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Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 3/19/24
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Read it carefully before investing. It's by a subject to risks similar to those of stocks. All ETS are subject to risk including possible loss of principal, alps distributors, and distributor. My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a more market somewhere, and I promise to help you find it. Mad money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to the Woodstock of AI, NVIDIA's GPU Tech Conference. I'll be with my friends. I'm just trying to make you a little money. My job is not just to entertain, but to explain this stuff. So call me at 1-800-743-CBC or tweet me @Chim Kramer. When it comes to tech, we throw around the same buzzwords over and over, ecosystem, platform soil. So far as the service, all terms that have become authentic Silicon Valley gibberish. And then there's NVIDIA, a company that has more partnerships in and out of tech than just about any business in the world. On day two of our trip to the West Coast, we went from booth to booth at the most exciting trade show on Earth. And I marvel at what the non-tech companies are doing with NVIDIA's accelerated computing and gender-of-AI technology. I think the non-tech partners could represent the best opportunities because they fly under the radar compared to the mega-cap techs that we're always hearing about and talking about. So on a day when the Dow rallied 320 points as it became 0.56 percent, and then as that advanced 0.39 percent, let me explain the unsung heroes of the GTC conference. If you look at the customer list for NVIDIA's new Blackwell chip, which can cost as much as 40 G's, you see the familiar names and meta, Super Micro, Micro, Micro, Micro, and Microsoft, Google, Oracle, Tesla. We're talking to Synopsys tonight, big name and electronic design automation software. Great stock. Then you also see outfits like L'Oreal, Capital One, BMW, PayPal, Pinterest, Ford Motor, Metronic, Rockwall Automation, not to mention Johnson & Johnson, Getty Images, and Shutterstock. Hey, let's break some of these down because they explain the reach that NVIDIA has and they can point us to who's getting it right with Jensen, which matters because if you don't get it right, I think you're good at this old spot, say so so. We'll start with the last two that I mentioned, Getty Images and Shutterstock. Now they got mentioned multiple times because they have the images that can be fed into this new Blackwell chip to teach it to recognize things. Now I haven't been a fan of Getty because it came public via a SPAT deal and the best majority of those were garbage, with only a few exceptions, like verdant or trafficking. Getty's had stagnant revenues for the last three years, and the stock has been a real bow wow. But it's time to crack open the books on this one because on its recent conference call, Management, talked about its partnership guest within NVIDIA and how they'll be, and I quote, "releasing a newly trained model soon," and we'll also enable AI capabilities across our entire pre-shot creative library end quote. They're also launching video partnership with NVIDIA. Hey, that's precisely what Jenson Wong has been talking about. Video, pictures could brief some new life into Getty. Same deal with Shutterstock, similar business, flat revenues, but now they're working with NVIDIA. I think both these companies need to be reassessed simply by virtue of them being spoken about positively in relation to generative artificial intelligence learning in this room. Getty's peer speculation. But Shutterstock could prove to be a real investment if that Blackwell business is big enough. I saw from Jenson's keynote that a German company, Siemens, is the most progressive company when it comes to building digital twin factories, burns clients. That's the process of simulating a factory right down to the floor to get it right for you building anything, eliminating waste, and things that just don't work well. Again, worth looking into. It's the medical device company so that I find most intriguing investments. Take Medtronic, a company that I spoke highly of after hearing from him speaking to J&P working healthcare conference back in San Francisco in January, and a little notice released a year ago. NVIDIA announced that it's beginning to collaborate with Medtronic to bring out AI-based solutions for patient care. Specifically, they're working with NVIDIA to develop a smarter, more effective colonoscopy module. NVIDIA is like a colonoscopy co-pilot helping to reduce the rate of missed polys, avoiding cancer. Then there's migraine. As someone who, before treatment, averaged 26 migraine a month. Let me tell you, it's enough to propel me to be the chief spokesperson for the Migraine Foundation in America. I want to know what Medtronic's doing in neuromodulation. Taker with the brain is tough enough. Maybe NVIDIA can help them and help the American Migraine Foundation get the breakthroughs that we're all looking for. I sure hope so. Medtronic also specializes in hypertension. Talk about a disease that's ripe for new AI-inspired treatment. Janssen praise Johnson Johnson for trying to automate the entire operating room. Something that could be a needle mover for J&J, if not for all the devastating asbestos talc lawsuits. I'm also, you know what, I actually intended to buy this darn stock. It is the cheapest I've ever seen to think. But as I told members