22.57 and it has the potential to get above 30. >> one more quick check of the markets and our market is in the green across the board and their highs of the session and right now the nasdaq and the s&p are both on pace for a fresh record close and both up a half a percent and the dow, the laggard, if you will up a quarter of a percent and it's 3% away from its all-time high and that does it for halftime. "the exchange" starts now. thank you, frank holland. welcome to "the exchange." i'm kelly evans. corporate bonds and equities and our market guest says it can signal two things and neither is particularly good and he's usually bullish and we'll talk about what he's seeing and buying because of it. investors are beginning to question travel stock multiples as prices are starting to crack. j.p. morgan called this stock overvalued and we'll look at some of the other names and speak with the ceo of one of the

other global hotel brands about what he is seeing from the consumer. stock splits are in. we've got a special edition of three buys and a bail coming your way. let's start with the latest on today's markets and dom chu is back. >> it's good to be back. i've missed you guys and let's talk right about the lead right now and the headline is we have record highs in the stock market and specifically, for the s&p 500. we'll put a star right there and the nasdaq composite. both are up one-half of 1%. the dow industrials lagging, if you will, only 0. 01 and that's up 28 points at the highs of the session and down around 11 points at the low of the session and tilting again toward the bullish trade and the nasdaq composite up 107 points and that's the two-thirds of 1% gain and the 17,795. the s&p 00 is outperforming for

the better part of a few years now have been the semiconductor stocks and this is the semiconductor etf and the ticker smh and it's up 1% to $270 and change a share. i'm showing you the blue line which is a 50-day moving average and the yellow line which is the 200-day moving average and where we are in relation to both of those things because this has been a momentum juggernaut for quite some time and it also gets a star because it hit a record high so far today, as well. keep an eye on that trade and a lot of folks like to use this as a possible leading indicator for the rest of the technology trade so we'll keep an eye on that and speaking of, big news with regard to etf. the spdr xlk and the technology etf and it is heavily weighted toward the mega-cap names. right now specifically microsoft and apple which make up a 22% waiting each of those guys and nvidia currently has a 67% w

weighting. the expectation is that they'll rebalance so microsoft and nvidia will now have a roughly 21% weighting, but because of concentration rules apple drops from that big 20-some percent weighting right now down to a 4.5% weighting and it's a very interesting dynamic and a lot of it has to do with rules and regulations over how concentrated the tops of these portfolios can be, but the big news is microsoft and nvidia will have a 40-some percent weighting in the spdr etf and apple drops to 4.5%. it's certainly something to watch. we'll send it back to you. >> we were thinking about that on friday. >> dom chu. my next guest says the fed's 2% inflation goal won't be met without an extended period of subpar growth and he's noticing an odd divergence between the performance of large and small stocks and quality to junk bonds and he says it could be a major warning sign. joining me to explain is richard bernstein and he's ceo and chief

investment officer of richard bernstein advisers. good to have you here. is this a change in tune, richard? normally when we talk you reassure me that everything will be all right. >> kelly, i think the question is not whether one's bullish or bearish and it's bullish or bearish on what? we're very cautious on seven names that everybody knows and the seven names that were dis distorted as you pointed out and on everything else in the world and that's really the dichotomy. everybody knows that we have a bifurcated market and it's hard to believe that the opportunities outside of maybe the next ten minutes are in that group of seven companies, right? everybody knows about them. they're flush with capital. there's no surprises and the other side of that seesaw, if you will is historically broad and historically undervalued and

their fundamentals are improving and nobody cares. >> i'm just so glad we're having this discussion. so some might say and if you look at the first quarter and david highlighted it over the weekend, as well. the big five earnings growth exclude apple. their earnings growth was 84% year on year in q1. the media and the s&p 500, the earnings growth was 5%, which would you rather own? i want the 84% and it's interesting to say listen, the leadership is too narrow and i think everything else looks pretty bad right now and i want to stick with what is showing this phenomenal growth. >> exactly. that is the common thought is that we want these fast growers and if you look at analyst forecasts, those growth rates in the magnificent five or seven or two or whatever you want to call them are supposed to slow dramatically as you go through the year. meanwhile, if you look at small-cap earnings expectations or emerging market expectations by the end of the year both small caps and emerging markets

