9AM Hour: Markets Extend Record Run, Micron Scores an AI Trade Triple, SpaceX IPO Watch: Stocks in Rocket Mode 5/26/26

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David Faber (0:57)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (1:09)

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. Stocks look for some all-time highs at the open as investors watch signs of progress and talks with Iran, along with some fresh US strikes on southern Iran on Monday. Long bonds right at 5%.

Oils holding 92 Brent did flirt with 100 this morning. We got our eye on that. Our roadmap begins with renewed investor optimism that a deal might be close. Also keeping an eye on oil after Iran vows to retaliate for those US strikes.

David Faber (1:39)

Plus we're keeping an eye on semiconductor chip stocks, the AI trade of course as well. For example, shares of Micron are rallying as one firm more than triples its price target on the stock. Even as companies such as Uber say it's getting a bit hard for them to justify the high costs that come along with deploying AI.

Eli Lilly shares their edging a bit higher. The company planning nearly $4 billion worth of deals for vaccine makers.

Carl Quintanilla (2:07)

Let's begin with the markets though. S&P aims for a ninth straight week of gains. Dow is trying to extend its record run. David did mention that Micron target over at UBS, Jim, as they go to $16.25.

They were at $5.35 prior.

Jim Cramer (2:22)

All right. Well, what's happening is that people are realizing, okay, maybe they had too low a multiple on memory, that memory is in short supply. So now people are just in a race to be able to raise, raise, raise, whether it be Seagate, Weston Digital, Micron.

And I'm not going to disagree with it. I just think that it doesn't happen in a straight line. More of a straight line has been what Ben Rice just talked about. Meliastel was a straight line. They report this week.

Carl Quintanilla (2:51)

Friday's action was crazy.

Jim Cramer (2:52)

Yeah. And I think that Intel did have a straight line. David, we know we've never seen anything like this before.

David Faber (3:00)

Well, let's stop for a second. What is the thing that we have never seen anything like?

Jim Cramer (3:04)

Okay. All right. That's a great question. So here's the way I look at it.

Micron, we know Micron as a old-fashioned company, right? That is in a very cyclical business.

David Faber (3:14)

Correct.

Jim Cramer (3:14)

You agree? Yes. And up and down, up and down.

David Faber (3:16)

Up and down, up and down. The prices go up. Everybody adds capacity. Prices come back down.

Jim Cramer (3:21)

Well, we haven't had anything like the capacity added that we thought we would. We haven't had any of the demand like we thought was far better. But one of the more important things is when you're running money and you look at a stock that's up 160% percent, you say to yourself, I guess I missed that one.

But when you see a price target that's like that, double what the current stock price is. Have you missed it? So you tend not to look at how much the stock is up. And instead you think about the opportunity. And I think a lot of us would say, are you kidding?

Let's just stop this. All right, let's just stop this. But there is no stopping of it, David. You can't stop it. You can't say, wait a second, time out. This shouldn't be. David, this is faux faux faux.