stacey rascon. we'll tell you what to watch out for. stephanie link will be there, as well. dan ives, he calls it the most important earnings port for this market in quite sometime. jeff degraph, too, will give us an idea where he thinks this earnings report will mean. i'll see you on "closing bell." "the exchange" is now. ♪ ♪ >> thanks, scott. welcome to "the exchange." i'm in for kelly evans. here's what's ahead. here comes nvidia, that stock is lower about 2% ahead of the report. it's more than doubled this year, doubled nine times since its ipo in 1999, and our analyst sees another 16% upside. he'll join us. and shares of box up about 8.5%. the ceo is going to join us exclusively, fresh off of earnings with what went right last quarter and what elon musk is getting wrong about ai.

and we have the trade on three more names getting ready to report, include thing one. our trader says when the going gets ss tough, this stock gets going. but we begin with the markets, with nvidia and bob at the new york stock exchange. bob? >> good to see you, as always. we started out in positive territory early on but went negative and most of the problems that we see is due to selloff in tech. but it's modest, so look at the major indexes here. dow down about 150 points. half of that really is big-cap tech weighing on that. everything is down about half a percent. take a look at where we are in the big-cap tech. microsoft, salesforce, amazon, apple, intel, all the big five tech stocks that are in the dow jones industrial average. you add these up and it's more than half the decline in the dow jones industrial average for the

day. big drop in stupor micro. that was on a big report yesterday that was controversial. and you see that's now down 24% today. but elsewhere, look, and i think it's worth mentioning, we're about even on the advanced decline line. banks are up, utilities are up, health care is up, industrials. this is a pretty broad advance. and even the new highs are expanding. i've been talking about bank stocks recently. a number of new highs in banks today, including jpmorgan, pnc, regions financial, u.s. bancorp. the yield curve is getting flatter and flatter, two and ten-year yields are only separated by three basis points. that helps the banks. and that is good when you get a

more normal slope in yield curve. we've been talking about nvidia all day, down a bit today. the semis are all down a bit, waiting on the markets here. we'll want to hear about that blackwell chip we've been waiting to get out there, we'll get an update on that. and demand for ai in general. the bulls are hopeful that demand is going to be strong, and indeed, some of the comments from companies like microsoft seem to indicate demand is still very robust. why do we keep talking about nvidia? i'm trying to get this in a way that everybody can explain why we keep talking about it. nvidia is about 6.5% of the s&p 500 by weight. the entire consumer staples sector, all the consumer staple names, is 6%. energy is 3.5%. utilities are 2.5%. real estate is 2%. materials are about 2%. i guess what i'm trying to say, john, nvidia is bigger than five of the 11 sectors of the s&p 500. and that in a simple way

explains why we keep talking about it. it's a very important part of everybody's portfolio. >> very important. bob, we'll get those results in "overtime." it's going to influence a lot more than just its own stock. my next guest sees 16% upside for nvidia from here, writing demand for gpus is insatiable. he upped his price target to 145 earlier this week. joining me now is will stein, analyst at truist. what is the most important thing in this report? >> i think the numbers on the quarter and the guidance are always very important for additional reactions. but i think it's the longer term commentary. actually, i think those things tend to be more important for the stock to move over the subsequent few trading days. >> you point out there have been reports about the latest chip not coming out as soon or in as

great of volume as some hoped. but there's still really high demand for nvidia's product, and people will take a generational old, two generations old each. so how much does the -- i guess the availability of blackwell's matter at all, and how much does it matter to sentiment if we get some color from nvidia that says we feel fine about this, or actually, we've got enough stock of chips that people want that it's not something you need to worry about. >> i don't think this is a major worry heading into the quarter. i've contacted by channel checks that reveal no delay. so i don't know of any customer that's been told that they will have a delayed delivery. i know several customers that have product on order. i don't know that any have confirmed that the company told them there will be a delay.

so i can't say with certainty there's no delay, but i don't think it's likely that it's delayed. now, if it is, does it matter? not very much, in my opinion. the reason is that customer demand for gpus from nvidia are insatiable now. they'll take h-200, even h-100. whatever nvidia can deliver right now, and that's affecting the broader group of companies that address this ai need. not just nvidia, but there's a few others that have a similar dynamic. >> across the other stocks you cover, which do you expect to be the most affected by what nvidia reports? >> so there's a few. one is certainly amd. they're sort of the up and comer in this space. they don't have -- they have spectacular products to nvidia, but they don't have the same ecosystem. another one is broadcom. we have a buy rating on that stock. that company assists web scale companies develop their own

specialized ai chips. and then there are a couple of other reads like tesla, which is trying to build an ai training cloud service called dojo that's still in the process of getting worked out. and then a more off the run one is monolithic power. that company is a power management company, and these chips are needed as complementary devices to all of these ai vendors' chips. >> how much volatility do you expect in nvidia stock action, not just when the numbers come out, but perhaps even throughout the call, even in the first day or so after earnings? i recall the last couple of earnings reports, the stock wobbled after the initial numbers came out. but when jenson got on the call, talked about the quarter, it recovered quite nicely. >> i anticipate sort of similar reaction. i can't so much nail down exactly what the move is going to be on the print.

