Cramer: Earnings season is when the data center bears got a dose of reality
CNBC Television
[{'start': '4.960', 'end': '8.400', 'text': "Earning season. It's a pain in the neck."}, {'start': '6.799', 'end': '9.920', 'text': "It's convoluted stuff coming at you from"}, {'start': '8.400', 'end': '12.880', 'text': 'all different directions. Loss of sleep,'}, {'start': '9.920', 'end': '14.400', 'text': 'just a total time suck. And I love it. I'}, {'start': '12.880', 'end': '16.080', 'text': 'love it because it clears things up. The'}, {'start': '14.400', 'end': '18.080', 'text': 'false narratives are exposed. You can go'}, {'start': '16.080', 'end': '19.840', 'text': 'back to play on offense, not defense.'}, {'start': '18.080', 'end': '22.400', 'text': 'And few false narratives have gone as'}, {'start': '19.840', 'end': '24.480', 'text': 'far as this story about the end of data'}, {'start': '22.400', 'end': '26.640', 'text': "center spending. I that's the pack of"}, {'start': '24.480', 'end': '28.800', 'text': 'lies started on Deep Seek Monday back on'}, {'start': '26.640', 'end': '30.480', 'text': 'January 27th when a Chinese firm claimed'}, {'start': '28.800', 'end': '32.320', 'text': 'to have created a generative AI model'}, {'start': '30.480', 'end': '34.239', 'text': 'using far fewer computing resources than'}, {'start': '32.320', 'end': '35.840', 'text': 'the leading players. All the previously'}, {'start': '34.239', 'end': '37.520', 'text': 'red hot AI infrastructure stocks were'}, {'start': '35.840', 'end': '39.040', 'text': 'immediately crushed. You know what? They'}, {'start': '37.520', 'end': '40.480', 'text': 'never really recovered. We started'}, {'start': '39.040', 'end': '42.079', 'text': 'hearing that Microsoft was pulling back'}, {'start': '40.480', 'end': '43.840', 'text': 'from the data center investments. AI'}, {'start': '42.079', 'end': '46.480', 'text': "kingpin, Nvidia didn't bother to defend"}, {'start': '43.840', 'end': '47.840', 'text': 'itself. So the group crumbled. I found'}, {'start': '46.480', 'end': '49.120', 'text': 'it incredibly frustrating because we'}, {'start': '47.840', 'end': '50.399', 'text': 'never had clear evidence that there was'}, {'start': '49.120', 'end': '52.160', 'text': 'anything wrong with the AI'}, {'start': '50.399', 'end': '53.360', 'text': 'infrastructure thesis to begin with. The'}, {'start': '52.160', 'end': '54.960', 'text': 'idea that hundreds of billions of'}, {'start': '53.360', 'end': '57.039', 'text': 'dollars are going to be spent on these'}, {'start': '54.960', 'end': '58.480', 'text': "new data centers is true. And that's why"}, {'start': '57.039', 'end': '61.920', 'text': 'we stuck with the stocks for the travel'}, {'start': '58.480', 'end': '64.320', 'text': 'trust. We defied the data center bears'}, {'start': '61.920', 'end': '66.400', 'text': 'aided by an interview uh with data'}, {'start': '64.320', 'end': '68.320', 'text': 'center 7 Dr. King Jensen Wong, CEO of'}, {'start': '66.400', 'end': '70.799', 'text': 'Nvidia, who told us that demand for his'}, {'start': '68.320', 'end': '72.960', 'text': 'highest end chips is stronger than ever.'}, {'start': '70.799', 'end': '74.320', 'text': 'And we felt like idiots for doing so.'}, {'start': '72.960', 'end': '75.680', 'text': 'Day after day, we heard about little'}, {'start': '74.320', 'end': '76.880', 'text': 'chunks of the story that would add it'}, {'start': '75.680', 'end': '78.560', 'text': 'together meant you were long in the'}, {'start': '76.880', 'end': '80.880', 'text': 'tooth if you stayed positive and you'}, {'start': '78.560', 'end': '82.640', 'text': 'were going to lose a lot of money until'}, {'start': '80.880', 'end': '84.560', 'text': 'earning season came along and the data'}, {'start': '82.640', 'end': '87.119', 'text': 'center bears started getting gored by'}, {'start': '84.560', 'end': '88.640', 'text': "the bulls. That's when we realized we"}, {'start': '87.119', 'end': '90.240', 'text': 'were right all along. All started with'}, {'start': '88.640', 'end': '91.439', 'text': 'Vera, which makes the physical guts of'}, {'start': '90.240', 'end': '93.360', 'text': 'the data center the power control'}, {'start': '91.439', 'end': '95.200', 'text': 'system. Ver reported fantastic quarter'}, {'start': '93.360', 'end': '96.720', 'text': 'April 23rd said its business has'}, {'start': '95.200', 'end': '98.079', 'text': 'accelerated from the fourth quarter.'}, {'start': '96.720', 'end': '99.600', 'text': 'When they came on the show, they told us'}, {'start': '98.079', 'end': '102.079', 'text': 'about their order book being brimming'}, {'start': '99.600', 'end': '103.439', 'text': 'with demand. Then April 28th got an'}, {'start': '102.079', 'end': '105.680', 'text': 'amazing set of numbers from Cadence'}, {'start': '103.439', 'end': '107.600', 'text': 'Design Systems which we knew had to be a'}, {'start': '105.680', 'end': '110.000', 'text': 'big partner of Nvidia. Then we got this'}, {'start': '107.600', 'end': '111.520', 'text': 'misdirection play April 29 when Super'}, {'start': '110.000', 'end': '113.280', 'text': 'Micro another partner Nvidia'}, {'start': '111.520', 'end': '114.799', 'text': 'pre-announced weaker numbers which again'}, {'start': '113.280', 'end': '116.479', 'text': 'made people sell anything connected to'}, {'start': '114.799', 'end': '118.159', 'text': 'the data center. But last night the'}, {'start': '116.479', 'end': '120.159', 'text': 'bears were trampled to death when both'}, {'start': '118.159', 'end': '121.840', 'text': 'Microsoft and Meta revealed they were'}, {'start': '120.159', 'end': '123.600', 'text': 'totally on board with continuing to'}, {'start': '121.840', 'end': '125.520', 'text': 'spend big on the data center.'