>> if something doesn't fall off and the droid comes out. >> they wanted to get rid of side mirrors to increase the range, couldn't get approval to do so. >> thank you for being with us. >> thank you for having me, a lot of fun. >> really enjoy it. >> thank you all for being here as well. thanks for watching ""power lunch"". >> "closing bell" starts right now. i'm scott walker, live from the new york stock exchange. make or break hour begins with mega cap tech name reaching a new milestone today, and it's not nvidia. strike up the band. it's amazon. topping $2 trillion in market cap for the first time ever, we will talk about the stock's supercharged comeback with a shareholder who's buying more today and we'll do that in just a little bit. in the meantime, take a look at the score card with 60 minutes to go in regulation, get the feeling from looking at the major averages at a there's a pretty big wait and see ahead of friday morning's pce, inflation report, no big bets being put on

the table today as a result. yields, though, have been creeping up. and that's something we're going to keep our eye on over this final stretch as well. there's the ten-year. at 4:31. i did mention nvidia earlier. yes, it is in the news and it is important today. the company holding its shareholder meeting and talking up its next generation of a.i. chips as well. we'll have a report on what ceo jensen wong told his investors this afternoon. it takes us to our talk of the tape. the amazon resurgence, how it's happened, and where the stock goes from here. let's bring in cnbc's kate rooney who covers the company, along with amazon's shareholder stephanie link of hightower, also of cnbc contributor, good to have you both with us, steph, i begin with you, because you're the person i'm talking about. who bought more stock today in this company, tell me about it. >> i've been involved in this name for a while, scott, as you know, but i was under weight relative to the benchmark and i wanted to go overweight after

i've done a ton of tanl checks, momentum is continuing on top line, margins, and bottom line. if you step back, north america margins have now beaten for the five consecutive quarters, and i think they're going to go from something like 4.2% last year to midsingle digits. that's the guidance. when i look at the components of that, retail is seeing a lot of momentum, and retail margins are still well below pre-covid levels, you're going to see that healthy overall margin structure. and then, of course, you have advertising, which is growing at 24% year over year, those margins are 42 to 43%. and as the economy remains strong, advertising certainly is a tail wind, at least the trends that they will see. aws, they've had a 35% market share, growing upper teens, only 10% of the workloads are on the cloud, so i think the momentum continues, and they've gotten their groove back, for sure. that really had been the issue that they were struggling with, for a couple of years, and then,

finally, scott, the logistics business is seeing amazing efficiencies. so, they've went to this regionalized strategy. and now they're seeing 45 cents per unit cost reduction, as a result of this strategy, and, of course, we know last year, they delivered $5.9 billion deliveries, packages, and they're actually -- they now have up to 27% of market share and they're growing, with a higher market share than fedex and ups, getting close to the u.s. postal office as well. i like all this stuff. i look at the valuation, one last thing, trading at, not cheap, but 13.9 times ebidta, the last five years, traded at 17.8 times ebidta. i wanted to make it bigger. >> kate rooney, can she have knee mentions the company geting its groove back. let's put up the three-year chart again. it shows the company that lost its groove. from a stock performance standpoint. my question to you is, how they've done it. how have they gotten this groove

back? and, look, you can call this run and the stock stealth if you want, maybe the last leg of it has been still thstealthy becau nvidia sucked the oxygen out of the room. look at that move then. that's a three-year chart we're showing you, you lose something and dpagain it back. how has this happened? >> it's andy jassy, and it's efficiency, the founder of amazon, the face of amazon, at a moment when it was really taking moon shot bets, trying to really do everything and do it well, and andy jassy stepped in, brought more efficiency and more discipline, something we saw across tech with layoffs and they did a lot of investing in the dip period you see there, spent a lot on what steph was talking about, regionalization, getting more efficient, making delivery faster, which was an investment cycle. they're on the other side of that, seeing it pay off in north american margins, e-commerce is bigger deal for the sell side, talked so much about aws, and

a.i., this year, which is still sort of an open question for amazon, i think they're seen as a laggard behind the other hyperscalers. you look under the hood at e-commerce and the margin stu structure there. jp morgan writing last week how they're bigger than walmart this year, bank of america, talking about shipping and logistics, really being part of the upside. it's one of these mega cap tech companies and gets you exposure to consumer discretionary, a hedge there, and i think the chart really does say it all there, scott. >> i was going to say, it really is, as you say it, it's like a two-prong skoir hestory here, t discretionary part of the business. mature, no doubt, but nonetheless still obviously an important part of that business, but then you have the a.i. play, partnerships they've done with anthropic. a laggard, has made it more competitive in the a.i. arms race as well. >> i would point out, scott,

