AI Boom: Nvidia's Blowout Quarter and 10-for-1 Stock Split Fuel New Record Highs 5/23/24

Jim Cramer (0:00)

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 (0:07)

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at post nine of the New York Stock Exchange. David Faber's on assignment. Nvidia's stellar quarter and guidance will push S&P NASDAQ further into record territory today. All three indices on track for their best month since November. Our road map's gonna begin with the AI boom. Nvidia with a record quarter, and of course announcing that 10 for one split.

JP Morgan's Jamie Dimon says he can't rule out a hard landing for the United States. And the DOJ reportedly set to file an antitrust lawsuit against Ticketmaster parent, Live Nation as early as today.

Let's begin with Nvidia's blowout quarter. The company revenue more than tripled in Q1, and its data center business grew by more than 400% over a year earlier, sending shares above $1,000 for the first time. Here's Jensen Wong on the call last night.

Jensen Huang (0:58)

The demand for GPUs in all the data centers is incredible.

We're racing every single day. And the reason for that is because applications like ChatGPT and GPT-40 and now it's going to be multimodality and Gemini and It'sRamp and Anthropic and all of the work that's being done at all the CSPs are consuming every GPU that's out there.

Carl Quintanilla (1:29)

Jim, a lot of the commentary today says any worries about an air pocket probably get assuaged today.

Jim Cramer (1:34)

Yeah, look, there was a lot of teaching on the call last night. A gentry came in right after Colette Crest was the amazing CFO. Usually he comes in much later, but he wanted to try to explain to people about the industrial revolution that's begun. And that most people are really looking at this wrong.

Most people are saying, okay, why don't we pause? This is the commentary. And we'll wait until we get this Blackwell, which isn't really a platform system.

And he said, first of all, everything that they have, the H100, the H200, the predecessors, you are all going to accelerate from here. Well, that would be really slap right in the face of the people who are saying, well, there's gotta be a stop, a pause. And then he said something that I think was amazing. We're gonna have to talk about automobile. It's gonna be automobile. That's the number one this year. No one thought that. Everyone thought it'd be the cloud service providers. They thought it was gonna be Meta and Alphabet and Amazon. It's Tesla.

And it's Tesla and it's, wow, it's self-driving.

Full self-driving. And he talked extensively about that. I was kind of bowled over that because that's not what I was thinking. But it just shows you that what happens is that of all the outfits, it does seem like Musk realizes that you have to get all the chips you can, the 100s, the 200s, and then get Blackwell because you have to get these chips to learn.

They have to be trained. And the example that Jensen gave you was, you can put video in it and it can see what a stop sign is anywhere. It can learn what to do with signs. Before it had been like, this is a stop sign. This is a red light. And it was almost as if he spent a lot of time with Musk and Musk is saying, listen, I'll take everything you have, not wait. And I think it was an example. It was an example of you can't wait for Blackwell. If you want to be the technological leader, you got to take the whole suite, whatever you can get you. And I point that out just because even this morning, the Wall Street Journal has an article, and I am going to name this directly because I'm tired of what Reuters had to say. I'm tired of what I read a lot of different outlets say, saying that people are nipping at their heels.

If they're nipping at the heels, then it's not the heels of this company. It would be the heels of other companies trying to be.

Carl Quintanilla (3:52)

You're referring to Nvidia, but not Tesla.

Jim Cramer (3:57)

No, I'm saying that the Journal article was basically, well, now that Nvidia is on the top, here's going to catch up to them. No, this was Nvidia's send-in.

And why I've mentioned the Tesla for a couple of reasons. But one was that Musk, he wasn't saying, even two quarters ago, that he needed Jensen, and now he's all in. So it's Musk, and then the second one was Zuckerberg.