Mad Money w/ Jim Cramer 10/15/26

SPEAKER_1 (0:00)

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SPEAKER_2 (0:30)

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Jim Cramer (1:02)

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.

Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramerica. Friends, I'm just trying to make a little bit of money. My job is not just to teach, but to entertain and educate. So call me at 1-800-743-CMBC. Tweet me at Jim Cramer. Diversification hurts so bad until days like today, when you learn why you own Kimberly Clark or Procter & Gamble, why you bother with WM, the old waste management, or trafficking Eli Lilly and Merck, or App Love and Reddit. Nike! These are all stocks that have soared over the last few days. As the market suddenly cooled on the data center stocks and moved away from tech hardware. And it wasn't just soft goods that rallied. The software stocks took off as did some of the transports, and of course, all the oils. That's how the Dow jumped 556 points, has to be gained .33%. Even the NASDAQ globally advanced .08%.

It was like old timers day for some, but I regard it as a diversification bonanza.

We don't talk enough about diversification on the show, partly because it's no fun when one group keep outperforming the rest of the market by miles and miles. Who wants to stay diversified when the AI data center stocks are red hot?

And only the AI data center stocks. Nothing else. Everything else is ice cold. But when that group crashed to earth over the last few weeks, only diversification of some cash can save your portfolio from obliteration. If you're too concentrated, you're going to get blown out. Possibly giving up on the entire asset class and heading for cash like so many did in 2000, 2008, and 2022 The departed left trillions on the table. My goal is to make it so that doesn't happen to you. You'll meet this CNBC Investing Club meeting today, which went a little long because we had to talk about the slow motion train wreck that tech has become. Almost day after day for the last month, we've seen major give ups in the data center plays. It's been nothing but bloodshed led down by SK Hynex, a Korean memory chip maker that dominates trading in Korea and has begun to have the same impact here. After being in a rocket ship rallying almost 1000% over a two-year period that ended in June, SK Hynex and also its memory-making cousin Samsung have been just disasters.

How bad? SK Hynex, the one that trades in the US, was at $195 10 days ago. Now it's at $146.

That was easy. In the last few years, the Korean market has been gripped by a trading frenzy like no other. Individual investors dominate the action in Korea, not unlike here. And they don't seem to care for diversification at all. I have seen statistics showing that SK Hynex and Samsung represent a huge percentage of traders' portfolios in Korea, with many owning just these two stocks, nothing else. Talk about crowded. In the last few weeks, these stocks have been mowed down. I mean, they're mowing down the shareholders.

Especially the dimwits who bought them with borrowed money.

Unfortunately, there's been some spillover here, although that only makes a bad situation worse. These two Korean stocks, and frankly, most of the tech hardware names desperately need the AI data center story to remain intact. Maybe, though, that story has developed some cracks. The data center build-up needs a huge amount of cash, but with interest rates rising, cash has been harder to come by, stands to reason. The two biggest companies in the business, OpenAI and Anthropic, are still private, though the latter could come public by Thanksgiving. Last night, Anthropic gave out some sales figures and an outlook that in some regard is actually is disappointing.