Bulls Charge Into March, Dell Soars, Elon Musk Sues OpenAI and Sam Altman 3/1/24

David Faber (0:00)

Market Insight and Analysis. You're listening to the opening bell of CNBC's Squawk on the Street. Good Friday morning and welcome to Squawk on the Street. I'm David Faber with Jim Cramer. We are live from Postline at the New York Stock Exchange. Probably be back on Monday. Let's give you a look at futures as we get ready to start the final trading day of this week.

That doesn't do much of anything for me, probably not much for you either. Let's move on to our roadmap though, because that does begin with a lot of interesting news. First of all, that AI-fueled boom, Dell shares surging. Nasdaq coming off its first closing high in more than two years.

And Ray Dalio downplays talk about the tech bubble. Plus, New York Community Bancorp is warning of quote, material weakness in its accounting, and it's dragging down a number of other regional banks. Of course, that bank stock is also down.

Jim Cramer (0:52)

Yes, it is a suboptimal situation.

David Faber (0:54)

And in the land of lawsuits, Elon Musk, suing OpenAI, accusing it of putting profit before humanity.

Jim Cramer (1:03)

Didn't you ask him about that?

David Faber (1:04)

I did, I did, and we'll cover that.

But first, let's get to the markets, obviously. A new month, happy March.

Jim Cramer (1:13)

Yes.

David Faber (1:15)

February, obviously, we had a nice run of things.

Jim Cramer (1:18)

Jeff Marks, my partner from the Investing Club, happy birthday. I always think you should call out birthdays.

David Faber (1:22)

Yes, of course, of course. Of course, of course, although not mine this time.

What do you want to talk about as we look ahead to the month of March? What's in your mind? I want to obviously get to these Dell earnings in a minute, but just give me your overall take on where we are and where we're headed.

Jim Cramer (1:37)

Sure, I think that we actually, at the end of the month of February, started seeing why NVIDIA was important.

We started realizing that there are companies that are far ahead because they're using AI, and there are companies that are being left behind. There are companies that have made it so that they're getting a lot of new customers and ones that aren't. And I'm gonna do something that's a little class-oriented. The big guys have it, and the little guys don't. So you're going to see, I think, a widening gulf between the rich companies and the small and medium sized business. And even though there are companies like Adobe that are frankly trying to help the SMB, so to speak, only the big guys can afford what Jensen's putting out, Jensen Wong.

David Faber (2:31)

And so, right, of course, I mean it requires enormous computing power to run generative AI models.

Jim Cramer (2:40)

And they're for a lot of money.

David Faber (2:41)

Or at least given just what you have to actually do.

And it's hard to afford an H100 for most. But won't the applications start to filter down eventually to these companies that you're discussing that perhaps are not in a position to have their own servers running and or paying for the enormous compute that they need to do it initially?

Jim Cramer (3:02)

Well, I think that filter down is absolutely right. But right now, and we'll get to Dell, but you look at Dell versus HPE, which I know you know. Dell got the H100s.

Dell got the finest chips from AMD, which are also AI oriented. And we're talking about huge amount of storage that's needed. I don't want to get too in the weeds here. I'm just, what I'm trying to say is that, is that when you look at, like I have some companies, and I'm not going to pick on them tonight because they're nice companies. But David, you're aware, you can either cover the 100 billion to $3 trillion companies.

And the numbers are just extraordinary. Or everything else is like 30 or 40 billion. And you find yourself saying, I'm not gonna, why should I look at a company only at a billion dollars in revenues? It's unimportant.

This is an amazing time. Because the big companies, you're talking about revenues that are making so that Mag-7 actually makes sense. There's like, whenever I look at a company, I think, why am I wasting my time?

David Faber (4:03)

Well, first of all, that goes in against so many of the things you've talked about, which is there are opportunities everywhere, Jim. And you're not gonna stop saying that.

Jim Cramer (4:11)

I was saying, the last 10 days of February, when we sit back and look at the quarters, we realize that there are companies like a Celsius where you can double very quickly on a short squeeze. There are companies that get takeover bids.