too, a big leadership change at aws, matt garman took over, and he's seen as the leader, really a technical sort of engineering type who's been a long-time amazonian, he has the respect of executives you talk to at amazon and is seen as the person who's going to lead them into this next era of a.i., where they've seen it so far as sort of behind, not having one of those leading large language models and just relying on these third party investments. there's a lot of excitement around the potential for amazon when it comes to artificial intelligence, you know, they've said from a revenue perspective it's already a multi-billion dollar run rate opportunity and they're seeing it pay off. i think that's another thing to point to with aws and he just took over in the last month or so. they're seeing more upside there and more opportunity. they have to be quite careful. you've heard andy jassy talk about them not being able to do any sort of m&a, the i robot

deal. goldman had a note out earlier pointing out the massive stake in rivian, estimating $500 million positive mark for amazon. near term move. the upside in rivian today, not a bad thing at all. >> do you feel like this momentum has legitimate legs? we're going to be talking about a.i. every day. we already are. talking about nvidia every day, and we're probably going to be doing that for the foreseeable future and looking at stocks like meta, which you've been in too, which has had good performance in its own right. as well. is there enough momentum to keep this stock climbing? >> i think so. and i think it's not just a top line story anymore, which is what it had been in the past. prior to the new ceo, right, or fairly new ceo. now you have the margin story. that's why it's so incredibly important. we talk about margins, and operating leverage, and the

power of that. and when you have the two, when you have revenue growth in the double digits, and you have operating margins expanding, that leads to massive bottom line numbers, growth, and i think it's just underappreciated what more they can do. that's why i highlighted the north america retail, excuse me, north america margins are going higher, driven by a lot of things, not only retail in advertising, but also lower shipping costs that are en envennatory management, automation, that piece is set to go higher and aws, certainly benefiting and i love that they've gotten back to the industry leader and upper teens growth is huge for this company. they're massive. so, i think those two pieces, along with all these other efficiencies that they're seeing, because they had a massive logistics investment cycle. and now, they're starting to see the benefits of that. so, you think you have a couple of different ways you can win here. >> looking up at the nvidias,

the apples, the microsofts in terms of market cap but this is a significant day and milestone. kate, thanks so much. kate rooney putting everything into perspective for us. steph, stay with us. let's bring in brian levitt of invesco, and max kepner, joining us now. brian, good to have you with me on set. amazon is a good representation of go where the money is. the money has been flowing into these kinds of stocks, is that how it's going to be in the second half? >> ultimately in order for the market to broaden you need a type of catalyst and you have an economy that's slowing a bit. and so the weight is now on the fed. the fed lowers rates, normalizes the yield curve, the market could broaden out but the reality is market has priced in a couple of rate cuts, doesn't seem to want to do much more and the economy is slowing a bit in the united states. >> is that the only catalyst we

can look to for a lasting, broadening of the market, you get the actual cut first and then the market's comfortable enough to start broadening out, we start having money coming out of growth tech and a.i. trades and other areas? >> we saw the blueprint for it in november and december of last year when the market priced in six rate cuts and you had a huge rally in small caps and midcaps, and cyclicals, and more value oriented. this year, as the market has been pricing out, the rate cuts, the leadership has gone back to the mega caps. so right now, we're in a -- this environment where the market is sort of aligned with the fed, and what you'll need likely is greater expectation coming into this market that the inflation st story is really behind us. the fed can lower rates and the soft landing happens. >> max, how does this market look to you as we're about to head into the second half? >> it's still risk for us. it's still an environment where we still want to be overweight at. we're maximum overweight in high

yield credit. things are genuinely looking good. i do note, however, one of the risks for the second half of the year is on the inflation side still. i know it's pretty boring and we keep talking about the same thing over and over again, and, you know, you guys just mentioned that the start of the year we had six, seven rate cuts. now at like close to two rate cuts by the end of the year. the problem that i see, when we look at short-term inflation expectations at the start of the year, if you look at two-year break evens for example, two-year market-based inflation expectation. we started at 2%. and the market decided end of last a year, okay, inflation is done, we have downside surprises, pretty much done, the fed needs to cut very, very aggressively. and then obviously we have this january and february story, around residual season. we had this merely eight basis point upside surprise in headline inflation in march and that meant the market free cap. remember, two months ago when we looked at the number stories mentioning things like stagflation, they were shooting

