Stocks and Tariffs After the Rally, Joe Tsai's AI "Bubble" Warning, Tesla's Rebound 3/25/25

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Carl Quintanilla (0:59)

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, David Faber, all of us back at Post 9 to the New York Stock Exchange. Futures have been improving all morning long after Monday's fierce rally. S&P back above the 200 day benchmark yields hit about a one month high, although Philly Fed services was a little soft. Our roadmap begins with stocks coming off back to back gains. China Tech names though near a correction, and now Alibaba's Joe Tsai warns of quote, some kind of bubble.

David Faber (1:40)

Plus Tesla's warning signs. Despite the stock's big bounce yesterday, deliveries in Europe fell more than 40 percent, even as overall EV sales saw gains in that market. We're keeping an eye on shares of Boeing. They are up again actually ahead of the open. The company reportedly seeking a withdrawal. It's by near a guilty plea. That's related to those two deadly 737 max jet crashes.

Carl Quintanilla (2:05)

Let's begin with the markets after yesterday's rally. By the way, guys, nice to be all three of us back on set after what? A couple of weeks?

Jim Cramer (2:11)

Yeah, it's been a while. I'm glad because the cohesion, the small unit cohesion that we have is really great. Carl, I want to go right to this thing. It's Joe Tsai thing. People talking about a bubble. Now, they did deep seek out of China, talked about their way ahead of us. This is the way Sputnik went in the period where we were in a cold war. It always turned out that they were saying things, and they really weren't tactically right. They were trying to steer us wrong.

I think Joe Tsai is a great guy, and this surprised me. He should go to a data center. He should speak to NVIDIA. He should go speak to Michael Dell. You would realize that there is, as Jesse told me, a hundred times more power that we need versus last year. A hundred times. I know. And remember, we're going to have robots. And robots need a huge amount of computing. Joe doesn't... You know Joe.

David Faber (3:09)

What do you mean I know him? I sat down with him in Singapore a couple of weeks ago. And obviously we spent a good amount of time together. No, I'm telling you that you can't...

Jim Cramer (3:18)

This is a shame that he said this.

David Faber (3:19)

He's coming from a somewhat different perspective, I think. And obviously the reason we're highlighting some of the comments this morning is in part because it did send some of the tech-related names even in the Chinese market down. China, by the way, has been incredibly strong. And the stocks, they are still up 23% for the year. Yeah, David Tepper, your friend Tepper has done very well. But Joe's point, and he made it on stage to a certain extent at our Converge event as well, is that he thinks, you know, you don't need to be everything to everybody. And so you don't need all this compute power to be able to, for the training models and to have the answer to everything, he thinks things are going to be more compartmentalized and therefore you're not going to quite need as much compute for doing specific tasks. I think it's more about his perspective on what's going to work for Alibaba, what's important to their customer base. And so and I think he does look at the half a trillion dollars that's going to be spent on Stargate and sort of says, well, is that really going to be well spent?