For nvidia long my favorite stock one i always say to own, dont trade. Yet i keep hearing about how to trade nvidia should you go long or short . The greatest avl intelligence play of our time one thats already changing the world with its borderline miraculous semiconductors. Should we declare victory, sell the darn thingup here . Maybe buy some more. And then it hit me why dont i just tell a dad joke so here goes [ rimshot yeah that is why my sisters names rose because your mother loves roses. Thanks, dad. No problem nvidia hallelujah plunging 606 points. Nasdaq tumbling. Nasdaq losing. 39 prs. We have to recognize there was one stock of one truly Great Company that frankly has nothing to do with the dow or the nasdaq or the fed for that matter that stock is nvidia it is quite simply much bigger than a Semiconductor Company much bigger than a can p, much bigger than the platform i owned my late rescue dog after because i didnt think enough people owned the stock. Who is nvidia, what is she to misquote shakespeare its a myth logical warrior. Its the loom. Its the steam engine. Its the wind tail combination all wrapped up with an iphone in a 2001 space odyssey bow so when nfd y. Reported last night and showed you how strong the quarter was the stock flew up more than 9 today. I think it would have been up even more on a better day. Peaked at 1063 before the market really rolled over but regardless was able to win when Everything Else was losing. Ill take any stock that rallies 88 points on a day filled with heavy losses a couple of things before we get to the legend of silicon valley. We got a read on the surface economy this morning, it was just way too hot which then sent Interest Rates higher and therefore yes indeed as always crushed the stock market that makes sense there are a lot of people who own stocks now because theyre expecting rate cuts and aint getting them right . Okay they need that but their chimerical other were not going to get it until we have layoffs. Job losses determine whether the brown shoots ive been watching turn into a genuine slowdown without them listen to me, its hard to imagine the fed cutting rates which makes it hard for these people to own stocks anyone betting on rate cuts will easily be spooked like they were today. And thats been a constant every time rates go higher second, after opening strong almost all the techs including semiconductors got clobbered even as initially most Semiconductor Stocks had roared in sympathy with nvidia. I say call it pin action it ultimately failed nvidia seemed to be the only stock that went up save a couple of Bargain Basement retailers which is simply not sustainable. Weave been up for a long time. We were due for a setback. But it made nvidias star shine that much brighter now lets talk about the zeitgeist of nvidia. This is a company run by jensen huang. Hes a man i call da vinci because hes a visionary, a true modernday renaissance man hes created a series of semiconductors that can be trained and then can take a data set and infer pretty much everything that needs to be known. I like simple examples of the power of ai. Say you dont speak english well you want to go to mcdonalds and use the drivethru window. But you fear youll screw up the order, theyll screw up the order. Orders get screwed up all the time theres a lot of fear. But if the person on the other end of the speaker is not a person, if its an nvidiapowered robot thats sympathetic, can speak 27 languages and never make a mistake, then youll have the fastest and best experience there is with 40 million legal immigrants in america alone ive got to tell you thats a good business. Whoever rolls that out nationally first wins. Or maybe you want to build the single best full selfdriving car in the world, one that cant make a mistake, thats so flawless, so safe that the regulators would be nuts to reject it. That selfdriving car will be built with nvidia chips. Because theyre the only ones that have enough horsepower. Which of course is why elon musk has been buying them like crazy for tesla and why, by the way, jensen said this will be the big story of 2024. The fact that nvidia can do all these things, it has a platform that can be trained, educated and draw inferences and answer questions like no other, means theres no end to the demand that its simply boater than everyone elses product. But heres where it gets a little tricky. In the stock business it often pays to be skeptical weve seen all too many geniuses, all too many stocks that can could no wrong, all too many products that sounded too good to be true. Weve been had too many times. So what its developed is an instinctive belief that if everything works and the orders wont stop then something will eventually go wrong. Maybe its an unknown competitor could simply be the stocks priced so expensively you cant own it, you have to trade it ive heard them all. But this reflexive skepticism has not served you well with nvidia this company routinely exceeds all expectations by staggering amounts and while the stock might look expensive based on forward earnings it always turns out to be much cheaper in retrospect as the actual numbers trounce the estimates. When you look back, do you know that nvidias truly never been expensive during its whole run to its current 2. 