of the CMSE Investing Club, you can't own something as perceived by litigation. It won't work. It's a shame because J&J is clearly leading the way in terms of working to digitize the hospital with accelerated computing and yes, gener of AI. What else? I was gratified to hear the GE Healthcare got mentioned a couple of times. GE Healthcare, Charitable Trusting, has been soaring aflame. And a lot of that strength comes from new equipment that can examine patterns and suggest courses of care, inference. The inference produced by NVIDIA's superchips, something that will only get better when black well the next generation chip comes out. I know from the cyber security companies that I speak to, the JP Morgan's often mentioned as the class of the field when it comes to fraud detection. When it comes to risk management, sure enough, they use NVIDIA to calculate risk and almost real time. Regional in the stock? Look, when you decide to buy it financially, JP Morgan, you want to have risk safeguards. Who knows what might have happened to the banks that went under during the mini crisis last year, had the ability to make those calculations immediately rather than overnight? Maybe they wouldn't have fallen apart. Okay. So we don't know if any of these things are necessarily additive to earnings per share, at least not yet. But that's not how you should think about it when you think about picking stocks. You know what, sometimes you need to work backwards. J&J wants to automate the entire operating room. Hey, what does that say about intuitive search? Stock I like very much. Medtronic might have a new colonoscopy that doesn't miss a cancerous polyp, or heaven forbid something that might work on my brain to beat the impossible migraine. Well, it'll work. Maybe. Here's the bottom line. You need knowledge to make money. The knowledge isn't always in the conference corps, the analyst of course. Sometimes it's right here, like the purloid letter, hidden in glorious plain sight. You just have to get off the desk and find it by going to the GPU Technology Conference of Indidia and seeing who's showing up their wares, the most important AI event of the year. Let's take calls. Let's go to Robert in New York, Robert. Jim, I've got to thank you for making me financially independent. You have done it for me, and I tell you this all the time. But because of you, I can fly first class without worrying about money, because I've watched you and I've listened to your guidance. But any, I know you've pressed for time. Let's talk about it. Oh, no, I have time to thank you, sir. Thank you. Oh, Jim. Go ahead. I'm sure. Go ahead. Yeah. Let's talk about a stock that has a high of $157 and a low of around 94. The earnings are due out on April 18th. The company is expected to report EPS of $3.09, up 13% from the prior quarter. And the company is DR Horton. Okay. This is going to be tough. Some more of the Fed meets. There's always some yahoos who think that the Fed did something wrong, and that brings Horton down. If I wanted to buy the stock, I'd wait three days, and then I buy Horton, which is a fabulous home builder. And R and Tolle, though, are indeed my two favorites, and thank you for the kind of comments. Look, you need knowledge to make money. And that's why we're here. Oh, man, money tonight. I'm bringing you tonight's show from the four of NVIDIA's GTC event, where you should figure out what the heck this is, hitting all things AI from the heart of innovation. I'm kicking these off with the first part of my conversation with the godfather, AI himself, Jensen Wong. You do not want to miss this. Now, I've got the CEO of Chip Designer Synopsus working closely with NVIDIA to make these newly announced groundbreaking chips, and I'm hearing about the latest in AI innovation from Snowflake. I know which one you like with the company's new CEO. So stay with Kramer. Don't miss a second of Mad Money. Follow @chimcramer on X. Have a question? Tweet Kramer. #MadMensions. Send Jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something, head to madmoney.cnbc.com. Joining at Schwab is now powered by Ameritrade. Unlocking the power of Thinkorswim, the award-winning trading platforms, loaded with features that let you dive deeper into the market, visualize your trades in a new light on Thinkorswim desktop, with robust charting and analysis tools. All while you uncover new opportunities with up-to-the-minute market news and insights, Thinkorswim is available on desktop, web, and mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly. Learn more at Schwab.com/trading. In life, we're often driven by the search for better, but when it comes to hiring, the best way to find candidates isn't to search, it's to match with Indeed. Indeed's a matching and hiring platform used by over 300 million global monthly users, according to Indeed data. Need quality candidates fast? Use Indeed for scheduling, screening, and messaging, and you'll connect with candidates in no time. And it's not just faster, 93% of employers agree that Indeed delivers the highest quality matches compared to other job sites, according to a recent Indeed survey. And here's the best part, listeners of this show get a $75 sponsor job credit, giving your jobs more visibility at Indeed.com/MadMoney. Just go to Indeed.com/MadMoney right now and support our show by saying you heard about Indeed on this podcast. We're here in San Jose for NVIDIA's gigantic conference. So let's talk in video. This stock has been a tremendous winner for us as the company