Jim Cramer's Take on Jensen Huang

new beer, but I guess you wouldn't miss it for the world. >> That's incredible. This is a the world's epicenter of selling. >> Yes. >> Commerce. >> Why not? >> You know, >> well, let me ask >> creating opportunities for the world. >> I I before I saw you, I went to my trusted states lawyer and I said, "Look, if I know I'm going to die in 2030, are there some things I can do to help my kids?" You questioned that. Are we all going to die in 2030? Maybe it won't matter. >> We were not. We're not going to die in 2030. There are so many people in the world who are going to build AI properly. We're going to have all kinds of guardrails, invent all kinds of technology for safety and security. All of that is happening around the world. It's not just two companies building things. There are thousands of companies building things. And so, we're going to we're going to create AI that's incredibly useful. It's going to be incredibly helpful. And it'll be incredibly safe. We could have all of that at the same time >> cuz it's an engineering problem. And >> safety is an engineering problem. Testing is an engineering problem. We should create products and properly test them. And if they're not ready to be released, just hold on to it and keep testing it and keep engineering until it's ready. >> It sounds like common sense. I'm I'm I'm a believer. Now, you told me two years ago that companies would be able to buy something from you and make four times what they thought. That was conservative as usual, right? You were underpromising because they're making money right now. They just don't like to talk about it. >> Well, the part that's really incredible is that in the last 6 months, AI became super useful. And because it's super useful, people are building these compute systems, Nvidia AI factories, like crazy. Each gawatt of Nvidia AI factories is about 5060 billion. >> Okay. However, the rentals of that 1 gawatt AI factory is about $50 billion per year year. Okay. >> And so, yeah, the the return on invested capital is about one year right now. And they get to use that because Nvidia's fungeability and durability is so great. They get to use that >> for many years, well beyond five and six. And so, the return on that investment capital is incredible. That's why everybody's building it. You know, it's tough because the uh the closed model, so to speak, Frontier, they apparently can make three times that, but at the same time, we need both open and close, don't we? You should rent and use the best models that are available as a product or service. These closed models, however, every single country, every single company, every single industry must also build their own intelligence. How can you outsource intelligence to somebody else completely? And so that's the reason why all these companies are here is the reason why our partnership with Salesforce. Salesforce is going to use NVIDIA Neotron and our agent technology to build their proprietary agents that sit on top of Salesforce. In addition to that, because these agents are going to be so fast and they're going to be so many of them, the data processing layer of Salesforce, it sits on top, it's in Salesforce, it's in uh uh uh data bricks, it's in snowflake. We accelerate data processing across all of that. And so you're going to have data processing at lightning speeds. You're going to have all these agents helping you do things. And so all of that is based on NVIDIA's Neotron. And so this way Salesforce is an AI company as well. >> Well, then this will be the same as all the other industrial revolutions. At the beginning, everyone said, "Listen, Bloom is going to put a lot of seamstressers out of business." And it was a tough game for them. True. But there were 10 times the number of jobs four years later. You know that storytelling is is unfortunate, unnecessary, and quite frankly just wrong. The fact of the matter is when a company becomes more productive and when they're powered by artificial intelligence, they become more ambitious, their ambition allows them to do great imagine greater things, wanting to do greater things. Which is the reason why if you take a look at what's going on at Salesforce, they they were a data layer and an application layer. Now they're also an agent layer on top of that. They're much more ambitious today about the future of Salesforce than any time I've ever seen Mark. And he's always enthusiastic about it. And today he's fired up. And so AI has helped his company elevate their ambition. And as a result, they'll be able to achieve greater heights. This is going to happen not just at Salesforce, but all of Salesforce's customers, every single industry. It is completely illogical that engineering if we had software coding agents engineering would no longer be necessary. I grew up in a generation where engineering engineers had no software. We used all kinds of other tools and we built up prototypes and so there was engineering before software. There will be engineering after AI. >> All right. No SAS clips. This doesn't make sense that >> Yes. I'm watching this all in a popular podcast. You got a phone call in the middle of it. Was a little strange. Was that planned? >> No. >> I was I was on on stage and offstage I saw the corner of my eyes, my team waving a phone uh you know