Cramer: Bear Case for Salesforce and Nvidia Falls Apart on Earnings
Jim Cramer made a strong case that the bearish thesis on Salesforce (NYSE:CRM) and NVIDIA (NASDAQ:NVDA) has been dismantled following their recent earnings reports. According to Cramer, bears had argued for months that AI would hollow out these companies, but Salesforce's Q2 FY27 report revealed that its enterprise software business is still strong.
Salesforce reported $11.35 billion in revenue and non-GAAP EPS of $5.90, beating consensus estimates. The company also raised full-year FY27 revenue guidance to $46.1 billion to $46.4 billion. Cramer noted that the bear case on Salesforce hinged on a structural claim that AI agents would replace human employees, reducing the need for seat-based software. However, Salesforce CEO Marc Benioff argued that AI is unlocking more value across all four layers of their platform.
NVIDIA also reported strong earnings, with Q2 revenue up 105.85% year-over-year to $96.22 billion. The company guided Q3 revenue at $108 billion, plus or minus 2%, and Cramer pointed out that NVIDIA projects 70% revenue growth in the next fiscal year, exceeding consensus estimates.
Cramer emphasized that one quarter does not settle a multi-year structural question, but near-term evidence suggests that the bulls are correct on these metrics. He also noted that investors who sold into the bear story had to be right twice: once about the thesis and once about when to come back.