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Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramerica. Other people want to make friends. I'm just trying to make a little bit of money. My job, not just to entertain, but to explain. So call me at 1-800-743-CNBC or tweet me at @JimCramer. Today was all about Snowflake, the data management platform that saw its stock surge over 36% after a beautiful quarter.
Now I know you might be saying, hey Cramer, that's a needle in a haystack. I'm worried about the averages, which had a good day. Dow gaining 25 points, S&P gaining 58, Nasdaq rising 0.91%. I come back and say that is nonsense, people. Snowflake stock hadn't even been weighed down by AI displacement worries last fall. The fact that it can triumph over those fears and pick up $64 in one session for you if you own it has implications for the entire market.
And anyway, tomorrow is Dell Day. Just like I told Investing Club members at yesterday's meeting, after just an incredible quarter from Michael Dell's amazing company, the stock is looking to open up $60 right from the get-go tomorrow. Congratulations, Michael, to you and your great team. I'd say there are enough needles in this haystack that only a fool couldn't find one. But let's do this. Let's dive into how Snowflake dazzled so brightly all session. How did it do it?
Okay, as CEO Sridhar Ramaswamy explained on our show last night, the company figured out how to pivot from plain old software to a terrific amalgam of software and artificial intelligence, supported by partnerships with Anthropic, which by the way just announced today that it raised $65 billion at a post-money valuation of $965 billion. How incredible is that? It has also partnered with OpenAI and Amazon Web Services. With its quarter last night, Snowflake gave the latter $6 billion to have Amazon's homemade chips. That's right. Amazon isn't giving Snowflake six billion. Snowflake will be giving six billion to Amazon. And that was a huge part of the positive story. It shows you that Snowflake understands the transition to AI. They get it. I like that.
And look, Snowflake's just one example. Every day in this market, there's something so obvious. A gain you could have conceivably grabbed if you were just paying attention to what's working somewhere in the world, even if it has nothing to do with the stock market. Could be anywhere. Hey, let's say you're reading about Ukraine. That's in the papers all the time, right? They've been making real progress against Russia using cheap drones. I wish the Pentagon had been paying attention to them earlier because the Iranians have used the same drone strategy to do a number on our allies in the region. But now the White House knows it needs inexpensive drones. It knows the Pentagon's got to make them. So they want to invest in some of these drone companies to help our war fighters in this new era. Wouldn't you know it, there's a drone company called Unusual Machines that's advised by the president's son, Donald Jr. The government's going to take a stake in that one. No wonder the stock shot up 57% today.
We understand now that the Pentagon might start taking stakes in similar companies that all went bonkers. So, you got to ask yourself, do you think it's done? I don't think so. They haven't even selected them yet. Doesn't take a genius to figure that out. Nope, I don't think so. Again in this market, why not make a field bet on the group? I'm giving you the three best. Okay, we've covered them. Swarmer, Red Cat, and Ax. Swarmer is a natural. It's the first Ukrainian defense tech startup. Red Cat already makes aerial drones for the army. It's a fan favorite. And Ax is a pure-play drone maker.
You know that at least one or two of these is going to receive some federal contracts. Oh, don't forget meme stock favorite Ondas makes parts for drones. Maybe pick one or two. They've all moved, but judging by the action of Unusual Machines, incredibly, it's not too late.
Now, is all this obtuse, a true SAT word? Are we too late? I don't think so. Today was also a good day for ARM, up 10% or $32. Stock is owned by the charitable trust. Again, one we suggested that you should buy at yesterday's Investing Club meeting that I beat myself up on, but at least I did a couple things right. What's moving ARM? I think because ARM will be giving talks with Nvidia's Jensen Huang at Computex, an annual Taiwan tech event on Monday and Tuesday. Qualcomm will be there too. So will Intel. So will Marvell. Yes, they are all up already. But that doesn't stop stocks in this particular market. That's what matters. Still, if it's so easy, why doesn't everybody do it? Okay, I'm going to answer that with: you're going to have to pull the heart out of the market intelligentsia like the vicious high priest in Indiana Jones and the Temple of Doom.
So, here we go. First reason: we're only told that we're supposed to buy index funds and ETFs. That's the ticket. And if you deviate, well, you are asking for trouble. They know nothing. Unlike what I wrote in 'How to Make Money in Any Market' right here, where I say that you should own index funds and some individual stocks. The orthodoxy says 100% index funds and nothing else. You aren't getting a snowflake with that policy. More like a snooze flake.