are forecasted to grow faster than the magnificent 7 earnings growth. >> it's a matter of earnings here and it's actually true. >> i mean, if nothing else we have to remember that some of these companies are much more cyclical than people think. i don't want to point out individual names. they are experiencing tremendous cyclical surges here, but the difference is normally when cyclical stocks have a big cyclical earnings surge multiples compress. this is very unusual in that wooe seeing this big cyclical surge and multiples are expanding and then it should be a warning sign to a lot of people about the sustainability of this growth. look, kelly, the way i would describe it is we all know a maserati is a great car. if i tried to sell you a maserati for a volkswagen price you would ask me for two or three of them. if i tried to sell them for a million dollars you'd say i was nutty.

how come people understand that when it comes to cars and you go to the stock market and all of a sudden the maseratis are worth a bazillion dollars. >> i drive a mazda. >> i don't drive a maserati either. >> i'm actually quite concerned about the larger signals about economic growth. unemployment rates rising and the consumer is starting to become tapped out, et cetera. the only thing i might feel comfortable owning in the market is the stuff that's less exposed to the ai complete revolution that we have to build out. i would much rather be in those stocks, why would i want to be in mcdonald's or starbucks or anybody that would face this couple of percentage point in the margin. i want to be over in data center, and whatever it is that's going to support this new buildout. it feels ironic to say that i would be more comfortable than the far overextended trades than i would everything else right now. >> kelly, that's kind of like

what people were arguing during the tech bubble that there was going to be the buildout of the internet. it was going to be the buildout of fiber optics and that that was the place to be. they were right. there was a buildout of the internet. there was a buildout of fiber optics, but because the stocks were so expensive there was little room for disappointment and what happened was -- >> this is 84% earnings growth if the first quarter and these were stocks trading at 30 or 40 times forward and this is not pets.com. >> oh, kelly i hate to say this. >> go for it. >> it's a distant memory. >> go, go. there were real companies in the tech bubble with real cash flow, real balance sheets and if you bought those real substantial companies and companies that now nobody would care about like ibm, right? that was a big, substantial company back then. sisco, right? that's csco.

these were real companies with real cash flow and real balance sheets and what happened is if you bought them at the peak of the bubble it took you between five and 20 years just to break even. >> yeah. >> because people had pushed so much growth into such a current valuation. there were so many opportunities elsewhere. >> let me ask you one last question and this has been so fun. i would put it this way, if i could. make the argument for going to the rest of the market, in other words, do you have to believe that the economy will do okay for the next 12 months for that argument to work? >> well, not necessarily and i'll tell you why, because in the report that we just put out that talks about this divergence between the junk bond market and large-cap stocks. normally the junk bond market when it's outperforming, they tend to go hand in hand. now we have the junk bond market outperforming and large caps outperforming. that suggests that similar to

after the tech bubble some very strange things could be defensive, small caps proved to be defensive and the emerging markets proved to be defensive and you have to start turning things around a little bit and why did that happen? it happened because of the fundamentals of the favored companies back then the internet and now today ai couldn't come to fruition as quickly as demonstrably as people had anticipated. >> it was the warren buffett. i'm buying dairy queen and everyone thinks i'm crazy. >> i like dairy queen. not the stock, but i like the ice cream. >> rich, thank you so much. we really appreciate your time today. >> richard bernstein with richard bernstein advisers. let's get to steve liesman with the headlines. >> kelly, yeah. patrick harker saying his fed base is one rate cut will be appropriate by year's end if the

economy evolves as he has forecast. he goes on to say however, that two cuts or no cuts, they're both, quote, quite possible if the data break one way or another. he says high inflation remains his leading concern and the latest data has been quite promising. he welled come twelcomed the ma data, and he still lacks the cut rates or the inflation is headed back to the 2% target. the current policy, he says will continue to service well for a bit longer. so what's he doing? he's monitoring the data over the next several months to decide whether it is, quote, the right time to decrease the policy interest rate. so definitely a bias there to cut and just not necessarily able to do so now. he forecasts a long back to target for inflation and the economy has proven resilient to high interest rates. mon monetary policy he calls in restrictive data, and it's been choppy and not significant to make a call which way inflation

