Cramer's Morning Take: Nvidia Earnings 8/29/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. What matters, frankly, are two things. One, we're still overbought, which makes it difficult to be able to do much. And the decline in Nvidia stock and the reversal to decline in Salesforce stock. And these are happening, I think, because in the end, confidence has been shaken in Nvidia, and that's reverberating throughout. And the reason why is, frankly, this was the mortal gents in wrong. They did not deliver the chips people expected. And so therefore, all the way down the food chain, everybody's been hurt.

Jeff Marks (0:43)

Well, and to be fair, it was still better than what analysts expected. We already, you know, a lot of anticipation into Nvidia earnings last night. The stock is down. Although it was a revenue beat, earnings beat, a better than expected guide. This is versus analysts. But I mean, the market is holding in quite well.

Jim Cramer (1:01)

Yes.

Jeff Marks (1:02)

Although there was a lot of, you know, people were worried that Nvidia, you know, Well, they traded in 116 last night.

Jim Cramer (1:10)

You have to take a look and say, okay, Nvidia is going to earn $5, say, next year, literally in 2026 or $5. And you've got to give it some multiple in that. And I think you should at least give it a six. So people are trying to figure out exactly where we're going here. I'm sorry, a 26 multiple in five. Look, I've got to tell you, this right here is a sign that people believe that, wait a second, I thought I was on the greatest horse of all time. And it just, and instead it crumpt.

Now, we have to get all these people out. Anybody who feels that has got to go. No one gets across the river Jordan who came to play with that. And that's what people are thinking.

Jeff Marks (1:51)

Yeah, sure, fine. I mean, it's also, look, what was the intraday high? $140 down to $20 from there. Not all that bad considering it's up 140% year to date.

Jim Cramer (2:03)

Let the people sell. Let the sellers sell.

Jeff Marks (2:05)

I do want to get into some stuff from the quarter, though. So they did acknowledge the Blackwell Delay, a change to the GPU mass to improve production yields. But the ramp expected to begin in Q4, continuing to fiscal year 26 Still expecting to ship billions of dollars in Blackwell revenue in the fourth quarter. In the meantime, Hopper's still selling incredibly well, reiterating the ROI that the cloud service providers get from these chips. Maybe some gross margin disappointment due to the Blackwell ramp. But one thing that caught our eye, we were talking about this this morning, it's just the idea that the Blackwell needs to be liquid-cooled in the data centers, not air-cooled. And Jensen talked about there's a significant number of data centers that want to go liquid-cool. And that's what Dover plays into.

Jim Cramer (2:51)

Right, and that's one of the reasons why I said to you Dover were restricted on. I know that we're overbought plus five, but I want to buy some Dover. Start your day with my outlook on the daily market every morning at 10 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_3 (3:14)

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