Squawk on the Street Dow Hits Record High Despite Apple Pullback, Bracing for the Fed, Oracle's Ellison "Begged" Nvidia 9/16/24
Sep 16, 2024
Larry Ellison, the Chairman of Oracle and a notable figure in tech innovation, shares his insights on market dynamics and AI trends. He discusses the implications of the Federal Reserve's upcoming rate cut decisions and the pressure Apple faces with its iPhone 16 pre-orders. Ellison also reveals his surprising plea to Nvidia's CEO for essential AI chips, emphasizing the fierce competition in the tech sector. The conversation touches on Oracle's strong stock performance and strategic moves in the cloud market as AI demand surges.
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Hardware Winning The AI Race
- Jim Cramer argues hardware is currently winning while software struggles to monetize AI gains.
- He sees Oracle as an early example where AI-related hardware demand can translate into earnings.
Software Struggles To Monetize AI
- Enterprise software hasn't yet converted AI hype into broad earnings despite expectations.
- Jim thinks Salesforce may be more resilient than the market gives it credit for when its AI products show results.
Fed Decision Drives Short-Term Volatility
- The Fed decision is the dominant near-term market driver and could trigger significant volatility.
- Market positioning leans heavily toward a 50bp cut expectation, making any other outcome likely to move markets sharply.