Nvidia Earnings Countdown, Pres. Trump vs. Fed's Cook, Soaring Stocks 8/27/25

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David Faber (1:01)

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

Carl Quintanilla (1:07)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber at Post 9 of the New York Stock Exchange. Futures relatively steady off the morning highs as the street does brace for Nvidia tonight. And in the meantime, pretty nice series of beaten raise from MongoDB, Box, Okta, even Kohl's yield curve is steepening though. Two's tens highest since April. Our roadmap begins with bracing for Nvidia's earnings a few hours away. We'll get you set up.

David Faber (1:33)

Plus Fed Governor Lisa Cook says she will sue to prevent President Trump from firing her. This is Trump says he'll have a Fed majority soon to push for lower rates. And the president's 50 percent tariffs on India are going into effect. In fact, have gone into effect. I think it was 1201 a.m. That includes a 25 percent levy as punishment for buying Russian oil. India now one of the highest tariffed countries in the US trading sphere.

Carl Quintanilla (2:01)

Let's begin with Nvidia's results to do tonight after the close of trading. Jim, implied moves about six percent. It's pacing for five consecutive months higher.

Jim Cramer (2:10)

Yeah. OK, so we actually had the CEO of MongoDB on this morning. Talk about the overspend. Are the hyposcalers overspending? Does it really matter if we're so early in the game? I talked about hallucination and the problems there. I come back and say that the answers to everything come to this company. You cannot have generative AI the way you'd like to without Nvidia. So you're going to have what some people say overspend. But it's the table stakes. It's the price to be in the business. David, there are a lot of people who feel this will come up tonight, that the total cost of ownership in Nvidia has got too high and you can't make money with it.

David Faber (2:50)

Total cost of ownership, explain what you mean when you say that.

Jim Cramer (2:53)

Oh, because if you buy the stuff and then you have it inserted by Dell and you try to train on it and you have the inference, it turns out that you lose money.

David Faber (3:01)

Because you're just spending so much, you're not getting a return. But they all, I mean, OpenAI is losing an enormous amount of money.

Jim Cramer (3:09)

Right, but it's worth $500 billion because of what?

David Faber (3:12)

Because of what was expected to be coming in the future. Obviously, they're spending most of it on data centers and Nvidia equipment.

Jim Cramer (3:21)

Okay, so the rap is that Nvidia makes all the money and nobody else does. That's what has to be addressed tonight. Not China. I mean, everyone's going to say China. It's like, yes, okay, so you're a parrot. Like, they have parrots in London. Actual parrots run around there. Well, that's those people. Which was China. Why China? No, I mean, like, no kidding, China. What matters is that we hear from Jensen Wong about how that whole narrative, that the spend isn't getting them any results, is false. That's what we have to hear.

David Faber (3:53)

But is it false? Well, I mean, we, you know, early days, early days, no doubt.

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David Faber (4:00)

But in terms of spending on the, in the enterprise and seeing real returns at this point, right, still hard to say that that's the case.

Jim Cramer (4:07)

I'm not going to disagree with that. But I think that Jensen might, I think Jensen might be able to say, look, the return here is monstrous, but you just have to be able to bear with it. It's monstrous.

David Faber (4:17)