AI Bubble Fears, Home Depot Slides, MP Materials CEO Talks Rare Earths 11/18/25

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Carl Quintanilla (0:46)

Market moving insight and analysis. Join Jim Cramer, David Faber, and me, Carl Quintanilla, on the opening bell hour of CNBC Squawk on the Street. 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. Futures do suggest a fourth straight day of weakness as the S&P closes below the 50-day, first time since the spring. Bitcoin dips below 90K, VIX approaching 24 A roadmap begins with the sentiment in the market as Alphabet's CEO warns about some, quote, irrationality in this AI boom.

David Faber (1:18)

Plus, we are just a day away from Nvidia's latest earnings. Of course, a lot will be riding on that. We will tell you about the massive options action as well ahead of those results. And speaking of results, Home Depot reported it did miss estimates. It also cut its outlook, what that may be signaling about the consumer.

Carl Quintanilla (1:38)

Let's begin with the tech sector this morning, poised to extend yesterday's sell-off and on track to snap a seven-month win streak amid these investor jitters regarding AI and valuations. According to the latest B of A global fund manager survey, more than 50% of investors continue to believe AI stocks are in a bubble, 53% was 54 last month. Interestingly, Jim, for the first time since 5 most investors say companies are over-investing right now.

Jim Cramer (2:05)

Right, and I think this is intriguing because the companies that are allegedly over-investing, well, one of the chief ones is Alphabet, Google, and apparently they admit that there's a rationality and Buffett's buying it, people are buying the stock. A second one that I think is down a lot, Metta actually has to spend because it's worried about OpenAI coming into it. Amazon hasn't spent nearly enough, but David, they just did the bond deal. But I would, and by the way, Apple hasn't done anything and they're going to be the recipient of greatness. Someone yesterday said that, well, they missed AI, missed AI. One of these companies has got to pay them. So my take is that you've got the smartest people in the world, and I tend to think that as a group, they tend not to do the wrong thing other than in 1929, where Andrew Ross Sorkin depicted that the smartest people in the world, including a professor at Yale, got it totally wrong. So we have to be in that kind of situation for me to believe, and I don't think we are.

David Faber (2:56)

You don't.

Jim Cramer (2:56)

No, I don't.

David Faber (2:57)

Yeah.

Jim Cramer (2:58)

Maybe, you know, 1929, you know, that's the...

David Faber (3:00)

No, although last week, to be fair, you were having, you were sort of done with the idea that open AI is going to dominate the world.

Jim Cramer (3:06)

I think that they're the Achilles' heel.

David Faber (3:07)

You were starting to wonder and question to a certain extent.

Jim Cramer (3:10)

Yeah, well, you know what? The deciding point was a very strange video where a man wanted to have his stock shorted.

And, you know, when he wanted to send people an invitation to their funeral when they were shorting. And I don't think that invitation necessarily, sometimes you don't get it.

Carl Quintanilla (3:27)

It's interesting, if you do look at a chart of AI, say, momentum, that date where Altman said that to Brad Gershner on November 3rd is kind of right where this market began to roll.

Jim Cramer (3:38)

And that's when Oracle started going down and David started talking about the credit default swaps. When you see that kind of behavior, I'm putting that in the irrational, lacking, the irrational exuberance. No, of course, Queenstown was wrong. But what struck me, David, Yes, talk to me. was the nature of the vitriol linked with the best CFO I ever remember, person, a Titanic, I was a Titan, but I switched to Titanic. Sara Fryer asked about, got the backstop, asked again, got backstop.

It would have been better to walk it back right then, then to walk it back there. Now she doesn't want to hear that.