Nvidia's Q2 Beat and the AI Trade, Fed's Cook Sues Trump Administration 8/28/25

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Carl Quintanilla (0:46)

Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

Jensen Huang (0:55)

The opportunity ahead is immense. A new industrial revolution has started. The AI race is on.

Carl Quintanilla (1:04)

NVIDIA's Jensen Wong talking AI demand on last night's earnings call. 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. NVIDIA's down slightly pre-market, but off the morning lows as futures have also recovered some. A lot of beaten raises from names like Snowflake, Dollar General, Burlington and some other retailers. GDP does get revised up a bit and claims are steady. Our road map begins with NVIDIA reporting record sales, upbeat guidance and this massive stock buyback. We'll get the Street's take on the results.

David Faber (1:33)

Tesla sales plunge in Europe. This is Chinese rival BYD, sees its sales triple. We are going to discuss the road ahead for Tesla and of course its CEO, Elon Musk. We've also got a number of retailers reporting earnings this morning. Best Buy is higher, Dollar General and Victoria's Secret also rallying, that is their stocks, in early trading off those numbers.

Carl Quintanilla (1:54)

Let's begin with Nvidia this morning. Top and bottom line beat. AI demand fuels this 56% jump in data center revenue. That result was just shy of analyst estimates. Current quarter guidance slightly above consensus, although the company says it did not include the H20 chip shipments to China. Also unveiling the $60 billion share buyback. Jim, a lot of discussion about the lack of codification on the H20 stuff and whether or not how that gets resolved.

Jim Cramer (2:20)

Look, I think that that was the most opaque moment on an otherwise terrific conference call because it's up to two different governments.

For some of the numbers that you saw that they allegedly disappointed because they did have something in for China and there was nothing in for China. Look, China is not a sideshow. It's very, very important because you'll buy the stock at $190 if it comes out today, what they're going to do. But David, I think that the... I'm going to pause at something that kind of, I think, could help viewers at home. When we saw Microsoft go to $4 trillion, we said, fine, it's software. That's what happens. The old days, when we saw Exxon become the number one company, well, it's oil. That's what happens. At one point, we had Merck. Okay, what's Pharma? Right now, we have to accept the fact that this is hardware with a software component and it's changing the world. And the most important number is that they're talking about a total addressable market that's going to triple in the next four years. And if that's the case, then revenues could triple. And then you'd say, well, even though it's hardware, this is the greatest growth story ever told.

David Faber (3:23)

You would. And by the way, you'd also look at their margins at 72.4% and 72.7% that's gap, non-gap. And you'd say, wow, that's a business I wouldn't mind being in as well. And those margins continue to improve. But let me throw a couple of things at you. I've heard this morning, Jim, and have you respond. The stock is really not doing much of anything. It was a very strong quarter. But all right, those, you know, there are those who say sequential numbers weren't as strong as you might have hoped.

Jim Cramer (3:55)

Blackwell was 17% sequential. That's $4.9 billion added off the 28 basis. Oh, okay, that's bad. Go ahead, that's one.

David Faber (4:01)

And the guide is obviously doesn't include any China at all.

Jim Cramer (4:06)

Right.

David Faber (4:07)

That said, it didn't overly impress perhaps some who came into the quarter looking for more and therefore are not inclined to.

Jim Cramer (4:14)

These are not pieces that they're making. You can't make them and just say, okay, you know what, let's make another billion pieces. You can't. This stuff is hard to make. Everything was sold out. Everything. All right.