Post-Fed Rally, Apple in the Crosshairs, Reddit CEO on IPO, Peltz Backed in Disney Proxy Battle 3/21/24

David Faber (0:00)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street. Good Thursday morning. Welcome to Squawk on the Street. I'm David Faber. Live from Postline at the New York Stock Exchange, Jim Cramer is at our office at One Market in San Francisco, and Carl has the morning off. Let's give you a look at futures as we get ready to begin trading one half hour from now. Looks like we may get a continuation of yesterday's rally, and that is where our roadmap begins this morning. The S&P topped 5,200 after the Fed said three rate cuts still likely this year. And of course, this morning, we're still waiting for that Reddit IPO right here at the New York Stock Exchange.

Chip stocks also bouncing this morning. Micron saying it is benefiting from AI chip demand. TD Cowan hiking its Nvidia price target also upgrades Broadcom.

And Apple's regulatory headwinds, the DOJ looks ready to file. Looks like it's ready to file its long anticipated ending trust suit against that tech giant perhaps as soon as 11 a.m. this morning.

Jim, let's start with the markets. Get your take here, of course, after that very significant post-Fed meeting, Fed press conference rally. What are your thoughts on the broader market here?

Jim Cramer (1:16)

Well, I think what happened yesterday was once the Fed was clear that you're not fighting it because the Fed is fine. I didn't want to go into two cuts, three cuts. I think that that dialogue is a parlor game. I'm not there.

Fed off the table, what immediately happens is we go back to earnings. If we go back to earnings, there are so many groups right now that are putting up some good numbers.

And what we really ended up focusing on in the evening was Micron, which said things, I was going back and forth with Sanjay Marotra as the CEO, said things that frankly have never happened before, which is high bandwidth memory chips, those are the ones that go with Nvidia, are already on allocation. You can't get them for 2025 And that's why that stocks up the most, and that's why it's the umbrella that's going to give tech another good day.

David Faber (2:00)

So the long negative trend in NAND and DRAMP prices is over?

Jim Cramer (2:05)

Correct.

Correct. A quarter earlier than I thought, Sanjay, who at times, this is a CEO, by the way, who's not given up verbally, many times I've goaded into trying to say good things he wouldn't go there. This was a time where he just said, look, there's nothing I can do with the high bandwidth. I wish we could make many more, and they make a lot more money for those. Again, those are AI. But yes, the other parts of NAND are doing better.

There's getting to be a kind of across-the-board sense that there's demand for everything tech, whether it be PC, server, data center, of course, anything that is connected with NVIDIA. So these are all systems go, when you hear something at Micron, building block of all tech, saying good things.

David Faber (2:46)

All right, you want to explain a bit more, though. I think it's always good for when we can kind of connect everything in to this ecosystem that we talk so often about, Jim, so often leads ultimately to NVIDIA chips. But when you're talking about high bandwidth and Micron's role in that, can you just give us a little bit more of an explainer as to how they're benefiting?

Jim Cramer (3:06)

Sure. Well, when you have artificial intelligence, it requires tremendous amount of power throughout your whole system, whether it be with Broadcom, which is soaring today, whether it be with Micron, whether it be with ARM. These are all companies that are affiliated in the network grouping with NVIDIA. So as you bring in the new chips, in this case it was Blackwell, everything has to be accelerated.

Everything has to require more density. You just need better chips, faster chips. Now Micron has a lot of what I would regard as being good stuff, just that goes into your PC. But this is the stuff that goes into the supercomputers that NVIDIA is creating.

Look, NVIDIA is at the epicenter of this next generation of technology. And anyone who is connected with it, of which Micron is, of which Procom is, of which Arm is, Cadence, Synopsys, those are the companies that are soaring here. Because we know from what Jensen said and what Sandre Morocha said last night, that we just can't meet the demand. The demand is just too strong. So everyone is on allocation.