5 trillion market cap which brings me to the joke at the top of the show. Nvidias become a fascination. The kind of stuff of alchemy many of the people who own it have no idea what it does. They may have bought it because i named my mutt nvidia they may have bought it because jensen huang dresses in cool motorcycle jackets for the most part when youre dealing with a business thats a business to Business Operation like this one its hard to get your head around what they really do and how the product works. Maybe the buyers just like the quirky name. Maybe they like the stock that keeps winning. But if people dont take time to learn what nvidia really does, how it has the ai field almost to itself, how everything it makes is in short supply, how it sold 26 billion in product this quarter, which is over a billion more than anyone expected a few days ago, probably 20 billion more than anyone expected a couple of years ago, if people took the time to learn the company and its all there, they wouldnt trade it. They wouldnt own etfs that encourage the whamma jamma buying and selling they would just prosper like my Charitable Trust does with the investing clubs own dont trade mantra if youre going to own this stock you must take the time to learn. You see thats really the secret if you did youd know the customers said to be deserting nvidia arent deserting. Theyre desperate for the product. The stories you read about weaknesses in the marketplace are the ones that seem to be planted against them this is the stuff i see with apple. Apples another stock ive always told you is one you should own, not trade. So what do you do with nvidia now . I think you get another chance to buy it. But if you just want to trade it dont bother, please this is a company dedicated to the proposition that theres a new Industrial Revolution and it runs on nvidia and it shouldnt be traded. The bottom line, until the ai revolution runs on Something Else and despite what you hear nobody else comes close to these chips, you should just own it. Do not trade it. Maybe you need to pretend nvidias mans best friend hey, maybe you just treat the stock like your son. Whatever it takes. Just dont sell on a moments notice in fact, dont sell at all unless you need to do . Profit taking to even out your portfolio because its just become too large thats right nvidias positions too large is something that rarely happens to any company that you do have to take some profits. Lets go to rebecca in new york. Rebecca. Caller hi, rebecca oh, hi, rebecca hi, jim. Caller mr. Cramer. Its a real show. People make mistakes ive made a half dozen mistakes. Whats going on . Caller right okay so my grandson arieh would like to ask you a question. Put him on the phone. Caller hi, mr. Cramer. Could you have a segment on the show to explain common stocks terminology for young viewers . What was that stock there rebecca, what was the stock the young fella just talked about . Caller should he repeat himself . Is it gap caller gap, yes. Oh, hes so smart, rebecca. Gap is one of the stocks that bucked the onslaught today thats a really, really good sign it does report next week i think its going to be an excellent quarter. So i say own it and maybe buy some more if it goes down again tomorrow and thank you for the kind words. Until the ai revolution starts running on something other than nvidias chips you should just stick to owning the name, not trading it on mad money tonight elf still a beauty player to blush over ive got the ceo after the earnings sent the stocks soaring today. Then shares of Charles Schwab recently jumped to a 52week high this week before losing some of its gains yesterday. Im seeing if theres a longterm growth to bank on with the companys top brass. And later where do we stand in our fight against avian flu thats wreaking havoc on the poultry industry i sit down with the ceo of Animal Health company zooetis. Stay with cramer announcer dont miss a second of mad money. Follow jimcramer on x have a question . Tweet cramer hashtag madmentions. Send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. Your record label is taking off. But so is your sound engineer. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire at university of maryland global campus, getting a bachelors degree doesnt have to mean starting from scratch. Here you can earn up to 90 undergraduate credits for relevant experience. What will your next success be . aidyl hi, im aidyl, and i lost 90 pounds on golo. For relevant experience. I struggled with weight loss and weight gain my entire life. With all the yoyo dieting i did in the past, i would lose 20, 30, 50 pounds just to gain them over and over again. In one year, ive lost five sizes, and im on my way to lose another three. With golo, i can do it. announcer change your life at golo. Com. Thats golo. Com. And theyre all coming . Those who are still with us, yes. Grandpa whats this . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Nvidia wasnt the only stock to roar on this awful day for the averages in fact, cramer fave e. L. F. Beauty the affordable cosmetics maker did even better. Rallied 19 . Last nightlevellevel blew away the numbers delivering a 20 cent earnings beat off a 33cent basis. Incredibly the stock first sold offa as it typically does. E. L. F. Gave very conservative guidance for the full year but by the time we got in this morning the market had already come to its senses realizing the results were too good to ignore. Im not sweating the cautious guidance because ive been following this company for ages and its giving you insane gains if you believed in the story but dont take it from me. Lets dig deeper with tarang amin hes the chairman and ceo of e. L. F. To learn more about the quarter. Congratulations on just another stunning quarter well, thank you thank you so much for having me. Ive got to get right at something you talked about at the beginning. You talked about a couple of price points im just going to say it 650, 950, 20 you have redefined what has happened in the world. When are people going to raelds and i think thats one of the reasons your stock has this that the world has changed and youve changed how people view the cost and price of cosmetics well, thats right. Our mission is to make the best of beauty accessible to every eye, lip, face and skin concern. And thats exactly what were doing. We take inspiration from our community and our investor prestige and were able to bring products at these incredible prices and people are recognizing that our consumers and our community realize that e. L. F. Actually often is better than prestige and you dont have to pay as much as you do for those products one of the actual best pieces of research i read every year and we devour is the Piper Sandler study. The people