>> we're on the level. s sirat? >> free port >> stephanie >> next terra. utilities rates are going down >> don't fall asleep on bank of america. >> "the exchange" begins right now. see you on "closing bell." ♪ ♪ that it does scott, thank you welcome to "the exchange." here is what is ahead. india is on top, where the biggest opportunities are there and the names you should be buying in india. plus, ai and the banking analysts said there's one clear winner he's here to tell us what it is, what makes it stand out and why you should be buying it right now. ai, there are four names well positioned to lead the charge the analyst behind that call is

here to make that case but we begin with today's markets. dom chu has the numbers for us >> the numbers are green, and they're green decently so in this tape. let's take out the dow, up 271 points, 2/3 of 1% at 39,554. the s&p 500, up about 17 points, about 1/3 of 1% there. but if you look at the range so far, it's been generally positive at the lows, we were up three points, up roughly 32 at the highs of the session so there is your range, drifting in the middle of there but the underperformer has been the nasdaq, currently up about 16 points, 0.1 of 1%, 16,132 the last trade right now, more volatility in some of the mean stocks out there. specifically the original one game stop. shares down 14% off the session lows after reporting results yesterday after the close that came in largely under expectations and a number of

unspecified number of job cuts there. so gamestop down 15% some of the other volatile names like trump media and technology, newly minted public company, up about 17%. so kind of building on some of that momentum we saw during the first day of trading reddit shares not public very long, down 11% right now $57.95 and tesla is the one that a lot of folks are talking about as a battleground stock in the mega cap technology-ish side of things it is expected they will result q1 delivery results next week. today, a slew of analysts are out with commentary ahead of those reports, including citi group, red burn atlantic, both teams there cutting their target price on tesla and a kind of tug of war developing there, but tesla shares up 1.5% today back over to you >> dom, great stuff. thanks so much

let's look at the latest cnbc delivering alpha investor survey, which brings together the market intentions of leading strategists and our own contributors we asked them for their strategy on overseas market in the second quarter and beyond 14% of respondents say they're focused on japan 26% are interested in europe only 4% are looking at china and latin america. not on that list is india. but that's where our next guest sees some of the greatest potential for growth india's index is up 25% over the past year. here with me, fund manager chairman of the emerging opportunities. mark, great to see you so big picture on india first of all. everyone knows the attractions broadly of the demographics and what's slowly but surely been built there. but there's also a political question do you think modi stays in charge >> i think he'll even strengthen

his position in the political landscape. that's a good thing for investors? >> a very good thing what modi is done as digitize the indian economy he's moving in the direction of more and more technology and it's amazing, some of the things they have done, the central bank in digital currency, that sort of thing, has move aid head of many of the developed countries. so you've got a situation with a very young population, very dynamic population many, many differences i like to call it the united states of india, because the different states are so different from each other. but a rich, cultural heritage and exciting times for the country. >> is it all about the consumers? you said it's a young population, a growing working age population, or the tech names, other sectors you're attracted to >> it's consumers, but more importantly, the tech area as you know, until now, india has been the leader in software

technology they export software all around the world. now they're getting into hardware i think that's going to be most exciting >> do you think they might clash with the west in the years to come in the way that china has done as it's grown bigger, or not? do you think being a bit more sensible about that? >> it will be difficult for them to clash with the world, because they're a real democracy and you have many, many voices in the democracy so it's very difficult for them to take a strong line in one direction and say look, this is going to be our policy for the whole world. it will be very difficult for them to do that, which is good for the world. you have a country, which is a vibrant democracy. >> before we get to some of the individual names, one final question on that, which is after the recent russian election, modi did publicly congratulate putin on his win there's a short-term benefit,

