>> grasso? >> see what price nvidia is trading at >> 385 >> oh, 386 before. come on now. tesla. >> guy >> mpc, mel. >> all right, thank you for watching "fast." "mad money" with jim claimer 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 a special ceo council summit edition of "mad money." welcome to cramerica other people make friends. i'm just trying to help you make some money my job not just to entertain but to teach you so called me at -800-743-cnbc, or tweet me @jimcramer right now, we're playing out so

many horrible scenarios that i thought were over with and done with, but we weren't which is why the dow tumbled 256 points today s&p lost 0.73% and the nasdaq climbed 6.1% i worry that this awful sense of deja vu is going to drive people out of the market once again i'm talking about the rabbit hole of 2011 and the great covid wave of 2020 and 2021. the first one is nasa yagt, but also obvious, given that 2011 is when we had the last true debt ceiling crisis it was only natural to worry the history from 2011 would repeat itself, meaning that the situation would get a whole lot uglier before it got good. it's certainly getting uglier. the second one, covid, the idea that it could be a comeback and in huge numbers? some say as many as 50 million infections in a week in, yes, china, has created a level of shock that is sending everything related to china down from freeport mcmoran, starbucks where they're opening a new chinese store every nine hours of course, we can deal with

covid. we have lots of ways to make it less lethal. here in america it's almost become a rear guard action but covid here and covid in china are two very different things there is an awful lot of mystery about this new variant in china right now. we don't know if the government will shut things down. apparently they're saying they won't. well don't know if travel will be banned or restricted. the casino stocks with exposure in macau are trading like it's going to happen. and we don't know the psyche of the ebullient chinese consumer will be impacted i was worried when i saw the numbers on albie baba, but that was before this new covid wave, geez the worst part is nobody even knows about the new covid wave i talked to dozens of people and i seemed to be the only one aware of it. back in february 2020 when i came on air and people looked at me as if i had five heads when i said an epidemic is coming as it keeps spreading through china and beyond, it will be discouragement and disgust, the two ds that make people want to sell, sell, sell their stocks.

let's talk washington. the day to day action from last debt ceiling negotiations in 2011, it's not good. we had a lot of optimism about a deal back then we figured nothing could really go wrong with the debt limit because it had never gone wrong before the debt ceiling was always a formality. the idea that a bunch of elected officials could hate each other so much, they would be willing to destroy the government's pretty rating to prove a point seemed insane. the only point they're making is america is run by a bunch of morons and the full credit of the united states government isn't worth the paper it's printed on even though we averted a worst case scenario, it was enough to make the standard & poor company downgrade our government debt. it was so embarrassing it caused a lot of selling, a lot of worry this time we're repeating all the same mistakes, except nobody is optimistic because we know how bad it can get we're no longer at the level of dysfunction in american politics we're much more cynical and jaded these days i spent the last couple of days reading the archives from 2011 and several things jumped out at

me we got to a point where we are now when we sensed things were going off the rails. kind of where we ended last week during each one of the days hope would be kindled and exhausted oftentimes several times in the same session this time the rhetoric is mostly about how people might not get their social security checks or some treasury offices might fail but last time we focused on the wedge as they worried the rating wouldn't be ruined if something wasn't done quickly. interest rates would shoot dramatically higher. at the same time there was a widespread belief that the economy would go into recession the moment the economy defaulted and it would get worse every single day yesterday and today were reminiscent of the period in 2011 because you had a couple of companies do well. see, something like we had palo alto networks, which reported an amazing number and then its stock shot up big

but there would be very little pin action for even the other cyber security companies even off a classic roll. you'd see a great quarter like we just got from tolle brothers, but because it's a home builder in the crosshairs of the debt ceiling morass, i wonder if we won't see the same one-off action in the stock of the amazing nvidia, the incredible ai kingpin which crushed the numbers better than any large capitalization company i can recall in 2023 when it reported tonight. i tell club members cnbc investing club members, they know it, nvidia. own it don't trade it an honor i hold only for apple and nvidia and i reiterate that stance right now. but will the huge movement in nvidia be able to buck the budget undertow? not if things got real nasty back then when we got closer to the government wouldn't be able the send out the check, the

