Nvidia Falls Despite Q2 Beat, Salesforce Jumps, "Green" Apple 8/29/24

David Faber (0:00)

Market Insight and Analysis. You're listening to the opening bell of CNBC's Squawk on the Street. All right, good Thursday morning, everybody. Welcome to Squawk on the Street. I'm David Faber. That's Jim Cramer. We're live from Postline at the New York Stock Exchange. Carl has the morning off. Let's give you a quick look at futures. Of course, we get started with trading on this Thursday. In August, you can see we are expecting a higher open. We got a lot to talk about this morning, don't we? And let's get right to it. Our roadmap, we'll call it the AI trade, of course. Nvidia's forecast, I don't even know. It says disappointing here. I'm not even sure that's the right word, Jim.

Jim Cramer (0:36)

No, I mean, it turned out that Nvidia is mortal. And that they basically said that they had a chip they could make and it turns out that they yield something.

David Faber (0:45)

All right, we're gonna talk about that, of course. No, we're doing the rundown. Have you never done the show before? It's time. All right, let's move on from there to Salesforce and Apple. I'm telling people what we're gonna talk about. We're gonna talk about Salesforce and Apple. Apple reportedly ordering 10% more iPhones. That at least according to Japan's Nikkei. Of course, as they get ready for their Gen I enabled phone. And we'll check on the consumer. We got DG, that's Dollar General. Not good, but Best Buy looks pretty good. So both of those and so many more. We'll talk US. Steel, we'll talk the markets. Let's get to it, Jim. You ready? Let's get to it. All right, let's start with Nvidia, of course. Lofty expectations.

Down as much as 7% right after the earnings came out. Right now, I'm looking at a stock that may be down as little as four bucks.

Jim Cramer (1:36)

Well, cause you're trying to figure out on say, a five dollars in 2027 Thank you, Ben. Ben Wright, just from NICE. What should it really sell at? I mean, could you really, do you think this stock should sell at 20 times earnings? I mean, no, this is a really great company. It deserves a premium.

David Faber (1:52)

Premium multiple.

Jim Cramer (1:54)

It's pulling with the revenues. But David, like have you ever been to a, if you've ever been to a foundry, I've been to a foundry when they're first starting a new run. And they just throw away a huge amount. And I think that, not that Jensen necessarily got it wrong, but the yields were very low.

David Faber (2:12)

So in other words, like the first, like when, you know what, actually we have him talking about it on the conference call. Let's take a listen to what he had to say in particular about that ramping up of production of those new Blackwell chips.

Jim Cramer (2:25)

The data center worldwide are in full steam to modernize the entire computing stack with accelerated computing and generative AI.

SPEAKER_3 (2:33)

Harper demand remains strong and the anticipation for Blackwell is incredible.

David Faber (2:38)

I guess that wasn't really what I asked.

Jim Cramer (2:40)

You can't. So there's a hit to Gross Martins and that bothered people. But I also think that, David, when you have Nvidia watch parties out loud, when you have say like in the Premier League, you have these teams that Wilf can talk about, I don't know, they're in strange British cities.

David Faber (2:56)

Yes.

Jim Cramer (2:57)

What happens is that- There's a watch party. That's a watch party.

David Faber (3:00)

What's good is that what they're watching is us. CNBC, so I'm happy about that.

Jim Cramer (3:07)

Right. Well, no, and that's, you got, that is the correct takeaway, of course.

David Faber (3:10)

Thank you.

Jim Cramer (3:10)

But I do think that that plus the National Nvidia Day, and how the nation stopped at a certain point. No. I mean, we have to go back to reality, which is that Nvidia is a company and Genesis is a man, and they did have some product issues in terms of what I regard as just being, look, we didn't make as many as we'd like. But 2020-

David Faber (3:31)

But demand remains unabated, clearly. We've talked about, of course, the continued capex plans of all of the largest companies in the world.

Jim Cramer (3:40)

45% of the business is them.

David Faber (3:42)

And data center revenues at 26.3 billion. Again, to put it in perspective, you're talking about what is two and a half times what it was not even that long ago.