Tech's Triple Whammy, Tesla and Ford in Reverse, Honeywell CEO on Split Decision 2/6/25

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Jim Cramer (0:44)

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 (0:58)

Good Thursday 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 going to flirt once again in the neighborhood of all-time highs as shares of tech and financial giants stay pretty solid. Yields remain subdued. 10-year 442, that jobs number, of course, is on deck tomorrow. Our roadmap begins with the chips. Shares of Qualcomm and Arm under a little pressure, despite respective quarterly beats. Do not miss Arm's chief, Renee Haas, is going to join us in the next hour.

David Faber (1:24)

As for autos, Tesla vehicle sales tumble in Europe, while Ford issues full year guidance. That is weighing on its stock as well. Also ahead, Honeywell announces it's going to split into three publicly traded companies. We're going to speak with the company's CEO, Vimal Kapur. That'll be later in this hour.

Carl Quintanilla (1:43)

Let's start with the chips. We mentioned Arm and Qualcomm. Skyworks Solutions as well, under pressure in the pre-market, they're going to charge him down some 30%.

Jim Cramer (1:50)

Yeah, and Liam Griffin, it's such a great job. It's been there for ages. He will be out. I don't know, you can't necessarily relate it to two, but Skyworks has a huge percentage of Apple's business. Remember, Apple's like Fight Club. You can't mention Apple in the Comscore. You say a large client, but it looks like the Broadcom is going to be splitting, maybe not as much as Skyworks, but that's just devastating as Skyworks. Very, very good for Broadcom, and this is just a hawk tan just coming, every cylinder. But David, when you have one client, it is just a very rough thing.

David Faber (2:26)

Yeah, I mean, you're always at risk. Obviously, we've seen Skyworks shares always move in sympathy with Apple one way or another in terms of demand, haven't we, Jim?

Jim Cramer (2:36)

Absolutely.

David Faber (2:37)

Have they not been able to diversify their client base significantly over these years? Because it's not as though this is new that Apple wasn't their largest customer.

Jim Cramer (2:45)

Absolutely. And I think that one of the things that the company may regret is they've got some Samsung business, but they needed to go far afield. When we see these companies like NXP, okay, NXP they say is autos, but it also is near field communications. Texas Instruments has got a little more, it's got IOT and it all says auto. You need something else in order to make it so if you do lose the greatest customer in the world, and they didn't lose it, they just lost some of it, then you have what this is. By the way, Liam Griffin is a liked person. I mean, he's out in two weeks, he didn't answer the calls on the conference, he didn't answer the questions on the conference call. So it was disconcerting. I found the whole thing disconcerting. I did not find Qualcomm disconcerting because he was interviewed on the four o'clock, he was interviewed with Megan Merton, with John Ford, and he's a bit promotional, but I do think that he's gotten what he needs.

Carl Quintanilla (3:43)

Guidance wasn't bad by any stretch.

Jim Cramer (3:45)

No, but we'll have the same problem when we speak to Renee Haas at Arm. I mean, people are asking for too much of these companies. They just are. People seem to think, well, wait a second, you're going to claim that DeepSeek is good for you? Well, if you're claiming, then shouldn't you be raising in the out years? And no one's doing that because it's not really the way that you should look at things. They're playing defense, not offense.

Carl Quintanilla (4:09)

I'll tell you what's interesting is the range, the tight range that the SMH has been in since June of last year, let's say.