higher, nate, people were really talking about stagflation, the worry i have now is that market-based inflation expectations have made it round trip, back to 2%. we've buried the inflation theme a little bit too prematurely at the start of the year. >> this friday's pce report could be the deciding factor as to at least the start of the second half. how that gets under way. >> don't think it's this one, we've got to think we've got the cpi, the ppis, i don't think it's the pce this week. i do think it's -- it could be something in the next couple of two or three months because obviously the market is growing a bit more confident with the september rate cuts. so as that perhaps has started to be called into question, right, because we do see inflation a bit sticky, and stickier than thought, that is really, i think, one of the biggest, biggest risks. it's not really on the growth side. i don't think it's on the growth

side because when we look at some of the common surveys, they do suggest that economists, again, and strategists again on consen consensus increasingly expecting a deceleration of the u.s. economy going into the second half. we've had these negative surprises but let's remember most of those negative surprises happen on the soft data side, the surveys, consumer confidence, pmis, all the stuff that's underestimated growth in the last two years anyway. i'm a bit concerned that, once again, we might see one or two data points on the growth side that surprise to the upside, and we're going to get another couple of days like today where yields shoot higher and at some point it's going to affect equities. is it going to derail equities or high yield? absolutely not. it's good for a couple percent of setback here or there but those are continuing to be buying opportunities. >> agree? >> i think the other side of that, actually, when it goes to that inflation growth debate. i'm on the same side with regards to risk assets, that's the irony of it. i still favor risk assets as

well, but i take the other side with with regards to the growth inflation debate, i believe the inflation story is increasingly passe, we already have the core personal consumption expenditure, the fed's preferred measure at 2.75 in a world where the fed funds rate is five.25 to 5.50. that suggests it's too tight to me. i worry about starting to see a little bit of cracking in the labor market, not crazy, but a little bit of weakness, a little bit of weakness in empire pmi, you're starting to see a little bit of weakness, and what i worry is that if we're too focused on inflation, we're focusing on the wrong battle. and so, i would like to see the federal reserve start to lower rates. i would like to get out ahead of that, rather than wait for cracks in the economy. i suspect that a recession is still not the base case, but i would argue that growth is the bigger risk than inflation. >> funny you say that, i mean, that's the view largely of

mohammed olarian who suggested the fed is already late for many of the reasons you suggested, he would suggest they do cut preemptively to prevent the economy from falling out of bed unnecessarily. steph, you know, the risks around the fed, we haven't obsessed about the fed a lot lately. we haven't, we've been obsessing about nvidia, we've been busy and for the right reasons. we wrote the fed cut off for a while. we haven't had to think about it. now we're going to get a pce, and it's going to bring that back into focus as to whether maybe july should be a live meeting. maybe the market's underestimating that. we just don't know. >> i do not think that july is a lie -- i don't think september, and you know i've been thinking that perhaps nothing at all this year and the reason is because while we are making progress on inflation, and i do expect a decent number on friday, we are still seeing pretty decent growth. i mean, yeah, sure, we can talk

about housing wall we want. it's very mixed at best. but, you have home prices are higher. that's good for consumer confidence. you have pmis that are both manufacturing and services are both in expansion mode. you still have historically low initial claims. i add it all up, scott, and i don't think it's the 3-1 in gdp that tracker is going at right now. it's 2%. 2% gets earnings growth, revenue growth, with a little bit of margin help on the inflation front coming down. i think you can see double digit earnings, and that's what stops and investors that invested stocks carried the most about. i think earnings are going to surprise to the upside. if the fed comes back into the discussion it comes back into the discussion but it's the data that we have to pay attention to. we have to see where the economy is going to grow. i think it's going to be 2.5%. >> the kinds of stocks, outside of amazon, let's say, the kinds of stocks that you favor, i'm surprised that, you know, you think those are the kinds of