Second, it's too obvious, right? If Snowflake can pivot, why can't Oracle or ServiceNow or MongoDB or even Salesforce? Maybe something good is in the works next week at Microsoft's developers conference. Wouldn't shock me. They need it. Well, we've been told over and over again that you can't just think about something and then read about something, then put it in Gemini or ChatGPT or Claude and get a bunch of names and do some buying. It's actually not the most rigorous approach. But who said this particular market was rigorous lately? Rigor? It's been costing you money.
Finally, there's the turn of the century problem, and this is really it. From January of 1999 until mid-March of 2000, the NASDAQ moved up in one of the most heinous, most disgusting ways, as company after company with no profits and sometimes no revenue came public. So many companies connected to the great internet build-out got absurd valuations. Then one after another after another, all bad. All bad. The house of pain. 330 of them failed. Fortunes were lost. People left the market in droves, never to come back. Wiped out a whole generation of investors. Largely because of those 14 and a half months, we've been scared away from some of the most incredible opportunities with real companies that are making fortunes. If you lived through the dot-com period, especially if you were trading at that time like I was, or you took a company public like I did, then you know most of those dot-com IPOs actually deserved to die. The one I did, fortunately, didn't.
But I think it's an insult to group this market's winners in with the dot-coms. Do you really think Micron deserves to die? The chipmaker's on track to earn over $100 per share next year, for heaven's sake. Unlike the dot-coms, it's insanely profitable. Same goes for Seagate or SanDisk or Western Digital. Now, I know Seagate sounds like a nice apartment building in Delray Beach, Florida. It actually is. It's an undisputed winner in luxury living there. Western Digital may have a sister, Eastern Digital, somewhere. SanDisk, what can I say? They invented that silly card you put in your cameras before you had phones that had cameras in them. All of these memory and storage companies are just crushing it, making billions for you, for shareholders. But there are many people calling it a bubble. So many that investors don't want to touch these stocks. They know more than I do. Of course, these bears have been screaming bubble for about 100% of the moves already. But they have to double down on the bubble talk now or else they look like idiots. And they don't want to be able to say, 'Oops, sorry.'
While this market's led by stocks that are a lot more legitimate than the dot-coms, we also have some negatives that we didn't have back then. We're in a war with Iran that's doing real damage to the global economy, and the president may not be able to reopen the Persian Gulf without signing something like Obama's Iran deal, which would be a huge defeat, or at least seen like that. We have rising inflation as seen again in today's April PCE reading. But it turns out to just be more fuel for the stock market. As in, if these things don't bring the stocks down, what will? Right here, right now, I'm supposed to put in the obligatory 'this will all stop this week or next, and I'm sorry you missed it.' And then when you try to hang me on YouTube, I can say, 'Uh, I'm covered.' But I'm not going to do that.
The bottom line is that the market's different, and we're much further from the end of the AI data center boom, as you'll find out when you listen to Applied Materials later, than the bears would have you believe. That means I think we do have more room to run. As long as the skeptics dominate the conversation, we're nowhere near the top. When they start throwing in the towel, that's when I'm going to start worrying.
Daniel in Pennsylvania. Daniel.
Hey, how you doing? Good day in the market, huh?
Yeah, it was. It was nice. The Nasdaq stocks were very good.
Yeah. I wanted to get your thoughts on Palantir. There seems to be a lot of insider selling on a consistent basis. So, I wanted to get your thoughts on Palantir.
Okay. Right now, other companies are shining so brightly that they're taking away the sheen of Palantir, but maybe something changed today with Snowflake. Palantir is up $10. Maybe it's coming back. I have not lost faith in my great friend Alex Karp, and I don't think I will. Let's go to—
No, no. Lifelong friend or just great friend?
Not a friend. Let's go to Maria in California. Maria.
Oh, I'm good. Maria, how are you?
Good. Let's see. I've been a club member for about a year and I'm learning every day. I've owned Ford Motor Company for about six years and it's been flat for a really long time, but it recently shot up on news that they're going to be using their EV technology for data centers. So, I took your advice on a parabolic move and took about 20% off the top, but do you think I should sell the rest?
You're doing it perfectly in this market. That Ford story, which should have been crushed about three weeks ago, is still making it go higher. So, you're taking some off, so you are not going to be able to be a loser. You'll be a winner. And I congratulate you for going right back in. You know, Ford is on a parabolic move. You took some off. That's perfect.