who they actually go after teens they are the most discerning people because they know how to do all sorts of tech things you and i never dreamed of and you came out once again, gen z, number one. How far in between the rest youre like number one well ahead of everybody else. Youre just in a category by yourself well, thats right. And that latest survey we had a 38 mind share amongst teens the next highest brand was at 8 so multiples above that. But the great news for us is its not just about the strength we have in gen z were also the number one brand amongst gen alpha, the number two brand amongst millennials. So were starting to see multiip generations realize the magic of e. L. F. And you are also something the big chains always tell me people run to. Its not just that they have a cosmetics aisle run by ulta. Theyre actually seeking e. L. F thats right. In fact, if you look at our last fiscal year that we just reported, our business was up 80 at ulta, over 70 at target. It is a prime destination. In this quarter we became the second biggest brand nationally. We passed loreal paris to be the number two brand nationally with a 12. 8 share but at target our longeststanding customer, were their number one brand with almost 23 of their category and so we really drive a lot of category growth and retailers really appreciate it for that. One of the reasons you do that is you run brilliant campaigns. You currently have what i would call maybe a little cheeky Campaign Going on. Why dont you tell us about that one . Well, i think youre thinking about our change the board Game Campaign yes, i am a big part of our success is the diversity of our team. Over 75 of our team are women over 65 gen z and millennial. 45 diverse. We feel having an Employee Base that represents the community we serve has been a big advantage but it doesnt just stop with our employees. Were also one of only four public boards in the u. S. Out of 4,200 that have 2 3 women and 1 3 diverse representation now, to be honest with you we dont want to be just one of four we think theres a tremendous value in having that level of diversity and inclusion on your board of directors so the campaign were running right now, i think the latest, we started partnering with Billie Jean King an equality champion to serve up some facts of what board inequality looks like in the u. S. What you just saw up there, i think the tag line was so many dicks, so few of everyone else we went and basically looked at all 37,000 public Board Members in the u. S. And we found that there were more people named richard, rick, or dick than there are hispanic Board Members on public boards or not that far away from black Board Members, et cetera by the way, our point is theres nothing wrong with being richard, rick or dick, we just want to make room for others and shine a light on it and really encourage other companies to do what weve done because it has been a key part of our success i have to tell you, i really enjoyed the irony of where your posters were downtown, which was the white male bastion of banking in this country. The old morgan building. Now, that doesnt mean youre not doing some other things that are a little more conventional you are sponsoring an indy 500 racer. But of course its a female racer. Thats right. We feel that women are underserved in sports. So when we found out that in the 108 years of the indy 500 only nine female drivers have ever raced in it we decided to sponsor the only female driver this year, catherine legg, and do an expectation. Were doing i alip oil exchange, shining a light, sponsor her its something our Community Responds to in terms of our platform of empowering women and empowering others. Well, its sensational. And im sure it will draw many eyeballs this weekend. We do have different kinds of cosmetics. I know theres skin care this is something i dont even remember you being involved. Youre now the dominant player well, were one of the Fastest Growing. The two Fastest Growing brands in skin care with e. L. F. Skin care and nutorium, compatible bioskin care we bought in october. Both of them complement each other. Were seeing Great Success in skin care as well. 38 growth. Youre right its incredible. Somebody was saying youve got to ask him about the inventory, the inventory balance is really up this is someone who wants the stock down ive got to tell you, i saw your team and i once told your team, who are these moron shorts going against a company that is about democratizing something that costs way too much worry about the inventory number or is it actually what you need right now . No, that was actually a conscious choice we just finished a year were up 77 . Our business has been growing really fast for a long time. And so it was a conscious choice to make sure we had inventories worth demand were seeing. It also reflects the nutorium acquisition we made and the inventory that came with that. We feel great about inventory. If anything we may not have enough because we can hardly keep our best products in stock. So its been a real challenge to make sure we have the products our Consumers Want and people who doubt that, you stupid shorts, you are talking about growing unit led if it were really an inventory problem it would be price led. You are doing it the correct way, sir well, thank you no, we are the only brand in the top five that is really driving through unit growth and thats been pretty consistent for us for a long time. Its one of the reasons why you see what you see and the notion that you will i think be able to do this overseas everywhere, international, obviously is going to be something i think is going to be even more powerful for your price point no, thats right. In fact, our International Business in the last quarter was up 115 . Primarily for canada and the uk. But what were finding is because of our strength socially with these younger consumers a lot of that is consumed outside of the u. S when we introduced in du gloss italy a few months ago we quickly became their number one brand.