market grew uglier and uglier. like then, this market is choosing to take apart the industrials and the financials but as the market started to really get hit, as the game in chicken got ever more dire, washington took everything down in the end today on my morning meeting home stretch shows with jeff marks, the ones you can watch if you join the cnbc investing club, i ponder given what we know about 2011, it would be possible for some members to sell out and get back in, avoid of the decline, particularly in the industrials and financials rather than just keep taking a darn beating honestly, as somebody who used to trade for a living many, many years ago, i can see how you would want to do that. we aren't oversold on the oscillator i use to measure if there is too much selling pressure the complacency is pretty strange given the 2011 script, i got to admit right at this point, the 2011 debt ceiling debacle we started hearing from journalists with dubious sources that there were only eight more days with hidden cash that can tide us over that's what made things drag on back then, even as we did

ultimately reach a deal on the eve of the x day i would hate to advise you to sell and buy back later. we don't know if you'll be able to get back in after the all clear is sounded real nimble people maybe 5, 6, 7. maybe more but if you aren't nimble and don't want to take those games, get ready for your politicians to lose you some more money until this is over the bottom line, they hurt you then they aren't done hurting you now. but unless you trade full-time, it's very hard to get out and back in early enough for it to make a difference, which means most of us just need to take the pain, recognizing that a month after the debt catastrophe was averted in 2011, we were much higher and made a ton of money together dustin in oklahoma, dustin >> caller: boo-yah, jimmy chill. how you doing, sir >> the chill man is doing well how about you? >> i'm diagnostic fantastic. it's good to talk to you again, sir. >> thank you >> caller: my question tonight is about one of our club names

i am one of the charter club members. >> thank you. >> >> caller: and my portfolio is a little more tech heavy which has been really fantastic this year. but i've been considering a name in our portfolio for quite some time it's an industrial growth and just don't know when a good time to pull the trig were the debt ceiling right now and wanted to know your thoughts on when to pull the trigger on caterpillar. >> all right i think caterpillar is terrific. the way the debt talks, hoping, and hope shouldn't be part of the equation that caterpillar will begin to rally on all the stimulus money but at the same time, i didn't think it would get this bad. i think you have at least four, five more days where you can see caterpillar lower. and i don't want you to get in and say why did chill say buy it here when he knew it was going lower. i think cat could have more downside, then you will have to buy some ian in illinois. ian? >> caller: jimbo, how you doing, my friend? >> i'm getting hot how about you? >> caller: yeah, i hear you. beautiful in chicago today so i'll take it. hey, listen. >> all right what's happening

>> caller: i am 31 years old and trying to balance my portfolio with some riskier upside plays as well as some cash flow-producing investments and one of my favorite cash flow stocks is realty income. so i'm looking for your thoughts on the health of the company, where it might be headed. >> really income is fantastic, ian. it's a terrific company. it's stood the test of time. i think the monthly dividend checks, i think you got horse sense. all right. if you don't want to sell in the face of the debt ceiling deadline, then get ready for some more volatility, because it might get ugly in washington "mad" tonight, cadence shares up a whopping 382% the past five years while the s&p is only up 50 and i'm checking up on a comeback story that we've been watching closely in the utility space, pg&e. see if the recent pullback would be a good opportunity for investors. and the ceo with this special edition of "mad money" from the cnbc ceo summit continues.

♪ don't miss a second of "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... spacious. as smart... as it is beautiful. introducing the lucid air. experience the best.

(dr. aaron king) if you have diabetes, getting on dexcom is the single most important thing you can do. it eliminates painful finger sticks, helps lower a1c, and it's covered by medicare. before using the dexcom g7, i was really frustrated. all of that finger pricking and my a1c was still stuck. my diabetes was out of control. (female announcer) dexcom g7 sends your glucose numbers to your phone or dexcom receiver without painful finger sticks. the arrow shows the direction your glucose is heading-- up, down, or steady-- and because dexcom g7 is the most accurate cgm, you can make better decisions about food, medication, and activity in the moment. after using the dexcom g7, my a1c has never been lower. i lead line dancing three times a week, and i'm just living a great life now. (donna) it's so easy to use. dexcom g7 has given me confidence and control, everything i need is right there on my phone. (female announcer) dexcom is the number one recommended cgm brand. call now to get started on dexcom g7.