stocks that are going to do well in an environment where you think there aren't going to be any rate cuts, and, i mean, let's be honest. the economy is slowing. from where it was. and there are some significant signs that the consumer is too. from data that i saw today about, you know, dining out less, and things of the sort, that how is the cyclical trade going to work so well if you don't get any rate cuts, and the economy is already starting to show some signs of cracks? >> well, sure. third quarter we grew 4.9%. so, if we just go back to 2, 2.5%. that's still above trend, but certainly it is slowing but it's not recession, in my mind, number one. number two, i think not my entire portfolio is cyclicals but that's where i see the value, especially in the financials, especially in the industrials, we talk about onshoring all the time. we talk about the very strong

backlogs that these companies are building that really haven't even been recognized yet. i think energy is sort of interesting, too, as you know. but on the flipside, look what i just added to. i just added to amazon. >> i said outside of that. i know that. i've got you on that. you added the home depot. >> outside of that, i have added to a couple of different things, like we talked about c-gate, we talked about lam research. i just added to home depot. i don't think that a 4% drop yesterday was warranted and i don't think it's totally underperformed. i do think we are at a trough in -- or the low point in housing, especially since the 30-year fix has gone from 7.8% last october right now it's at 6.9. i think it's going to continue to come down. i think interest rates are going to come down gradually. this company is the best in the business. trading at a four-year discount to its average. it's easy comparison, just made

an acquisition. so, they feel good about their business overall. and i think it's just going to take a little bit of time, but i do think housing is certainly an area that i still remain very positive about. >> you're going to take the other side of that trade as well? >> look, it depends on the time horizon we're talking about here. you think about housing over time, it's structurally a good story, this is a country a lot of 30-year-olds, not enough homes available. my point is just to say that things are moderating here from what had been a very strong environment that had some -- that had some power to it from all the stimulus we provided. >> my point is this, if these kinds of stocks aren't working all that well when the economy is doing very well. >> why in a slowdown? >> why in a slowdown or a slightly more moderate growth environment are they all of a sudden going to start doing well? >> right, the expectation would have to be, again, what we talked about last year, the six

rate cuts. >> what about rate cuts? >> on top of that. >> you would need rate cuts without the recession, right, that is a good place for markets historically, that is a good place for cyclicals, and you would need the expectation of that. right now, where we are, slowing, and investors not expecting a lot from the fed, i think that, you know, in many ways that, you know, the mega cap story continues. >> it's certainly continuing today in terms of the stocks we talked about at the top with amazon, and steph buys more of it, 2 trillion in market cap. guys, thanks so much. max, talk to you soon, steph, you as well, and brian, thanks for being here. we have news out of the cdc. angelica peoples is here with breaking details. what are we learning? >> we are getting new rsv vaccine recommendations out of the cdc's vaccine advisers, they're now recommending that everyone 75 and up get an rsv vaccine if they have not already. now, they're saying that people between the ages of 60 and 74 should get one only if they're at high risk of serious illness, this is a change from last year

when the cdc said that everyone 60 and up should consider getting it, in conversation with their doctor. and it sounds like it's a little bit of a nuance here, but they're trying to make it so that people who are at highest risk actually get this vaccine, and they're saying that they found that this is the most cost effective because these shots are about $300 a person. and, it's interesting because there was some talk about maybe moving it down to 50 to 59. but here, we are seeing 60 still as the floor. now, remember, there are going to be three rsv vaccines available, there's one from pfizer, gsk, and now moderna. you are seeing moderna shares down sharply today because they presented some new data showing that their vaccine doesn't look to be as effective as the other would bes after about a year and a half. so, we'll keep an eye on this and come back to you with anything else. scott? >> we appreciate that update, angelica peoples, thanks so much for that. and now to pippa stevens for a look at the biggest names

moving into the close today. >> general mills lower after a mixed q4 report, the maker expected a bigger drop in sales with lower demand in snack bars and pet food and higher input costs. eps beat the street but the company's annual profit forecast is below estimates due to cost pressures. and albemarle, up 7% after telling reuters it's planning more lithium auctions in an effort to increase transparency, the company losing half its value in the last year amid a collapse in lithium prices. scott? >> pippa, appreciate it. pippa stevens, just getting started. navigating the tech trade. deep water asset management doug clinton is here with his playbook for that sector and the names he's betting on right now. live at the new york stock exchange. you're watching "closing bell" you're watching "closing bell" on cnbc.

