Nvidia CEO's AI Message, Musk Defends Ketamine Use, Cleveland-Cliffs CEO on U.S. Steel 3/19/24

Carl Quintanilla (0:00)

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.

Jensen Huang (0:09)

We created a processor for the Generative AI era. And one of the most important parts of it is Content Token Generation. We call it, this format is FP4. Well, that's a lot of computation. 5X, the token generation, 5X, the inference capability of Hopper seems like enough.

But why stop there? The answer is, it's not enough.

David Faber (0:47)

Jensen Huang unveiling the new generation of Nvidia's AI chips yesterday at the company's Developers Conference. Good Tuesday morning. Welcome to Squawk on the Street. I'm David Faber, live from Postline at the New York Stock Exchange. Jim Cramer is in San Jose, California. He is at Nvidia's GTC. He's going to have a live and exclusive, it's both, live and exclusive interview with that man right there, Jensen Huang. That'll be in the next hour.

Of course, we are very much looking forward to it. Less than an hour from now, in fact, a half hour from now, we get started with trading here at the New York Stock Exchange. Let's give you a quick look at futures.

We are in the red, so perhaps a lower open when we begin trading. Let's get to our roadmap. It does start, as you might expect, with Nvidia's potential AI game changer. The company unveiling its latest, more powerful artificial intelligence chips, which CEO Jensen Huang says are twice as powerful for training AI models than the current GPUs.

Great expectations also underway here, the Fed's March meeting kicking off today. The Bank of Japan, by the way, raising interest rates, no longer are they negative in that country. Why Elon Musk thinks investors should want him to keep taking ketamine, saying it's beneficial for Tesla.

We start with Nvidia and the company's new AI chip lineup. There's Jim and I just throw it over to you. Give me the highlights. You're about an hour or so from sitting down with Jensen Huang. But, you know, Jim, what struck you as most significant? What is most important today that was said yesterday in terms of how Nvidia trades?

Jim Cramer (2:28)

OK, I think it's very simple. This new Blackwell chip, it's smarter than 100 Fabers.

Yep, that's what it looks like because basically he's saying is we're not smart enough. The machines are smarter. David's finally had them. We actually have chips that have learned so much that they have common sense.

They can do things that I know you may be concerned about, but I think are major for society. Productivity and waste, build factories, sing, I mean, they can do anything. They can paint, but they also make it so the world's a better place. And that's what we're going to be talking about.

David Faber (3:04)

All right, let's get more specific on the Blackwell itself, you know, which again, he made the point. It's the name of a platform. It's not a chip. First of all, if you can, Jim, explain to people what that means.

Get into some detail if you can. I know you, I'm sure you will with Jensen, obviously, during your interview, but sort of give us a sense here as to as to leap that's been made.

Jim Cramer (3:28)

Sure. I think that you hit on something that's really important, which is it's not just a chip.

It is a platform. Now, what does that mean? It means it's filled with software. What does that mean? It's recurring revenue.

It's not one off. You get in their ecosystem. You stay in their ecosystem. There are a lot of people who say this is a defensive move. I say it's an offensive move because what this Blackwell can do is use video, use text, many different languages and understand. So you can imagine it can understand, initially it will understand between a zebra and a horse. In the end, it will know more about zebras and horses than we do. I have to use an animal kind of imagery because this is something that really, Jensen spent a lot of time talking about how it understands video.

And if it understands video, then it can do things that we would desperately need in society, which is like have robots to be able to do a lot of jobs. We need them to have people be able to design things that they've never been able to design before by, yes, David, I'm going to use it, many times mention digital twin. Digital twin means that you basically can build anything, do anything with an Nvidia chip and then actually have it made in real life. Factories, the largest market left, he described it as the final frontier and yet that's what Blackwell would do better than anything.