in the air and and as they they I was trying to figure out what was going on. As they walked closer, it said Mr. President. And of course, you can't you can't not pick up the phone call. smart. >> Yeah, it's a smart idea to take it. >> When the president calls, you pick it up. And so, anyhow, he just wanted to talk to me about some of the tweets that he put out >> and um I told him I happened to be on stage with the besties and he he said, "Put me on. Let me talk to everybody." And so I put him on. >> That's what happened. Okay. All right. It was all right. So, totally unplanned. Now, he used the term hoax that got picked up by a lot of people, but the consensus of that panel was there are some things that are made up. You agreed with that term made up. We do don't we how do you stop that stuff? >> AI safety is a real thing. >> Okay. >> Um engineering products so that they are safe for the world to use. That's a real thing and companies should innovate as fast as possible but they should never innovate so fast as to release unsafe products. That is a real thing. However, the fact that we need new laws, new antitrust laws or new regulations so that these companies could do their fundamental engineering and do do it properly before they release products. That is just completely unnecessary. And I think that that's what the president is saying that we don't need new laws. We don't need Yeah. We don't need new We got plenty of laws. We got plenty of regulations that govern the reliability and the functionality of products. And you know there's lots and lots of >> Yesterday was a weird day. I mean your stock opens down five and a half because everyone says open AI won't come public therefore you won't make your quarter blah blah blah. When do we realize that you sell it 14 times fiscal year 28 earnings that which starts in January and that you've got so much going for you and the best investment in the world is what? >> Nvidia. >> Well let's go to work. LET'S BUY HALF A TRILLION. >> You know Jim listen this is incredible. Uh we're the only platform that runs every close model. right? Every single closed model and we're growing share in the closed model space. We're the only platform that runs every single open model including Nvidia with our own Neotron models. The token generation demand rate has gone up 25 times in less than a year and the amount of open tokens that are being generated has gone from 30% to almost 70%. And so demand for AI because it's useful now is just growing exponentially. Nothing nothing that happened this week is going to slow that down. In fact, if anything at all, what's likely to happen is we we used to have training systems and inferencing systems, giant systems. We now will have another third system. That third system is basically testing environmental testing labs. And so these testing systems will be extremely large so that we can have products that are functionally functional, capable, safe and secure. And that requires massive data centers to test them. So we just created yet another new demand for AI that that's brilliant. Now how about do we have enough compute and when are we going to get the financial guys in Wall Street to start trading compute? >> Well Jim, this is the the big breakthrough in the last few years. People realize now that Nvidia compute is the only system that is fungeable and durable. The reason why we're funible is because we run everything. We run every single model, close model, open models. We run every single stage of the AI life cycle from data processing to training to post training to inference and of course testing. Every single company uses us and as a result uh this is now the world's first computing system that you could use be that could be assetbacked and so the finan collateral and we're seeing more and more evidence of that. If so this is going to be a huge unlock for all of the companies who don't have the ability to fund this level of scale because the asset itself will be the collateral. So this is a moment in time that we will all remember is when everything who everybody who hired you and bought your stuff went had the inflection and the profitability because the the life of these six seven eight nine years the profitability is going to be extraordinary. Can you help explain people that? I'm tired of saying it. >> You know, the the weird thing is is that so many of the early uh renters signed up for long-term leases, long-term rents, long-term contracts, and now all of these CSPs, they kind of regret that because the spot pricing that because of demand, the spot pricing, the rental fees are so incredible. You can now rent an Nvidia Grace Blackwell for $16 per GPU hour. Now, some of them were rented away at $5 >> just a year ago. >> They had no faith. >> And so now, as these as these contracts roll off, everybody is just upping their price. They're upping their revenue forecast. The return on investment capital is coming in. They're buying more gear. They want to put up more infrastructure. And so I think this flywheel is really really flying now. >> Well, I'm going to say something. Maybe you've heard of it. Nvidia, own it, don't trade it. >> Own it, don't trade it. That's what I do. >> Thank you so much, Jens. Great to see you CEO co-founder >> and everything else. >> Everybody, [music] Jim Kramer. Now.