♪ now that the semiconductor stocks are starting, let's talk about a key partner for the chip makers one seems to share the industry's success in good times without suffering as much during the bad times. i'm referring to cadence design systems, which makes software that helps semiconductor companies design their chips and

also design other types of electronics and help enable new drug discovery via biosimulation. over the past five years, this stock has been a serial outperformer up 382% whi cadence was off only 14% this year it's been outperforming again, up 27% for 2023 even pulling back a little bit the past month cadence may be the greatest circumstance stock you have never heard of, but should have. how do they keep pulling it off? let's check in with anirudh devgan he is the president and ceo of cadence design systems to get a better read on the story i am so glad i came to this conference and mr. devgan did too, so i can meet you in person welcome to "mad money. >> thank you, jim. it's great to be here. big fan of your show. >> oh, thank you well, i've revered your company for many, many years, but i always felt it would be too hard -- first, i said i don't know if cadence even cares about

the show, but it's a hard company for many of us to understand so maybe you could, because i hope you'll be on many times, walk us through some of the key things that you do >> absolutely. absolutely so what we do basically is we make software to design chips and electronics systems. so this is mathematical computational software because these chips are pretty complicated. >> right >> it's probably the most sophisticated things humans have ever built these chips are at 1 nanometer, 2 nanometer and all the systems they drive so we make the software because the chips are too complicated to be designed by hand. they're designed by numerical software and almost any chip designed in the world today uses some form of cadence software. so we're glad to be working across multiple end markets with all the major companies in world the drive the next version of semiconductors, the next version of innovation that's happening >> so tomorrow night, my friend david faber, my colleague is going to run his amazing interview with elon musk

and elon musk is touting that his cars are filled with tech, filled with semiconductors, but he's a car, but he is also a space guy. at a certain point, doesn't he need a cadence to make it all work >> actually, that's absolutely right. so if you look all around you, whether it's cars, whether it's phones, whether it's all the cloud infrastructure, even your washing machine has a lot of chips. >> okay. >> and all these chips are getting faster and faster. and that's what is also driving all the ai revolution. so all these chips to v to be designed, and they have to be designed very, very accurately to give better performance to better power and we are the software that enables the design of these things >> now where are you in terms of the chip sack? the reason i mention, i think a lot of people mistake we do have -- what's the most important thing about chips is the intellectual property, software and hardware. yes, some of them are made overseas but the chip stack could be a revolution for this country, and

you would be deeply involved in it. >> absolutely. you know, u.s. is the one who invented semiconductors. >> yeah. >> about 60 years ago. and we still have leadership in software and design. and it's great to see the government investing in manufacturing. and also it's good to see that the investment is not just in manufacturing, but also r&d. so we need to manufacture things like advanced nord for cloud and ai but also mainstream nord for automotive it's important in the next generation of manufacturing, which is going to be multiple chips in a package what we call chipless base design and cadence has a leadership position in package design software along with chip design software so it's very important to invest not just for manufacturing today, but for r&d for manufacturing for the future >> okay. so how do i make it so that i minimize the number of things that i view up on, that try to get it first or at least close to first, because otherwise i

miss my next six years of my company? >> exactly right so i think what is critical, what is known in our industry is called first time right. because these things are so complicated and the cost of iteration is so high so if you take three or four iterations to get it right, then you can miss the whole market window so what that means is that during the design process, not after manufacturing, but during the design process, you have to do a lot more simulation and emulation and verification using software, using our product. so that when the chip comes out, it is working first time right and some companies are great at it, and they are the ones who are really successful in this market >> can you also be applications to aerospace and defense i think that's where we have to be quick >> absolutely. a few years ago, we invested a lot more in aerospace and defense, and there are two ways actually we work with these system companies and aerospace and defense to me is a system company. >> right. >> just like a car, or a phone