which india is buying a lot of russian exports, cheap oil and refining it and making a huge profit margin. even that is something you might question in the west, but the public backing of putin, but i wonder if there is a clash to come down the line that the west will get disappointed by india or not >> one of the things india made very clear to the world, they are neutral. they are not going to take one side or the other. so they will congratulate putin and they will congratulate the u.s. president, whoever gets in. so they'll try to take a middle road this has been true way back when they had a movement, india was a leading member of that movement. >> we have three stocks. tips industries. talk to me about that. >> tips industries is very interesting, because they're in the music business as you know, bollywood is song and dance, and they're involved in create thing music. so it's a very, very interesting

company. if you have ever seen any of the bollywood films, it's song and dance in a big way >> and they're expensive, cheap? >> i would say they're cheap, and when i say cheap, i don't like at price-to-earnings ratios or anything like that. i look at return on capital and growth, and that's why i think they are relatively cheap. >> this next one -- i'll probably pronounce it wrong. >> they do solar components for solar cells and that sort of thing. so as you know, in india, the entire solar industry will be growing rapidly as they try to replace solar with the -- the coal with solar. so i believe at the end of the day this will be a fast-growing industry >> final pick is natweb technology >> they are doing hardware and this is why i think it's

very, very interesting i believe, as i said, india is getting more and more involved in computer hardware and that's what they're involved in in a wide range of hardware components >> i mean, so, all three of your picks i never heard of, but what about some of the bigger cap names that people might have been into or out of over the last decade, avoid those >> no, not avoid i think it's -- for people that have billions to spend, yes, you have to go into the big cap names, because you would be overwhelmed if you bought these smaller companies. but for people looking for long-term growth, you into the smaller companies that are not in the index that doesn't mean these other companies aren't good, there's some terrific large companies in india. >> i wanted to ask you about china. pretty significant that -- i should be asking you how significant was it that xi jinping met personally with 20 or so u.s. business leaders this

morning? are the relations thawing to quote a significant scale now or still a long way to go >> i think china may be taking the wrong path what they're trying to do is say look, our business is one thing, politics is another. so they're trying to separate that and just appealing to the u.s. business community. but this may be a mistake, because it will be very difficult for the american business community to separate themselves from the american politics >> although seemingly, they have at the moment, or is that because biden and yellen have gone ahead of them and things have thawed, or do you think there's another clash to come? >> there's tremendous pressure on the u.s. administration to do nicer things with china, because look at apple. how much in earnings do they get from china you're talking billions of dollars. any of these big companies, you name the names, anybody that's big in america is going to be

big in china >> is china a buy or not, is it cheap enough >> some of the government companies, as you know, they're shifting from the private enterprise to government companies. and some of the government companies might be interesting that would be some of the heavy industries, some of the mechanical and technology companies. so they're worth a lot, but i haven't identified any yet >> i might be interested, but it doesn't sound like it would be enough so you might have to come back and bang the table more loudly on china to entice people in, but the message on india received loud and clear. mark, thank you. >> thank you very much it is time to get a -- the results of a seven-year notes auction. rick santelli has been tracking that action from the cme rick >> you know, i'm a tough grader. these aung ctions of late, i tro give everyone straight down the

path and most of the auction has been weak. this particular auction, 47 billion, not the biggest, not a record size. but it was the best auction i've seen in a long time. a plus, yes, an a plus the yield, 4.185 the one issue market was closer to 4.195 so it was -- it stopped through almost a full basis point, which is the opposite of tailing that's a very positive thing when one considers that we've seen buying pushing yields down all day, to see this auction extend that process, it was the opposite of a concession a concession is when you see the prices falling a bit instead of rising, so you can get in on the auction with a concession. so whether it's the holiday setup to the markets or the fact that we have had a lot of tailwind for buying today already, it was fabulous every metric was very good as a matter of fact, bid-to-cover indirect, direct, and dealers were all basically

