Nvidia’s GTC Takeaways, Trump vs. FTC, Fed Decision on Deck 3/19/25

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David Faber (0:47)

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

Jensen Huang (0:53)

GTC was described as the woodstock of AI. And this year, it's described as the Super Bowl of AI.

The only difference is everybody wins at the Super Bowl.

David Faber (1:13)

That was Jensen Huang at his company's GTC event yesterday. Good Wednesday morning. Welcome to Squawk on the Street. I'm David Faber right here at Postline of the New York Stock Exchange. Jim Cramer, he is in San Jose, California, of course, where he's been all week at Nvidia's GTC event. He will be speaking with, of course, the man you just saw, Jensen Huang. That'll be in the next hour of Squawk on the Street. Very much looking forward to that.

We're also looking forward to an open for our market on this Wednesday. Let's take a quick look at futures. You heard Joe talking about it. Seemed to have reversed a bit. We're now in the green, and that does get us to our roadmap, of course. As you might expect, it does begin with, I guess we're calling in the AI king, Nvidia moving fast to defend its crown. Jim is breaking down the main takeaways from the company's big AI conference. Plus, it is Trump versus the FTC. The president fires both Democratic commissioners as Republican Chair Andrew Ferguson plans to keep up the pressure on big tech. And of course, we are awaiting the Fed, expect it to hold rate steady. But investor focus will be on comments that we get from Chair Powell. That'll be this afternoon, as Jim likes to say, or at least I've heard you say, you don't like that press conference a lot of the time. But I want to start with Nvidia. It's a day after Jensen Huang's keynote, Jim. He gave his thoughts on the future of AI. Take a listen.

Jensen Huang (2:44)

AI is going through an inflection point.

It has become more useful because it's smarter, it can reason. It is more used. You can tell it's more used because whenever you go to ChatGPT these days, it seems like you have to wait longer and longer and longer, which is a good thing. It says a lot of people are using it with great effect.

David Faber (3:07)

All right, Jim, take it away. Tell me your thoughts, obviously, and clearly looking forward to what's coming up with you and Jensen as well.

Jim Cramer (3:15)

Well, first, David, very few people ever just say, listen, I've got a trillion dollar road map and it's happening sooner than you think. That almost put me in the 2028 area. What company has that kind of demand? It's just extraordinary. They can meet the demand. I spoke to Jensen about that last night, not worried about it.

Let's be pedestrian for one second before we go into the deep, which is that David, the gross margins are going to expand here. The gross margins are what kept that stock down. It's why the stock fell, the notion that a Chinese outlet, DeepSeek has got something that's better and cheaper that can help. I think that those things were all dispelled. I think that what matters here is that there are enough product partnerships. I count at 18 There are enough companies that are desperate to get into this business, not just the usual hyperscalers. The demand here is simply insane, David. And I don't know any other company I've ever seen that can do what Jensen Huang's Nvidia did. And that was really the notion of the keynote.

David Faber (4:16)

You know, when he says that the amount of computation we need at this point as a result of a gigantic AI, and that's something we've been talking a bit about certainly and will continue to, is easily a hundred times more than we thought we needed at this time last year. Jim, it almost, you know, you're not even really able to kind of comprehend what that means. A hundred times?