Mad Money w/ Jim Cramer 10/27/26

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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. Mad Money starts now.

Jim Cramer (1:17)

Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramer. Other people are my friends. I'm just trying to make you a little money here. My job is not just to entertain, but also to do some teaching. Call me 1-800-743-CMEC. Tweet me at Jim Cramer. The smoke has cleared so many times now that my eyes are burning, and what's left of my hair is being singed.

That's how I feel about the notion that the great data center trade is once again on.

As I heard literally all day, and it's time to get back into the pool.

SPEAKER_5 (1:52)

Why, why, why, why, why, why, why?

Jim Cramer (1:54)

Because Broadcom was able to arrange a $63 billion financing deal to be able to sell computing infrastructure to Anthropic. It was a tough fight.

Broadcom CEO Hock Tan got directly involved, knocking the heads of the bankers together, and only got the deal done.

Plus, Meta actually got $25 billion from its equity offering. The offering was five times over subscribed, we're told. And the deal was upsized from the original $22.5 billion. The rest of the equity raise, a $60 billion at-the-money program, will commence once the company's new Class C shares begin to trade, likely early next year.

So investors and traders bought the usual AI techies again, and that caused the dollar rise a modest 16 points, but the S&P jumped 0.60%, and the Nasdaq soared 1.18%.

The buyers overwhelmed the sellers because the all-clear clock went off. Didn't you hear it?

Now, I am pleased that people feel so comfortable. The tech is now all good to go because there is money flowing back in. My travel trust owns a lot of these companies. You need to see them rally.

But tell me something. What the heck does that have to do with the coast being clear? First, what coast seemed to clear? It seems it was the debacle that is Corweave, whose shares have been plummeting while the company's bond yields were blowing out, with some publicly traded bonds reaching a 15% yield. That's unsustainable for this neocloud company. Now, Elon Muck took it to X to talk about how there are more than 200 neoclouds that will fold, though he said it more colorful than either. Now, there was no way I could get to that number, but I sure was worried about Nebius and Iran as well as Corweave. Corweave stock was getting killed, but the others failed to go down the rabbit hole, making me concerned that there might be more to these companies than we thought. But in rapid succession, three things happened. First, Anthropic unveiled the S-1 filing for its upcoming IPO, showing a private company with great growth, ton of cash, with more coming from the offering. It's a total breath of fresh air because it will both be making a lot of money and it will have money to spend.

The making of money will be an adjusted thing, but it'll look good. And that way, they were able to, let's say, bury the Achilles heel of the space Corweave and its challenged competitors, and compadres. Second, Meta announced its fundraising plan. I don't think they'll like that nearly two-thirds of the fundraising plan, $60 billion, will come from an at-the-market program next year. Something that, I am telling you, will drag the stock lower, because the people who handle these at-the-market programs, at the brokerage houses, are usually brain dead and don't do them well. They tend to add a lot of supply at the wrong time and help accentuate the stock sell-offs. Still, the Meta announcement helped us move forward because it was already so widely expected. Why these masters of the universe don't know that an ATM is testament of their lack of knowledge of trading? Maybe they're too proud to ask someone like me. Maybe. I do. I tell them for free, frankly. Third, the bond market decided not to act up, and oil fell nearly two bucks. The 10-year traded under 5% last week, and it has been tame ever since. So what's the problem? Why hasn't the smoke cleared? Why do I think it will be back? What am I so negative about? I'm not negative, but I'm just saying these three catalysts for the purported comeback are more ephemeral than you think. CoreWeave did have a big day today, one that made people sit up and take notice that the premier data center builder is still alive. Under what world do you think, though, that the shorts aren't going to allow CoreWeave to lift tomorrow? You think they will? It will take an act of Jensen to change things, with Nvidia buying the bonds of CoreWeave, not the stock, and preparing to reap those gains over time. I know it's not in Jensen's playbook to buy debt, but it would silence the critics. I have learned that after every positive story about anything in the data center these days, there will be a plethora of negative stories about something wrong, including most definitely CoreWeave. I could write that stock in my bro... I could write this story right now and just read it to you. I've done hatchet jobs all my life, but lately I've been a good guy. I won't do it anymore. Anthropic. People don't seem to grasp that it's got the money in the Broadcom arranged financing deal to purchase equipment from Broadcom. That's right. If the money had come from Nvidia to buy stuff from Nvidia, oh, we would have heard all day while Nvidia had wrangled a bunch of banks and private equity to give it back to itself in circular buying. Right now, what Anthropic and Broadcom are doing still seems to be okay to everybody. They seem immune to criticism, even as we are cheering Anthropic for getting the money. Finally, the most damning negative, bonds.