9am Hour: Chip Sell-Off and Pain in the AI trade, Boeing CEO Exclusive, Coca-Cola Surges 7/28/26

**SPEAKER_1** (0:00)
The board recommends approving...

**Carl Quintanilla** (0:01)
Regarding that seat on the committee, we're promoting...

**SPEAKER_3** (0:02)
to most quarterly earnings...

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**Jim Cramer** (1:00)
It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

**Carl Quintanilla** (1:07)
Good Tuesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. The broadening continues as tech has hit hard in Asia overnight. South Korea down 11, the third largest one-day drop there ever. Japan down four, but some strong results from Coke. And Sherwin-Williams gonna help the Dow. Fed meeting begins today, rates in oil doing their part. Brent below 87, we'll get conference board in about an hour. A roadmap begins with the chips in memory crunch. Those stocks on pace for one of the worst performing months on record. Sandisk, Western Didge, Micron among the big laggards once again pre-market.

**David Faber** (1:42)
Plus the cost of the AI build out and rising big tech credit risks, at least for some. Meta is the latest announcing a new partner in a giant data center.
Down in Texas and a slew of corporate earnings today as well. UPS, Coca-Cola, PayPal, Boeing. That's just a few Boeing CEO Kelly Ortberg will join us exclusively for an interview in a few months.

**Carl Quintanilla** (2:05)
Let's begin though with this chip sell off taking place on both sides of the Pacific. Fitch warning that the AI market correction is emerging as a major credit risk. This is what Jim had to say about the AI trade last night on Mad Money.

**Jim Cramer** (2:19)
If you are borrowing money to buy something related to the data center, OK, here's what you're going to do tomorrow morning, 9:30 a.m. Sell it no matter what. You will not regret it.

**Carl Quintanilla** (2:30)
Jim, it's been a couple of weeks since you said sell half your micron.

**Jim Cramer** (2:34)
Well, look, I want to make it clear that what I'm saying is there is that if you're borrowing money you're gone. I mean, the Western Digital, which is a great stock, it's up 438% this year. I mean, this stock traded at 2,354 and it's considerably lower. I think that's fair to say.
What's happened is that these are parabolic moves. So they go straight up and in a parabolic move, when you start going down, you don't stop where the parabola started. You go through it. Now David, I'm lumping all these together. There's a reason, because these were hot. So people borrow money to get in to the hot stocks because they're just monstrously hot. So those are people who get margined out and that's how you get the last time. When you look at the socks, we did some work about where the socks was in the last big sell-offs.
Only three out of 10 were up the next day after big sell-off and that's how they do.

**David Faber** (3:34)
When's it gonna end, Jim, I guess is the question. To the extent we've had this guess to use one of these massive unwind of this trade, it's kind of started seemingly in July 1st, more or less the beginning of the new quarter.

**Jim Cramer** (3:46)
It's true.

**David Faber** (3:48)
We have earnings that are being reported that are seemingly extremely strong, only being met with a negative response in terms of the movement of the equities related to those earnings. When does this and how does this end?

**Jim Cramer** (3:59)
We no longer think that these companies that are the customers can guarantee, the customers can't afford it. The customers were relying on money. I think everything's coming back to the private market. And you're saying OpenAI might have been worth X and then it went up to 2X and now it's coming down. So all these companies reflect a couple of companies that were buying a great deal.