Jim Cramer’s Mad Money Recap: Nvidia, Microsoft

Why does Jim Cramer like technology stocks so much? This is because they are always innovating, he told his Mad Money viewers on Monday.

In Monday’s session, we saw two more examples of innovation, one from semiconductor manufacturer Nvidia (NVDA) – Get report and one of the technology titles Microsoft (MSFT) – Get report.

There are two ways to excel in technology, Cramer explained. One way is to innovate, for which Jensen Huang, CEO of Nvidia, is known. The company has updated analysts with not only new products, but also with a pre-announcement of better-than-expected earnings. Cramer said Nvidia does not just challenge Intel like humans (INTC) – Get report and advanced micro-devices (AMD) – Get report, it became the most valuable semiconductor company of our time. Nvidia remains a value game even after Monday’s share of 5.6%.

Then there is Microsoft, which shows investors the other way to excel in technology acquisitions. Microsoft announced the acquisition of Nuance for $ 16 billion. CEO Satya Nadella said Microsoft and Nuance will help doctors accelerate paperwork to improve patient care.

Shares of Microsoft, which trades for 35 times an income, suddenly look much cheaper, Cramer said, thanks to smart thinking and impeccable timing.

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Eyes on the industries

Not all industrial stocks are equal, Cramer reminded viewers. Some have good companies, he said, but others have good stocks.

Case in point, Boeing (BA) – Get report to Honeywell (HON) – Get report, two shares that Cramer owns for its charity trust, Action Alerts PLUS. Honeywell struggled during the pandemic last year, but the company had a 30% growth in its security department, which includes personal protective equipment. Now that the economy is reopening, Honeywell could also benefit from larger business in its HVAC, aerospace and specialty chemicals divisions. The stock has received some analyst upgrades that have sent stocks to new everyday highs.

Then there is Boeing, which has announced another grounding of its troubled 737Max aircraft, which has just returned to the ground after 18 months on the ground. Although the headlines of this latest memory look bad at first glance, Cramer said that is exactly what we want to see from Boeing. The electrical problem is minor and affects only 90 aircraft, but the company provides an abundance of advice, although the problem can be inspected and rectified within hours.

Therefore, Cramer said that Boeing should be bought on this latest weakness. Like Honeywell, it will benefit from the economic reopening with strong orders and low interest rates.

Last restaurant standing

As smaller businesses are forced to declare bankruptcy, the larger businesses are reaping the rewards, Cramer told viewers. This is how restaurants like Chipotle Mexican Grill are like (CMG) – Get report can upgrade multiple analysts in one day and get price boost.

It’s called the ‘last man standing,’ Cramer said, and while it’s awful for the American worker, it’s great for the companies with the balance sheets and the technology to turn in our new world. Hundreds of thousands of restaurant closures have put Chipotle in a strong market position. The company was already a strong digital player, and now the dining rooms will become stronger again.

The same goes for Yum Brands (YUM) – Get report, Darden Restaurants (DRI) – Get report and Cheesecake Factory (CAKE) – Get report, Added Cramer, along with Starbucks (SBUX) – Get report, another digital winner.

In retail, Cramer said Costco (COST) – Get report is one of the last enterprises. The retailer saw just the same sales increase by 11%, which shocked analysts who assumed sales would slow down. Cramer also recommended Amazon (AMZN) – Get report for e-commerce and Planet Fitness (PLNT) – Get report as one of the last fitness players still standing.

Off the band

In his segment “Off The Tape,” Cramer sits with Zach Bruch and Trevor George, co-founders of private RECUR, a company that leverages the new trend of NFTs, or non-fungible tokens.

Bruch explained that NFTs are digital assets that use blockchain technology to prove ownership. These are unique pieces of digital goods that are unique and last forever. George added that NFTs can collect anything that is collectible, but that its usefulness will be later as communities are built around these assets.

Asked about the possibility of a bitcoin crash in NFTs, Bruch noted that a buildup and a crash are likely to occur as NFTs are new assets with much speculation. But, he notes, as they mature, brands will begin to figure out how best to use them, and eventually they will represent real value.

The Fed Against Inflation

In his “No Huddle Offense” segment, Cramer believes the prospect of the Federal Reserve raising interest rates to lower inflation. He said sooner or later the time will come for Jay Powell to pull up. But if that happens, it does not mean that the shares will be destroyed.

While it is true that Janet Yellen raised rates prematurely in 2015, the markets hit hard. But other times, it took months, even years before stocks began to respond. That was the case in 2004 and 2008, he said, and it could be the case again this time.

But it is far too early to worry about interest rates. Without tangible signs of permanent, not transient inflation, there is simply no need to raise interest rates, and that is exactly what Powell has given us every chance.

Lightning Round

Here’s what Cramer had to say about some stocks that callers offered Monday night during the “Mad Money Lightning Round”:

Cisco systems (CSCO) – Get report: “I think they’m going higher.”

AT&T (T) – Get report: “Sell, sell, sell.”

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