Starbucks and T-Mobile CEOs, Chips Extend Rebound from Post-AI Sell-Off, Apple Downgraded Again 1/29/25

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Jim Cramer (1:02)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:10)

Good Wednesday 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. It is a big and important day. A Fed decision, met a Microsoft Tesla tonight, confirmation hearings for RFK Jr. and Howard Lucknick, and the confusion from Tuesday's federal funding freeze now blocked. Ten years, 452 A robot begins with the AI trade, though. OpenAI accusing Chinese rivals using its work for their apps. Nvidia shares, Waiver, Premarket and Big Tech, as we said, including Microsoft, after the bell.

David Faber (1:40)

Plus, we're keeping an eye on shares of Apple. They're under pressure in the early going here. Continued concerns about iPhone demand. The company, of course, will be reporting earnings tomorrow, along with so many others. Coming up this hour, the CEOs of both Starbucks and T-Mobile. Well, Starbucks notched its fourth consecutive decline in same store sales. T-Mobile's forecasts, well, they were above much of what the street was anticipating.

Carl Quintanilla (2:04)

Let's begin with the chips trying to extend their rebound from Monday's sell-off. Jim, ASML is surging, but Journal with a piece looking at whether or not DeepSeek sort of uncovers Nvidia's liabilities.

Jim Cramer (2:16)

Well, look, I think that there's a perception that more is less. More chips, more people who know how to use them, more out of China means less for Nvidia. Nvidia's been quiet. What they may have advised people, you can look at the CES post-interview, not good enough. I think people have decided that we had a rebound, but the reality is that the orders will decline. By the way, therefore, the power will decline because people are figuring out how to use more with less. And David-

David Faber (2:50)

That's the negative thesis.

Jim Cramer (2:51)

That's the big negative thesis.

David Faber (2:52)

Of course, we've been talking about it. Since Monday.

Jim Cramer (2:53)

Well, yeah. I'm just kind of going to go over it with people.

David Faber (2:56)

Okay.

Jim Cramer (2:57)

But ASMLF does not say good things. It says bad things because what it says is, look, there's a lot of equipment being used. The more equipment they use, again, we have more as less. So the whole world is kind of coalescing upon the idea that Nvidia is not as special as we thought. And that's what I'm trying to figure out.

David Faber (3:17)

Well, what does that result in, Jim? Because we've all been having conversations these last few days with as many people who make decisions about what to buy and sell in terms of this area. And the one thing I've heard is maybe it's the out years. Maybe the multiple simply comes down because there is more uncertainty in the name.

Jim Cramer (3:33)

Look, we watched, I watched Brad Gerstner yesterday. There's a sense that the multiple has become very low. So it's actually one of the lowest.

David Faber (3:42)

Brad's undeterred, by the way. He's a big believer in the overall growth not being in any way impacted.

Jim Cramer (3:50)

But if you don't wait…

David Faber (3:51)

Accelerate a compute is the present and it's the future.

Jim Cramer (3:53)

Yes, it is. And I would tell you, they still have a tremendous lead. Is China an existential threat to them? What China says is that maybe you should pause. But I want to come back and say something that I think that people should remember. If Larry Ellison and Mark Zuckerberg and presumably Elon Musk were all buying the highest end chips, did they not have knowledge about what was going on in China?