Mad Money w/ Jim Cramer 9/3/26

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**Jim Cramer** (1:01)
My mission is simple, to make you money.
I'm here to level the playing field for all investors. There's always a boom working somewhere, and I promise to help you find it. Mad Money starts now.

**Jim Cramer** (1:17)
Hey, I'm Cramer.

**Jim Cramer** (1:18)
Welcome to Mad Money. Welcome to Cramer-a-Cop. Love you, my friends. I was trying to make a little money. My job is not just to entertain, but to teach you. So call me, 1-800-743-CBC. Tweet me at Jim Cramer. We're witnessing the revenge of the Magnificent Seven. And most people don't even seem to know it. Kind of like when Return of the Magnificent Seven came out, and nobody watched it. Sigh.
We've had some stunning winters of late. I know, it's Dell, people are looking at it, and they're looking at Snowflake, and of course, there's Salesforce, and yes, there's CrowdStrike.
I know they're making their shareholders' fortunes overnight. You know much, I love that. It's why I endlessly suggest you should own some individual stocks with your index funds. But with the average is taking off today, Dell gaining 624 points, S&P jumping 1.06% and the Nasdaq pulling 1.4%.
Perhaps you have to go back and pick at the market's old leadership, the forgotten Mag 7, because a lot of them have gotten real cheap. That's right, on a price journey basis, they've fallen so far behind their other, I'd say many more inferior companies that I'm beginning to think that's just plain wrong.
Why the heck am I suddenly willing to stick my neck out and say positive things about these seven stocks that have been written off because they've destroyed their balance sheets for the most part, lost their momentum, or just become plain ugly ducklings? Simple, as I learned 45 years ago when I worked at Goldman Sachs, we used to say everything at a price. With the sole exception of Apple, these Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla have become forlorn losers. Actually, I think in some degree, perennially disappointing, falling way behind the market. So what I have to say is we are at the price. More damning, they just aren't interesting anymore. People don't want to hear about them. Not when you could be in a Dell or watch it soar for a second day after Magnificent earnings. They aren't going to be sexy like CrowdStrike and Paloalto. It's not in the wake of AI shenanigans, a mythos moment, the MIR. Cyber whatever. The Mag-7 can't tack on a stunning 17 percent gain like Snowflake did today. It's breaking out as a way for companies to embrace first the Cloud and then AI. They won't rally a hundred points in a matter of weeks like the mistakenly left for dead Salesforce, or the rocket ship that is Dell.
No.
Six of the seven don't have the horses. That's right, with the exception of the extraordinary gains in Apple, which has not wrecked its balance sheet, what do they have that are just, I'll tell you, the rest of them, they've gotten, they're in the bargain bid, given some changes that impact all of them and some individual traits that make them winners. I say, well, let's just say they could be twice plus. So I'm going to take them down here. I'm going to tell you why these losers are winners. Let's start with Amazon.
Ever since we went out to see Amazon earlier this year, I've been stuck on something that CEO Andy Jassy told me. He said they're going to make an immense amount of money in artificial intelligence. They're going to profit from their gigantic commitment to data centers, and next year will be used for the compute sales. Well, I think it's being pulled forward. I think it may already be used right now. I also remember Andy talking about the $50 billion semiconductor business that's buried in the company. Well, like the healthcare initiatives, the international is inflected. Amazon Web Services is doing incredibly well. Their grocery delivery business, wow. Their advertising business, Reacher. All right, what can I say? All this for a stock that's up just 12% for the year, that's wrong. Amazon's balance sheet isn't as good as it was a year ago. Enough already. What if Amazon Web Services is able to make four times what it just paid for two million GPUs from NVIDIA? That ratio, by the way, is what NVIDIA CEO Jensen Wong told me companies can expect to get when they buy NVIDIA chips. That makes me think that Amazon is cheap. We've all kind of forgotten that there's a reason why a smart executive like Andy Jesse is willing to wreck Amazon's balance sheet like the old days. It's because they're going to make fortunes with the money they spend, and we're getting closer and closer to seeing huge profits for investments that the street has had, and you can't wait until next year to buy the stock of Amazon. And that's why it is a screaming buy with the stock trading at about 20 times this year's earnings.