company is a system company. so what is unique and new about cadence is not only we work with all the semi companies, but now 45% of our revenue is coming from system companies because they're doing more and more chip design this merger of system and semi, because you can really differentiate based on your work load, you can really customize your silicicon collusion so we're glad to work with all the leading system companies, including in aerospace and defense. and the second thing we are doing is all the mathematical computation software we have to design chips can also be used to design cars and systems, because they need more automation and more simulation. so we have a new effort to simulate cars, aerodynamics, you know, simulate power issues which are huge for data centers and all electronics. >> one thing you don't simulate is profits a lot of the companies that are fast growing, they didn't care about profitability. they don't want the sacrifice

growth your company has had unbelievable growth and extraordinary profitability, which is why i think in the down cycles you far outperform the industry. >> yeah, we always had focus on both growth and profitability. this is not new for us we always focus on it. and make sure the other thing is we are a software company that is -- so the majority of our revenue is recurring in nature >> fabulous. >> so we can invest in r&d not only are we very profitability, we invest about 35% of revenue in r&d. >> that's huge >> i have to do a show to explain to people that's the highest i have heard of anyone who has ever come on the show. >> exactly >> highest i want to thank anirudh devgan, the president and ceo of cadence designs systems, cdns. i've wanted this company we've been on 19th year and we finally get to have you on i hope you come back thank you so much. >> thank you >> "mad money" is back after the break. coming up, california's

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♪ last december, we looked at the best performing stocks on the s&p by sector. and much by surprise, the second best performing utility was pg&e, the parent company of pacific gas & electric but after digging deeper, it became clear this once terrible operator, the worst, has become one of the greatest comeback stories there is remember, the old pg&e was infamous for inconsistent numbers, starting wildfires, had to declare bankruptcy in 2019 because it owed so much to the victims. when it emerged from bankruptcy in mid 2020, the new pg&e's largest shareholder was a trust representing those fire victims.

and then they brought in a new ceo, patty poppy in early 2021, and she has proven to be a tremendous turnaround artist we invited her on the show last december, and she joined us for an interview a week later, laying out her plans to reduce both financial risk and wildfire risk pg&e is now spending a fortune building out underground transmission lines as part of a push for climate resilient infrastructure after that interview, i was sold since then, i know stock is only up about 3%. but that's much better than the more than 7% loss etf over the same period. so tonight while we're out here in california, though a bit south of pg&e's coverage zone, i want to check up on the story. until a couple of weeks ago, pg&e had been on a roll. when pg&e reported in late february, they put up decent results. the company racked up 10% earnings growth last year. they're on track to do roughly 10% growth again this year at the same time, the company performed very well during a period of major storms in january. this is not the old pg&e we got another steady set of

numbers three weeks ago reinforcing the idea that this is a more consistent, more dependable pg&e. they gave us a set of perfectly in-line results which may not sound very impressive, but pg&e isn't trying to blow the numbers away they just want to prove that unlike the old days, they can deliver regularly on their financial targets. a previous outlook calling for at least 10% in 2024 followed by 9% growth in 2025 and 2026 which would be very impressive for a utility. it would be impressive for any company. they also don't plan to issue any new stock through at least 2024 that's why pg&e's stock ran up nearly 3% over the following week on top of that, everything else -- in late march, we got a much clearer wildfire mitigation plan for the next three years. it's encouraging storm response data given the fact that california has had an awful lot of weather lately. on the flip side, all the rain has been a boon to pg&e's hydroelectric power assets which are considerable

they've won legislative including diablo nuclear power plant. regulators know that i am a huge fan of nuclear, because i see it as the only serious way to cut down on carbon emissions in the short-run. at the same time, pg&e has made real progress with cost cuts management said they're getting closer to paying a dividend again, which had to be discounted way back in 2017 because of the wildfire litigation now one qualm i've had with the stocks is the fire victims trust owns a major chunk of pg&e, and they regularly sell huge blocks of stock to raise cash to compensate people for the fire damage so every time pg&e stocks starting getting some momentum, the trust goes in there and knocks it down for example, in april, they sold 60 million shares at $16.25 apiece pg&e stock had been traded $16.82 the day before. but rather than selling off this time, the stock was able to rally over the next few weeks. that's an important signal why? investors are finally seeing the light at the end of the tunnel the fire victim trust originally owned 478 million years of pg&e.

