes but it's not too unanticipated and not too much of a surprise to us. >> well, i think what's

different, chuck, i know you just described it plain and simple i remember exactly what you said you were right here talking to me, and yet i think it's so hard for people to understand that you actually are saying that there could be this order decline that's expected. it always seems so unexpected. when will we get off kind of a roller coaster and more toward the steady old cisco that i know you can give us? >> well, i think we need to deliver very consistently, which we've done if you go back to september of '21, we did an analyst conference, and we said over the long-term, we're going to grow heavy knew 5 to 7% and earnings share 5 to 7%. when we exit fy '24, we'll be in that range on the revenue front and above on delivery. we're above what we said the pandemic changed, but we had point of view growth last yee. we grew double-digits this year and we see positive growth next year i'm proud of what the teams drog >> let's go 30,000 square feet this is why i want to do this.

i think we're too in the weeds here with each quarter you have some very fundamental things that are going for you. and i think if we talk about those, and people realize that tomorrow at $45, you're getting a great opportunity to buy cisco. >> well, first of all, if you think about all the things that our customers are working on, they're rearchitecting for multicloud environment they're all trying to do with hybrid work. they're dealing with cyber security in this new distributed world. they're all focused on sustainability and these are all areas that our technology plays an incredibly important role but then the topic that everyone is talking about right now, artificial intelligence, or ai, in the web skills space, this infrastructure that is going to be built out for ai is so exciting and if you look back almost a decade ago when the first wave of the cloud build-out began, we were admittedly, we were left out of that because we didn't have the right technology. i would say today we already have design wins we're already running the networking infrastructure for some of these large language models

and i think we're better positioned than anybody else to actually take advantage of this over the next five to seven years in a market that is going to be billions growing 40% annually so we're pretty excited about all the opportunities. >> so you know i like the stock nvidia, i like the company they've got all these cards, and they're a giant amount of computing power. and they sit somewhere and they're obviously not sitting on top of where the client is. where does cisco fit in between all that computational power, the generative ai and the actua customer >> well, you need to connect all of the gpus. and today they're connected by a technology called ininiband. but in the future they want to move to ethernet and then scheduled fabric, or ethernet plus those are two technology areas we are leading the market. with we think as they make that transition, which we're already seeing them do, and we're seeing them want to move to these new types of infrastructure, that's where we play, and that's where we've already won some design

wins so we're pretty excited about that. >> the design wins are from the customers themselves i think it's the service providers that always seem to get in the way are they back as being the fulcrum of your orders >> well, these are the web scale players. they're building out these ai -- this ai infrastructure all of the gpus they need to put in to actually process these large language models. that has to be connected with networking, and that's where we play. >> to me that would mean if i were you, i would be buying a lot of stock back now. when people come to realize where you play, the stock should be higher. >> well you think about the three things we talked about, jim we committed to, you know, modest growth in fy '24 given that we grew double-digits this year, but we also said we're going grow earnings per share faster and grow revenue and increase our buyback in line with what we've done the last couple of quarters i think we did 1.3 billion this quarter. and we're going do that much more consistently over the next come coming quarters we may be thinking the same

thing you're thinking. >> the last thing i need to think about is this term living off the backlog. totally confuses a lot of our viewers. can you explain why that's not the way to look at cisco >> well, the irony is that it's almost like people believe the backlog just showed up this was demand that our customers placed orders against, and they were ordering ahead because of our extended lead times. and now they're digesting that technology what it says is for us to have the backlog the size we have it today says that our customers love the technology, it's in demand, and now they're actually implementing it. so we're going to end the year with a backlog that's still double what we would normally have at the end of any given year we have $32 billion in rpo $24 billion in arr we have a reasonable amount of visibility to the next 12 to 15 months so it's something that we're working through, but it's reflective of the customers' desire for our technology. >> okay. i think we leave there it.

it makes a ton of sense to me. i hope it does to you. chuck robbins, chair and ceo of cisco. thank you, chuck >> thank you, jim. >> "mad money" will be back after the break. coming up, what's on your mind, cramerica? give us a call orngheys nt.ng round" is stmi t ne,ex - double check that. eh, pretty good! (whistles) yeek. not cryin', are ya? let's tighten that. (fabric ripping) ooh. - wait, wh- wh- what was that? - huh? what, that? no, don't worry about that. here we go. - asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - yeehaw! - do you have a question? - are you a certified financial planner™? - yes. i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®.

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oh, my goodness. you know, and there was never a time that you were too busy. there was never a time you said i'll call you back, you know. i needed to be there to carry you through, just like, you know, some of my friends carried me through. it is time it's time for the "lightning round. calls and -- and play this sound --

