Q2 Playbook, Cramer Slams Bears on Nvidia, "White Lotus" Surprise 4/1/25

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David Faber (0:31)

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

Carl Quintanilla (0:37)

Good Tuesday 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. We kick off Q2 with futures a bit cautious, unwinding part of yesterday's comeback. Tariff uncertainty reigns ahead of tomorrow's Rose Garden event. Ten-year 415 is about a one-month low. Our roadmap begins with stocks coming off their worst quarter since 22 Wall Street is on edge amid fears that Trump's tariffs will be more severe than expected.

David Faber (1:03)

Plus Johnson & Johnson shares under pressure this morning, at least ahead of the open, a federal judge rejecting the company's latest talc resolution offer. Intel's new boss making his first public appearance as its CEO, Nick Bhutan, saying and laying out his plans to overhaul the company.

Jim Cramer (1:22)

Total heavyweight, okay? We have to talk about love and doing.

David Faber (1:27)

Whatever you want to talk about, we'll talk about it.

Jim Cramer (1:28)

All right, I like that idea.

Carl Quintanilla (1:30)

Let's get to the markets, though, as we start this new month in this new quarter. Jim, people are trying to run through the themes that set the tone for Q1. They argue tariff uncertainty, government cuts, and fears of an AI bubble. You got any problem with those?

Jim Cramer (1:45)

I think that they're missing the point. I think it's inflation, inflation, inflation. And I think the tariffs are inflationary, and that that's what people are really thinking about. And I think that's extending to our market, which therefore means that there's not as much spending, which means that consumers pull back, which means you've got to be careful. I think that's the correct narrative. AI, I think, is actually going to the point where it's so hated that you have to stick your neck out and buy some AI, particularly with OpenAI, have a $300 billion valuation, Salt Bank, Spangio. AI is, I'm calling the low water market in that one. Absolutely. David, you know that when you have totally made up stories about how, that there's a lazy Susan deal with Nvidia where they give you money and you buy chips or that they created CoreWeave. I mean, they created CoreWeave.

David Faber (2:42)

You're referring to this research note from yesterday in some way that was critical of it.

Jim Cramer (2:45)

I mean, that is libelous. That's a libelous statement. And if I were the company, I would sue the person who wrote that.

David Faber (2:53)

Although there is a circularity to, and Jim there, you were posting about it yesterday. There is a circularity to some of the relationships in the same way that Microsoft was investing enormous amounts in Open AI, and Open AI was turning around and using Microsoft's compute and paying Azure, right? I mean, I'm just saying there are circularity in many of these kinds of relationships. Nvidia is an investor in for a week.

Jim Cramer (3:19)

That's true.

David Faber (3:20)

They are an investor in some other companies for which, of course, then they are big customers of Nvidia.

Jim Cramer (3:26)

That's a fact. It's a Microsoft.

David Faber (3:28)

Nothing wrong with it.

Jim Cramer (3:29)

No, there is something wrong. The government does not allow you to give money to another party and then have it returned in revenue.

David Faber (3:35)

But these are separate deal.

Jim Cramer (3:38)

But you can't make charges like this and not expect that you're going to be in front of some court.

David Faber (3:43)

All right. But what's the larger takeaway here then from you? Why did you go from talking about AI being sort of at a bottom to referring to this?

Jim Cramer (3:50)

Well, no, I'm just saying that when you... I was making a point to Carl that when you have the most absurd charges that Nikesh Arora, one of the most distinguished people and also a great golfer in Palo Alto, saying, well, look, I think that it's all meaningless. It's too expensive. When he's really saying that when you have small tasks, you don't need the Grace Hopper, you can twist anything. And in the end, at the bottom, what you have is people just making up things about Nvidia. Right.