More Software Selling, AMD CEO Live, & Cramer's Earnings Takeaways 2/4/26

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David Faber (0:45)

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

Carl Quintanilla (0:51)

Good Wednesday 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 do point to some more pressure on tech as software comes off the worst day since last spring. Besant goes to the hill. ADP is amiss and decelerates for the third straight month, but yields are higher. Steepest curve this morning in almost four years. A roadmap begins with a threat of AI wiping out $300 billion in value in software and data stocks in yesterday's sell-off.

David Faber (1:19)

Plus AMD shares, they're taking a bit of a hit this morning after its forecasts yesterday fell short of some expectations of the analysts who follow the company. Company CEO Lisa Su will join us exclusively. That's just moments from now. We'll talk about the quarter, the outlook and perhaps a lot more. And Jensen Huang speaking with our Jim Cramer, saying Nvidia's plan to invest in OpenAI remains, quote, on track and that there is no drama with OpenAI.

Carl Quintanilla (1:46)

Let's begin with tech this morning. Nasdaq's coming off the worst day in a couple of weeks. Software, of course, got slammed on fears that AI will replace the work of some major names. Jim, the IGV getting down to about eight times price to sales?

Jim Cramer (1:59)

Yeah, now the IGV was really the culprit. I think a lot of the stocks are in the IGV, including two of the top ten or cybersecurity companies. Audity here, CrowdStrike, one of the highest, is a great partner of Anthropic. So the idea that Anthropic is somehow going to drill George Kertz's company seems highly unlikely. They're buddies. So the stock is down today. And I'm just going to call that plain and simple, wrong and an opportunity. How much can they disable Microsoft? Not clear. I don't think much at all. I think that one could bounce. The two that were really hit, one Thompson Reuters, and that made sense because it says that, listen, you don't have to go to outside council. You can stay inside. I like that very much. And then Gardner, they're saying, listen, they do the magic quadrant. How about if we measure magic quadrant versus your own? Those were the two use cases. Now, everyone then panics and says the use cases are everywhere. David, I have to tell you, there are some limits to the use cases. Anthropic is not going to destroy the world. This notion that anthropic is eating everyone, I think this smorgasbord may be over.

David Faber (3:01)

May be a little bit overdone. Yesterday, certainly, it was everything. You take a look at everything in your portfolio and you try to imagine how it could be disrupted by AI tools such as the Cowork Tool. You can't. No, but you do, Jim, when you're in a day like you were yesterday. Was it indiscriminate?

Jim Cramer (3:22)

And people are stupid. They're selling and selling and selling. What do they know? Do they know that George Kertz talked to me this morning about the partnership?

David Faber (3:29)

First of all, security is still going to be a huge concern. I mean, in fact, you could make an argument that as more companies use their own created tools, security remains a very large concern. So a company like CrowdStrike could be a beneficiary.

Jim Cramer (3:43)

There's a lot more to CrowdStrike than just like, hey, you know what, they were in my thing.

David Faber (3:47)

But the idea that the average software product is no longer going to be purchased from some company but is simply going to be created internally as a result of what you can do with Claude or some of the other tools, that is a real possibility and off of your own data and personalized more for you. So the idea that, I don't know what, you know, what does Adobe look like in this future?