Riding the OpenAI Trade, Gold Hits $4,000, "The Year of Magical Investing" 10/7/25

SPEAKER_1 (0:02)

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Carl Quintanilla (1:01)

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 Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. Faber has the morning off. Future steady as the S&P goes for an eighth consecutive game today, thanks in part to some legacy tech companies like Dell and IBM, either partnering up with AI or raising some long-term targets. Gold futures, as Becky said, did hit 4K for the first time ever. A roadmap begins with OpenAI sparking that big rally in tech as the company raises the stakes in the AI arms race. Despite the recent rally, a number of the Mag-7 names are hovering near correction territory. Meta is among them. And we're gearing up for Tesla's announcement today. Some reports that Elon Musk may be set to roll out a lower cost EV. The stock has almost doubled in the last six months. Let's begin though with the OpenAI trade fueling the tech sector. Jim, we got a ton of names to toss around today on just this one part of the market.

Jim Cramer (2:01)

Right. Look, you've got Dell, which really is a major guide up. I mean, a significant guide up. And that is just Michael Dell, who's going to be on there. Tim, jump forward. It's just been in the right place, get in the right execution. Michael told us this several times that this would happen, that he would be able to guide up. He's been totally transparent and he totally nailed it. AMD again another 10, because people are not to value that. I think the one that's so interesting to me is IBM. IBM, I had this great interview, great, I sound self-loved there, I didn't mean it like that, that Arvind Krishna was terrific. And he told us about how he was doing so much, so much in this area. And then, so he announces a deal with Anthropic and his stock acts as if it's one of these newer cap stocks that just explode higher.

I think all he's doing is embracing what he said he would. So you've got Michael Dell saying he would do X and now he's doing it. You have Arvind saying he would do X and now he's doing it. You have, look, I've got to tell you, go back over what Lisa Sue said could happen with this MI450, which she said over and over again was going to be equal to what the current iteration, maybe not the Vera Rubin of Jensen Huang. These people are all, what I would say, delivering on their incredibly huge targets. And it's a credit to all of them. It's credit to the execution of these CEOs. They're doing a remarkable job.

Carl Quintanilla (3:19)

A bunch of reactions on AMD. Piper goes to 240 Jefferies goes to 300 Bernstein 200 And then Jim, this developers conference that OpenAI held yesterday, where the focus was not so much on a device or not so much on consumer use of chat, but a real push into enterprise. And I think we have a bit of sound where Sam Altman sort of talks about where we're headed from here. Take a listen.

Sam Altman (3:48)

We've been working to try to figure out how to open up ChatGPT to developers. And we tried things like GPTs, we've adopted standards like MCPs, and we've made it possible for developers to connect ChatGPT to more and more applications. Some of the stuff has worked, some of it hasn't, but we've learned a lot along the way. And today we're going to open up ChatGPT for developers to build real apps inside of ChatGPT. This will enable a new generation of apps that are interactive, adaptive and personalized that you can chat with.