now gloriously it's down to 128 million shares they're not even the largest shareholder anymore. they're the fifth larger even if they want the keep selling in huge blocks, giant blocks, they can only do that a couple more times and then they're going to run out oh will that be fabulous this is something patty poppy was asked about on the most recent conference call and she said we're close to the end of the fire victim trust sale it's been such a lid on the stock. so that gets rid of the most major overhang i've seen in a utility. nevertheless, this one's come under pressure over the last couple of recent weeks gone down in six of the last eight trag days. that's not for any specifics reason nothing bad has happened to pg&e the company. instead, it's dragged down by its sector you might think utilities would do during the run-up to the debt ceiling deadline it hasn't happened in fact, the utilities have been very weak. why? because bond yields have been spiking which is what you expect people worried about a government default

and when bond yields go up, dividend stocks like most utilities go down because they're less enticing in comparison i think that's causing people to sell the utility etf which then hammers the whole group, including this one but it makes no sense to sell pg&e on higher interest rates, because pg&e doesn't have it right now. how can it look worst then when nobody owns it for the nonexistent yield in the first place? there is also some noise in the story yesterday when it was reported that the company had withdrawn a loan management action we don't think it's worth anything worrying about. the stock barely got dinged and we suspect if true, this would have been more with the skittish that capital markets added the debt ceiling that had anything to do with the company itself. in the end, the recent pullback in pg&e is giving you the buying opportunity you want today we're hosting investor day event. and given that management has given pretty specific earnings guidance for 2026, i expect many big announcements any new

financial targets. but the bottom line, i hope this investor day can re-ignite some of the enthusiasm author pg&e stock and what patty poppy has done here, because this is a great growth utility with an incredible comeback story that simply isn't getting the love it deserves this story is phenomenal just phenomenal. let's take calls michelle in california, michelle >> caller: hey, jim. welcome to california. >> oh, i love it here, michelle. i love it! what's going on? >> caller: same here i'm a long-time watcher of "mad money," and i'm a member of the club. >> thank you >> caller: i want to thank all you, jack and the team and everyone >> thank you, thank you very much >> caller: i'm calling about power. last year i took control of one of my iras and amt came with it. it was up about 40% at the time soy held it, even though i don't understand their business model and i figured tower services were -- in spite of the economy.

but now i'm in the red for 20% so i was hoping you could tell me what they do, why they're down and should i sell it and cut my losses? >> okay. look, i completely understand why you would want to own it because the tower industry is a growth industry. because the more cell phone towers that go up, the better the service. that's been an amazing thing but verizon is not doing that well and at&t is not doing it well. so maybe they won't put up as many towers, and it turns out this had much more interest rate risk than we thought when interest rate gas up, people are selling the tower stocks it's not just amt. you do own the best one. i would not sell it here, but i've got to tell you, it is no longer going to have the growth that it used to have when at&t and verizon had strong balance sheets and put up a lot more cell towers. let's good to carolyn in minnesota. carolyn? >> caller: hi, jim boo-yah. and thank you for having me on the show. >> boo-yah >> caller: hey, i have a question regarding 3m and their

ongoing legal challenges and i'm wondering, do you think it's a good sign that the florida judge is asking the ceo mike roman to attend mediation and earplug litigation and that the stock has some potential growth as an outcome or do you this is just another phase in a protracted legal battle driving the stock further down >> no. it's bad both the combat arms, which involves tinnitus and deafness and the groundwater situation. no i'm not saying they're insurmountable i'm saying you can't own this stock. it did increase the dividend by pennies. but my father worked for 3m. and very proud company but no, those litigations, they're too hard it's too hard to own that stock. all right. the recent pullback in pg&e is giving you a great chance to buy into the utility's phenomenal turnaround story, because i don't think management is getting the credit they deserve. much more "mad money" ahead.

snow is falling after earnings have i ceo frank slootman fresh off its report plus, last night's report from toll brothers was illuminating what lies ahead and how to keep housing prices down? i'm going to give it to you. of course, all your calls rapid-fire in tonight's edition of the "lightning round. so stay with cramer!