is going. he sees a slowing, but above trend economic growth this year and a modest rise in employment. kelly, patrick harker has the 2026 right now and he's a member of the committee, but a non-voting member. >> in other words, where would you put him on the hawk line right now? >> i would kind of put him in the middle. i don't think he has -- he has not led either way on all of this. he's very much a centrist. very focused on labor markets in a lot of his talks and a lot of his research. it's interesting when you're trying to figure out where is the center of the committee. one cut is his base case and it tells you more than what you would otherwise think. >> our steve liesman. >> european stocks continue to fall one week after the parliamentary elections shifted the eu further to the right. today citi downgraded to neutral while upgrading. joining us is beta diamante

head, kwty research. welcome. >> thank you for having me. >> it might be reassuring to some of us that europe's political risk is bigger than ours right now. explain. >> exactly. this is the pushback i'm getting. we are talking about geopolitical risks in europe and the risk is actual he coming out of the u.s. we have this framework in place that captures geopolitical risk premium out there in the markets, and europe within developed markets tends to be the most exposed and even if the center of the problem, if you assume sitting where you are that it is the u.s., not europe and the problem is here and over here in europe, as well. it's still these more cyclical markets like europe that are more exposed in the negative way. >> peter boockvar put it perfectly and how i feel about europe, ever since the mario draghi moment said we'll do

whatever it takes to defend the euro and the european crisis just went away leaves me feeling like, well, christine lagarde cleaned up whatever mess is made. that's what would you have to say. >> two issues about the central bank rates and europe. short-term issue is probably in the price, but the long-term issue is i would argue it's an upgrade for the european equities or cyclical equities around the world because the environment we've seen, after whatever it takes and after the the environment of zero rates and zero inflation and that's an impossible environment for cyclical markets to outperform a growth market like the u.s. the emergence of inflation and the fact that after the cuts that we have facility and we have another for this year and the terminal rate is going to be

subst substantially higher than what we've seen and don't forget about europe and what is happening in the political front and short term headwinds and another thing that i would point out is what you were discussing with the previous panel and that's the narrowing risks of the market narrowing again to mega-cap, large-cap growth and when that happens that's the environment when the u.s. tends to outperform and europe is more conducive environment is broadening and if it has a lot to do with it, so we have the early cycle environment and improvement on the economic side and if that continues we come back to broadening later in the year, but for now the risk is it narrows. >> your reason to downgrade number one and political risk and number two, narrowing markets and you just explained

number three. it's just a positioning unwind ahead of the recent volatility. what does it make to make europe a growth stock like the u.s.? is it possible? >> this is complicated, right? europe is a cyclical market and the amount of growth in the composition of the market and for the u.s. is 50% and a lot of it is in banks. so we need to rate staying higher and we need the broader economic growth and improvements for europe to start doing well again. >> no matter what happens with the politics in the near-term. b beata with citi. consumers are starting to pull back and prices are following suit. up next, we'll break down the data and check in with the head of the largest global hotel

group. as companies race to dominate the ai space and the deep fakes is on the rise ahead of this noef's election. is it too late for congress to regulate the industry. heidi heitkamp joins us with the debate. kw the exchange returns right after this. >> this is "the exchange" on cnbc.

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♪ ♪ welcome back to "the exchange." travel remains pretty expensive even as demand is showing signs of slowing, but what about travel stocks? seema modi has those previews for us. hi, seema. >> hi, kelly. travel still remains hot. value-conscious consumers are starting to pull back with occupancy at economy hotel chains dropping to 55.6% in recall. april compared to 56.1, the same month last year. average daily rates also fell 2% according to core star. it may not seem like a lot, but it coincides in luxury rates in occupancy and that is feeling shares of marriott outperforming shares of choice which has more value-oriented brand and however, ubs robin farley has been flagging for several months that u.s. hotel occupancy has been declining ever so slightly while revenue per room being

