AMD Lifts the AI Trade, Dow Extends Record Run, House Vote and the Shutdown 11/12/25

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Market insight and analysis. You're listening to the opening bell of CNBC, Squawk on the Street.

Jim Cramer (0:51)

Am I declaring an end to the era of magical investing? How about this? I'm proclaiming that for the rest of the year, it's the era of investing, not as if by magic, but as if by profits. And for that to happen, there's going to be far fewer winners and a lot more losers.

Carl Quintanilla (1:08)

That's Jim on Mad Money last night with this take on the AI trade. Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer here at Post 9 of the New York Stock Exchange. Fabers on assignment. Coming off that Dow record close, futures pretty solid as the house returns to work for the first time in 54 days today. We'll vote to end the shutdown around 7 p.m. tonight. Our roadmap begins with the state of the AI trade. AMD expecting sales growth to soar, driven by what it calls insatiable demand for AI. Goldman's out with its latest forecast for global stocks, expecting double-digit gains for the S&P next year, although well outpaced by international stocks. And the house gearing up for a crucial vote, as we said, to end the longest government shutdown in US history. Let's begin with this AI trade, though, a day after the Dow did hit that new record high. Jim, lots working. We were talking to Santoli this morning about Goldman's effect on the Dow right now.

Jim Cramer (1:59)

Right. Goldman goes much higher because we are in a merger market, an IPO market, and a debt market that is rather extraordinary. The latter being much more lucrative. People realize it. We have a big position for the trust, one of the biggest positions. I think that stock at 16 times earnings just makes a lot of sense.

In my theme that I'm developing now, something at 16 times earnings is something we really, really want. Something that is 40 times earnings, something we don't want as much, and something that is something times revenues, that's over. Because those companies are in the prove it phase. We've had a lot of it. I always said, listen, if we ever get a lot of insider selling, if we ever get companies going up a lot that don't make any money, well, then I will say sell. Now, there's happening, and I'm not saying sell those companies. I have to be consistent with what I was talking about. Now, that does not mean sell Lisa Su's company. AMD is doing incredibly well. It does say that when Oclo reports and they report a not great number, you shouldn't embrace it, just because it's nuclear, because I'll take Mike Wirth and Chevron and natural gas as a power for data centers, but I think we have to get away from the companies that are hostage to OpenAI, for instance. Now, Lisa has more business than OpenAI, but I was quite stung by what happened yesterday with CoreWheel right here, where I thought Michael N. Trader was clear first when press, that it's not one site that there's a problem, it's five sites, and I don't want to hear that. I don't want to hear glitches when we're in the year of magical investing. It makes me say maybe we're in the era of profitable investing. That's a switch for me.

Carl Quintanilla (3:41)

Right. There is this nice Morgan Stanley report looking at power shortfalls by 28, 20 percent. Power shortfalls, tens of gigawatts of shortages of power.

Jim Cramer (3:53)

Yeah, well, it's very hard when you have GE-Vernova, which is a big position for the trust that wanted to be much bigger, they make turbines. There's not a lot of turbines being made. You need turbines to be able to convert. There are some states where there's still available power. The key here is going to be batteries. It's going to be Elon Musk and whether we can store the stuff and use it at night, because right now we don't have enough. And when you listen to Intrader, remember, it's a twofold issue. You got to build the power and then you also have the... you have to have the building. If you don't have the power, then you're not going to go as fast as you'd like.