Jim Cramer argued Thursday that Nvidia and Salesforce each dismantled a dominant pessimistic narrative with their latest quarterly prints, driving shares up 8% and 22% respectively. The moves reversed much of Salesforce's 22% year-to-date decline and forced a reckoning for funds positioned for continued weakness.
The software bear case collapses
Salesforce entered the report shadowed by the theory that advancing AI models would let enterprises do more with fewer seats, compressing the subscription model that underpins the sector. The company instead posted its strongest revenue growth in four years, with seat counts rising across sales, service and Slack. Churn held near historic lows. Bookings for AI-branded bundles more than doubled sequentially. A partnership with Anthropic, once framed as a potential disruptor, produced Claudeforce, a tool that lets Claude users act on Salesforce data rather than replace it.
The chip bear case fractures
Nvidia faced a longer list of doubts: hyperscaler appetite fading, custom silicon eating share, GPU value evaporating, the Vera Rubin platform slipping, and exposure to risky AI customer financing. Management signaled none of it is playing out. Hyperscalers now represent roughly half of revenue, with sovereign projects, neoclouds and other buyers supplying the balance. Vera Rubin remains on track. Jensen Huang said existing infrastructure stays productive for years as software extracts more performance. Amazon Web Services, despite its own silicon program, committed to 2 million Nvidia GPUs and potentially millions of Vera CPUs, a vote of confidence that customers can monetize the compute quickly.
Guidance rewrites the growth math
The most consequential line was the outlook. Nvidia indicated fiscal 2028 revenue could climb roughly 70%, comfortably above the roughly 45% consensus had modeled. That gap reflects visibility into AI demand that the Street had not priced. Cramer characterized the session as a "short-pocalypse" for hedge funds betting against both names.