practically has a monopoly on the tech that makes generative AI and accelerated computing possible. Since when their only real rival, AMD, rolls out something borderline competitive, NVIDIA announces the next generation of ultra high-end chips, dubbed Blackwell, that are far faster than anything on the market and consume much less energy. They are leading edge, they will upend the entire digital world, which is now playing with chips that are woefully slower, more wasteful, and less intelligent than the new ones revealed here yesterday. Earlier today I spoke with Jensen Wach, he's the founder, president, and CEO of NVIDIA. I call him DaVinci, because he's a modern-day Renaissance man. Take a look. Before we go into what is going on here, our viewers want to thank you. Thank you for allowing them to be able to retire on your stock, put their kids through school, to change their lives, and I think it's good manners to say thank you. Well, I want to say thank you to all of the shareholders. With their support we were able to do our work and realize our hopes and dreams and make a real contribution to the industry and to the world. So I want to thank you. Thank you. You're welcome, okay? Because we have to start that way because in the end it's mad money. And what you've created here is something that is remarkable, that is being rewarded by the stock market, $2 trillion valuation. So I asked you, what has NVIDIA done to deserve such a valuation and maybe it's still inexpensive? There's probably never been a technology company that has made a greater technology contribution to one of the most important industries in the world and at such large scale. We reinvented the computer as we know it. The computer has been the same since 1964, since the year after I was born, and we reinvented it with this idea called accelerated computing. Now you could have a computer that's 100 times faster or 20 times more energy efficient, cost 20 times less, and to be able to do solve problems at a scale that nobody's ever imagined. Such that we helped solve artificial intelligence and we're now on our way to making enormous progress and automation of intelligence. And as you know, intelligence is foundational to every single industry and that's the reason why they're all here. Is this a factory of intelligence? In the future, this is exactly this right here that you're looking at. Can you guys see this? These servers are the densest computers in the world. This replaces entire data centers in the past and it shrinks them into this little tiny data center here and this rack here would probably be more powerful than almost all of the computers in the world. And five years will this be slow? Every couple of years will be coming up with something so much more incredible. In the last eight years, we improved performance per chip, per chip per one of these chips. We improved the performance of one of these chips by a thousand times in the last eight years. Is it can talk about a movie? Does it mean it can read in a corona? What does it mean that it's so fast? Well first of all, it's probably read those things and probably read about the movies. And so if you wanted to ask you a question about those movies or a book, you say read this book. Now, let me talk to you about this book and you can talk to it about just anything. Now can it make it so that a product like the Vision Pro becomes a commercial product where it would be great to be able to step into a car, find out what it feels like, what it sees, and maybe that would be the sales element for a car company. Well first of all, I've enjoyed the Vision Pro and I got to tell you it's really fantastic. I really, really enjoy it and they've done such a great job with it. The tracking with the world, the registration of all of the objects in the world, you feel like you're really, really in it. The thing that's really great is when we connect Vision Pro with this world we call Omniverse and it's running on these computers, we essentially create this digital world that's overlaid with the physical world and Apple calls it spatial computing and you feel like you're practically there. It's really quite amazing. At the same time if we switch and we're Bristol Myers, we're America, one of these biotech companies, it costs a fortune to do a trial and because a fortune to do a trial, they don't do trials or they try to solve the easy illnesses. I talk to Kimberly Powell, who's your Vice President of Healthcare and it is very clear that beginning with Blackwell, we will not do trials the way we've done and we will go after Parkinson's, we'll go after schizophrenia. The things that no one can conquer, they're now within your can, they're now possible. Just as we use the technology, artificial intelligence to understand a novel, we can use a similar technology to go understand the meaning of proteins, the meaning of life. Now, once we can understand the meaning of life and be able to operate, use it in a computer, we could use that computer to simulate life such that we don't have to do as much of the screening in a wet lab, we could do a lot of the screening in a computer. That computer does it so fast, we could explore the chemical space that is so much larger, explore the target protein space, so much larger and so much more quickly and so whatever we decide ultimately to take to trials, we'll have much higher possibility of actually passing a trial and becoming a... But I think one of the things is that in your keynote, I would urge people to watch, especially