(dr. aaron king) if you have diabetes, getting on dexcom is the single most important thing you can do. it eliminates painful finger sticks, helps lower a1c, and it's covered by medicare. before using the dexcom g7, i was really frustrated. all of that finger pricking and my a1c was still stuck. my diabetes was out of control. (female announcer) dexcom g7 sends your glucose numbers to your phone or dexcom receiver without painful finger sticks. the arrow shows the direction your glucose is heading-- up, down, or steady-- and because dexcom g7 is the most accurate cgm, you can make better decisions about food, medication, and activity in the moment. after using the dexcom g7, my a1c has never been lower. i lead line dancing three times a week,

and i'm just living a great life now. (donna) it's so easy to use. dexcom g7 has given me confidence and control, everything i need is right there on my phone. (female announcer) dexcom is the number one recommended cgm brand. call now to get started on dexcom g7.

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quarter. good earnings beat higher than expected sales of 48%. unfortunately, the guidance came up short they also cut their full-year forecast for product revenue and operating income the stock is plummeting after-hours trading. why don't we take a closer look with frank slootman to find out more mr. slootman, welcome back to "mad money." >> great, jim. good to be back on the program >> all right so, frank, you've taught me a couple of things one of them is the guidance is just the guidance. what matters is how the company is doing this was a fantastic quarter you're making money far ahead of when i thought you could make money. the quarter had a level of retention of customers that is just amazing 151% should -- my takeaway is snowflake is doing far better than anyone thought, and i can make up my own guidance. do you think i'm off my rocker by doing that? >> no, i think you should take our guidance seriously we've been public almost three

years now, and whatever 10, 11 quarters that we have reported, we're pretty good in giving quarterly guidance so it's something that i would take seriously >> all right if that's the case, frank, i've got to wonder whether there is a macro slowdown, there is competition, maybe you want the keep others out of the business because you want it to yourself, which i like because i think your model is terrific what are the causes behind the estimate cuts then >> you know, the sentiments in the marketplace is really quite strenuous. one of the things that is going on, we've seen it progressively increase really since q4 is that the cfo is in the business now you see that readily in enterprise software that the cfo is really looking at everything that has taken place and then it goes one step further to start telling the business how much they can spend and figure out how you're going to make it all fit and very forceful, very direct

and that reflects a lack of visibility on their part certainly a level of anxiety as well we certainly have been in an era of optimization, which is fine that's just doing the same stuff, but doing it more efficiently. but also rationalization we're saying look, we're only going to spend this much and that's all there is to it. there is a lot of excitement and demand in the middle ranks with chief technology officer and chief data officers. when you get to the top of the house, it's a whole different ball game. >> but as between signing a long-term contract with the typical cloud company versus your model, where i can use it by consumption, i think that you represent a substantial bargain versus the others. when it gets to the cfo level, does the cfo understand your model is probably better for that company than the long-term signing? >> that's also the reason why they're looking for us because we actually have a model where they can actually impact the cost there is nothing that they can

do, you know, about a subscription model that cost is going to have to eat it no matter what. we're one of the few places you can go and affect the current period expense >> well, at the same time, they'll go to snowflake summit they will see your new products. they will get more intrigued maybe we get back to where -- look, you can't take the cfo out of the equation because there is a lot of craziness in the world. but i like to think that new products from you, a person that me house to make people money if they hire you could change the equation a bit and make me say temper negativity. >> you know, look, macro sentiment is going to change it's going to run its course we're going to get out of this mode we're in it for a period of time and that's just a nature of things we have tremendous growth in 2021 and all these time frames but we're on the other end of that spectrum right now. we're not going the stay there we're going reconverge to a much more robust pattern.

if you were to zoom out a little bit and say let me take a five-year view of the growth here, it is tremendous and very large secular trends, very big markets are forming here and we can't lose sight of that by looking at a single period. so i'm super optimistic, you know, about the path that we're on >> i'm glad you say, that because i think if i were in the shusei of darius demczyk at honeywell, i would do what he did. he overhauled his whole data strategy with you. darius has been on our show many times. why don't you tell them the value proposition that honeywell saw that they went with you for. >> yeah, that was actually a really good story. they went through, like everybody else enormous inflation spike. and of course a company like honeywell with 3.5, 4 million different skus, they had to get repriced in realtime or it would become literally an existential threat to the company.

