Tech's Rough Ride, Gearing Up for Nvidia Earnings, Tesla Out of the $1T Club 2/26/25

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David Faber (0:47)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:53)

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. S&P is trying to reverse that first four day loss of the year. And futures do suggest some optimism about Nvidia and Salesforce earnings tonight. House budget resolution narrowly passes. Got a cabinet meeting today. Ten year near four and a quarter. Our roadmap begins with TechWatch though. Nvidia shares with some traction ahead of the earnings later this evening. And Tesla seeking a rebound after its market cap tumbled below a trillion.

David Faber (1:23)

Plus Meta's latest AI play reportedly talking about a $200 billion AI data center project. Sorry, I'm just telling you, forget what I just said.

Jim Cramer (1:34)

No, no, Ben Rice has just came out and said, listen, this is being denied.

SPEAKER_6 (1:36)

We're still going to talk about it.

David Faber (1:37)

Denied? Really, denied? Well, look, I mean, Auto's in focus as well. GM raises its quarterly dividend. Stellantis is sinking. A loss. Lucid, by the way. CEO's out.

Jim Cramer (1:53)

I know, I could video with it.

David Faber (1:56)

Yeah, we're on.

Carl Quintanilla (1:57)

Let's begin with the markets. Tech is trying to rebound amid this recent weakness in shares of Nvidia and Tesla today. Jim Wells calls it the mo-cop-a-lips, the momentum reversal, which they think is kind of coming to an end.

Jim Cramer (2:10)

I think that's a great call, actually, and there's a terrific piece out about Tesla today. And about the, again, this is about the idea that it's all peaked. Tesla related, point blank, to Bitcoin.

Carl Quintanilla (2:25)

Oh, yes. The Barclays Note?

Jim Cramer (2:27)

Was that terrific? And it talks about the OG and stonk. David, OG, you know what that is?

David Faber (2:33)

Yes, I do.

Jim Cramer (2:34)

What?

David Faber (2:35)

The original Gangster.

Jim Cramer (2:37)

You know, it's more than we do. Young kids. David Double? Yes. The piece was so brilliant because it has to do with the zeitgeist. Ever since the election, thank you Jason Quartz for putting this out, that everything's down since the election other than the Dell. But there was a trade that went on. I had a Vlad Tenev from Robinhood. There was a trade and they were all together. And that is reversing. I think it's, well, they start coming down, but today is a rearguard day. They're going to make a comeback today. And a large part that's because we had some good earnings for some things. But I just think it's amazing to be stuck here thinking, you mean to tell me that the Algos told you that if Tesla went down and Bitcoin went down, you should sell Apple Oven and you should sell, I don't know, we can take any of the ones that you want to talk about, but Palantir's Friend Center, I just didn't want you to make fun of me.

David Faber (3:28)

Well, there's no doubt I will. That's why I cut you in sort of a highlight of my day.

Jim Cramer (3:33)

I cut you in the quick on the information story.

David Faber (3:35)

Yeah, you did, man. Well, you and the information, you just don't like those guys. Whatever they report, you're basically like, it's not true.

Jim Cramer (3:41)

No, because last night, the story comes out that Meta is going to spend 200 billion.

David Faber (3:44)

On a new facility, by the way, not the one they're already working on in Louisiana.

Jim Cramer (3:48)

So I think that I think immediately that Nvidia is going to be up five, but it's only up three and that's just about the workday trade. There were some good quarters last night.

David Faber (3:58)

By the way, the story of the information says they're in talks to build a new data center. They're discussing it, but you're right. It went made the rounds yesterday in part because it is the kind of thing that the investor base right now, which is enormous, not just in Nvidia, but overall those are all in AI-related things, want to see. It's reaffirming this idea that, of course, is a deep concern right now is the money still going to be spent at the same level that everybody thought it would when we were all buying these stocks three weeks ago or a month ago.