the soaring rockets at the end and how gorgeous they are, but people don't realize in the end, you are a supplier to other companies so that if I wanted to do the drug, I wouldn't call Jensen, I'd be working with a company that is figuring out how to be able to use you to be able to develop a trial. You're not the nameplate and that's one of the reasons why I think people can't understand that you're a two trillion dollar company because they're not one, the Nvidia phone. There's no computer company that has ever been built like ours. We created a brand new way of doing computing, everybody we work with, everybody we work with here, there's researchers and scientists from 100 trillion dollars worth of industries, healthcare, financial services, manufacturing and such, and when we're done building all these computers, we break them up into parts and we integrate them into Microsoft Azure, UCI, GCP, AWS, HP and Dell and IBM and they take it to market. The application software is being offered by Cadence and Synopsys and ANSYS and the so really amazing company that we work with, the so and Autodesk and Adobe and others, the tech, our technology is integrated into theirs, our technology is integrated into all these computer makers and the world connects it together. That's the reason why Nvidia is everywhere, we're in every cloud, every data center. Is that we hear all the time, well you know, but Amazon's working on a competitive product. Alphabet, all I hear from you is good, we want to help everybody develop whatever's necessary. You are not at war with customers. No, well we do something very different first of all. Our architecture on the one hand could do artificial intelligence, it could do computer graphics, it's simulation, data processing, SQL data processing which consumes a lot of energy, a lot of cost for many customers, we reduce it by 95%, 20 times reduction and cost and energy used. So much so that Google's Dataproc is now accelerated by it. We announced the partnership yesterday with a great company Databricks, they're going to accelerate their data process, they're the large scale data processing cloud company, they're going to accelerate their data processing on it. And so all of this is something you can do on our architecture. The other thing you can do with our architecture is everywhere. And so if you're a developer and you develop on Nvidia, you can run it on AWS, GCP, Azure, HP, Dell, IBM, anywhere. But how is it, but you can't, everything's on allocation. You say we can do that, but nobody has enough Nvidia product, correct? Does Mark Zuckerberg have enough Nvidia with 350,000 chips? Well, it's going to be, it's, we're in the beginning of this AI computing ramp. And we're in the beginning of the accelerated computing ramp. Well, how do you decide who's going to get that? It's going to last a few years. How do you decide who's going to get that? How do you decide who's going to get that? How do you decide who's going to get that? How do you decide who's going to get that? How do you decide who's going to get that? How do you decide who's going to get that? How do you decide who's going to get that? How do you decide who's going to be able to get that? We know that you are tech power. I'm looking at tech power. I can't get enough tech power. So what do I do? How do I get right with Jensen? So the most important thing is to work together to plan for the delivery of the chips. You've got to place the PO, get your data center ready, get all the engineers working on these data centers together. We'll make sure that everybody gets their parts. And they're all going to be zoomly customers for life. You can't just switch if it were just chips, if it were just hardware, then you could be a commodity. You're not commoditized. You're going the other way. NVIDIA's computing platform. So the applications that are developed for our hardware runs on our hardware. Okay, so I'm going to ask you again as I thank you for many people, 150 people I sold this week and who all told me, please tell them thank you. They all also want something that I know is pedestrian doesn't add value. They want a stock split. Why can't you give it to us? Well, we'll think about it. Today is not the day to announce it as you know. I know it. I apologize. We've done. We've done. Yeah, we've done stock splits in the past. One of the things that I really like about stock splits, by the way, is that it makes for the stock purchase for our employees and others. Yes. That's what Walmart says, too. Yeah. It's a good thing. Well, we want to make sure that we take care of our employees. They do such an incredible job for us. It's amazing. Well, with NVIDIA's CEO, Jensen Wong, tomorrow we may have fun. Coming up, this software player was on the move after a shout out at the GTC conference. Don't miss Kramer's one on one when Mad Money returns. Trading Ashwab is now powered by a merit rate, giving you even more specialized support than ever before. Like access to the trade desk, our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check. Need assistance? No problem. Get 24/7 professional answers and live help and access support by phone, email, and in-platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn more at Schwab.com/trading. I've said many times that I believe the general of artificial intelligence is the next great industrial revolution, which is why we're here at NVIDIA's GTC event, because this is where you learn about what actual businesses are doing with AI. Take