the best since october of '23. directs actually the best since december of '23. so just a spectacular auction. this completes the 66 billion record to a 67 billion record. i can understand why the seven-year wasn't a record it's not the most liquid or most favorite maturity on the curb. but that almost beats how this particular auction went. and i would point out that for the data on friday, which is so important, the pce, all the favorite metrics for inflation, all the markets are closed but i'll still be releasing those numbers online so we can all get a glimpse of some of the most important inputs, whether the market is technically open or not back to you. >> rick, we'll be watching, no doubt about that how many a-pluses or maybe a-minuses do we sneed to see

consecutively for you to change your view on the amount of supply we have coming online for the next few years >> no amount of a pluses is going to change my mind. the only thing that will, if the u.s. government changes its mind about how it spends our money. >> rick, thanks so much. loud and clear now, the justice department's anti-trust suit against apple is just the latest example of big tech coming under regulatory scrutiny. as a result, the magnificent seven have been plowing cash into their portfolios. we have more details of this, following the money as always and some breaking developments >> we did just get breaking developments amazon will spend another $2.75 billion in a strategic investment in the ai startup an tropic it highlights this spending blitz we have seen today's investment follows an official $1.25 billion check, bringing amazon's investment to

$4 billion, the chatgbt competitor it is one of the leaders in the ai space funding in this industry has exploded in the past year or so. some talk about this as the next technological revolution you're seeing fomo around this there's been a record $29.1 billion invested across 700 deals in 2023, according to pitchbook. overall venture funding is down. these types of partnerships with big tech have been picking up in the face of more anti-trust scrutiny and a drop in acquisition has been offset in this increase in venture style investing. ai learning jumped to $24.6 billion, up for $4.4 billion in venture commitments a year earlier. at the same time, big tech's m&a deals fell from 40 deals in 2022 to 13 last year.

amazon and oogle, backing up anthropic. >> i'm interested in the optimum ticket size. a big company could start to get them in competition concerns and see the attraction there all companies is irrelevant to a $2 trillion market map company so what are they looking for and what is their preference >> the ideal ticket size is anything that keeps you out of the minority investor, so in this case, $4 billion is a drop in the bucket for zan, microsoft or goog. you still want to be a minority investor and not having a board seat which is the opposite of the traditional style. you can invest billions, you just want to have it below a certain tlohreshold at this point, it's only a handful of companies competing here, and you are seeing the

biggest tech companies with the deepest pockets, and they are winning the deals at this point. >> is it mainly ai focused or other areas we don't talk about? >> mainly ai you're see thing drop in overall venture activity some of the big companies have belt tightened on everything but ai they are not doing investments in the moon shot, outside startups that we have seen in prior years. you are seeing the belt tightening happen after interest rates went up. that's been a theme across silicon valley ai, they'll spend anything to get an edge here >> kate, thank you so much we'll be talking about robinhood later on, as well. kate rooney there. speaking of ai, the commerce department is out with some new recommendations saying that making ai systems safer and more trustworthy. you can hear about that from commerce secretary gina raimondo in new york city on april 18th

to register, scan the qr code on the screen still ahead, the business of home flipping flopped last year. we'll look at some potential opportunities for investors. but first, this bank is up 60%, hitting a new 52-week high today. and our top analyst says it's far and away the winner among the financials using ai. he're lease to reveal the name and tell us why ai is a game changer for the banking space. that's coming up after this quick break. don't go anywhere.

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welcome back to "the exchange." it's been a strong month for the bank stocks, outperforming the broader s&p 500. citi group also a big winner that was the mystery chart we were showing you, trading at highs not seen in more than two years, gaining more than 11% this month alone my next guest is bullish on the big banks, particularly citi, and says ai will be a game changer for that bank in particular but the industry as a whole, mike joins me here great to see you again >> nice seeing you >> we talked about off camera you pushing the ai story for banks is a little bit of deja vu itself because five, six years ago you

were pushing tech as a whole being revolutionary for banks. perhaps people could argue that didn't play out immediately in terms of share prices. will it be the same for ai >> the banking industry should trends towards efficiency over the next five years. so modernizing the back office, consolidating data, moving more apps to the cloud. now you can really use ai to leverage some of the internal data that you have to provide better customer service and modernize that back office >> and that plays into the hands of the biggest banks >> aabsolutely goliath is winning when it comes to the front office, data is the fuel of ai and the largest banks like jpmorgan, they have 3500 tarabytes of data, 25 times more data than the library of congress to put that in perspective.

