Riding the AI-Fueled Rally, EU Hits Apple With $2B Fine, Bitcoin Surpasses $65K 3/4/24

Carl Quintanilla (0:00)

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.

Good Monday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber, Post 9 of the New York Stock Exchange. NASDAQ futures stealing some love from the broader markets as we set up for a big stack of news this week. Pal on the Hill, a jobs number, State of the Union, some sell side conferences. Our roadmap begins with stocks in this ongoing AI fueled rally. B of A, up since target for the year. Nvidia, now the world's third most valuable company.

And the NASDAQ looking to build on fresh records.

David Faber (0:35)

Plus, as usual, we're keeping an eye on shares of Apple. They're pulling back after a nearly $2 billion EU fine. While two new notes say, hey, don't worry. They suggest an Apple comeback, perhaps likely.

As for Tesla, well, it's China struggles continue. Shipments plunging to the lowest level in more than a year.

Carl Quintanilla (0:56)

Let's begin with the markets entering a new week with record highs fueled once again, Jim, by AI, which seems to be the topic of so many weekend notes last couple weeks.

Jim Cramer (1:04)

Oh my, Carl. I mean, just a lot of people want to say that the whole thing's gotten out of control.

But let's say you go back a year and you looked at what Nvidia ended up is going to be the estimate for 2024 The stock was selling at 12 times earnings a year ago. So we can sit here and moan how expensive it was, but it's by far the cheapest in the Mag-7 or Mag-6 if you want to drop to get to Moskin.

I think that the problem has always been that when you look back, this thing is so underestimated in terms of what it can make, that you don't know how to value it. What are you going to do, take it to nine times earnings? Like it's a bad bank?

David Faber (1:45)

Jim, my weekend was characterized by conversations with people who were seemingly involved in the endless construction of data centers.

Jim Cramer (1:53)

So you were with losers?

That's okay. I was with winners, I was with my kids. You were with losers.

David Faber (1:59)

Well, I did spend family time, but actually I'm talking about a meeting on Friday, so that was a work day, a large real estate investor, data centers, data centers, data centers. Somebody involved in the deal world, in particular on the financing side, advising on those transactions, financing for data centers.

Jim Cramer (2:17)

At least it wasn't private credit.

David Faber (2:18)

Somebody more in the political realm to a certain extent, who's getting in comings from various countries about building data centers. Because they have access to power that is renewable and stable.

Jim Cramer (2:34)

Right. Well, it's got to have cheapest power, but I'm going to give you the current site, Carl. It's Equinix versus Equinox.

Equinox is GLP-1 and Equinix is data center. There, that's all you need to know.

David Faber (2:47)

But these data centers which are being built at a rapid rate and trying to obviously meet what is seen to be the future demand for generative AI and all the processes that need to take place, that only points to one thing for Nvidia, doesn't it? Which is more and more demand, not less.

Jim Cramer (3:03)

Look, the problem has been you can't get enough. That's why Zuckerberg was such a genius by setting up a team that could meet with Jensen's team, CEO of Nvidia and say, look, we're not going to stockpile the 350,000 chips. We got it. We just needed to make Instagram go fast.

And we can talk about Google back to Anthropic and it's chop at. And by the way, Anthropic is really, that's the one people are using now, the younger people.

David Faber (3:29)

Oh, yeah. Yeah. The youngsters like Anthropic, huh? Yeah.

Jim Cramer (3:32)

Well, because I think it's more accurate. But I would tell you, David's right.

I've been researching power companies to see who's got the lowest power that's going to get the most data centers. And most of the data centers, by the way, the one I'm drawing is solar or wind.

David Faber (3:49)

Right.

Jim Cramer (3:50)

Solar or wind.

David Faber (3:50)

And that's why I know in comings from countries that have access to a lot of solar and wind conceivably, where they can construct data centers is seen as a new growth area.

Jim Cramer (3:59)