AI Boom: Nvidia Countdown, Apple and Google Reportedly in "Gemini" Talks, Cisco CEO on Closing Splunk Deal 3/18/24

David Faber (0:00)

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

Let's start off, Jim, with of course, Big Tech AI, Nvidia, you're there. We can't wait for your big interview tomorrow, but what are your expectations for today?

Jim Cramer (0:16)

Okay, so today I think there are a lot of people trying to game this event.

This is an event that if people look at it, there is a keynote that Jensen gives, and there's actually a countdown clock on the site about when it's going to start.

That is the first time it's been live with real people, obviously, in many years, and I've got to tell you something, David, people like to speculate about what he's going to say. Get out of that game. He won't let you know until it starts. It's all a secret. That's how he does it. Is he a dramatic guy? He went in the New Yorker piece, I told you to read about it, he does not regard himself as a classically great speaker, but today he delivers, and I think that we will be surprised because he does not let himself be gamed. I think people have to start recognizing that.

David Faber (1:03)

Okay, so that being said, and secretive though he may be, you gotta tell us Elise what some of your expectations may be. Certainly there are at least questions that many people think are going to be addressed, Jim, and I'm curious as to what you think they are.

Jim Cramer (1:18)

Okay, so I think that what will be addressed is not necessarily the total adjustable market in terms of what number it'll be, but it'll be about biology. It'll be about healthcare.

It will be about finance. It will be about auto. It will be about manufacturing. And yes, it'll also be about accelerated computing and generative AI. So what I'm saying is it's gonna go vertical.

And if you look at all the different, you get some cues. There's just these tremendous breakout sessions. You see where he's going. He's going toward healthcare. He's going toward figuring out things that can do best with accelerated computing. And then secondarily, he's going toward Microsoft AI pilot and going toward what we're gonna talk about with Google, going toward what Anthropix doing. So I don't think he's going to rule out, obviously he has to talk about what traditional AI is, but I think he's gonna talk about what accelerated computing can do to make the world a better place. Because he's a bigger thinker than we are. He's just bigger.

DaVinci knew about the helicopter.

David Faber (2:22)

I know, you've been talking about the digital twins before anybody had any idea what in the world you were talking about.

Jim Cramer (2:29)

We were never considered digital twins, you and me.

David Faber (2:32)

No, we're like Danny DeVito and Arnold Schwarzenegger.

The accelerated computing market and or at least sort of the data center market. You know, I'm looking, listen to a podcast this weekend, Bill Gurley, Brad Gerstner do this podcast. Gerstner talking about how he believes or Jensen Wong now believes the data center market will be as much as two trillion just over the next four to five years. That's the addition of capacity that's needed to power the large language models. Where are you on that? And you know, again, if Nvidia maintains any semblance of its current market share, let alone you discount it, it's still a very big number.

Jim Cramer (3:12)

Well, look, I like to go back to when Bob Noyce and Gordon Moore and Andy Grove were at the former stage of Intel, where they talked about how they had a computer that was this size and it's gonna power far more than what a mainframe does. And one of the people in the audience said, well, wait a second, you're never gonna be able to charge two million for that. And he said, no, we're gonna charge 200 bucks for it.

This is where Jensen is. He has a formula to make things that make it so that everything that you currently did is digitized in your world has to be replaced.

And it has to be, there's gonna be some that'll be at the edge. You can do some edge computing on your phone. But most of it is in the data center. And what he's saying is, look, everything that you have is too slow.

Everything you have does not do what my computers can do. So two trillion, four trillion, I don't know what it takes to replace everything. But David, everything was replaced by Intel, everything. And everything is gonna be replaced by Nvidia. And I think the people who don't understand that don't understand how much more a computer can do. This morning, Dylan, who works with me, Dylan, he wanted me to send a memo to him. Well, I had to type in the memo, I had to send the email, I had to attach it. Now, come next year, I'll just say, will you please send that March, send the March 18 email about what I'm looking at to Dylan. I'm not gonna type anything, but that's Jensen. And to some degree, I'm gonna give Lisa Su, some dude here, she also has that. But that's the new world. Are you ever going to sit there and type an email again if you can just say, will you please send that thing to Faber, send it to Faber right now?