that's a building in washington, d.c. that we have here in the united states. >> thanks, mike. i've only lived here six years >> on the front end, they will know about the customers than the customers know themselves. modernizing the back office, citigroup can do that much more efficiently. last night, i did a test, go to chatgbt and say, write me a program in cobalt code that will tell me if a number is prime or not. i did that, and i said change that to python code, change that to pascal or c plus plus imagine how much archaic code citigroup has in their back room that can allow them to leapfrog technologies alnd modernize faster >> it sounds like you had a fun tuesday. let's look at why it makes a difference for citi.

everything you said makes the argument that it's tough for the smaller banks, tough for the regional banks that don't have the budgets to spend on this technology but all of the banks do equally or not >> well, look, spending a lot of money may be a necessary but not sufficient condition so jpmorgan spends $15 billion a year behind that is citigroup which spends $12 billion a year. so size in itself, yes, thos are table stakes but then you have to be able to use that data and spend that money effectively. we have seen a lot of false starts it was 1999 you had your first big internet bank and it was going to change the world and didn't change so much. then we had block chain and then the cloud five years ago, which i talked about and the expense-to-revenue ratio for the industry is still 60%. now we think they're at that tipping point for technology to make more of a difference. >> valuation on citi, it went down to $40 or so relatively

recently is it now expensive? >> my top three picks, will, are citigroup, citigroup, and citigroup. why does a bank trade at book value or tangible book value you're going to trade back down to tangible book value i have -- for citi's tangible book value is at $92 why does it trade at such a big discount is there a hole in the balance sheet like in 2007 no do they have big exposure to commercial real estate no so you start with the valuation, and then the ceo jane frazier, where i think the strategic plan is falling into place. selling off non-core businesses. they've sold off most of their non-u.s. consumer operations the end of this week, it's a watershed week for citigroup at the end of the week, they will be done organizing into five lines of business for the first time in their history,

services, banking, market, consumer and wealth. that allows them to modernize their tech much more easily. >> it's interesting, because i did what the -- i did the first interview with her, and she said there's no dilly dallying. that said, she has been afforded a decent little amount of time to make some of these changes. it's not just yesterday that she was appointed and the share prices didn't take off immediately. it's reminisce sent of the early gorman years where they had some slow first years, but things came together later. >> there's some fresher for jane fraser to perform. she's in her fourth year or so, and the stock price is down. they have missed their medium-term targets. but this is a pivotal point. this is the most important time of jane fraser's tenure as ceo the end of this week, you'll complete your simplificsimplifi where they delayer management

from 13 to 8 layers. they eliminate dual reporting, and this management structure they have had for decades. similar to proctor and gamble five or six years ago, when they went from a geographic and functional structure to a line of business structure. very simple with better transparency, accountability and ownership. so this is a pivotal long-term pay. now everybody loves morgan stanley. i see that with jane fraser. >> let's quickly run through some of the other big cap names. bank of america? >> bank of america is -- jpmorgan is my second favorite name >> so that's not cheap >> but in terms of price-to-earnings ratios what is an 11 pe to 20 pe

market all banks have been de-rated due to fears about rates, recession, regulation guess what each one of those are less, bad, or good. you can see rate reductions that have increased recession doesn't seem to be as much on the table. regulation, a lot will be rolled out. an 11 pe in a 20 pe market looks cheap to me. bank of america is also inexp inexpensive. we think some of their kind of changes to traditional banking lending come a little bit later this year, but i recommend bank of america as my goliath >> goldman or morgan stanley >> goldman over morgan stanley every day of the week. morgan is decelerating they did a great job under james gorman ted pick takes over now as ceo but they have desscelerating rae of growth, whereas goldman has pressure to perform now.

