Nvidia and AMD Up the Ante on AI, Paramount M&A Update, GameStop Soars, J&J CEO Exclusive 06/03/24

Jim Cramer (0:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:13)

Good Monday morning, welcome to Squawk in the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post Night of the New York Stock Exchange. We do kick off the month of June. These first couple of weeks will be busy. Jobs number, ECB, CPI, Fed decision.

Futures are pretty solid after Friday's monster closing rally. Ten year is back below four and a half. Our roadmap begins with the AI race, the rivalry intensifying over the weekend as Nvidia and AMD preview these new generations of chips powering the global AI boom.

David Faber (0:39)

Plus Johnson & Johnson closes its $14 billion acquisition of Shockwave Medical and unveils new data on its highly anticipated lung cancer treatment. J&J's CEO joins us exclusively. That's just a few minutes from now.

And the memes roar back. You heard Becky just talking about it. GameStop shares surging pre-market. This after Roaring Kitty revealed that he may have a huge position in the stock crew options.

Carl Quintanilla (1:04)

Let's begin with Nvidia rising in the pre-market. Company unveils the roadmap for its next generation AI chips. The platform titled Rubin is slated for a 2026 rollout. Blackwell, as you may know, was launched just months ago. It was on tap for 25 Nvidia says it is committed to releasing a new AI chip architecture every year. Jim, we sort of highlighted these keynotes over the weekend. It's a good thing we did.

Jim Cramer (1:26)

Okay, so it's a joy. The two-hour one was just a joy. And there were very, very interesting moments where you didn't know what was real, what was AI, but he explained accelerator computing and AI and then to the new generation, which is going to be five, six billion dollars to build, run cooler and have a lot of video.

So I mean, I think that David, when you see what he's up to, and then you read these articles about how AI's over, the contrast is ridiculous because he's already unveiling something after his current, well, actually something that hasn't shipped yet.

David Faber (2:06)

I completely discounted those articles that you're referring to. I mean, there was one or a couple that AI is over.

Jim Cramer (2:14)

Well, no, right, I'm just saying that the skepticism doesn't stop.

David Faber (2:18)

The skepticism seems to be more based on what we can expect in the near term and in terms of how it's going to change things and or the apps that are gonna be available and the various things in the enterprise, but I don't think there's anybody who argues, well, there may be, but I'm certainly not one of them that this is going to bring a huge societal change.

Jim Cramer (2:36)

You don't think so?

David Faber (2:37)

It's coming and the only question is how quickly it gets here. And obviously they just keep, what's going on over there? They are increasing their own rate of change as quickly as AI itself.

Jim Cramer (2:48)

It's creative destruction like I've never seen.

Where you basically, well, you can go side by side. He kept saying, listen, you can do these iterations, go side by side. By the way, 100 million chips of arm in these things too. They said that there could be 100 million and they put out a number that was pretty extraordinary. That's why Arm is moving so much.

Carl Quintanilla (3:10)

Trying to get 50% of the what, PC market?

Jim Cramer (3:13)

Yeah, I mean, actually you're gonna want to have server market, everything, but Arm expects 100 billion Arm devices will be ready for AI by end of 2025 That's big.

Look, one of the things you gotta, okay, so I'm gonna show my wife this thing because it's like, it's pretty great. It's a really great presentation.

And there's a moment where, let's say you go to a dock in the box, like we have one in our building. And it's somewhat, let's say you have somewhat complicated thing. You don't expect to follow up by a doctor the next day. But you get one. But you don't know it's not a doctor. It's an AI generated and it's got all, it's actually got empathy programmed in. And I was watching someone talk to it. And that's the world. So that doctor is now freed up to do something else. But I found that this AI doctor to be very soothing and stimulant.

Carl Quintanilla (4:04)

Well, if the read AI demonstration in the last few minutes with Andrew is any indication, that's where we're going. There's the productivity gains, Jim. There's the cost savings that Jensen talked about and the energy savings. Take a quick listen to a piece of the weekend's keynote.