Tech Rally Makes History, Meta-Nvidia AI Connection, EVs: Ford F-150 Lightning Production Cuts 01/19/24

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 Friday 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. Some continued relief for equities pre-market as the government shutdown is averted in Congress for now, and US tech does reassert its leadership. NASDAQ 100 coming off fresh all-time highs, 10-year 415 A roadmap begins with stocks trying to build on yesterday's gains.

NDX will aim for another all-time intraday high, and as Mike said, S&P a few points away from a record close.

David Faber (0:34)

Plus Mark Zuckerberg detailing his company's future roadmap for AIs, of course indicating that Meta's gonna spend billions on Nvidia's AI chips in 2024

Ford announces that it's going to cut production of its F-150 Lightning electric truck. It may be seeing less anticipated EV growth in 2024

Carl Quintanilla (0:55)

Let's begin with the markets, as we said, one day after a fresh record high for the NDX gym. Triple Q's in there as well.

Lots working in tech and that's continuing into this morning as well.

Jim Cramer (1:04)

Yeah, I mean, once again, we realized, do you have AI tailwinds? If you do, like a Microsoft, you're doing fine. How do you get an AI tailwind? From Meta, it's very easy. You just say, listen, I'm in contact with Nvidia. Anyone's in contact with Nvidia, you brush by Nvidia, your stock goes higher.

It literally is, David, all hands on deck. Get us from H100s.

Wait till the H200 comes out, and then when you see the fight for H200s, it's gonna be extraordinary.

David Faber (1:32)

Is it gonna be Zuckerberg wrestling with, I mean, maybe not Musk, but maybe, maybe they do need to have another, get that back on the calendar, the Steel Cage match. They can wrestle, the winner gets access to more Nvidia chips.

Jim Cramer (1:44)

Jensen is respect for Musk, but the relationship with Zuckerberg and Jensen has always been very solid. And by the way, human, human life.

David Faber (1:55)

And we know, or we can at least guess, we don't know what their price per H100 is, Jim, but.

Jim Cramer (2:01)

They're getting a better deal in the F40G.

David Faber (2:02)

In this video yesterday where he made it very clear, of course, about their efforts in terms of open sourcing and just how many of these chips they're actually buying. Take a listen.

Jim Cramer (2:18)

Incredible.

David Faber (2:19)

Wasn't that amazing?

Mark Zuckerberg (2:20)

This technology is so important, and the opportunities are so great that we should open source and make it as widely available as we responsibly can so that way everyone can benefit.

We're building an absolutely massive amount of infrastructure to support this. By the end of this year, we're gonna have around 350, Nvidia H100s, or around 600, H100 equivalents of compute if you include other GPUs.

SPEAKER_5 (2:49)

That's a lot of compute.

Jim Cramer (2:51)

Man, who knows what he has in mind that he needs all that compute. But all I can tell you is that those chips that you can ask, you ask Frank Sloob at Snowflake because you have to rent the platform from Nvidia.

These things are expensive. You do not go in there idly, Carl, and just say, you know what? Let's get these things. You have to have a plan. Now, I've seen, remember, seen the sunglasses, Meta, the Quest 3 I don't think that that's what he's talking about. I think it's something bigger.

And this is just a very exciting time to be Nvidia because they've got Taiwan Semi working around the clock to make as many chips as they need.

Carl Quintanilla (3:30)

We talked about the Taiwan Semi guidance yesterday. Today, Jim, it's about SMCI.

Got an upgrade of Texan.

Jim Cramer (3:37)

Yep.

Carl Quintanilla (3:38)

Next week, we're going to get Texan and Western Didge and Lamb.

Jim Cramer (3:41)

You know what's interesting?

The note said that there's the inflection coming. Texan's last quarter was not good at all. I think that Lamb is just... That is the one that when Taiwan Semi has to go buy equipment, they're going to buy that. I thought of all of these Semi pieces, the Broadcom piece that I saw was Goldman. Broadcom's going to be up 50 right from the gig.

Carl Quintanilla (4:07)

Yeah, Goldman reinstates at a buy. $13.25, Jim.

Jim Cramer (4:11)

Well, I'll tell you, I mean, I've been waiting for this because David, you know they bought VMware, which raises their multiple.