Markets After the Sell-Off, Private Credit Pain, AMD CEO Exclusive on Meta AI Chip Deal 2/24/26

SPEAKER_1 (0:00)

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SPEAKER_2 (0:28)

Oh, could this vintage store be any cuter?

SPEAKER_3 (0:31)

Right? And the best part? They accept Discover.

SPEAKER_2 (0:33)

Accept Discover? In a little place like this?

SPEAKER_5 (0:36)

I don't think so, Jennifer. Oh, yeah, huh.

SPEAKER_3 (0:39)

Discover is accepted where I like to shop. Come on, baby.

SPEAKER_5 (0:42)

Get with the times.

SPEAKER_2 (0:43)

Right. So we shouldn't get the parachute pants?

SPEAKER_3 (0:47)

These are making a comeback.

Jamie Dimon (0:50)

I think.

SPEAKER_3 (0:51)

Discover is accepted at 99% of places that take credit cards nationwide. Based on the February 2025 Nielsen Report.

Carl Quintanilla (0:58)

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 Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures trying to recover some of Monday's losses. Worst day for the Dow since January 20 Worst day for the banks since last April. Home Depot earnings, private credit, that's the Trini blog all in focus. State of the Union tonight. Our roadmap begins with AI fears rattling investors. Cybersecurity stocks got slammed again and the financials also in the crosshairs.

David Faber (1:33)

Speaking of AI, another mega deal. Meta agrees to buy six gigawatts worth of computing power from AMD. AMD CEO Lisa Su will join us exclusively to discuss what this deal means for the company she runs. And JPMorgan Chase CEO Jamie Dimon weighs in on the impact of AI and as well what he sees in private credit.

Carl Quintanilla (1:54)

Let's begin with the markets after the sell-off yesterday, Jim. Private credit is kind of like all you've written about this morning.

Jim Cramer (2:00)

Yeah, that's all I've been for the club. Everything is about private credit. And I'm doing that because of some of the things that Jamie Dimon said, where's the weakness? Where are people valuing things correctly? We had Craig Packard last week from Blue Owl and I think he did his best to be able to try to explain what's going on in their funds. But I keep finding out, David, I know that you have looked into this too, that the actual companies that are involved right now are still doing fine. But if AI does do the things that the Citroën import and other things that we're hearing, then these cash flows won't be as strong. And you could end up with some big problems.

David Faber (2:40)

You could. I mean, it's a complex problem like you. I've started to dig in on private credit in a way that perhaps I hadn't completely. Reminds me a bit and I don't want to make... You have to.

Jim Cramer (2:53)

Go ahead. I've been doing it.

David Faber (2:55)

Listen, this is not 07-08 in any real way and we're not talking about systemic risk, I don't believe. We are talking about the possibility of credit coming out of the system as a result of what's going on. But I will say, I remember in 7 when the first person mentioned to me a CDO. I'm like, what's that? And then a CDO squared and then a synthetic CDO. And then you start to understand, wait a second, this is not just about mortgages for people's homes. This is about things that have been sliced and diced and spread in securitizations that people are betting on all over Wall Street. Never underestimate the creativity and engineering of people in the financial world.

Jim Cramer (3:35)

Correct.

David Faber (3:36)

At your own risk. So I am learning things here in terms of BDCs, in terms of private credit that are of interest. But bigger picture to your point, and I want to get into this in more detail, guys, is these software companies. And the question as to their longer term ability to ultimately repay loans that have been made, as the questions rise about their being disintermediated by AI. But that's not happening today, Jim. That's about terminal multiples. But it is also about the public comps for private software companies that have to come down dramatically in their values as a result of a 50% decline in so many of the names we talk about every day.