AI Valuation Fears, McDonalds Rises Despite Q3 Miss, Mamdani and Dems' Big Election Night 11/5/25

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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 Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber here at Post 9 of the New York Stock Exchange. Jim Cramer is at Harvard. Ahead of tonight's Mad Money Back to School Tour at the university's business school. Meantime, futures trying to creep into the green this morning after that gut check for those AI and chip related names. We'll get to that, the shutdown, election day results and today's arguments in front of the Supreme Court on tariffs. Our roadmap begins with the state of the AI trade after big tech comes off the big drop. AMD is the latest to get punished after its latest guidance.

David Faber (1:25)

Plus, the health of the consumer. McDonalds misses earnings estimates and other major restaurant chains have been warning about the overall consumer environment. And Democrats win big on election night. Key races, of course, Mayoralty here in New York, but perhaps more importantly, Virginia and New Jersey in terms of the governor's races. We'll talk about any fallout for Wall Street and the business community.

Carl Quintanilla (1:48)

Let's get to the markets though in this AI trade after that sell off yesterday, Jim. It sounds like you are a little leery this morning about what you're calling an up open. We'll see if it holds.

Jim Cramer (1:58)

Right. Well, I still want to see things just completely go the positive way. Nvidia was down, I don't know, at 4 o'clock, it was down like a $1.80, and it's come all the way back. It shouldn't have been down at $1.80. I don't want it to open up. Palantir, well, let's just hope that the 2x Palantirs aren't playing havoc. That's what I saw yesterday. I saw what I thought was, I'm going to give Alex Karp a shadow here, conceivable manipulation to try to get the stock down.

But what I'm focused on is something that just came out, which is where I think that people are headed. It's a Morgan Stanley, why Google Cloud could grow 50 percent in 26 piece. This is the research that comes out. Just when you think that they're going to give up the ghost, you start reading this, you say, wow, Brian Nowak, smart guy, saying that Google is doing much better. David, the street is not going to go down without a fight. This has been the greatest story ever told, and we're not going to just give it up because there's one stock that happened to have perfect numbers, Palantir goes down. It doesn't work like that. You know that.

David Faber (2:55)

No. No. But there were some weird moves yesterday. Agreed?

Jim Cramer (3:01)

Oh, there definitely were. The one to watch today is AMD. Lisa Su put on a tour the first quarter. I loved it. There wasn't any line that was bad, and yet the stock is down. I think people are going to start questioning that midday and say, well, maybe there's something to do. One point it's down 12

Look, is Palantir where we should go? I just wish Palantir weren't the focus. I mean, now Alex Karp is able to make me do it. As you said, David, he was renting my mind. I'm going rent control today in honor of New York. I'm thinking more that we gotta start thinking about Nvidia again and AMD because that group is still very strong.

David Faber (3:36)

Yeah, it would appear to be. But I do wonder to the extent there was any speculative access in the marketplace overall. I don't know. I mean, Jim, this morning, I had people talking to me about the South Korean stock market. Apparently, they trade a lot, and a lot. Have you taken a look at that over the last couple of days, and they trade here as well. And I don't know. I don't even know if that's really having an impact, but it came up in a couple of conversations.