Synopsics, an electronic design automation software company with a platform that's used to design semiconductors and electronic components. Yesterday NVIDIA announced a Synoptus and Taiwan setting. We'll be using their technology to take semiconductor manufacturing to the next level, which includes making the new high-end chips NVIDIA announced last night. This is just the latest in a string of important developments for Synopsics, which will have a huge acquisition over this year. They're paying 35 billion in cash and stock for answers. That's another great design software play with terrific simulation capabilities. Tomorrow, Synopsics presents a slew of new products at its annual Synopsics User Group conference, right here in Silicon Valley. But tonight we're getting a sneak preview from some of the new present CEO of Synopsics, Mr. Gazi. Welcome to my buddy. Great to be here. Thank you. I'm kind of the man of the day today because Jensen mentioned you repeatedly to me as someone who has been one of the most long-lasting and important partners with NVIDIA. So what do you do with them? So as Jensen mentioned, we are mission critical to the chip design industry, and in this particular case, NVIDIA. Look at Blackwell, 208 billion transistors. Imagine putting all these devices in that small silicon area and ensuring that it's going to function and when you manufacture it, it's going to work based on the intention of it. So Jensen's people design it and you actually find a way to do it, we provide them the software. So we're an engineering software company. So every designer inside NVIDIA is using our software to architect it, to actually design it and verify it, then once they're ready to ship it to manufacturing, we are the bridge to manufacturing. So we work with the Foundry, with the silicon, and our software. So NVIDIA, to you, maybe the Taiwan. That's exactly. Exactly. Okay. Now you've got your big conference tomorrow. Yes. Your stock was up huge today. I think in anticipation of some of the things you're going to say, maybe give us a little preview. So there are three focus areas. One, the complexity of silicon, of chip design, as you see it, is exponential. Not because we like complexity, is the need to bring in all these computes into that silicon and how do we enable our customers to do it? So chip complexity. The second one, what we call silicon to system. As you hear Jensen described, NVIDIA is not only a chip company, it's a system company. Right? Right. So if you're going to the system world, you become end-market specific. So if you're selling to an automotive, to an industrial, you need to understand their workloads, their software, and customize your system and your silicon in order to have a power-efficient, high-compute ability to deliver to those systems. This is our impossible test. Exactly. However, if we believe that in the future, the world is going to become more interconnected. Any end-market be it a car, home, industrial, interconnected, more intelligent, smarter using AI. Electronics is essential. Okay. We call this electronics digital twin. So how do you create a digital twin that is connected to the omniverse type of application to design it, to design, to simulate, to make sure it's going to work? So that's what we're talking about today. I'm so glad you brought up because that's where I was going next because Jensen talked about digital twin over and over again, and the biggest, the final frontier is the factory. Exactly. And that's you. Now he praised answers. He told me that if I want to know how cars are going to be made, I need to know answers. You're going to be answers. Tell me how cars are going to be made. Exactly. Synopsis has been is the electronics digital twin of the system. So anything chip-related, you need to virtualize that chip into a digital twin. So if you are an automotive OEM, before you buy the chip, you want to get a sense, how would that chip function in my system? So that's where Synopsis has been. Where answers has been the leader is on the multi-physics, the mechanical simulation. If you have a crash test, before it used to be a physical test. See, now through simulation you'll be able to do that. I don't know. Yes. That's what they do. That's what they do. They simulate multiple aspects of what's called physics, be it mechanical, structural, etc. Now when those devices become smart, you have chips that are providing sensors, monitors of that system, but how does it simulate in the context of the physical world? So that's where the answers and Synopsis will provide the virtual world of the future, where the companies like the Invidia, etc. is able to deliver the physical world of the future. Well, this, when Genesis says, "Listen, we eliminate waste," well, you're not just crashing cars every 15 minutes. Exactly. But as the world becomes more autonomous, electrified, you cannot do it. It's too expensive and it takes too long. It's too expensive. And it takes too long. It takes too long. So that's the opportunity we're very excited about. Well, this is why your stock has been unbelievable for so many years. And I want more people to understand it because they should be owning something that is so cut, you've been cutting edge the whole time. The whole time. Yes. Thank you. And that is to see, Gazi, he's president and CEO of Synopsis, which is merging with answers to another great company. What a terrific story. Stay with Cramer. Coming up, this stock's gains of melted away is a buying opportunity in the forecast. Cramer