Jim Cramer says Nvidia and Salesforce earnings upended two bear narratives
CNBC’s Jim Cramer said strong earnings from Nvidia and Salesforce shattered two major bear cases that had weighed on the tech stocks.
Jim Cramer Says Nvidia and Salesforce Earnings Knock Down Two Bear Narratives
The “Mad Money” host told viewers on Thursday that the latest quarterly results from Nvidia and Salesforce have upended two of the most persistent bearish storylines on Wall Street, sending both shares sharply higher.
Strong Earnings Lift Stocks
After reporting better‑than‑expected numbers on Wednesday night, Salesforce jumped 22% and Nvidia rose 8% in after‑hours trading. Cramer argued that the data forced investors to discard many of the doubts that had been weighing on the two companies.
Salesforce Defies AI Bear Case
Analysts had warned that ever‑more capable artificial‑intelligence models might let customers do more with fewer traditional software licenses, threatening the pricing model of enterprise‑software firms. Even after a month‑long rally, Salesforce entered the earnings release still down about 22% for the year. The company, however, posted its strongest sales growth in four years, with seat counts expanding across its Sales Cloud, Service Cloud and Slack offerings on a year‑over‑year basis. Customer churn stayed near historic lows, and bookings for AI‑focused bundles more than doubled from the previous quarter. Cramer also pointed to Salesforce’s deepening partnership with Anthropic. The AI firm, once seen as a potential disruptor, is now collaborating with Salesforce on the Claudeforce product, which will let Claude users draw on Salesforce data to draft emails, update records and perform other routine tasks.
Nvidia Counters Multiple Concerns
Nvidia’s earnings addressed a broader set of worries, including fears of slowing demand from hyperscale cloud providers, competition from custom‑designed chips, rapid depreciation of GPU hardware, possible delays to its Vera Rubin AI processor and questions about financing for AI customers. Cramer highlighted that Nvidia’s customer base has become more diversified: hyperscalers now represent roughly half of revenue, while sovereign AI projects, “neoclouds” and other buyers make up the remainder. The Vera Rubin chip remains on schedule, and CEO Jensen Huang emphasized that older Nvidia infrastructure can stay productive for years as software improvements boost performance. Amazon Web Services, despite developing its own AI silicon, announced plans to purchase two million Nvidia GPUs and potentially millions of the upcoming Vera CPUs, underscoring continued demand for Nvidia’s compute power.
Future Outlook and Investor Takeaway
Nvidia’s forward guidance proved especially striking. The company projected fiscal‑2028 revenue growth of about 70%, well above the roughly 45% analysts had expected, signaling strong confidence in the durability of AI spending. Cramer concluded that the twin rallies illustrate the risk of allowing popular narratives to eclipse what companies actually deliver. He warned that short‑focused hedge funds suffered heavy losses as the two stocks surged, and he suggested that investors who held the shares enjoyed a “phenomenal day.”
Source: CNBC · 2026-08-27