Nvidia Joins the $3T Club, Tesla's Musk Pay Package Push, ECB Cuts Rates 6/6/24

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.

Carl Quintanilla (0:07)

Good Thursday 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. Coming off all time highs for S&P, Nasdaq. Futures are a bit mixed, as the ECB does deliver that long awaited cut in rates. First since 2019, our own 10 year bond yields still near yesterday's multi-month low of 4.3.

Our roadmap begins with the big tech AI boom and Nvidia is now the second most valuable US company and rallying again ahead of the open.

David Faber (0:34)

Plus AI dominance is under some scrutiny. The DOJ and the FTC reach a deal to open antitrust inquiries of Microsoft, OpenAI and Nvidia. And we're getting a bit more of a retails gauge of the consumer. Galluloo shares surging despite a weak second quarter outlook. Five below, seeing lower consumer spending levels.

Carl Quintanilla (0:56)

Let's begin with Nvidia joining the $3 trillion valuation club, surpassing Apple now to become the second most valuable public company in the United States behind Microsoft. Jim kind of put all of this into perspective last night on Mad Money.

Jim Cramer (1:12)

We've had some huge winners in our time, right? Steve Jobs, the iPhone, Bill Gates, Windows, Jeff Bezos, Amazon, Mark Zuckerberg, Facebook.

Now, Meta, those are individuals who personally changed the world, they're amazing men, but nothing like Jensen, nothing at all. Bottom line, thank you, Jensen, for changing the world, and for you skeptics, take a look at today's biggest gainers. They're all spin, they're just spinning pins, scattered this way and that, because Nvidia's speed ball went right down the middle. Steer right.

Carl Quintanilla (1:44)

Jim, I love the fact that 10 years ago, Apple was 53 times Nvidia's market cap.

Jim Cramer (1:50)

Yeah, look, this is a phenomena, and I think there's a lot of people who are skeptical, which is one of the reasons why this week, I think, was motivated by the split that comes on Friday, more than it was from what Jensen's been saying. Computex was a very important meeting over the weekend. But one after another, when you have a CEO one, not tech or non-tech, they try to bring them up.

They just can't seem to nod. And so you'll get these situations where somebody, like last night, you get Snowflake going. They have to mention it three, four times that they're involved.

HPE was 10 times, with four direct mentions to Jensen. Now, David, you could argue these are anecdotal, but when you put them all together, it does feel like that what's happened here is that you need him, he is AI, you need AI. There's nowhere else to go. So their sales, as expressed by the percentage of a $6 billion center that you use, data center, well, maybe 75, 80%.

David Faber (2:52)

Yeah, I mean, listen, the accretion of value is incredible, as you pointed out at the top of Mad Money, as we have over and over again, and there are any number of investors, by the way, who might have entered this year, fully believing in the thesis, but said Nvidia's run has got to at least end. They would have been 147% wrong as we sit here today with the stock again eclipsing the company, eclipsing the value of Apple. It's truly staggering.

I can remember when we were here in a trillion-dollar valuation for Nvidia, which feels only like months ago. I don't exactly know when that was.

Jim Cramer (3:23)

Well, that run that we had, and we were out at the CEO Council in Santa Barbara where he had the fabled $5 billion miss, as he called it, miss to the upside, and I think that that was the beginning of recognition for people who were not that close to it, that what's happened is that he's now on a path. And when I say on a path, I mean, I was going to the Vera Rubin, the new chip, before we even see the black hole.

David Faber (3:47)

What I want to know is, when does this all start to come to an end? When do investors truly start to wonder whether their monopoly, if you want to call it that, or their lock, their stranglehold on being the chip you need, the GP you need, when does that start to end? There are any number of smaller companies made up of very, very capable chip designers, I know, that are being funded. You've got the Amazons of the world and the Metas, and I can go on trying to really design their own.