Chips and the White House: From Nvidia and AMD to Intel's CEO and Pres. Trump 8/11/25

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David Faber (0:47)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:53)

Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber at Post 9 of the New York Stock Exchange. Pre-market steady just south of all-time intraday highs, as we set the table for an important week of inflation and consumption data, 10-year round 427 Our roadmap begins with Nvidia and AMD. Both companies reportedly agreeing to pay the US government 15% of their revenue from sales of those AI chips to China.

David Faber (1:17)

Speaking of chips, Intel CEO Lip-Bu Tan reportedly also set to visit the White House today, this after the president called for his resignation last week. And also ahead, we got a big week on the inflation front, led by CPI, as one of the Fed's dissenters pushes for multiple rate cuts over the remainder of this year.

Carl Quintanilla (1:37)

Let's begin with the chips. We've got the Nvidia and AMD news. We've got this Micron guidance, Jim. But on Nvidia, a lot of discussion about what this means for government involvement in American business.

Jim Cramer (1:47)

Well, I think when you look at how much market cap was gained when Nvidia went up and when they got the approval, and AMD, and I've got to tell you, I think that the president wants a piece of it. Is that right? I don't know. I do think that they didn't have the 100, I mean, 100, about $100 billion when the president approved them being able to do to sell the H-20.

David Faber (2:13)

Yeah.

Jim Cramer (2:13)

So the president wants a piece of it. I don't know. For the country, it's not for the presidential library, for heaven's sake.

David Faber (2:19)

This one is not for the presidential library.

Jim Cramer (2:23)

No. I'm saying this for the country.

David Faber (2:24)

Unlike the settlements with Paramount and ABC and media companies.

Jim Cramer (2:30)

They made $161 billion. They had a one-day gain of $161 billion, $772 billion.

David Faber (2:36)

You're talking about in their market cap.

Jim Cramer (2:38)

Yeah. Well, I mean, if they're the president, you saw that by saying, listen, let you sell, they gain this. I think the president says, you know what? Why shouldn't the country get some of it?

David Faber (2:49)

It is a new way. I mean, I did, I'm sure you guys saw the Greg Ip piece in the journal, which I thought was, you know, he's writing really interesting things and just talking about, we are moving closer to China than China moving closer to us, which of course there had been a hope maybe 15, 20 years ago, a thought perhaps, but it's state-run capitalism.

Jim Cramer (3:08)

But that's the PLA. This is not the Defense Department. The PLA runs the Chinese country.

David Faber (3:13)

No, but it is interesting that you're taking a piece. I mean, at what point are we going to get to the point where the government is seen as a better allocator of capital than the market?

Carl Quintanilla (3:21)

That's already happening.

Jim Cramer (3:22)

That's what the Chips Act was, right?

Carl Quintanilla (3:24)

Well, the Chips Act was with carrots. These are with sticks.

Jim Cramer (3:28)

Right.

Carl Quintanilla (3:28)

And he's telling American business where they should invest, who they should have as a CEO, and where to send the check for a cut of the profits.

Jim Cramer (3:36)

A little aggressive. But at the same time, what? The government, the previous government, wanted to give the president, Biden, they wanted to spend 50 billion, say, on choosing winners and losers. They chose Intel, ill-advised. Who told them not to? You did. Thank you. And yet, there they go. So now this is a new way. It's kind of risk-free. That was a risky way to invest. This is a risk-free way to profit.