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welcome back, big tech closing the first half, nasdaq 100 is on pace for its best movant year, and three of the mega caps hitting record highs to the, joining me now for a look at the second half setup is doug clinton of deepwater asset management, good to have you back. >> good to be back, scott. >> nvidia is dominating the conversation, i'm sure people are getting tired of talking about it, but it's impossible to avoid. what do we make of the price stock action of late, what does it tell you? >> it's a healthy reaction to what has been a powerbolic move, look at the stock up over 100% year to date and it's now one of those trillion dollar companies you just talked about, scott, i think it's healthy that we're seeing these drawdowns of 10, 15%. look back at the dotcom

movement, another era where we did have this technologically driven bull market, several periods where the market pulled back 10, 15, 20, 25%. that's part of the adjustment as "fast money" comes into some of these names, not caring much about the earnings growth, the actual product, caring more about the momentum, then they wash out. we're going to see more of those things happen in this a.i. tech boom which we still think is going to last another few years. >> you talk about market volatility in those periods of time. we've had next to no market volatility, i think i saw the stat was something like 330 some odd days since the s&p has had a one-day move of 2% or more down, i mean, does that shock you? >> we've been spoiled. i think, so far, by the a.i. trade. it's felt too easy. i think in a sense. and i do think we're due maybe for a readjustment period where people start to think about and

we've seen more talk about this. is the capex that's going into a.i. right now over $100 million a year, close to $200 billion in these chips and building out data centers, can we get economic value for that in the future. that discussion feels like it's heating up right now. there's a timeline mismatch we have to manage as investors. i don't think you're going to see the return on this huge capex expenditure we're having in a.i. right now next year, or even the year after. i think it's a three to five year picture you have to get comfortable with for these scalers building out these data centers to make their money back on these nvidia chips. >> do you think there's too much euphoria in the market around all of this? i had eric jackson on the program yesterday who said it could go to $6 trillion. so essentially double in every way, shape and form from here, and the valuation will go over 70. >> i don't think there's too

much euphoria about a.i. in general. i think for nvidia, that feels like a more aggressive price target. as i hear it. that's supported by earnings. that could happen. i don't know that i see earnings where we might double again in terms of what's being spent on chips in the next year or so. i think that might be something that's more reasonable, looking out two or three years, that feels more probable. i think a.i. broadly, again, micron talked about this last quarter, they're in the heart of it, they said we feel we're in the early innings of a multi-year growth phase here driven by a.i., and i still think that's true. you want to be exposed to a.i. hardware in the public markets, and at deepwater we invest in the private markets, you find good a.i. software companies in the private markets to invest in as well if you have exposure to that. >> i don't want to blast through micron too quickly. you own the stock. they're going to report in overtime. chips have been dicey lately.

we're not just talking about nvidia, the price action and a lot of names within it. they haven't traded all that well. how important is this tonight? >> i think it will be potentially a volatile move for micron and i think about it in time scales. in the shorter term. because we talked about "fast money" that's gotten excited about the a.i. trade i think it's hard to predict if micron will be able to deliver enough that that "fast money" investor will want to stay in the stock and bid it up tomorrow. if you're a longer oriented investor, we're in this early innings phase and we're still going to see increasing volumes and pricing for the next several quarters. as they continue to see the better volumes in pricing, i think the stock can still work. >> doug, we will see what happens. we'll talk to you on the other side of it. that's doug clinton from deepwater. despite poor returns flagging reasons to be bullish on this

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welcome back, nasdaq looking to close out the first half of the year with solid gains, the hedge fund market not enjoying the same strength. here to share how that space is looking heading into the second half. the cities of north america, capital introduction. welcome back. >> thank you so much, great to be here. >> so it's not all roses and

lollipops in hedge fund land, why? >> they're outperforming cash and risk-free rates but not outperforming the s&p. look at the market. it's just gone up. you hire hedge fund for both long and short. and meme stocks came back in the spring and they continue to be a threat. those two head winds are really taking, you know, people's -- having people take stock of what's happening in the hedge fund space. >> they probably, and i'd love your insight on this, suffering maybe more than anybody else from the great divergence we've seen from index level to the individual stock level. if you're a fund and not overly exposed or heavily exposed to mega cap trade, what results are you showing? >> i think that is the question, is what is the value of stock picking in a market where it's really about the magnificent seven and very narrow breath.