[ buzzer ] >> and the "lightning round" is over are you ready skee-daddy start with josh in california. josh >> caller: hi, mr. cramer. i'm a college student trying to add to my portfolio. i was going to ask you about t 3a, but after the interview with tesla, what do you think about adding tesla to my portfolio >> i would say absolutely yes, add tesla. tesla and faber. i'm giving you a twosome mark >> caller: hey, jim. first of all, a big thank you to jeff and yourself for a good meeting today. >> oh, thank you jeff is so good. he introduced a great new. they how can i help you? >> caller: well, what would you recommend for people that are being offered $25 a share cash plus 2/3 of a third of one for the magellan midstream partnership? >> so talking with jeff, you know what? this looks darn good and jeff reminded we don't really care for those pipeline companies. so i say take the money and stock and run. and thank you for the kind words about our club meeting

let's go to dave in illinois dave >> caller: dr. cramer! today is wednesday it's anything that can happen day. it's the old mickey mouse club how you, my mad friend >> i am doing so well. and dave, i've got to tell you, i'm trying to arrange another trip to chicago coming up. but i want to do it before it turns minus 5. what's happening >> caller: sounds good jim, early their month, this manufacturer and seller of diagnostic products reported a monster quarter. so, jim, let's revisit lantheus holdings. >> i love these medical holdings such great ideas the answer is yes. i know it's run a lot. but when you get them in the sweet spot like that, they're not going to be done great call by you. great call let's go to rick in pennsylvania, please rick >> caller: hey, what's up, jim this rick from the other side of pennsylvania. >> two sides to every story. what's going on? >> caller: i want to ask you about a company here it's a semiconductor company

and it has an okay earnings this year, or this last quarter and they're moving averages are lining up real nice. look likes they could have a breakout the only problem is they're in taiwan i'm talking about himx >> you said it you answered the question. the only problem is in taiwan. i don't want the risk. look, i listen to elon musk last night. and i'm going to be addressing the question about what happens to taiwan, but i don't need that headache on top of the headache of the semiconductor stocks just advanced too much. now we're going to frank in new york frank? >> caller: frank, boo-yah, jim good to talk to i don't. >> >> same right back at you. >> >> caller: i'm in the house of pain big time, jim. i bought this stock. i thought they were in the right area, energy soars and i think even you liked it at one point in time, stem. what am i doing with this? >> oh my god, they blew it listen, they blew it they did not deliver and that's what happens periodically and it's such a bummer i am sorry and that, ladies and gentlemen,

the conclusion of the "lightning round" [ buzzer ] >> the "lightning round" is sponsored by td ameritrade coming up, there were insights aplenty when david faber went head to head with elon musk. cramer focuses on the elephant out east, next good luck.

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do you think, for example, china will make a move to take control of taiwan? >> the official policy of china is that taiwan should be integrated one does not need to read between the lines. one can simply read the lines.

>> there was so much to learn from david faber's incredible interview with elon musk but for the moment, i want to discuss the focus on their discussion about taiwan, because taiwan manufacturers a huge chunk of the world's semiconductors these days chips are in everything if china ever invades taiwan, the whole globe has a problem. the stated policy of the chinese government is they want to take taiwan back. they said it belonged to them in the first place. so what do you need to know here first, our government is acutely aware of how china could hold us hostage economically if it makes a move on taiwan commerce secretary gina raimondo has been really focused on this issue. it's why she worked so hard to pass the chips act we need more capacity, even if it's much more expensive here because taiwan is too vulnerable second, lately our government has embraced taiwan like never before it's been a tortuored path

when the communist party took hold, our government recognized them as the real china until 1979 the people's republic of china, you know, the actual china has been committed to reunification by force if necessary. for decades the rest of the world pretended this wasn't a problem, largely because china didn't have the ability to do anything about it. but now china has something like a real navy and something like a real air force too meanwhile, taiwan has become increasingly important to global economy thanks to the vast semiconductor industry unfortunately, the chinese government has been unwilling to be deterred. for instance, president obama met with president xi in september 2022 at the rose garden and seemed like they came to an understanding that the u.s. would defend taiwan with our military if necessary. but almost immediately after that, china made it clear they were still gunning for the island according to mobile sources, president trump called xi and made it clear nuclear weapons would be on the table if china made any move against taiwan, and that's the sanitized

verdicts you don't need ooh celebrity apprentice that things hardened during his administration. but incredibly, things have only gotten harder under biden. as china keeps harassing taiwan with flyovers and cyber attacks. of late both nancy pelosi and kevin mccarthy have visited taiwan, which in itself is a major escalation from our government's old policy of strategic ambiguity, no visits and now we have special forces training teams on the ground advising the taiwanese on air defense, logistics and defensive barriers it's more than we're doing for ukraine. it's sort of what we've done for south korea. and that's a gigantic departure from even obama's defense policy i think it's a positive because taiwan makes the bulk of our semiconductors we can't afford to let it be threatened i mention all of this because elon musk's comments carry a great deal of weight with everyone, including our own government, which so make people more confident that there is an alternative to the american government gradually ceding its

superpower status to china which is what happens if we do nothing and let them snap up the shining democracy and defense powerhouse that is the small state of taiwan i like to say there is always a bull market somewhere, and i promise to try find it for you right here on "mad money." i'm jim cramer see you tomorrow "last call" starts now . hi, i'm brian sullivan in tonight, one of the world's greatest hedge fund managers getting bullish on stocks, and it's all thanks to ai? the who and why ahead. is working from home morally wrong? elon musk thinks so. what do you think? as the u.s. careens toward a possible debt default, there are two words that matter more than any other business we have them montana just became the first state in america to completely ban tiktok for everybody. a scary new study ahead. plus, has the storm finally passed for the regional banks? one signal that may have investors breathing