because they had all the data and snowflake, they were able to do that. you're right that becomes a ceo level issue i mean, we're talking about enormous risk, enormous exposure and they were able to manage that very successfully so that was a tremendous story how data supported the business through incredible disruption through inflation. >> now i also understand that people are building native apps to run inside snowflake. i know that is a sign that you are getting embedded in a lot of different companies. how is that process going along? >> yeah, we're going to be making big announcements, and we're going to be showcasing that we've been working on it for years. it's really important to run applications within the snowflake perimeter as opposed to outside of it it has to do with security it has to do with compliance, operational simplification, all these kinds of things. we've been working for years to enable them to make that possible so snowflake is becoming much more of an operational hub in addition to being a data hub so a lot of core operational

processes are going to be running through our platform >> all right you yourself are a no bs operator people come and say help was generative ai. can you help us with machine learning what do you tell them? do you say your model is actually very good to learn for generative ai or one model for another when it comes to artificial intelligence? >> the models all train on data. so we're experiencing tremendous gravitational pull these workloads want to come to us because we have highly curated, highly optimized data we're just the best place to train these models on and to deliver these experiences. and these kinds of impacts in addition to being a data company, we're also rapidly becoming an ai company it's very exciting because we mobilizing the world's data. we now have opportunities to mobilize data in ways we could not have foreseen just a few years ago.

>> so you actually excited about ai look, you can tell our viewers, because, again, you're no nonsense if you seize something like this before, it's not like the iphone it's not like the wind tell. tell us, or is it something that is very special that is going to change our world >> it's very special i still remember when search became a real thing about 25 years ago. i could only wish i was 19 years a again. i would be in school and have these capabilities at my fingertips the speed of learning, back then we had to go to the library to do the most strenuous things i think this is incredibly empowering to individuals and to industries and to literally everything that moves. so we're super excited about interat snowflake. this is what we're here to do. >> all right well, look, my enthusiasm for your company or for your work, and i'm very encouraged about what you just said about ai. that's frank slootman. he is chairman and ceo of

snowflake, snow. thank you, frank great stite. >> you bet thanks, jim. >> "mad money" is back after the break. coming up, it's a blue sky "lightning round" from santa barbara. and there is not a cloud in the sky, next.

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"lightning round" presented by ameritrade. it is time it is time for the a special ceo edition of the "lightning round" on "mad money. play this sound -- [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? it's time for the "lightning round. let's start with gabe in texas gabe >> howdy from saginaw, texas, jim. great to talk with you i read "confessions of a street

addict" 20 years ago when i was in high school. >> that should have been banned in the state of texas what's up? >> caller: my question for you is richie brothers auctioneers now known as rb global. >> we like richie brothers we like the merger we like the ceo. nothing but net. i think fabulous let's go the trey in texas trey >> caller: chill meister, i've got a quick question for you buddy. >> i'm feeling chill look out what's up? >> caller: do you think matthew prince can ride on the backs of eagles' wings and bring cloud fare back up to $80? >> well, i don't want to mention the eagles in the same breath, because howie rosen like university of georgia's dog. but i do think matthew can get the stock back a couple bad quarters, and it's all back together. the stock should be higher let's go to christopher in california christopher? >> caller: ba-ba-ba-boo-yah, jim cramer

first-time caller. happy wednesday to you. >> thanks. >> caller: what are your thoughts on this stock ticker symbol boh, bank of hawaii. >> right now i'm only recommending two bank stocks wells fargo and morgan stanley because it has good field. none of the regionals. they're too darn hard. other ways i can lose money for people how about nick in arizona, nick? >> caller: ba-ba-boo-yah, jimmy, jimmy chill. >> nick is playing >> caller: my company helped farmers grow bigger yields i want to know if it's going to make me grow bigger money, mosaic, mos. >> no. dave in new york, dave [ buzzer ] i admit, i should have gone longer about mosaic. i don't like that stock. dave

>> caller: hello >> dave, you're up, come on, man! >> caller: hi, cramer. dave from new york how you doing? >> doing well. how yabout you, what's up >> good, good. long time fan and watcher. i'm in it for the long haul. >> gilead science is at 79 this thing is no this stock has got a potsy on its feet we want stocks to go higher. it's something i believe in. patrick in washington, patrick >> caller: hi, jim back in 2020, your quote helped me and buy an engagement wife for my ring and thank you for that and all the years of guidance. >> thank you >> caller: my question is on lending tree at 28 a share, is it a bargain the chart indicates it may be primed -- >> no. i just pulled up on this idea of wanting to buy stocks to go higher as long as i got that predilection of wanting them to go up and not down, we have to stay away from the lending tree.

and that, ladies and gentlemen, the conclusion of the "lightning round" [ buzzer ] >> the "lightning round" is sponsored by td ameritrade coming up, cramer learns something last night from a key home build they're you went want to miss. make sense of mortgages, next. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back.