sits down with Snowflake, next. We're out here in Silicon Valley, not just to learn about Nvidia's high powered new chips, but also to find out what everybody else can do with all of this computing power, which brings me to Snowflake, the cloud-based data analytics software play. And yesterday, Snowflake announced that they'll be stepping up their partnership with Nvidia to give their clients better access to computing power. Earlier today, we spoke to Snowflake's new CEO, Sridhar Ramaswami, to get a better sense of what this partnership means and where his company and its stock are headed. Take a look. So here, last time we saw you as with Frank, it was time for Frank to move on, as we know. Tell me what's happened at the company, since he's no longer CEO. Well, Jim, excited to be here, Snowflake is the premium enterprise AI company for the entire planet. The premium and really high statement. Yes. We are the data platform on which the house of AI for the enterprise is getting built. Okay, so give me an example of who's using you like that. I know that you have a good relationship with the company. I talk about a lot Disney. And so Disney uses Snowflake as their data backlink. Every decision that they make in their parks runs through a decision engine powered by Snowflake. AT&T, for example, uses us for all of their customer happiness metrics to be able to look at it. And the examples go on and on. Okay, so now let's talk about you because we didn't get a chance because I knew Frank from service now and knew it was time for him to move on. When you get appointed CEO, your background at Google was not talked about, but it was extensive. And do you think it relates to what you do now? Well, Iran adds in commerce at Google, different kinds of businesses. But at their core, we served advertisers who are big, big customers. We had people like booking on Amazon, spent a billion plus on us. So that is where my experience is very, very valid, very sales driven process, works super closely with sales and product to make innovation happen. But to make really the company scale, I was there from when ads made $1.6 billion to over $100 billion that I left. That wealth of experience comes in handy here. And early on at Snowflake, I'm meeting with a lot of customers. The amount of excitement and love that they have for the product is just incredible. And our product team is on a tear. AI products, for example, have gone into broad availability over the last few weeks. And partnerships like the ones with NVIDIA, but also innovative players like Mistral and Reka and Landing are all coming together to do a lot of for Snowflake and its customers. >> What do you think is more exciting than others? Is the consumption model, what do they like? >> About me? >> No, about the company that they pick you. Why are so many companies choosing you? Great question, Snowflake takes the complex and makes it simple, sophisticated, and cost efficient. I talked to this one VP of data science in India who told me, I've been using Snowflake for three years and I have not filed a single support ticket. Our product just works and that's what customers love. And as we bring on new capabilities like AI, we bring it the Snowflake way, which is we make it easy for our customers to start out. >> Look, here we are in NVIDIA World, Jensen World, and you announced the partnership. What is better about your company with the partnership than without? >> Well, NVIDIA easily is the premier player in AI, both on the hardware side where they make the best chips, but also on the software side. >> People don't really know. >> People don't understand that. So our partnership is broad and deep. We work with them on how do we train models better, foundation models, that's the bottom of all of these things, but also on inference. How do we make AI much, much faster? We also use their products, like they have a great model that makes search, looking for information much better, that is incorporated. So we work extensively with NVIDIA to bring AI to the enterprises. And what they, of all people, understand, is that the bar for AI in the enterprise is a lot higher than that with consumers. It has to be reliable. That's what we're working on getting. >> Understood. Now, there was a talk when you took over. There was also a bit of a guide down. >> Yeah. >> Now, it was weird because it had exceptionally strong bookings quarter. So I was a little confused. It did seem that there are some headwinds. It also seemed like that while bookings were good, we were concerned about maybe where people kept their information. They moved it from U to back to AWS. And I kind of want to clarify all these things because the last thing that happened was basically numbers go down. And yet, maybe business is good since you're taking over and I shouldn't extrapolate what happened in the last quarter. >> Well, let's get into that. >> Okay, good. >> As you pointed out, we had a monster quarter lost quarter. Our revenue growth, the consumption model was very, very strong. Mid-30s growth, our RPO, remaining performance obligations, top that people have committed to spend, was $5.2 billion, which is a huge amount. And coming into this quarter, I see very healthy consumption, very healthy bookings, and also incredible product momentum and partnership momentum. And just hearing from customers, there is a lot of appetite for doing more with Snowflake. New customers are flocking to Snowflake. I actually feel super positive about where we are as a company. Of