they fell short of expectations, but i think goldman is poised to pick up more share than anybody else >> final quick question. s&p downgrading five regional banks. is that as is off the case with these rating agencies being reactive late to the game or predictive of things to come >> i think it's a middle innings at first when it comes to commercial real estate this is a slog that's not a matter of months or quarters, but years. office is still an area to pay attention to so that's another reason why we like the largest bank over the smaller banks. >> mike, a pleasure to see you speaking of financials, let's get some show and tell where we show you a chart and tell you the story robinhood hitting a 52-week high today as the company unveils its first-ever credit card the card offers 3% cash back that can be transferred to a brokerage account. here's the ceo telling us how to

place into the company's long-term plan >> what we would like to do is build a world where -- for our customers, all of their assets are custodied at robinhood, and every financial transaction goes through robinhood and credit is just such a critical part. >> robinhood shares have more than doubled in the past year, as you can see it's upn about 4.5% today. still down 15% from their ipo price from three years ago still ahead, we're sticking with the ai trade and the risks that low cost and growing demand could pose on the power grid and infrastructure the names and numbers that investors ne tkn, st eaonthe exchange." amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. why not? did you forget something?

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their own investigation into the collapse, as well as help u.s. authorities. the metropolitan transportation authority approved its controversial congestion pricing plan for manhattan, and it is controversial. the plan is going to charge cars $15 and trucks up to $36 during weekday peak vehicles for -- peak hours for all vehicles that enter manhattan from 61st street and below in its effort to reduce traffic and add an estimated -- this is not significant -- billion dollars for the mta to use, it says, towards modernizing its network. mlb owners approved the sale of the baltimore orioles to billionaire david rubinstein's group today. the carlisle group co-founder will take over as the controlling owner of the team, that includes private equity fellow billionaire mike arogetti

and cal ripken >> there we go tyler mathisen, thanks so much that will be great to reduce traffic, if it works >> if it works going to be expensive, man >> it would indeed but the traffic here you forget is pretty bad. >> pretty bad, man >> tyler mathisen, thanks so much still to come, small caps from suffering their worst run against larger companies in more than two decades the russell 2,000 closing in on a new 52-week high our next guest has a handful of small caps on the verge of a breakout and we're sharing stories of some of our newly named cnbc changemakers, an annual list of 50 women with transforming business here is co-founder natasha kay >> what others can learn from my

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welcome back to "the exchange." small caps are suffering their worst run against larger companies in more than two decades amid higher interest rates. the russell 2,000 is closing in on a new 52-week high. our next guest has a handful of small caps he likes. sandy, great to see you. thank you for joining us >> thanks for having me. >> before we get into these individual names you picked out for us, talk us through the case for small caps in general at the moment, because the argument has been made many, many times, whether it's on valuation discount or anything else, and i guess that multiple gap has not closed >> yeah. i think small caps should do well coming out of any sort of recession. so whether we have any

recession, et cetera, they still have an opportunity. but what i think is you'll get some more market breadth this last month we saw about 40% of even s&p 500 companies outperform the s&p, whereas, you know, the last several years it's been all magnificent seven. so we just think there's going to be a broadening of the market and money will go into some of the smaller cap names. we want to be there when some of our great companies that are trading at reasonable prices have some of this influx of capital. >> so let's go through these names that you picked out. first, the idex labs, what do they do and why now? >> yeah, so this is just simply a play on people loving their pets so everybody just will spend whatever cost to take care of their animals. so it's a great razor blade business they sell analyzers to vets and all the diagnostic testing so when i bring my cat or dog to the vet, i'm not asking what that test costs, i'm just