Hey, why don't we go to Cordell in Ohio? Cordell.
Hey, good evening, Jim. How are you doing today?
I am doing well, thank you for asking. How about you, Cordell?
I'm doing great. I'm calling in about a company. I've held this a little bit after the pandemic and I was looking for this company to be like a recovery stock.
I know that it has properties out in Macau and it's looking to have more properties open up recently. And I know it was up a little bit today, and this is one of the companies that is very hard for me to read on a chart, and I have no clue if the stock is going up or down. What's your true thoughts on Wynn Resorts?
If it weren't for its commitment, which I admire, to a Gulf property in Dubai, I would say that this thing should be at 120 to 140. Especially, I've got to tell you, I don't know if you saw the news about Tom Ferta buying the Caesars, but I think Vegas is great, but Wynn does have that property, and I think that makes it a very difficult investment. This market keeps proving the doubters wrong, and until more people throw in the towel, I think there could be more room to run.
More on that coming up. One of the reasons I think like that: Applied Materials sits in the middle of the manufacturing ecosystem for AI chips, and I'm learning more about the company's road ahead after its huge rally this year. Then, could Hinge Health help get your portfolio into better shape? I'm sitting down with a disruptive medtech company to find out more. And rising bond yields have spooked investors in recent weeks, maybe the last couple of months. But is this move higher about to reverse? Of course, I know no one thinks that other than me and perhaps our legendary historian of the markets, Larry Williams, who's joining me in person right here in the New York Stock Exchange to break it all down. So stay with Cramer.
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We have had an unstoppable bull market in the semiconductor capital equipment makers because the great data center build-out has caused shortages everywhere of all kinds of essential chips. Naturally, that's fabulous for companies that make the hardware you need to manufacture chips itself. Companies like Applied Materials, long my favorite stock, that's up 75% year-to-date. Two weeks ago, they reported a terrific quarter: robust top and bottom line beat with the company's highest gross margin in 25 years. The guidance for the current quarter was even better. Management raised their full-year forecast, saying the semiconductor equipment business should grow by more than 30%. That's up from 20%, the previous forecast. And look, as long as all sorts of chips are in short supply, I'm betting Applied Materials will just keep winning. Don't take it from me. Let's check in with Gary Dickerson. He's the president and CEO of Applied Materials. You have a better sense of the story. Gary, welcome back to Mad Money.
Really glad to be here, Jim.
Well, look, I am thrilled to have you. And you know what, Gary, it's your turn here. You've returned 2,897% for shareholders, which is incredible. You've seen everything. Is this maybe one of the greatest times in the history of your industry?
Not maybe, it is the greatest time in the history of the industry. And for Applied Materials, AI is driving incredible computing demand. As you said, we just delivered record earnings, record revenue. We're guiding for tremendous growth, and Jim, this inflection is going to go on for a very long time. And the most important, the fastest-growing areas in AI are segments where Applied Materials is the clear leader: leading-edge foundry, logic, DRAM, advanced packaging. Those are all enabled by materials innovation leadership from Applied Materials. So again, we have line of sight to tremendous growth far into the future.
Okay. So, people say, 'Oh, come on.' But you actually had to change your structure of deals. It can't be boom-bust because I don't want to say you're in charge because you're a humble person, but when it comes through the process, you're not doing the same subcontracts that you used to do.
Yeah. Again, we have really unprecedented visibility in terms of our business. I mean, customers—the conversations I have with the CEOs of our key customers—is really focused on our ability to deliver both the equipment and also the key innovations for AI computing. Again, computing demand is going up at an incredible pace. I think token demand is up like 3x in the last few months, and the innovation in tokens per second per watt is what everyone's focused on.
Now, explain to people because it's like they keep coming down in price, but everyone's using them so great because it's the coin of the realm.
Absolutely. AI is going to transform every industry. And it's just the most enabling innovation of our lifetimes. So, for Applied Materials, we are the leader in materials innovation that enables all of those advances in computing, the new architectures in chips, the new architectures in packaging. And again, we have a great setup. As you said, our semiconductor equipment business will grow more than 30% this year. The discussions we're having with customers, they're focused on us being ready for 2027, 2028, and going forward.
Now, people keep saying to me, Jim, it can't last. And they also say, well, what's going to happen is the players are going to start turning out more and more and more, and they'll finally get to the point where the equilibrium will go down. I say, uh-uh. These aren't the kinds of machines that you probably have factories going 24/7 everywhere. You're nowhere near able to meet the demand.