there's optimism about volatility. i think people are saying in an environment of olatility, you see dislocation, stock picking can become exciting again. >> traditionally that's when hedge funds are supposed to do their best. they may not get all of the upside but they certainly are supposed to protect you from some of the downside that comes from increased volatility. >> may with the meme stocks you saw hedge funds with diversified portfolios, tight risk management, continuing to do well so we're looking at the story of hedge fund performance, it's not the upside, not just the downside of protection, much more relevant in the second half. >> how do you think a.i. is playing a role in terms of strategies, not using it, to pick stocks, but the kinds of stocks that you want to pick to kind of funds that are going to be coming around, what did i read, that one of the most famed investors starting an a.i.-focused fund. is that going to be become the norm? >> i think a.i. is a theme, it's certainly something you can ignore. look at sectors beyond just

tech, bio tech, energy, even in the commodity space you're seeing the influence of a.i. so, whether it's incorporating a.i. into an underwriting process or the influence of a.i. on the names that you own, it's something that you can't ignore, it's pervasive, and everyone's taking a look at it. >> what do you see in terms of multi-strategy, what's the performancecond half? >> i think the multi-strategies is a story of uncorrelated returns and protections of the downside. you're not looking for them to be the double baggers and capital compounders, you're looking for them to be steady eddies, they're raising capital. bigger ones are getting bigger. >> you mentioned the meme stocks returning, what do you think the impact is to this point on short funds. are short funds, when people ask you, are short funds still relevant in today's market, how are you answering that question? >> for short only funds you have to take a look at the concentration if your portfolio. the short funds of the past are highly concentrated.

if you want to survive you have to have a reasonable diversification and hedges for the long side. it's more of a long short story than short only story. >> speaking of the activist, has the activist pool, has it shrunk? you hear about the same funds doing the same types of things, but i don't feel like it's anywhere near where it was, i don't know, five, ten years ago, when i was covering activist investors every single day. >> yeah, i think it's episodic and opportunistic, and it's a function of the market, you're not seeing valuations be as depressed as they once were at one point in time for it to be meaningful to run a campaign. that's the most important thing, how much can you come process that spread. that's got to be an important consideration if you're an activist. >> thanks for being here. up next, we're tracking the biggest movers as we head into the close. pippa stevens is standing by with that. >> one discretionary name is popping on a possible takeover. we've got all the details coming

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about 17 minutes still to "closing bell," pippa stevens has a look at the stocks she's watching. >> shares of paychecks are

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morning. before we start putting chips on the table again. >> it feels that way. it feels that the default mode of the market is just general service level, calm, allowing things to move around underneath, but not really getting rattled. today is interesting because backing off in nvidia and it's not really small caps in the majority of other stocks that are taking up the slack, it's the other big ones. >> apple is up 2%. >> it's basically non-semi-mega cap. >> amazon 4%. >> it again reenforces this idea that people are happy to maintain general exposures out there to the market, as we sit here all-time highs, worth engs the s&p was the day before nvidia peaked. it wasn't as if we're ignoring everything, there's just enough demand or lack of people wanting to get out from for macro reasons that were fine on a market-wise basis. mindful of two-week highs on your treasury yields today, mindful of the fact that the u.s. dollar index is pushing the

upper end of this one-year range, again, not because of anything alarming going on, but just because around the edges, you're taking back some of that confidence in a disinflation story any absence of real evidence, one of those things we're getting antsy ahead of the event. >> ten year, 431, dollar yen 160. >> that's drive ago lot of the strength in the u.s. dollar index the weakening of the yen, so, you know, again, it's -- we've dealt with levels up here before without too much trouble but it shows you things are kind of shifting below the market's feet but still keeping its balance. >> want to comment on the amazon 2 trillion, talking about the milestones that mega cap techs are hitting, add that one. >> a little bit desensitized to the numbers, actually, not in a bad way, i feel as if it's kind of like why shouldn't amazon be at 2 trillion if we have three trillion dollars market cap companies out there as we do. it is interesting how it's one

of those, well, we haven't bought this one in a while. it really doesn't seem as if there's a heck of a lot elsing going on except for a general friendly environment, and the fact that you have the stair step action with some of the other ones getting a little extended, relative to, you know, amazon. >> the last leg has felt kind of st stealthy. we've been talking about everything else. welcome to the $2 trillion club. phil lebeau. talk to us the rally in tesla and rivian. >> the deal announced yesterday afternoon, rivian as addressed an overhang on the stock, how much capital it has, does it have enough to get to the models. the stock is surging today, $5 billion potentially invested by vw, into rivian between now and 26. that should tide them over to our production, and look at shares of vw and rivian, forming a joint venture. we're interested in investing in