getting it solved for ear mites or whatever else happens it's a great business. they're number one in all three of the business segments they compete in so i think it will be a good one, in light of the covid puppy boom where you had many, many animals, you know, people just standing in their backyards and taking care of them. so as those dogs mature and get older, they will need plenty of health care. >> just quickly, this isn't cheap. >> so this is a fairly, you know, i would say fairly priced, depending on how you look at it. it's probably more of a mid cap. this is a larger company, so i do think given the, you know, just given the motes around this business and their dominance of the niche around this area, they will trade at a premium, but one

i would buy at any dip in the market >> $1.2 billion cap ligen farmer >> it's basically a chicken way to play the biotech industry they have about 85 different partnered programs, 30 different commercial assets. so when you think of biotech, they can be a binary outcome this gives you many, many shots on goal for success. they had an investment in 2010 in a company called meta bases that they put $1.8 million in it, and they added an asset, they nurtured the business, and then today, that's become 1.7 million shares of vks, which is worth $140 million so i'm making an investment in the 35 veteran and scientists that work at ligand deliver shareholder returns over the long run it's a very small company at $1.2 billion market cap.

>> and you've gone for roper today. >> it's a collection of 27 very cash flow rich, you know, technology companies their whole business is surrounded by compounding cash flow, and using that cash flow to acquire new businesses. if you look over the last 15 years, they've returned for shareholders about 2.5 times of the s&p 500. so they'll do about $7 billion in revenue it's a little larger of a company as well, but one that i think will continue to deliver with any market pullback, this is one you can add to. >> sandy, thank you very much for joining us >> thanks for having me. hope flipping profits just dropped at the fastest pace in over a decade, but there are some markets that faired petter than others. we'll tell you where they were next and here is a look at some of the names hitting all-time highs. we'll be right back in just a

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welcome back to "the exchange." high prices, high rates, and the lack of supply have made it much harder for house flippers to make a fast profit diana olig has more on this story. talk us through what we're looking at here. >> flippers are just feeling the heat and the pressure of higher costs. home flipping dropped 29% last year compared to the year before, and that's thanks to higher rates and fewer homes for sale it was the largest annual drop since 2008 and just so you know, a flip is a home bought and sold in the same 12-point period profits and profit margins also dropped. gross profits averaged $66,000, down from $70,100 in the year

before before all the costs involved, that's a 27.5% return on investment, compared to the original purchase price. that return is down 36% from the recent high in 2021, and the worst return level since 2007. if you go regionally looking at the nation's largest metro markets, flippers raked in the biggest gains in boston and new york, and all of this was at the end of last year mortgage rates came down a little to start this year, but sprang back. still not to the highs of last year, but that could boost flipping returns but still not by a lot experts say they don't expect any big change in q1 the majority of flippers use cash 1/3 do use mortgages >> i'm interested, a couple of things you said only 8% of all sales last year were flipping. what would be a high number? what was the peak over the last

decade or so >> we have seen it up in the high teens in the housing boom in 2006, service probably 1/5th of the market or more so we're down under 10%. >> i mean, i guess it's probably a good thing for prices. there's probably correlation when that percentage gets higher with a correction. the other question i have is just supply being probably quite important to whether flipping is possible and there's a profit margin haven't we seen supplies start to pick up >> it has picked up a little bit but not to the levels we need to see. we're still 40% below prepandemic levels in the supply level. and when you look at the supply coming on, it's more only the higher end you make the most money on the low end where upfront costs are lower, a smaller house that doesn't cost to renovate and then sell it for higher. we are not seeing the lower end homes come off >> and the cash payments, are

mortgage rates less relevant compared to some of the other metrics if people are using cash predominantly to buy the houses, or is that still pretty snornlt >> most flippers are all cash, but the ones who do one or two or three flips, they're using mortgages. so still about 1/3 of the flipping market uses mortgages so mortgage rates do matter, especially when you're up in the 7% range that will take away from their profits, because they're having to make higher monthly payments. a lot of flippers will buy in cash and take out a mortgage so it may be more than a third of the market that's depending on the mortgage. >> diana, thanks so much still to come, generative ai will need a lot of power to operate. my next guest sees four names that will benefit. this is one of the names, up 80% this year. the full list and what makes them ai power players, next.

