Intel Tumbles, Nvidia Rises, Winter Storm Impact 1/23/26

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

Carl Quintanilla (1:05)

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer here at Post 9 of the New York Stock Exchange. Faber has the morning off. Stocks losing a little more steam after the S&P couldn't quite erase losses for the week on Thursday. Davos wraps up. Focus returns to earnings like Intel and the Fed decision next week.

Our road map begins with Intel tanking on the back of the soft guidance. We'll talk about what the street is saying about the stock. Nvidia is moving higher though on these reports. The China's government has told tech companies they can start preparing to buy some of those H200s, and almost half of the US is bracing for a massive winter storm that's expected to bring heavy snow and ice, airlines cancelling hundreds of flights ahead of that. Let's begin though with this move in semis. Nvidia is we said higher in the pre-market on this report that officials in China have told Alibaba and other large tech firms they can begin preparing orders for Nvidia's H200 AI chips. On the flip side, Intel is down after this soft guidance due to supply constraints as it struggles to meet demand for its chips used in data centers. This is Lit Bu Tan on last night's call.

Lip-Bu Tan (2:09)

The opportunity ahead is meaningful and significant. As AI-driven computing expands all the markets we serve. But I'm also mindful of the challenges ahead of us, and transparent about the areas that we are doing well, and areas we need to improve.

In the short term, I'm disappointed that we are not able to fully meet the demand in our markets. My team and I are working tirelessly to drive efficiency and more output from our FAPs. While you are in line with our internal plans, they are still below what I want them to be.

Carl Quintanilla (2:59)

Now Jim, the reaction is not uniform, but there are a bunch of price target increases today.

Jim Cramer (3:03)

Right, well a lot of these analysts were well behind the curve about what Lipu was willing to do. And in talking with Lipu, it was very clear initially he came in to fix the balance sheet. Even a year ago, we felt that maybe this company was a corner. He's been at it at 10 months, he's fixed the balance sheet. Second, he wanted to be able to improve the yield and get it, improve how many chips come out that are good. He was not able to do that. The hostility toward him on the COPS goal was really, I felt, very ill-advised. I think, I want to take the other side of the trade here, let the stock come in.

But, Lipu has got customers that people don't realize. I think he actually has Apple lined up for his next family. You do, you do. We cannot speak about customer's names, but I think Apple has it. I also think that the yield will be fixed. That was not his focus this man. Understand semiconductors better than anyone other than Morris Chang and perhaps Jensen Wong. I say that because I saw an interview, Jensen Wong did where he basically just said, look, this man is the man who understands things. So, I don't buy the antipathy. It seemed very, very wrong headed. I think that Lipboo is going to turn this company around. Again, let it go down. This is AMD's day. AMD obviously has a huge amount of shares. Stocks up eight, should be up 15 You don't understand why it's not up 15

Carl Quintanilla (4:14)

You did write that AMD is going to be taking tons of share.

Jim Cramer (4:17)

Oh, yeah. I mean, it's just a given. Lisa Su keeps winning. And notice she's speaking not at all and carrying a huge step. I really, you gotta appreciate the way she works.