collected had been due in part to higher rates and farley doesn't think roommates can continue to grow and demand does seem to be cooling. you'll get the latest credit card spending data pulled by jmp securities and they found that lodging and airlines are down year over year and airlines down 15%. analyst at gmp says investors are debating the valuation of booking which trades at 20 times earnings and jones telling us he would look at getting more positive on airbnb at a lower multiple and that's how the sales community and investors, kelly, are responding to some of the new data we're getting on demand. >> it sounds like hotels are still able to keep things going by higher rates. when did they start talking about any disinflation or price cuts and outright deflation? >> yeah. maybe it's a 2025 story, kelly. it may just have to be after summer because right now the demand story is still very strong. we're seeing certain cracks in the value-oriented consumer

bracket for hotels that appeal to a more value-oriented consumer and luxury is remaining high and the question is how does that market continue to perform post-olympics, post the summer. that can tell us how strong these prices stay. >> seema, thank you very much. >> seema modi. let's turn now with someone with a worldwide presence and hospitality in leisure and hospitality and that's the core group. the hotel operator is behind 45 or so brands behind the orient express, fair mount and they're in 110 countries and 1300 more hotels in the pipeline. joining me with more is the ceo of accor. please excuse my french accent. it's good to see you. >> your french is perfect, my dear. merci beaucoup. she came up with it. the whole block says the u.s. looks 44% are in europe and are you concerned about risks there? >> well, not really for my

industry. anybody who will be betting against hospitality is likely to be wrong because it's all linked to demography and emerging middle class and envy of traveling. we'll have the olympics and it will be a fabulous moment in france. we've had the european soccer cup playing in germany today, and i've been hearing your predecessor live on tv and we're doing just fine. we have the currency picking up and we have pricing stabilizing and steel is very strong and people have been telling me we'll never be able to cope with inflation and not only did we, but we had great results in 2023, and it's all a matter of demography and i won't bet against any of us. >> how about your u.s. properties? how are those looking? >> pretty good. we are in cities like new york and washington. we are in the suite of 5% growth less so than we could be in the

middle east which is way above 20%. less so in the middle east which is above 10%. northern europe is fragile, southern europe super strong, italy, spain, portugal, south of france is still very strong. so we're looking at a pretty good summer season compared to last summer season which is very strong. so, no, we are not blind, optimistic, but we have it in front of us. >> 20% growth in the middle east and super impressive and you mentioned the southern, spain and portugal areas and who is fueling this growth especially the rapid, high growth and in past years it is chinese travelers and is that the global population? >> chinese travel has been 50 million traveling in 219. we're betting on probably 80 million of them being back which is twice the numbers of last year. a lot of indian travelers coming

for the first time and still a lot of americans traveling in the summer and mostly from southern europe and the greece and it's a very different mix still be traveling and you have to be at the right place with the right brands. >> you said something interesting that asia travelers and do they have newence experiences they're saebing out or is it a new motor of growth for you? >> a third of india is the emerging middle cass and what they have today is the capacity to travel and the indigo airline is the largest airline in india has 30 international hubs from seychelles and singapore, bangkok and the middle east. they have a capacity to travel and a way of traveling and there are only 14 million indians traveling today.

count five years, and there will be well above 100 million indian traveling along with the chinese and americans. india is the biggest bet for each of us in terms of wrel coming flu travels. >> as we debate who going on with the consumer over the next 12 months. will travel slow down before a broader slowdown was coming? would you have early warning signs or no? >> yeah. we have early warning signs with pricing and it's going to be increasing a couple of years ago, but again, you had to compare one thing which is critical. you have a demand in the world of people traveling five to years, and the supply is extremely slow between 1.5 to 2%. you'll go three times the matter of the supply and it was two times the supply, so what you need to really watch is the number of new hotels being built

and those are many more because of the stocks and they were taken biinvestors. do they pace turlg the hotels in the pipeline. let me ask as a kwienl question and it changed a lot of people's potential travel and there are some of us saying after having done it a few times maybe there's something for the experience. >> i think we've been able to cope with one another. anybody's going to go for four or five days with four or five family members or friends, likely will go for an airbnb which i don't like, but they are and the same person going for less than two nights or less than two persons would likely not stay in a airbnb. i have to do a better job of

seducing those five people with five night because they will offer them the ability to meet somebody in the bar, the restaurant, local community which you cannot do, but they don't meet anymore. >> welcome to my world. i will get you the cross cultural experience that your guests are looking forward to get. >> i think it was one late night in, you know, eastern europe and i couldn't get in. now it's so expensive and it's nice to have the housekeeping. i don't have to tell you. sebastian, thank you for joining us today. i appreciate your time. >> thank you for inviting me. >> sebastian basen, ceo of accor. while it shouldn't affect the price a third of the names on the list are hitting new all-time highs today, broadcom, chipotle, lam research and nvidia in thee buys and a bail. that's coming up. "the exchange" is back after this.ping t