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cheaper generative ai may force centers to choose the nuclear option. he's got the details and the names that could benefit. steven bird researcher joins us now. very good to see you. thanks for joining s. just first of all maybe this is an ignorant question but why is ai using up so much power? we knew it was going to use up a lot of compute power. is it just a by-product or an added factor? >> that's exactly right. what's interesting is every new generation of gpu that nvidia comes out with is more energy efficient. there's a lot of attention on that. i respect that. it's that the absolute magnitude of demand is growing at an astronomical rate. we're seeing a lot of new chips. every new chip does use more electricity, it's just that every new chip has more compute capability. compute growth is astronomical. power to man growth very high

about 100% a year for generative ai. even with hat improvement in efficiency. >> and as we stand, how close are we to putting too much pressure on the grid? are we close to capacity or not? >> we are close to capacity if not at capacity in several markets. we analyzed all the power markets and we're seeing major pressures in places like dublin, ireland. santa clara, california. parts of southeast asia. we're there in certain parts. other markets, other states, et cetera, really want to welcome new data centers. it is a bit of a mix. it's just that broadly speaking planning to get new data centers on to the grid is very arduous and the delays are increasing to get that done. >> and in terms of then what's next and how you should play this, are we talking before we get into the names about people that are going to help expand the grid? people building data centers where there is power?

what's the themes behind this? >> great question. it's not so much the grid providers. it's the power providers that can provide the fastest time to market for data centers. for example, instead of owning a grid company that's going to slowly increase their spending on the grid, i say slow, less than 10%. what we're interested in is a power supplier like a nuclear power plant owner that can provide an alternative to the grid, provide power more quickly and achieve much higher margin growth as a result. >> let's go through some of these names. vistra. >> yes. big texas-paused power generation company. lots of different types of power plants. they have a nuclear power plant in texas we think is ideally situated for a lot of data centers to be built right there. the advantage is you site at a nuke, you avoid having to go through the fairly arduous grid upgrade process. that saves you a lot of time

and what we found in our analysis, that time value is immensely valuable for hyper scalers. >> really interesting. constellation. >> similar. think about it as more shots on goal. bigger company. constellation is the biggest u.s. nuclear power plant owner with nuclear power plants in many markets. i think constellation is likely to achieve multiple large contracts with the hyper scalers with the data center developers in places like pennsylvania that's quite well suits. >> you have nrg energy and public enterprise. we only have a minute left. surely ai should make the grid more efficient. is there not going to be a kicker to offset all of this in five years time, maybe quicker when some good aspects are harnessed? >> it's an excellent point. ai is just starting to be leveraged. the challenge is what we're talking about here with data centers is massive amounts of power and very concentrated

locations. and you can't optimize your way around that issue. the process to upgrade the grid is a established process that's been around for a long time. that just doesn't move on a dime. essentially the problem we have is on one end very, very fast growth in gen ai. we have an established grid planning process that just is not going to suddenly become efficient. >> great to chat with you. thanks so much. >> thank you very much. as we leave you here on the exchange, we have the russell leading the charge at 1.4%. the dow is up two-thirds of one percent. s&p up one-third of a percent. nasdaq has just gone back positive. utilities the best performing sector. communication services the weluh performing service. por ncstarts on the other side. this is your break. ♪ ♪(orchestra del teatro alla scala, milano)♪ ♪♪ hey, i'm at gate 6

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who's your rock? learn more at prudential.com the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes with the power of ai. good afternoon, everybody. welcome to power lunch alongside julia boorstin, i'm tyler mathisen. is meme media making a comeback? former president trump's media company, that one is up 70% this week. we will look at whether it could be different this time. plus the disney drama. the company settling a long running legal dispute with allies of governor ron desantis. today adding hulu to disney plus. all of the company face