Nvidia Correction, Tesla Extends Record Run, Trump Comments Cause Pain for Health Insurers 12/17/24

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Jim Cramer (0:56)

Express delivery to y'all and to all a good night.

Rick Santelli (0:59)

Welcome to your Walmart.

Carl Quintanilla (1:02)

Market Moving Insight and Analysis join Jim Kramer, David Faber, and me, Carl Caintonia, 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 are weak as the Dow extends its losing streak to eight straight days, longest in over six years. Ten year yield hits a one month high before backing off a bit on a slightly softer than expected core retail sales print. A roadmap begins with Nvidia's funk falling further into correction. Shares now flat for the past six months.

David Faber (1:42)

Tesla though has been headed in the opposite direction. Shares continue to power ahead. They're up almost 90% since the November election. Meantime, traders are waiting the latest rate cut or rate cut outlook from the Fed as well. Brian Moynihan is saying he expects the Fed to stay higher than they otherwise would throughout the next year.

Carl Quintanilla (2:00)

Let's begin with this month's worst performer among the mag seven. That is Nvidia falling into correction territory yesterday, as we said, relatively flat over six months. Jim, you said don't buy yet.

Jim Cramer (2:11)

No, look, I think that we're in one of those periods where people are saying we got to reassess who really are the winners, who are not the winners. The Broadcom numbers on Friday, they were astounding. The gain that we had made people think, well, wait a second, maybe Broadcom is the right one.

David Faber (2:28)

It was more the outlook, Jim, wasn't it? It wasn't the numbers themselves.

Jim Cramer (2:31)

Oh, no, no, the outlook was amazing.

David Faber (2:32)

Talking about 2027, though.

Jim Cramer (2:34)

Well, that's a long-term view because they have a clear window. Matt Murphy, last night, on Mad Money, Marvell Tech, saying the same thing. I think that there is some confusion. If you ask Matt Murphy, which I did, about where does Nvidia stand, he goes, look, Nvidia is still the number one. It's just that there's room for everybody. They don't necessarily, Broadcom does not necessarily displace Nvidia. Broadcom is part of Nvidia, so is Marvell. It depends on who you're using. Marvell is Amazon Web Services. These big hyperscalers have decided, you know what, we want one GPU company, which is Nvidia, and then we need to have custom silicon, which burns less hot and is cheaper. So there are three, they're not zero sum. However, I think there are people who say, you know what, I got to get off this horse, it's going down. There is not much more to it, David. No. You have to wait until GTC.

David Faber (3:30)

I had similar conversations this morning. In fact, not a zero sum game. Look at that.

Jim Cramer (3:35)

I did not speak to his.

David Faber (3:36)

No, we did not talk. We make sure not to talk to the same people.

Jim Cramer (3:40)

No, we actually do. I had no idea. That's pretty impressive. Can I show you mine?

David Faber (3:44)

And the whole idea, again, is that CapEx is going up across the board and continues to from the hyperscalers. Obviously, the numbers we've discussed are astonishing.

Jim Cramer (3:54)

Billions upon billions.

David Faber (3:55)

Hundreds of billions, really. And that won't change as well. So why is Nvidia no longer, it's hard to say no longer.

Jim Cramer (4:04)

Okay, well, it's up huge.

David Faber (4:06)

Right, it's up huge. It's at an incredible year. It's black for six months. Do you wait until they really start shipping Blackwell in, you know, in earnest?

Jim Cramer (4:15)

I think you wait till, look, I know no one's going to want to hear this, and I, you know, I love the stock, but the next big data point is going to be in the third week of March when Jensen talks about, when Jensen, one of the CEO, has a GCC conference, talks about new reasons, new things that are going on in Nvidia, what it means to have video going on, because I think video is big. Now, do I think it's going to go through to 100? I don't think so, but look, this is one of the great wins of all time, and I think that people just say, you know what, I'm on the wrong horse, Carl. I gotta be on Broadcom, and they don't think that maybe it's a field bet that Broadcom, Marvell Tech, and Nvidia are all good because of the demand.