♪ the federal reserve spent over a year slamming the brakes

on the economy nothing is moving the way the fed wants it to. people are still willing to shell out 5 gs for a ticket to lisbon like they're waiting for a last night out of casablanca they don't plan to pay for cocktails when they couldn't afford a diet coke now they're planning on buying brand spanking new homes from toll brothers slapping down $85,000 down payments and not even thinking twice about it there is almost nothing the fed can do about this. notice i said, though, almost. you see, if the fed were to take short-term interest rates to 10%, they could put the old kibosh on the entire economy, cancelling the vacations, closing the restaurants, making it almost impossible to buy a home, unless you can pay cash up front. while we want the fed to win the war against inflation, you and me, we want that, we don't want them to destroy the entire economy in order to make it happen especially when inflation is already coming down big from its highs. going to lose some big inflation a month, two months from now, it

will look like almost no inflation. but you know what hasn't come down enough? in certain categories it may not baseba be able to at all, yeah. airfare. over a decade ago, the government let so many goveairline mergers go through now there is not enough competition so the airlines can get away with murder the how about the bountiful face i still think that's the long on money, short on time thesis at work they keep telling you about. we had a couple of years where going in that restaurant was offlimits or an agonizing experience now we're no longer afraid for our lives. as someone who used to own two restaurants, i was shocked at how much more people were willing to spender meal versus before the pandemic, with the only real change that i could figure out is people are trying to live life to their fullest. in some places they were paying twice for the same food i was serving in 2019. but homes. homes are different.

sadly, local governments with tons of authority are preventing new building so until we can convince new neighbors that it's okay to have a housing development down the street, it won't be affordable there is a host of reasons first, we underbuilt for more than a decade in wake of the financial crisis many home builders failed to make it through the recession. that caused a deficit of roughly 3 million homes in this country. how the heck do you compensate for that kind of housing shortage except through higher prices second, millennials are late bloomers to home ownership but now they're bidding over each other to get new homes and creating inflation in their wake that's totally organic demand. it can't be stopped. third, the ceo of toll brothers highlighted this morning in the terrific conference call that there is a lock-in phenomenon that is real this is that vast majority of homeowners having a mortgage rate that 5% or in many cases lower, and that discourages them from buying a new home because then they have substantially

more expensive mortgage. whatever the fed can do, it can't fix that finally, the red tape developers have to go to does discourage the ability of building new homes. there are some pro development stakes with amenities to home building but they're in the vast minority the vast majority doesn't want building the vast majority says no more homes. we don't know what to do about that what doe we have in twin impacts. more pressure, higher on rents which are the consumer price index, and the seemingly unstoppable increase in home prices i rack my brains how to make this stop going up, and i can't. it is a huge problem arguably, a much worse problem than any other kind of inflation, because this doesn't get any more essential than shelter. but as toll brothers said last night, it's supply and demand. supply simply cannot keep up with demand for housing right now. the only way to fix that is if the federal reserve goes nuclear on the economy otherwise, just pray the slowdown gets bad enough on its

own that it starts to deter buyers right now the fed hawks are winning because there is no sign of that deterrence whatsoever. i like to say there is always a bull market somewhere. i promise to try to find it just 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. an ai gold mine. nvidia rocketing to an all-time high thanks to a new ai chip some investors bracing for a june 1st u.s. default date but we'll show you why that may not be the day of reckoning that some claim it is the wolves, they're apparently out. short sellers turning the screws on carl icahn. now even bill ackman is reviving his billionaire feud with icahn. target pulling mere. from stores due to customer backlash now there is a backlash to the backlash where will this all end? and right