Nvidia CEO Exclusive, Intel CEO on Receiving CHIPS Act Funding, Fed Decision Day 3/20/24

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.

David Faber (0:07)

Good Wednesday morning. Welcome to Squawk on the Street. I'm David Faber, live from Post 9 at the New York Stock Exchange. There he is, Jim Cramer, still in San Jose at NVIDIA's AI Developers Conference. We'll have highlights from- are you still doing the interview? Has it ended? I'm not even sure. That long interview with Jensen Huang from NVIDIA. Let's give you a look at futures, of course, as we get ready for what Jim and I like to call Hump Day.

I call that a mixed picture. I don't know what you want to call it, Jim.

Mixed.

Jim Cramer (0:37)

Mixed picture?

David Faber (0:38)

Yeah.

Jim Cramer (0:39)

Looks mixed.

David Faber (0:40)

Mixed. All right, good. Let's get to our roadmap. Starts with what else? NVIDIA and the AI boom. The shares, of course, up 240 percent in the last year. We're going to have more from Jim's exclusive with the company, CEO Jensen Huang and why he thinks the PC is changing forever.

Speaking of PCs, the engine behind them, Intel, preparing for a $100 billion spending spree across four states. This after securing Ships Act grants from Uncle Sam. We're going to hear from Commerce Secretary Raimondo and Intel CEO Pat Gelsinger. That'll be this hour.

And of course, don't forget it's Powell's moment, Wall Street waiting for the latest guidance from the Fed chair today on the future of rates, whether that might include some cuts.

Let's start with Nvidia, Jim's exclusive, of course, with Jensen Huang. He spoke on Mad Money about reinventing the computer. Take a listen.

Jensen Huang (1:38)

We reinvented the computer as we know it. The computer has been the same since 1964, since the year after I was born.

And we reinvented it with this idea called accelerated computing. Now, you could have a computer that's a hundred times faster or 20 times more energy efficient, cost 20 times less, and to be able to do, solve problems at a scale that nobody's ever imagined.

David Faber (2:05)

Jim, you know, so many different takeaways, including that. It's something you've been discussing to a certain extent.

And I think a lot of investors are just trying to get their arms around all of this.

What does it mean? Where do I want to be? Is it just Nvidia? Can that growth continue? I mean, so many different questions that seem to emanate from both his presentation and your interview.

Jim Cramer (2:29)

Well, look, I think that you have to go with analogies.

I didn't get this one from Jensen, but I've been thinking about it all night, which is that right now we are really happy because we have propeller airplanes, and they're terrific. And a lot of people are wondering, why do we need something faster? Why do we need anything faster? And Jensen's got a jet.

You know what? It's a secret weapon that he's using, and everyone's going to want a jet. We just don't know it yet, David. That's the difference.

David Faber (2:58)

And everything's going to be so much faster. There was that moment where he pointed to, I think, sort of the setup of the servers. And his point was, this is so much faster and it's going to take up so much less space. Obviously, it's still going to be in a data center, but it's going to replace what is a current data center just with, you know, wasn't that much equipment that he was looking at.

Jim Cramer (3:20)

Well, he's got a great sense of irony and he's a very humble man. So it's difficult to really grasp sometimes what he says because it has so much gravitas. For instance, he said, Jim, I asked him, I said, do we have to do a do-over of our entire system? And he said, look, only 95 percent of the chips aren't any good anymore.

Solid five percent, at least.

Only 95 percent of the chips just aren't what we want. And when you hear that and then you hear all these skeptics, you say, well, do they do they listen to him? Is he too calm? Does he have to be more jumping up and down? What does he have to do?

David Faber (3:57)

Right. And you're seeing that in some of the research now in terms of that point you're making. The second, you know, the strong second leg of GPU growth will be spent shift from an x86 data center to accelerated computing. And to your point, right?

Yeah, we're good.

Jim Cramer (4:13)