Nvidia's Blowout Quarter, S&P 500 Record High, EV Pain, Mondelez CEO 2/22/24

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 (0:14)

Good Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, post-night of the New York Stock Exchange. David Faber has the morning off. Equities are a bit across the board.

As Nvidia comes through, it was a major catalyst for tech, even with yields climbing to two and a half month highs. A lot of feds speak on deck today. Our roadmap's gonna begin with Nvidia's monster quarter, sending the stock up double digits pre-market, revenue rising more than 260% year on year.

EV stocks, though, moving in reverse. Shares of Lucid and Rivian both plunging post results. We're gonna dig through those numbers. And we'll talk with the CEO of Mondalise on the state of the consumer and what he thinks of the president calling on snack makers to stop shrink-flation.

Let's begin, though, with Nvidia surging on that blowout quarter. Sales more than triple, driven by strong demand for AI chips. Guidance exceeds consensus. This is Jensen Huang on the call last night.

Jensen Huang (1:05)

This last year, we've seen generative AI really becoming a whole new application space, a whole new way of doing computing, a whole new industry is being formed, and that's driving our growth. We guide one quarter at a time, but fundamentally, the conditions are excellent for continued growth, calendar 24 to calendar 25 and beyond.

Carl Quintanilla (1:29)

Biggest single-day market cap move, Jim, beating that a few weeks ago.

Jim Cramer (1:32)

Yeah, it should be up more. I think that what's happened is you realize, as has often been the case with Nvidia from around 2014, that when you see a number, you realize that the stock turned out to be very cheap a year ago. And I think people have to realize, for instance, really some amazing data of when we thought, we thought that they were gonna earn $20 at the end of the year. In the calendar year, I think that they could now do 2460 So even in just six weeks ago, we thought they were gonna earn $4 less than they're going to. And people have to understand, when you're trying to value a stock, what that says is that stock that was very expensive eight weeks ago turns out to be reasonably valued and that matters.

Carl Quintanilla (2:17)

So you don't have a problem with Key going to $1100 or Bernstein going to $1000 today?

Jim Cramer (2:22)

No, I think that what Jensen spent a lot of time laying out when he talked about the notion, remember we've got two things going on.

We have the acceleration computing and then we have generative AI. What he did was lay out something that people have not been willing to do, which is to say it's not like the 38646 Pentium II where the 386 is really obsolete. It's that you can use the H100, the H200, they'll do some new software. There's not gonna be a difficult transition and that was really important because I think a lot of people were worried that there could be a gap, as is the case in a lot of technology.

And this is one of the great second-gross stories. Now remember, he's using trillions. He's basically saying the whole world, everything that we have, which is just general computing, is out of date. So we have to redo everything. If we have to do everything, whether it be auto, just think, he has said to me over and over again that manufacturing is by far the biggest market in the world. Well, everything that's manufactured, we'll also have to use his chips.

Carl Quintanilla (3:22)

Yeah, and that's why the basket of redoing old data centers, building new data centers, huge buckets of demand, these shorter lead times, Jim, is that a sign of cooling demand?

Jim Cramer (3:34)

No, not at all. It's just finally they've got Taiwan Semi cooking. These things are very hard to make. They're very big. And one of the things he also talked about is that there are dual uses. So if you're a cloud service provider, you want them for yourself, but you also want them for the cloud. Couple companies that were called out mightily, Metta called out as a monster user of their product. And I thought that was very important because I think people should realize that that's inference. That's why their Instagram ads are so good. Called out Google, called out ServiceNow, ServiceNow twice saying that they're the ones that have been able to use the, they've developed generative AI in order to be able to help workflow.