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Cramer's Mad Money Recap 11/16: Walmart, Lucid, Nvidia

Jim Cramer says whether or not you're seeing raging inflation depends on where you look.
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Stop saying we need to slam the brakes on the economy with higher interest rates. The evidence increasingly suggests that inflation is transitory, and Federal Reserve chair Jay Powell might be right after all.

Jim Cramer told his Mad Money viewers Tuesday that whether or not you're seeing raging inflation depends on where you look. Many pundits only focus on what's going wrong, he said, but there are a lot of things that are going right.

Case in point: chemicals. Chemicals are the feedstock for a lot of different products and prices aren't going up, they're starting to come down. Oil is now holding steady just above $80 a barrel, with no breakout to $100, as many bears had predicted.

Tuesday we also received news that chip foundries in Malaysia are finally back to 100% capacity. That should put a damper on used car prices, one of the principal drivers of inflation in the latest reports. These sky-high used car prices can't hold once new cars start rolling off the line again.

Then there's our West Coast port crisis, where we've seen a 29% decline in containers waiting to be unloaded since the White House mandated ports operate 24/7 to eliminate the backlog.

Finally, Cramer called out Walmart  (WMT) - Get Walmart Inc. Report, which told us that hiring at the retail giant is getting easier now that more people are vaccinated and government stimulus is waning.

So while it's easy to pick out companies like Tyson Foods  (TSN) - Get Tyson Foods, Inc. Class A Report, which is seeing inflation in everything, from grain to labor to packaging and transportation, Tyson is increasingly becoming the anomaly, not the rule.

Executive Decision: Lucid Group

For his second "Executive Decision" segment, Cramer also spoke with Peter Rawlinson, CFO and CEO of Lucid Group  (LCID) - Get Lucid Motors Report, the electric car maker with shares up 136% in just the past three months. Shares of Lucid soared Tuesday after the company received the Motor Trend Car of the Year award, the first time an automaker's first vehicle has been given that honor.

Rawlinson said simply that Lucid exists to save the environment. He said we can't keep burning fossil fuels and they have to accelerate the transition to electric vehicles as quickly as possible.

The company's first vehicle, the Air, currently has over 17,000 reservations and the Edition R has an EPA-certified range of 520 miles, the longest range of any electric vehicle.

When asked about their stock's valuation, Rawlinson noted that Lucid should be valued as a technology company and not an automaker. The company designs and manufactures 100% of their vehicles in house. Rawlinson noted that they are alone with Tesla  (TSLA) - Get Tesla Inc Report in that regard.

Lucid's current production line in Arizona is tooled for 34,000 units per year. Rawlinson said once the facility is fully expanded, it will quickly support up to 400,000 vehicles per year.

Executive Decision: Square

In his first "Executive Decision" segment, Cramer sat down with Amrita Ahuja, CFO of Square  (SQ) - Get Square, Inc. Class A Report, the payments processor that's been trading sideways for the past few months. Shares of Square are down 4% over the past month.

Ahuja said that Square is happy to announce the opening of its Cash App service to the 20 million teens in the U.S. Now teens can easily send money, with parental supervision, to friends, family and their community while earning rewards in the process. This will be a major expansion of Cash App, Ahuja added, which already boasts over 40 million active users.

Ahuja also commented on Square's commitment to cryptocurrencies. She said the Internet needs a currency and crypto is perfectly suited to bring the needed speed and efficiencies to move money easily around the globe. Square is experimenting with Bitcoin and building systems for the future, Ahuja said, and the company sees opportunities in mining, wallets and even cryptocurrency exchanges.

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Finally, when asked how the holiday shopping season is shaping up, Ahuja said they're seeing a lot of confidence in the economy, which is a very good sign.

Executive Decision: Intel

In his third "Executive Decision" segment, Cramer also sat down with Patrick Gelsinger, CEO of Intel  (INTC) - Get Intel Corporation (INTC) Report, the chipmaker that's been struggling against rivals Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report and Nvidia  (NVDA) - Get NVIDIA Corporation Report.

Gelsinger started off by celebrating the 50th anniversary of the Intel 4004 chip, the world's first microprocessor. The 4004 chip featured 2,300 transistors on a single chip and launched the computing revolution. Gelsinger then showed off their latest high-end microprocessor, which today boasts 100 billion transistors on a single chip.

Intel is betting big on this latest generation of processors, and has a five-year plan to capitalize on it. Gelsinger said he's building two new foundries to manufacture it and has a clear vision for where Intel will be going.

Gelsinger also talked about the importance of the Chips Act, currently working through Congress. Under the plan, the government will provide $1 for every $2 that companies invest into new chip foundries in the U.S. and Gelsinger said he can't wait for the bill to get passed so he can get to work. He said it's vital that the U.S. recapture semiconductor manufacturing, and once new foundries are built, the rest of the supply chain, including packaging and testing, will soon follow.

Is Walmart a Deal?

In his "No Huddle Offense" segment, Cramer opined on the latest earnings at Walmart  (WMT) - Get Walmart Inc. Report. He said every number at Walmart was up this quarter, except for one, gross margins. That's because Walmart is sticking to its roots as a cost-cutter.

Every other retailer is using inflation as an excuse to raise prices, which makes Walmart the lone exception to the rule. But it also means that Walmart will retain the crown as the place to go for low prices, allowing it to take market share and ensure it remains the king of retail for the foreseeable future.

Those who sold Walmart don't understand how the company works, Cramer said. Walmart is a blessing for consumers, but its shareholders also win.

Lightning Round

Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Tuesday evening:

Cassava Sciences  (SAVA) - Get Cassava Sciences, Inc. Report: "This is not the one. I think Eli Lilly  (LLY) - Get Eli Lilly and Company (LLY) Report has the treatments you want to invest in."

Root  (ROOT) - Get ROOT, INC. Report: "This is a not-so-great insurance company that's a sell, sell, sell."

Zeta Global  (ZETA) : "There are so many of these. Go buy Salesforce  (CRM) - Get salesforce.com, inc. Report."

Doximity  (DOCS) - Get DOXIMITY, INC. Report: "I remain convinced that doctors love this one, so buy, buy, buy."

ViacomCBS  (VIACA) - Get ViacomCBS Inc. Class A Report: "There's been a lot of insider buying at Viacom and that's a good thing."

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