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spouses of u.s. citizens. according to "the wall street journal" the program would give them work permits, and expected a path to citizenship and it follows the asylum ban at the southern border to lower illegal crossings. texas, louisiana and mississippi sued the u.s. government today to block the biden administration's proposed new rule requiring the offshore oil and gas industry to pay $87 billion to dismantle oil infrastructure. it would apply to companies without investment grade ratings or sufficient oil reserves which applies to about 75% of the operators in the gulf. and disney is mailing out checks in its $9.5 million class action settlement over its dream key passes. the $1400 passes to disneyland in california allegedly misled custom customers into believing the program had blackout dates. disney denied wrongdoing and

they agreed to settle to avoid a trial. kelly, back to you. tyler, see you soon. thank you very much. tyler mathisen. coming up, we'll take a deep dive into the world of deep fakes with an expert ai artist and look at the rising risks to november's presidential election with former u.s. senator heidi heitkamp, and as we head to break, cnbc is celebrating pride month throughout june. here is goldman sachs partner liz ♪ ♪ i'm extremely lucky that being at goldman sachs was a place where i felt safe and comfortable coming out, but i'm also aware that i have colleagues in the industry that don't know if they have that safe space or they may not at all, and so when you celebrate pride month and when you are a consistent ally throughout the year you are letting the people around you know that your space is a safe space for them to be out.

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♪ ♪ we stand with ukraine. we will ensure that ukraine has what it needs to free kyiv from russian occupation which has lasted for ten years. >> that was not president biden speaking about the

russia-ukraine war. it was a deep fake that was circulating back in march and it could be just one of many more as we are less than five month away from the presidential election. states for their part have been trying to fight their fakes. 16 have laws on the books with more than a dozen others on track to do the same, but how effective are these laws in combatting deep fakes and how difficult is it to identify them? let's bring back people with expertise in both areas and co-founder of pinscreen and heidi heitkamp is a cnbc contributor and it's good to have you both. >> how wide spread are we seeing this issue right now? the appearance and arrival of deep fakes? >> people are observing an increase of ai-generated media. there is a lot of new capabilities out there. not only deep fakes, but also new, generative ai products that allows you to easily generate videos, images out of just text

prompts. >> right. exactly. i guess one of the other ways of asking this would be in a moment where we're psycho analyzing every video we might get from president biden or former president trump to see what their cognitive capabilities are like and so forth. how do we know if that video would have been digitally altered? >> first of all, it's becoming increasingly difficult and all of these models and new architectures for training these technologies are becoming outperforming. things are really hard to detect now a days and i think we have to rely on advanced ai detection technologies and use common sense. so it's really hard to look at artifacts and those things are disappearing slowly. >> senator heitkamp, let's show biden that was making the rounds

and then we can show the video of president biden from the same moment. it appears to show him wandering off, as you can see, generating tons of headline and reaction to what happened in this moment. there's the italian leader trying to bring him back and then we can also show the video of what -- that being looked like in real time and here's the actual video where you see it from a different angle kind of what was going on and more context around the situation and soing for the. >> i guess my question would be, you know, where does this fall if we are so concerned about deep fakes and just simple editing or different views of the same kind of material, senator, can also result in confusion? >> i absolutely, the technology has been there to use slow motion, to try and use other kinds of technologies other than ai. the thing about that video is it was first -- not altered, but the dimensions was changed by the rnc and was picked up by "the new york post," it was

spread broadly at one point i think 3 million hits. guess what? they have reputational risk and that shouldn't have happened. when you hear the explanation of what president biden was doing it makes perfect sense that he was watching something off in the distance, but it makes it look like he was staring at nothing. i call on the dnc, the rnc and all of the limit mat political organizations to stop it. i mean, if you want to play a video, play a video, but make sure it hasn't been altered. the problem with ai is that it is so intuitive and most people can use it and so it can really fall in the hands of a lot of nefarious actors and people who don't have reputational risks especially before and afters who may have a stake in this outcome. and so this, i think, it goes back to common sense. you will not have an easy way to figure out whether this is real or not. i always tell people if someone wants you to look at this and