Absolutely. Absolutely. So we made big investments in our operations. So we could pretty much double the operational capacity, but we also have to make investments in the supply chain. So that's where that unprecedented visibility with our customers—at least eight quarters into the future and even beyond that. If we don't have that visibility, our supply chain isn't ready. So at Applied, we've made incredible improvements in our operations, in our supply chains, but again, the demand just keeps going higher. Just recently, agentic AI is something that everybody's focused on. That's layering on top of all of the AI demand.
CPUs, DRAM, a big increase in those areas of the market. And again, Applied is the leader in those areas of the market.
Why don't I be like Dell, up 60 bucks? And one of the reasons is they all recognize they need your stuff. Everything inside of Dell actually is you. You are the intellectual property of our industry, and we dominate this industry around the world.
Yes. You know, I think we create miracles, Jim. So, you know, I always tell people: in your smartphone, you have the application processor computer. There's 20 billion transistors, 60 miles of wiring for $30. For $30.
In the iPhone 17, do they have a lot in this one? Holy cow.
It's amazing. And then for AI, the demand for computing innovation is even bigger. Again, the tokens per second for performance and the power consumption and all of that is enabled through materials innovation where Applied is the leader in all of those fastest-growing segments in the chip and packaging. Applied is the leader. So, we're in an incredible position and we have these deep co-innovation relationships through the entire technology stack to enable the AI computing of the future.
Well, I want to point out that you have been instrumental in changing the whole industry because of EPIC, a decision that you made. And I know your team, but I know you personally because you told me about it years and years ago, committed to the notion of greatness. That's what that is. I don't know any other industry that has it, and it's all your doing.
Yeah. So, again, everybody's in a race for AI computing leadership, right? And so you look at the computing leadership in the chip, in leading-edge foundry logic—it's about new innovations in the transistor, new innovations in the wiring, or in memory—you need really high speed to move the AI data. And so again, Applied is the leader there. In packaging, how you connect all these computing components together, Applied is the leader there. So at EPIC, we've announced a number of different partners through the technology stack, and we're going to have our innovators with our customers and partners to enable those future chip and packaging innovations that are essential for AI leadership and AI growth into the future.
And I want to point out again, this is the United States that you're doing this.
Absolutely. We're doing this in Silicon Valley. And by the way, in Silicon Valley within 50 miles is about 40% of the S&P 500. So you have the highest innovation density in the world. And we're bringing innovators from all around the world into this EPIC platform. You'll see more partners announced soon.
Well, will you bring us in? I am looking at my executive producer right now, Regina Gil, and I said, on an invite, we drop everything.
October, we're going to have the opening. I want you to come there.
Done. Done. That's what we're going to do. I'm going to leave it on that note. Gary Dickerson, one of the all-time greats, and he's on our set tonight. President and CEO of Applied Materials. Gary, I can't thank you enough.
Thank you, Jim. Always a pleasure to be here.
Stay with us. More coming back after the break.
Coming up, with Hinge Health turning in a strong set of results, is now the time to buy into the medtech name? Cramer's asking the top brass next.
Earlier this month, we got a phenomenal quarter from Hinge Health, which is a digital, AI-powered physical therapy platform where you get your care via an app rather than in person. This company came public a year ago. Remember I told you it was going to be terrific? It rallied hard in the early months. It started to languish late last year, earlier this year. But then Hinge reported two and a half weeks ago and it delivered a true blowout set of numbers. Revenue up 47% year-over-year, much better than expected margins. They were—I couldn't believe they could make this much—and a healthy earnings beat. Management also issued strong guidance for the current quarter and raised their full-year forecast substantially. In response, and correctly, the stock jumped 10% in a single session. Since then, though, here's the opportunity: trading sideways. But could this be the beginning of a larger move? Let's check in with Daniel Perez, who's the co-founder and CEO of Hinge Health, to learn more. Welcome back to Mad Money.
Thanks for having me, Jim.
You said that you could deliver numbers that would be terrific. I didn't think you could do it. I didn't think you'd do 85% gross margin. I didn't think that you would be able to have such great service and not have people pay—not even a copay because the employer provides it. How are you able to do this?
Well, we're able to deliver really good clinical outcomes for the end member—that is, the people with back, joint, or muscle pain. And if you could give people a non-surgical, non-invasive option for their pain relief, you're going to reduce downstream costs. So, health insurance companies are willing to pay for that. Employers are willing to pay for that. So, it's a win for the patient as well as a win for the enterprise who's paying for the insurance costs.