rivian. they want something. who do they want. the software stack expertise, when it comes to evs, that's why they have struck this deal and also take a look at shares of tesla, steeple out initiating coverage today with a buy rating, price target of $265. they're bullish on the prospects for model three and model y sales over the next couple of years. >> mike, tesla is up 8% this week. >> yeah, tesla is another one, where it is more of the lagging effect, and maybe we already priced in the ev slowdown we've been talking about for months. it's interesting, on the rivian move because there's a little relief here, obviously now it has enough capital to attempt to prove that it actually can get up towards scale. we're talking about, i think, 55,000, 57,000 in terms of new production volume this year, for rivian, clearly way behind, and $23 # stock at the beginning of the year. so there's room for everybody to argue in this price range, of course it was well above 100

after it became public. i do think that we're getting past the oh, no, you know, ev demand is slipping and now it's about, you know, what's a proper and rational run rate? >> seema, we weren't going to get out of here today without talking about nvidia's share. >> this is to reflect on the latest product announcements and generating more excitement around the blackwell graphic process, which he says will likely be the most successful product in the company's history. >> the blackwell will be adopted by every major cloud service provider. server maker, and leading a.i. companies, including amazon. google, meta, microsoft, openai, tesla, and xai. >> and on the topic of competition, wong talked about owning the data center space and the importance of aligning countries like japan and canada developing their own a.i. capabilities. but, as expected this is a

shareholder meeting, no new news, the stock did trade down but off the lows of the day, scott. >> yeah, hang with me a second before we talk about micron. it got a nice move in the nasdaq towards the end of -- >> it's going up a dollar. >> i'm looking at nvidia, threatening to go positive. tesla up 5% today, now amazon is above 4%. a gainer as it tops 2 trillion. where the money's going. >> it's where it's going, certainly where it's not leaving and it's a down market type of thing, and everything nvidia says today is totally reassuring about the long-term story and i kind of thought that's what the trillion dollars in added market cap a month was about. >> yeah, right. >> what's in the stock at this point if that's not in the stock. >> the inevitable question. >> seema mody, what should we look forward to?

>> grabbed the spotlight, micron benefiting by providing memory and storage for those systems brings out a lot of buzz around high bandwidth memory product, including nvidia's h-200 gpu, the stock has run up over 60% this year, analysts calling on valuation concerns, channel checks suggest d-ram volumes are weak, allowing pricing to remain healthy. that's a talking point. and we have the stock up around 1%. >> seema, appreciate that look ahead, and we'll see what happens and obviously look forward to the ceo as well. and look, this is a good moment, truth of sorts for some of these other chip names, broadcom has not traded well in the last week. down double digit percentage points, we'll see what happens. but a lot of potential chip stocks hanging in the balance here. >> the market has run hot and cold in terms of how much credit to give the rest of the chip's, micron, talking about memory, it's kind of a different ball game. i do think it's still relevant

that every bullish thing you say about nvidia is, by definition, a little bit negative on the rest. not that there's not enough room for other players. you're at a point if you love it at $3.3 trillion, you've got to believe it has the better mouse trap for a long time to come and is going to basically serve whatever demand they possibly can. so, those are big questions, they're not something we're going to settle anytime soon. but, i do feel as if, you know, you can't just sort of across the board say, a.i. investment binge, and everybody gets their share. >> well, you know what, everybody was getting their share. and that is -- you make a really good point. that was how it was, now, okay, maybe now we're going to really parse, who's the real winner? who's the second or third or fourth players? the others aren't going to get to halo as much. >> it isn't really also just this kind of front loaded urgent boom that doesn't really have multi-year life to it.

who knows? we'll be arguing about it a long time. >> and out across the board, they're happy here, clapping and yelling loudly. the bell's ringing. there we go. we're green all the way across the majors, i'll see you tomorrow. well, late push higher for stocks with plenty of movement under the surface as amazon closes at a record and surpasses $2 trillion in market cap. nvidia comes back from its lows as well. that's the score card on wall street but the action is just getting started. welcome to "closing bell" overtime, i'm morgan brennan with jon fortt. >> a big hour of breaking news, in moments micron releases quarterly numbers, with stock up more than 70% so far this year, and earnings are coming from levi's and drone