Nvidia Rally Rolls On, Buffett's Message to Investors, Stocks’ Record Run: What’s Next? 2/26/24

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 (0:08)

Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla, Jim Cramer. David Faber's back at Post 9 of the New York Stock Exchange. Future steady coming off the 13th record close for the S&P this year.

And the best week since mid-January. Packed schedule this week, PC, Deflator, FedSpeak, earnings in retail and software. Our roadmap begins with stocks and this AI fueled rally. Nvidia shares climbing once again ahead of the open. While Apollo calls the current AI bubble bigger than the 90s tech bubble.

David Faber (0:35)

Plus, we're on inflation watch. As you just heard Carl say, investors are awaiting key economic data this week. Potential big implications, of course, for rate policy.

And Berkshire's cash pile hit a new record. Warren Buffett warning that the days of quote, eye popping gains though, are over.

Carl Quintanilla (0:55)

Let's begin though with Nvidia extending that rally after reporting that blowout quarter last week, hitting a two trillion dollar valuation during much of Friday's session. Jim, we were just talking off camera. Perfect timing for you to go into your investing club annual meeting over the weekend.

Jim Cramer (1:09)

Thank you. A lot of people own Nvidia. It's been our owned, owned trade position and it's worked well. I think there's still a lot of skepticism about Nvidia because I call it the nouveau restock.

People just can't believe that it had this kind of level of revenue growth, that people think that maybe too many companies over ordered.

David, I have yet to find anyone who has said, you know what, I have too many of their cards, including Metta, which is a used buyer. And I think one of the reasons is because there's 20 to one improvement in return on investment versus current. And two, really important, they run cooler. So what happens is, is that as gentlemen say, look, it's just a replacement. We're replacing the entire system, but it's replacement.

David Faber (1:57)

But that goes to cost as well in the data center.

Jim Cramer (1:59)

Yes.

David Faber (1:59)

Because if you do run somewhat cooler, you consume less electricity at least. And the buyer here is trying to figure out the overall cost.

Jim Cramer (2:08)

Yes.

David Faber (2:08)

It's not just, all right, I know I get better compute power, even if there is a competing chip at some point from AMD.

Jim Cramer (2:16)

Right.

David Faber (2:16)

It, you know, it's the overall.

So does it cause, you know, is it deliver more? Is it, does it run it perhaps a more energy efficient level? I don't know. I'm just saying, Jim, that it's more than just saying at some point there are gonna be competitors because you have to consider the overall, the overall value proposition for the buyer. Right.

Jim Cramer (2:39)

I think that one of the things that is misdefined in people's thinking, keep finding new customers. I mean, what I think-

David Faber (2:46)

Well, he was, he was, I mean, last time we saw Jensen, he was in the mid-east. All these sovereigns potentially now are gonna be buyers of the chips as well as they develop their own AI policies.

Jim Cramer (2:54)

Right, if we don't, we're a cultural usurper, Carl. People just say, well, this cannot be an American or English product.

Each country has to have his own. Now, there are, they just can't nearly produce enough for each country and when you, when Amazon Web Services buys it, they also, they use it for themselves and they use it for cloud. That's a fairly typical situation.

At the same time, the service now keeps coming up as an integrator of their product. Again, there was a good piece out this weekend that they thought was good. They're not promotional but they do a lot of explaining about why this is occurring.

Carl Quintanilla (3:31)

Meantime, Cathie Wood, for example, defending her taking some profits on the name, even though she says in a tweet that she was getting in at five.

Jim Cramer (3:41)

Well, look, I think that her decision to sell things or buy things is often good, but I was in front of a group of people this weekend who were right in front of you. I was in front of them. And David, when you make a mistake or when you sell something too soon, it's you're not defending or liking how you did. You're regarding yourself as being.

David Faber (4:10)

That's like the audience for the Price is Right. They're so enthusiastic.