CNBC’s Jim Cramer talked about the strong earnings results Thursday. Nvidia and sales force It crushed Wall Street’s two biggest tech bear theories, sending both stocks soaring.
“We were held captive by some lies and terrible lies backed by chimeric statistics, and now both bear stories have backfired,” the “Mad Money” host said. “Today was a day where many wrongs were righted. We’re talking specifically about the canards that color the actions of Salesforce and Nvidia.”
Shares of Salesforce and Nvidia rose 22% and 8%, respectively, on Wednesday night after the companies reported better-than-expected quarterly results. Cramer said the report forced investors to reconsider many of the concerns weighing on both stocks.
In the case of Salesforce, investors are concerned that the increasing capabilities of its AI models could undermine the industry’s pricing model by allowing companies to accomplish more with fewer traditional software subscriptions. Despite rebounding over the past month, Salesforce is still down 22% for the year heading into print. Thursday’s rally erased much of that decline.
But Kramer said the software giant achieved its highest revenue growth in four years, with year-over-year growth in sales, services and seats across its Slack products. He said customer churn remained near historic lows and bookings for AI-focused bundles more than doubled from last quarter.
Kramer said Salesforce’s expanded partnership with Anthropic has further reduced bear incidents. The AI company, once seen as a potential threat to traditional software providers, has partnered with Salesforce on Claudeforce. This will allow Claude users to leverage their Salesforce data to perform tasks such as composing emails and updating records.
Cramer said Nvidia’s performance challenges broader concerns, including slowing hyperscaler demand, competition from custom chips, rapid depreciation of GPUs, potential delays for the Vera Rubin platform and risks surrounding funding for AI customers.
“So what happened? What you just heard was completely wrong,” Kramer said.
He noted that Nvidia’s customer base has become increasingly diverse, with hyperscalers now accounting for about half of the business, and sovereign AI projects, neocloud and other customers making up the rest. Cramer noted that the company’s next-generation AI chip, Vera Rubin, is also on track, and CEO Jensen Huang said older Nvidia infrastructure can remain productive for years as software improvements improve performance.
Amazon offered another defense to Kuma’s lawsuit, he said. Even though Amazon Web Services is developing its own AI chips, it plans to buy 2 million Nvidia GPUs and possibly millions of new Vera CPUs. Cramer said this commitment confirms why demand for Nvidia remains strong, and customers are finding they can quickly monetize Nvidia’s computing power.
Most important is Nvidia’s outlook, Kramer said. The company suggested that fiscal 2028 sales could rise by about 70%, reflecting growing confidence in and visibility into AI demand, significantly higher than Wall Street’s expectations of about 45%.
For Kramer, the rally demonstrated the danger of letting the prevailing narrative overshadow what companies actually offer.
“Short-term hedge funds have been decimated by Salesforce and Nvidia,” he said. “If you listened to me and owned these stocks…you would have had a great day.”
