AI Trade's Big Week, Boeing Strike, Exclusive: Uber CEO on Extending Waymo Partnership 9/13/24

Carl Quintanilla (0:00)

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 Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber, and host nine of the New York Stock Exchange. Bulls trying to put a bow on this week's 3% S&P gain. Best in about a month. 50 basis point cut gets a little more support ahead of the Fed next week. Oil is hanging on to 70 A roadmap begins with its bounce back. Stocks hit the highest levels of the month on these hopes for rate cuts beginning next week.

David Faber (0:33)

We are watching tech of course as well. Nvidia looking to cap a stellar week. Oracle getting a cloud boost and Adobe's outlook is disappointing investors this morning. And Jet Production has halted at Boeing this after factory workers overwhelmingly reject their latest contract offer. They're striking now for the first time since 2008

Carl Quintanilla (0:53)

Let's begin with the markets. Interesting collision of bullish factors yesterday, Jim, whether that was Oracle or Evercore going to a soft landing stance.

Jim Cramer (1:03)

All the piece. I do think that we're at this moment where we're like Nick Timmer, Fed Whisper, they're unsure, maybe 15, maybe 25 But I think that what was striking was there's kind of like a do over in terms of what happened with Jensen, what happened with Nvidia, and that perhaps the street got it wrong, and then verified by the fact that Oracle came boosted numbers. We talked about that. That's what they're going to do. Larry Ellison boosted next year by like a billion, but then he's using numbers in the out years that are so incredible that if you're not long these stocks, I think, David, you might miss another move coming.

David Faber (1:44)

Jim, I think you hit the week perfectly there in terms of at least the sort of return to.

Gary Friedman (1:50)

I got to run.

David Faber (1:51)

You did. Oh, shoot.

Jim Cramer (1:53)

I'm going up to see Footlover.

David Faber (1:54)

You did a great job. I've been hearing the same. I had a couple of conversations this morning, one of them with a very well-known longtime tech investor who mentions very similar themes, essentially to take a look. Oh, he's done. He's not even here.

Jim Cramer (2:07)

Yeah, longtime tech investors. Mary Dillon uses more tech than Footlover.

David Faber (2:11)

I have no idea why that came on. Yes, AI. This return to AI as a result of Jensen Wong's comments at Goldman, the Oracle. Oh, no.

Jim Cramer (2:18)

Also our exclusive interview outside of the White House. That was killer.

David Faber (2:22)

Everything you and I went through, of course Larry Ellison had to say on that Oracle conference call and everything that came out of the Oracle members. Microsoft as well presenting at Goldman Sachs and Communicopia also. So focused in terms of AI and all the opportunity there.

Jim Cramer (2:38)

Are you more of a believer or you've been a skeptic?

David Faber (2:40)

Well, no. I've never been a skeptic in the power of AI to transform everything. What I've been concerned about and continue to be is what it's going to mean for society in general. I'm not a skeptic on what's going to ultimately happen. There are still different points of view.

One is held more by the Sequoia Camp, which we all started talking about earlier this summer with that first report from Sequoia talking and questioning about the return on invested capital from all these hyper-scalers. Whether it will all find its way into apps eventually, or how this is all going to play out from a value proposition. But whether or not this is going to transform everything, no, I'm not a skeptic about that, Jim.

Jim Cramer (3:19)

You're not. Good because-

David Faber (3:20)

I haven't been. You know that.

Jim Cramer (3:23)

It's funny. When you speak to Jason Wong, what he says is, you know, this has been out called for like 18 months and it's supposed to cure cancer. I mean, I asked myself, does it cure cancer? And you're like, pause for a second to explain that if that's not the point, it's about getting data instantly that would take years to put together. I like that.

Carl Quintanilla (3:40)

Well, Sam's skepticism came from recent examples in which doctors were still able to detect cases of breast cancer better than AI right now.

Jim Cramer (3:51)

No doubt about it, but it's a right now situation. And just to point out, as he pointed me out, that he has no problems with how well Nvidia is going to do. His question is the spend and how much. Now Oracle, Ellison comes out and says the spend is going to be endless because you had to keep up with the neural networks. There's no end to the spend. It's like, well, they build and they're done.