Tech Earnings Reaction: A Wild Ride for Nvidia and Salesforce 2/26/26

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Jim Cramer (0:56)

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.

Jensen Huang (1:04)

AI is here. AI is not going to go back. AI is only going to get better from here.

Carl Quintanilla (1:12)

Nvidia's Jensen Huang on last night's call, expressing optimism about the future of AI. Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber at Post 9 of the New York Stock Exchange. Nvidia up about a percent. Future steady. There's a host of consumer and tech earnings to get to today. Oil's down as these US-Iran talks takes place in Geneva. Claims were tame at 212K. Our roadmap begins with Nvidia. Blowout earnings met with some muted reaction. What Jensen Huang told CNBC about the AI landscape and how the battered software sector.

David Faber (1:44)

Salesforce is one of those key software names that have taken a hit to put it lightly over these last few months. The company's stock price is still under some pressure this morning. This is based on some soft guidance. And Netflix's co-CEO Ted Sarandos reportedly going to the White House today to discuss his efforts to, or the company's deal to acquire Warner Bros, or at least the studio and streaming assets. This, of course, comes with Warner Bros. results and Paramount results. We'll give you the latest.

Carl Quintanilla (2:15)

Let's get to Nvidia, though, rising on this quarterly beat and sales guidance above consensus. Q4 data center revenue up 75 from a year ago. That was fueled by AI demand. Jim, and I know you've said that the reaction deserves a little bit more than it's getting.

Jim Cramer (2:29)

Yes, it does. Well, look, the stock was at 201 when Colette Cress, who's the excellent CFO, came out and said, listen, we haven't sold anything in China yet. It's almost as if people think that this is a China play, and you could not be more wrong. I think the stock is being traded by people who really don't understand, as I felt since it was at two when I recommended it. They just don't understand what it does.

I mean, we had always felt that the big customers were hyperscalers, and they were speaking about Amazon Web Services, speaking about Google Cloud, we're thinking about Azure. No, it's now a different kind of story. The story is about Enthropic. The story is about the incredible numbers from OpenAI. The story is about how they are no longer just a chip, they're a platform. And David, when I read it, and I see that the revenue growth is actually accelerating, this is a gigantic company. And the stock is not expensive. And I don't really care about China, because maybe they get China when the president talks to Xi, or maybe they don't.

David Faber (3:22)

Or maybe they don't. They're still going to do $78 billion in revenues this quarter, which, as you said, is above analyst consensus and represents a growth rate that is accelerating, with by the way, 75% operating margins. I mean, as I like to do sometimes with these companies, I'd just like to step back and consider the numbers themselves, because they are so stunning. A company that earned over $43 billion for the reported quarter that we're going to be talking about. I can remember when I think it was ExxonMobil had a $10 billion quarter years ago, and I remember leading SquawkBox with it at the time. And here we are at $43 billion for a quarter. And that's not, I mean, by the way, we see that from some other companies as well, or at least a few, but 75% operating margins. But Jim, the stock doesn't want to go up. I don't know why you keep fighting with all these people. There's clearly something. And the market knows better sometimes. And there's clearly something that out there that says, I don't know whether it's competition. I don't know whether it's worries about this spending and whether it can be continued from the likes of OpenAI or Anthropic. I don't know what it is. But the market speaks every day because this thing just stays cheap.