}, {'start': '123.600', 'end': '127.520', 'text': "Microsoft's data center constraint. Mark"}, {'start': '125.520', 'end': '129.200', 'text': 'Zuckerberg at Meta says he needs to keep'}, {'start': '127.520', 'end': '132.480', 'text': "spending because it's just so lucrative"}, {'start': '129.200', 'end': '134.560', 'text': "to do so. It it's simple. It's"}, {'start': '132.480', 'end': '136.720', 'text': 'necessary. If if big money is going to'}, {'start': '134.560', 'end': '138.480', 'text': 'be made monetizing his Met AI site,'}, {'start': '136.720', 'end': '140.160', 'text': "which he's so crazy about, even though"}, {'start': '138.480', 'end': '141.760', 'text': "Wall Street didn't like the guidance we"}, {'start': '140.160', 'end': '142.879', 'text': 'just got from Amazon tonight, it sure'}, {'start': '141.760', 'end': '145.200', 'text': "doesn't seem like they're backing away"}, {'start': '142.879', 'end': '146.480', 'text': 'from AI infrastructure spending at all.'}, {'start': '145.200', 'end': '147.920', 'text': "Next thing you know, all the stocks I've"}, {'start': '146.480', 'end': '149.920', 'text': 'been highlighting bust out and the'}, {'start': '147.920', 'end': '151.120', 'text': 'torture we endured worth every penny.'}, {'start': '149.920', 'end': '152.640', 'text': 'Now, most people would be content'}, {'start': '151.120', 'end': '154.319', 'text': "knowing that we've made it through the"}, {'start': '152.640', 'end': '155.760', 'text': 'desert to the promised land. Not me.'}, {'start': '154.319', 'end': '156.959', 'text': 'Actually, I want to look into this. I'}, {'start': '155.760', 'end': '159.040', 'text': 'want to know what happened. How did the'}, {'start': '156.959', 'end': '161.280', 'text': 'media so endless doubt here? Uh, did'}, {'start': '159.040', 'end': '162.720', 'text': 'they ask enough questions? Uh, why'}, {'start': '161.280', 'end': '164.160', 'text': "didn't they believe Jensen Wong for a"}, {'start': '162.720', 'end': '166.160', 'text': "minute? They're constantly interviewing"}, {'start': '164.160', 'end': '167.440', 'text': 'bears who wanted these stocks down. Some'}, {'start': '166.160', 'end': '168.560', 'text': "of them didn't reveal that their bias"}, {'start': '167.440', 'end': '170.640', 'text': 'was rooted in the fact that they were'}, {'start': '168.560', 'end': '172.160', 'text': 'shorting the entire AI complex. There'}, {'start': '170.640', 'end': '173.519', 'text': 'was too much money on the line for the'}, {'start': '172.160', 'end': '175.519', 'text': 'bears to allow the facts to get in the'}, {'start': '173.519', 'end': '176.959', 'text': 'way of a good story. I know it may be'}, {'start': '175.519', 'end': '178.800', 'text': 'hard to believe that huge companies with'}, {'start': '176.959', 'end': '180.319', 'text': 'tens of billions of dollars to spend'}, {'start': '178.800', 'end': '182.080', 'text': 'actually keep funneling that money to'}, {'start': '180.319', 'end': '183.840', 'text': 'the data center suppliers, especially'}, {'start': '182.080', 'end': '185.840', 'text': "Nvidia, but that's exactly what's"}, {'start': '183.840', 'end': '187.200', 'text': "happening. And it I think it's not too"}, {'start': '185.840', 'end': '189.120', 'text': 'late to own a lot of the members of the'}, {'start': '187.200', 'end': '190.879', 'text': 'complex. Even as I expect that if we'}, {'start': '189.120', 'end': '193.120', 'text': 'wait a few days, the bears will be out'}, {'start': '190.879', 'end': '195.200', 'text': 'again citing the Amazon Web Services'}, {'start': '193.120', 'end': '197.200', 'text': "light line. They just can't stop trying"}, {'start': '195.200', 'end': '199.360', 'text': "to make money at your expense. It's"}, {'start': '197.200', 'end': '202.080', 'text': 'their job. I get that. I just wish'}, {'start': '199.360', 'end': '204.560', 'text': "they'd explain why they are so negative"}, {'start': '202.080', 'end': '206.400', 'text': "if the facts don't support their point"}, {'start': '204.560', 'end': '207.599', 'text': "of view. I like to say there's always a"}, {'start': '206.400', 'end': '208.800', 'text': "more market somewhere. I promise I'd"}, {'start': '207.599', 'end': '213.239', 'text': 'find it just for you right here on'}, {'start': '208.800', 'end': '213.239', 'text': "Money. I'm Jim Kramer. See you tomorrow."}, {'start': '213.850', 'end': '220.800', 'text': '[Music]'}, {'start': '224.700', 'end': '232.300', 'text': '[Music]'}]