course, we have to deliver on the results, but that's my job. >> Well, it's interesting. I beat a lot of people who are on stock. I meet a lot of young people who own your stock. And they typically say, I don't really understand tech, but they seem like the uber of technology that you use it and that you consume it, you pay, and it's a bargain. Younger people seem to understand your model. Is that an accurate depiction? >> Well, I think the consumption model is incredibly powerful. Think about how like you've bought SaaS software, how companies buy SaaS software. They buy a bunch of licenses, they have no idea whether they use it or not. And they cough up the money quarter after quarter. We have to earn our money every single day. To me, this is very powerful because we then have to work on delivering value every single day. It was the same with ads. You had to show, return on investment. And I'm actually very happy that we are doing that because that makes for a much healthier business in the long run. >> Well, that's what Frank taught me. Frank was saying, look, you can go and spend a fortune buying and video stuff, and he's great, you know, he's great. Or you can figure out where the works and you can get a return on investment rather than just buying what you heard was good and then not getting any return on investment. And that's what I keep thinking is what you do. You offer a bargain to customers. >> We offer a bargain, we offer a provable value, we offer a product that does not require an army of people to integrate and maintain. We make, as I was saying, the complex, just easy and sophisticated and AI is just going to accelerate that so much more because the way we are integrating AI, we're going to democratize access to the data that is in Snowflake to many, many more business users. But we put an enterprise twist to it. Everything that we release on Snowflake has to be reliable. The chatbot that you talk to, you can actually believe it. It might be hallucinating. Those are not the products we want to create. We want to create reliable, robust products. >> And yet today, you had a downgrade and a downgrade is basically saying that customers are shifting data storage to iceberg tables which are extremely stored in AWS. >> Well, I am glad you brought this up because this has been viewed misinterpreted so much. >> Let's clear it up. >> Let's clear it up. So one of the biggest things that we at Snowflake are doing is supporting open formats where Snowflake, it's incredibly efficient compute engine, can run on all data that's sitting on the cloud, not just on data that is sitting in Snowflake. I was talking to a friend this weekend about this and big company, these people know what they're doing with data. He said, "Tree, half a percent of my data was on Snowflake. All of my engineers were asking me to do it on the remaining 99 and a half percent." And I told them, "No way, I don't want to be moving that." But if you think about something like iceberg on the open format, what this opens up is for this compute engine to run on the remaining 99 and a half percent, it is a massive revenue opportunity and it's something that we're going to embrace wholeheartedly because this vastly increases our playing space. >> I am so glad you cleared that up. I think a lot of our viewers needed to know that and I really want to thank you for doing that. This is Sridhar Ramaswami. He's Snowflake's new CEO who actually is no longer really that new, but we all watch it like Frank Slootman, and we've got Sridhar now with some very good answers to some of the questions that some of these analysts have raised. Thank you, Snowflake. >> Thank you, Jim. It's time to be here. >> When we return, master the markets one stock at a time. The lightning round is up next. It is time, this is time for additional twin edition white round man money. That's what I'm talking about, you're sitting there, it was talking to me a little bit, but I just want to be here, I know the whole stock part is around my step, but you played us out. And then the lightning round is over. Are you ready, Skeed? Dang, down to the lightning round, let's go with Trey, in Texas, Trey. >> Jim, after wanting one for about a decade, I finally broke down and bought a room of vacuum, and let me tell you this bad boy sucks. My floors have never been cleaner. As the original name in home-cleaning AI is iRobot's stock of buy, amid all the hype. >> No, just keep buying this, I rob it, I don't sell a Costco, but the stock, sell some stuff. >> Hey, how about Edward and Ohio, Edward? >> Why, Jim, I've been in the house of pain now for over a year and a half with this stock. I've been in pre-investing the dividends, and I want to know what I should do with dominion stock, I want to hear the cash register. >> I don't like dominion, I do not like dominion, I think they made a lot of mistakes with their balance sheet. >> Yeah, no, no, no, no. >> Can't let you out of the house of pain without it, I'm going to go to Sam in Colorado, Sam. >> Jim, listen, I got a question for you, you know, Rivian's a great company, it makes a really attractive car, but I'm worried about the stock given the dilution risk from the convertible bond offerings, what do you think is going on there? >> You know, you and my wife, if my wife is this, I want to buy a Rivian, but I'm actually worried about the balance sheet, so I have to worry about it. I think it's a well-run company, I'd rather buy the car than the stock. Let's go to Dave in Florida, Dave. >> How are you