No, I want people to understand because if you go to the website, you can see there are examples of people. Some people have as simple as much as this—they look into it. It works, right? I mean, people don't need to have a person in their house, and they don't need to go someplace that they might not want to go to.
Well, and if they do, we also have an in-person care network that we've launched as well, our Hinge Select network. But I tell you what: we deliver care through an app. We also have hardware as well. So, we're—
Actually, our Enzo device could deliver electrical nerve stimulation right through your skin to give you a technology alternative to pain.
It just quiets down overactive nerves to give people another option for their pain relief. So we've really thought about building a comprehensive approach to developing musculoskeletal health.
Well, I think you're even more comprehensive than you realize. For a long time as chief spokesperson for the American Migraine Foundation, and because I had 26 a month, which is not great, and you are doing something in migraine that is revolutionary and I think is going to help millions of people, and I want you to talk about this initiative.
So migraine is a quietly very prevalent condition. So, you're not alone, Jim. About one in six American adults are afflicted with migraine. Twice as common in women. And I'll tell you what, about 75%... just stop. It's not a headache.
It is not a headache. No, no, no.
I want that out because a lot of women suffer because the boss, maybe a man, says, 'Ah, she's got a headache.' It's not a headache.
No, no. This is a very, very serious condition. Very, very prevalent. And sometimes people suffer in silence because maybe people don't understand just how common they are and how afflicting they could be. But you know, you often have, you know, trigeminal nerve could be overactive and could cause a substantial amount of pain. Your occipital nerve as well. We're addressing migraine in three key ways. So one, our Enzo device just got FDA clearance to be used for migraine. So by delivering electrical impulses through the skin, we're able to quiet down the trigeminal nerve that is overactive in the setting of a migraine to deliver near instant pain relief. We also help you track your triggers. I don't know about your triggers, but for some people it might be caffeine. Some people might be alcohol or lack of sleep. The clinical research shows if you could just understand your triggers, you could reduce monthly migraine days, and we give you access to a full care team. What's great is that we now have over a hundred of our enterprise customers have adopted migraine, covering 2 million adults. We have more coming in every single day, and it's about 75% overlap between people with migraine and musculoskeletal pain, particularly neck pain. And so really...
Well, I'm so glad you're doing that because we hope that they start teaching it at med school. A lot of doctors come out and they don't understand that migraine is something that is to be treated. It's the skin of the brain tightens and there are things that go wrong, and people just give you... when I first started, they gave me Bufferin.
Oh, it's like injections.
No, Bufferin, like your migraine Bufferin.
Oh wow. Well, I tell you what, there aren't many migraine specialists or headache specialists in America. There's about 7,800 headache specialists in America for tens of millions of people who are afflicted. So you're not alone. In fact, the access to specialists is so limited. There's often three, six, seven-plus month wait times to see specialists. We're able to give people access to specialists within several days with our new...
Well, that's great. I mean, we're all... we were all... we're trying to do is build awareness. You're obviously going much, much further. Now, tell me, the last quarter was so great. I have to believe the word must be out that every company should be thinking about going this way. It's cheaper versus, say, the hours that are lost. The people obviously can choose which way. So are you just inundated with incoming calls? Because most businesses have to make the calls.
Well, we're really excited about the commercial progress we've had. We had about 97% customer retention in 2025, and we've added hundreds of additional customers over the past...
In other words, so the customers... you're not losing any customers.
And a big reason why we sometimes lose a customer is because of M&A or bankruptcy. You know, Spirit Airlines, rest in peace. They were a wonderful customer. Well, we're no longer a customer of Hinge Health. But yeah, when we sign a customer, we're very lucky in that they stick with us for a long time. In fact, our very first customer is Vail Resorts. We just celebrated our 10-year anniversary with Vail Resorts. They've been one of the most forward-thinking organizations in America, particularly about not just creating a great experience for their customers, but a great healthcare experience for their employees and their members of their employ.
And what are the... if you're allowed to say it, what are the largest customers you have?
We have half of the Fortune 10, about half of the Fortune 100, over half of the Fortune 500, about half of US state governments. We think now it's about 51% of US federal employees, including several intelligence agencies, have access to Hinge Health. Unfortunately, I can't name the intelligence agencies, but yeah, we're very broadly available. But you know what? Still, 25 million American adults have access to Hinge Health out of 260 million American adults. A lot of work to do to expand access to...