say isn't this horrible? you should automatically think maybe that didn't happen. maybe i need to find out if that's actually what happened and what the voices actually said. >> it's difficult how to find someone on your own thinking how do i search for -- am i searching tiktok? what do i have to do to figure that out? just showing the capabilities that you have where there are videos where you can intake someone's space and quickly create a digital replica where they can appear to be saying anything and they can speak in different languages and this technology is evolving rapidly. >> absolutely. i think one of the examples you can see over here is that, you know, this is our latest technology and you take a single photo of any person and you can easily bring it back to life and you know, this is showcasing how rapidly this technology is evolving and even though most of the used cases are for reality

capabilities, you know, people can easily misuse this for other purposes. >> it's one thing to create a law saying you can't create a fake video and put it out as a fake thing, and i'm sure we'll see widespread adoption of that and we already have and it's another thing to explain what you can and can't do in editing and altering content. >> there's technology now that if you take a bunch of pictures, the technology will combine them and find the features that are most favorable. these are easily accessin techs that anyone can get access to. if you're looking for regulation, forget it, the fec can barely figure out how to regulate financial contributions much less this area and states really are not going to have the capability and so this is very dangerous territory that we're

in. amy klobuchar's bill is probably the closest that it's come to penalizing this kind of behavior, but right now what is the penalty? especially if people are foreign actors and are doing this offshore to determine what's going to happen in our election, and this is happening in other countries, as well. >> how -- final word on what you think might be coming down the pike in that sense. >> well, i think that -- >> sorry, hal, go ahead. >> no, i think, yeah, stricter penalties are a good option. an even better option would be to also regulate social media platforms, tech companies, you know, to basically enforce, you know, watermarking technologies to identify if something has been ai generated and if some of the services are being used. >> senator, final word. >> well, if you look at what is

actually happening in the video that you showed, the rnc should have known better, and the problem is that once one group does it the group looks justified in doing it, this is a slippery slope. at some pointthere needs to be accountability and i don't know how you do that when it's less than five month away from the election. >> hal lee, heidi heitkamp, we appreciate your time. >> before we head to break check out shares of autodesk up 6% and leading the s&p after starboard revealed the half billion dollar stake. the activist investor raising concerns about an internal ouvestigation that resulted in the ster of the company's cfo. we'll get an update on the other big movers next.

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welcome back. quick glance at markets. the dow erased the 157-point loss to be up a third of 1% and today the s&p is hitting a new high 5475 and of course, we saw a bevy of raised price targets and evercore to 6,000. we have strength in consumer staples. the group is close to surpassing utilities to become the third sector year to date. you can see the race here. that strength is playing out with names like costco, colgate, palmolive, church and dwight and kimberly-clark all hitting new all-time highs. these new names along with walmart are the staples so far this year. costco leading the way up 30%. on the flipside, paramount shares are hitting the lowest levels since 2009 less than a week after controlling sherry redstone terminated the talk with skydance and red bird and kkr. the shares are below $10 today and you see since 2009 until today they're down over 4% over the very long period of time. >> coming up, broadcom, the

latest to announce a stock split joining the likes of nvidia and chipotle. shares are up 25% since then, our trader isn't entirely convinced. the name he is splitting with next.

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welcome back. stocks blitz are certainly back. we're trading some of the biggest ones so far in today's three buys and a bail. our trader is jeff kilburg, founder and ceo at kkm financial and a cnbc kricontributor. thanks, jeff. appreciate it. broadcom is up. semis up 20% since the announcement. do you think the momentum continues here? >> it does. broadcom is a buy because of the momentum. it's interesting. we'll talk about the stock splits. like in 2024, it means buybacks. fundamentally, for all those years prior to this year, you haven't had a reason to buy a company due to a stock split. when you think about the price being reduced. at the end of the day, broadcom has room to run.