doing there, Jim? I've been watching your show since the late '90s, and I watch every morning at 9 o'clock, first time caller. My question is about draft teams in a box. >> Holy cow, it's a teenager. >> Yeah, okay. >> I'm about your age, Jim, but let me just tell you, I was, I owned draft Kings when it was $15, I sold out or after a Super Bowl, I bought it back, and I want to know how much life is left on draft Kings, I think it's a great company. >> I agree with this great company, but you know what, football season's over? I think it's going to pause, and I don't want to buy it, that's P-A-U-S, it sounds like P-A-W-S, because I'm going to fill it out with it, but I want to pause on that one, I don't want you to buy it up here, let it come in. I need to go to Ed, in my home, stay in New Jersey, Ed! >> Oh yeah, Jim, that's what's taken the cause in watching your show for years, and I love the lightning round. >> Excellent. >> Oh thank you. >> Looking at, I'm looking at P-A-A, Plains All-American. >> Well you're looking at Plains All-American, I see you, and I raise you with Enterprise Products Partners, which is a better company, and that ladies and gentlemen's exclusion of the lightning round. >> The lightning round is sponsored by Charles Schwab. Coming up, Kramer's seen countless examples of this company's game-changing advances, it has the GTC Conference demonstrated a lifesaver more next. [MUSIC] [APPLAUSE] >> When you make the pilgrimage to NVIDIA's annual GPU technology conference, it is easy to be blown away by the sensory overload that you missed a big picture. And there are a lot of big pictures out here. Many people seem focused on what magnificent out that it's like Amazon Web Services, Google Met are doing with NVIDIA's technology. He looked at visible companies, it makes sense. Then they're the builders of factories and ships and cars they need NVIDIA's ships to eliminate waste while creating the factories, ships, and cars of tomorrow. Frankly, this is the two spokesperson for the American Migraine Foundation, who's married to the vice president of research for the baby's heart fund charity. I was most shocked by what I found in NVIDIA's healthcare division. The Migraine Foundation deals with the formerly impenetrable things that is the brain. The baby's heart fund helps children suffering from heart disease. These are two of the most intractable health issues of our time and doctors are desperate to find new medications. But the pharmaceutical industry often seems unable to bring drugs to market that can help. Of course, it is incredibly difficult to launch a new drug, most fail. The cheap obstacle, the clinical trials. What makes them so hard on top of everything else, it's the dropout rate. You need people who sign up to comply with the strictures of the trial. So many people drop out that you begin to come up with a certain cost, something like $100,000 per aggregate patient they tell me. Of course, the trials take forever too. That cuts into your patent protection time, 20 years from the time you file. The clinical trials last three to four years, puts a serious dent in your return on investment. In reality, it might take a drug company six or seven years to get something through the approval process and another year or two before anyone's heard of it. 20 years of patent protected sales, a lot less than, well, let's say 12, 12, 20. That's what it amounts to, eight years, eight years lost. In reality, trials may eat up 30 or 40% of your 20 years of patent protection, you imagine? So anything that can speed up this process is a pure profit for the drug companies. Otherwise, they may not bother with a promising drug at all. And that's where NVIDIA comes in. NVIDIA's supercomputers can scour data to identify natural candidates for the trials. Instead of just posting the trials on the FDA website, the lame, anti-theluvian way, it's done now. Then they can use AI to see if they have the right people, people commit to the rules of the trial. When I talk to my sources of the industry, they believe a process that might take two or three years to get off the ground can now just take three months. Meanwhile, the knowledge NVIDIA can bring to the actual drug development process to knowing the best way to make it something computer is much better than human. That's a game changer. As someone trying to help invent drugs myself, I can't tell you how big this could be. There are so many publicly traded drug companies, and they all face the same dilemma, whether it's even worth it to try to tackle some serious illnesses. With NVIDIA's speed and superior learning, these decisions come a lot more easily. They may not solve the problem of a baby's bad heart or a dysfunctional brain. But there are hundreds of other illnesses that could be treated better, because NVIDIA's machine makes it all worthwhile for the drug companies to make riskier beds when harder to treat diseases. That's a win, not just for you, the shareholder, but for everybody. I'd like to say there's always a more market somewhere, and I promise you I'd find it just for you right here on Med Money. I'm Jim Kramer. See you tomorrow, last call starts now. All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions, and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Jim Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Med Money disclaimer, please visit cnbc.com/madmoneydisclaimer. How do you land your dream job? It starts by acing the interview. 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