Cramer: Nvidia, Salesforce Earnings Crush Tech Bear Narratives

Jim Cramer hailed Nvidia and Salesforce's strong earnings results as a decisive blow to two prominent bear narratives in tech. The 'Mad Money' host argued that both companies' quarterly reports shattered concerns about their businesses, sending shares soaring.

Nvidia and Salesforce saw their stock prices jump 8% and 22%, respectively, after releasing better-than-expected quarterly results on Wednesday evening. Cramer stated that the earnings reports forced investors to reevaluate many of the concerns weighing on both stocks.

For Nvidia, investors had worried about slowing demand from hyperscalers, competition from custom chips, rapidly depreciating graphics processing units (GPUs), potential delays to its Vera Rubin platform, and risks surrounding its financing of AI customers. However, Cramer pointed out that these concerns were unfounded. He noted that hyperscalers now account for roughly half of Nvidia's business, with sovereign AI projects, neoclouds, and other customers making up the rest.

Cramer also highlighted that Amazon Web Services' commitment to buying 2 million Nvidia GPUs and potentially millions of its new Vera CPUs underscores strong demand for Nvidia's computing power. Furthermore, Nvidia's revenue growth outlook of approximately 70% in fiscal 2028 far exceeds Wall Street's expectations of around 45%, reflecting growing confidence and visibility into AI demand.

Regarding Salesforce, investors had been concerned that increasingly capable AI models could allow businesses to accomplish more with fewer traditional software subscriptions, undermining the industry's pricing model. However, Cramer stated that Salesforce delivered its strongest sales growth in four years, with seats across its sales, service, and Slack products growing year over year.