it follows the other semiconductor, nvidia. we'll see this market move higher. up 20% in the last two days. here we are at, you know, 18.30 as the sixth largest semi. it feels like this is at a dis discount. it is under $1 trillion. nvidia above $3 trillion. why not buy it on discount? it is more of a momentum play. i do also get excited about the fact they bought vmware, and it'll help them be more diversified if the air comes out of the a.i. balloon. we do see the way they're working toward networking. that's about 40% of their top line. i get excited a little bit over diversification. >> all right. real quickly, follow up, what's your strategy now with nvidia itself, jeff? >> well, nvidia itself, we'll get to it at the very end, i think, but it is interesting to see this move. they talk about the stock split. added $1 trillion, with a capital t, subsequent to the stock announcement. it is moving higher, like the

pedal is stuck to the mel tal. we'll look back at this conversation, if it's a day, a week, a month from now, but this isn't over. the parabolic moves are widowwidowmay makers. >> chipotle, 50-1 split announced a while ago, the biggest in history. they had to wait for a shareholder vote and will split in two weeks now. shares are up 20%. do you stick with the stock here? >> i think you do. it's not cheap by any means. i want to be a buyer of chipotle. 59 times, near the all-time high in the last five years. when you think about this company, i know it is almost like a microcap, only $91 billion market capitalization, but i think they're continuing to expand. they're actually eating and stealing mcdonald's lunch. $20 for a happy meal or big mac, why not buy a $14 or $15 bowl. the food seems fresher, and

you're seeing the momentum at think chipotle. it'll move higher. 3,367, it'll head higher with the massive split. >> walmart kicked this off the end of january, a three-for-one split, and shares are up 20% since then. they're up 14% since the split took effect the end of february. you're sticking with it despite concerns about the consumer. >> no, i am. if the consumer does show a little more weakness, because there are cracks in the consumer, i think walmart thrives in that situation. almost buying walmart or staying with walmart is almost like a hedge here. if you think about this name, $550 billion company with 10,000 stores globally, they're reaching so many folks. yes, this is trading at a very high pe compared to the five-year average, but i think it makes a ton of sense here. we are seeing 240 million customers served weekly, globally. as they continue to maybe think about a.i. or think about more

reach, they have the audience. i like walmart here. if anything, kelly, it is an offset if we do see, for some reason, a.i.'s air come out of the balloon. >> let's get to the bail. i should have known that it would be nvidia. we talked about it a couple weeks ago before earnings. they announced d the 10-for-1. since the split, up another 8%. don't know if you caught our conversation with rich bernstein the top of the hour debating this question. do you stick with the leadership with the massive earnings growth or go with the rest of the market? you've been clean on your views on nvidia. why are you bailing here? >> i think you have to look at where everyone is listing on the boat. right now, if you look, there are 89 buy ratings, 5 holds, zero sell ratings. this is a company, when they talked about their stock split, which was needed, when they talked about the split, you saw the market move higher. it is up another 10% since that announcement after actually it split. here we are, added $1 trillion, kelly.

i think we're socon d condition the numbers, but it's crazy. bob was talking about xlk, rebalancing and moving up. we have to understand, if we're buying these names because the retail have access to it, let's take a step back and remember that the 10% of the wealthiest americans, they own 93% of the stock market. i think that retail input is a little bit of a misnomer. >> i'll tell you this, i was at a fundraising meeting the other night. they said, where are we getting the money from? everybody said, from stock profits. that's all people have. people were piping up and saying, yeah, all the kids at school own nvidia. >> yeah. no doubt about it, it has been a phenomenal stock. it makes a ton of sense to own this. but i think at some point in time, when we talk about how the rubber meets the road, the stock is up 800%. i think we have to be considering the air may come out of the balloon in nvidia. >> jeff kilburg, three buys and a bail appreciate it. >> see ya, kelly.

>> that's it for the exchange. i'll join tyler on the other side of the break. d bond's age renew formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond.

♪ good afternoon, everybody. welcome to "power lunch." alongside kelly evans, i'm tyler mathis. glad you could join us. forget the magnificent seven. it's all about the big three. you have apple, microsoft, and nvidia, nearly $10 trillion worth of market cap right there. nearly a quarter of the total s&p 500. so which of these three is best

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