my understanding from reading other reports suggests that options are pricing in something more of a 10% move on the result, which is similar from what we have seen in the last several quarters. that sort of move wouldn't shock me in either direction. but when jenson starts talking about the longer term growth drivers that i think are very well in tact, and nvidia's position in the market, which i think is also well in tact as the number one supplier, i think the stock will continue to do well. >> nvidia right now is neck and neck with microsoft in the market cap race to the extent there is a market cap race, but apple has pulled ahead. it's been pretty much all year, a story of these three horses kind of trading places. to what degree should investors get used to nvidia being one of the most valuable companies, public companies in the market. >> we've written quite a lot

about this. we expect nvidia to be at or near the top for some time. you think about technologies that are being developed and how over the long-term these new and exciting things, even if you go through a period of disillusionment that longer term they become a major part of our lives. the internet comes to mind as a similar example. longer term companies that have a meaningful, let's say top position in such a market wind up having a very strong position longer term than we think. nvidia is like that. we expect them to be very large and among the stock market's most important stocks for some time to go. >> all right. we'll see how that story continues after today's earnings. will stein from truist, thanks for joining me. by the way, we have a new piece on cnbc pro looking at the importance of nvidia's earn togs the broader market. it shows how those results stack

up to macro events. full the full story, scan that qr code or go to cnbc.com/propick. and tune in to "overtime" today and we'll bring you nvidia results as soon as they cross and get reaction. the bar's high for nvidia, and my next guest says it's getting higher for the fed to cut by 50 basis points next month. she sees two cuts this year, each just 25 in september and december, less than the four cuts that the market is betting on. but it's not because of her confidence in the economy. she sees bifurcation. for more on what she's seeing, i'm joined by victoria fernandez. great to have you. >> my pleasure. >> so no 50? >> i think there's too much bifurcation in this economy. we've seen it in the consumer

for quite a while, now even the middle income consumer struggling. as we went through retail earnings, we saw how the high-end consumer is starting to move down the spectrum in what they're spending and where they're spending, walmart being a perfect example of gaining that share, because higher income consumers are looking for bargains, looking to see where they can get all those $5 deals we're hearing about everywhere. and look at the data coming in, john. lots of bifurcation there, as well. capital goods, take out transportation, that was negative. seeing contraction in business spending and some of the elements that feed into gdp. so i think we have to be a little cautious here, even though the idea of rate cuts coming at the next meeting is kind of buoying the stock market. >> so if we're getting all that contraction, why isn't that a signal that the fed's job has been mostly done so maybe we can more dramatically ease off right now so that the economic

signals, which have been mixed -- >> they have. >> -- don't get worse? >> i think that's why they want to take their time, why they're being very cautious and how they're signaling what plans will be. 25 makes a lot of sense for the first cut. we are not in a recession at this point in time. we thought we would be by now. but the consumer has held up strong enough to sustain the economy. so we're not in that rece recessionary time. the lags will be there, but i don't think they want to cut too much and then fan the flames of inflation by getting demand where it is. >> so what does that mean for stocks that the market is expecting for only going to get two, especially the small caps? >> it's the big call here. you have to look at what this leadership is looking like in the market. you look right now, we are looking at things like financials, health care, utilities. these are things that are leading the market. financials are almost 90% of

that sector above their 20-day highs. taking a little more defensive tope, looking at companies that have good dividends, solid earnings, good balance sheets. this is a defensive play for the market, so you want to be in there and take advantage of things, but the sectors we are starting to see are more defensive in play and where you need to be. >> why is defensive right this time? a year ago, every time the market takes a dip, okay, now it's time to go defense. that was the wrong move. if you had stayed -- if you had just stayed even with just the s&p 500 or stayed with the mega caps like nvidia, you would have done much better. >> the key here, what we're doing for our clients is diversification. we have exposure to those mag seven stocks. we have exposure to nvidia, to mike soft, to amazon, to these names that are there. with you're underweight, but we still have that exposure. so you have the ability to capture some of the upside in the market. but take some of the winnings that you have had, take that off the table and put it in fixed

income. i could go short on this treasury probe and still get 4%, 5%. that seems like a no brainer to an extent. and then put some of that cash in the defensive play. we've been trimming tech all year and using those source of funds to go into these areas. i think that gives you a more balanced portfolio for the volatility. we have a few other things that can cause volatility from now to the end of the year. >> based on the questions that you get from clients, what has happened to investor psychology over this period of time, where we have had these well-known names with a lot of products that people understand, maybe nvidia excepted, doing so well? and if you were in bonds for a long period of time, you felt like a sucker. >> i manage taxable fixed income, so we don't want to say they're suckers. they're getting that steady cash flow -- >> but if you're too much in bonds. >> absolutely. not that you want that 60/40 portfolio per se, even though

that's doing quite well. i think, again, you have to have that diversification in your portfolio. have a little bit of that fixed income. but clients are looking at it and saying in the long run, i still like a microsoft, i still like an apple. we know ai is a secular theme, but it has a long runway here that we'll see some advantages from, and maybe look at some of the secondary companies that might do well from ai, not just the ones we're seeing right now. that's how you can play some of the questions coming in from clients. >> i'm old enough to remember 20 plus years ago, through the financial crisis, a lot of the market did absolutely nothing for almost a decade, it was maddening for investors. do investors today have the stomach for that? >> hopefully they do, because i think we'll probably be in that element for a while. i don't think we're just going to be sideways. if you take a point in time and we look out so many years and then we see where we are, maybe

it looks like it sideways. i think there's going to be extreme volatility. so they'll need a stronger stomach than what we saw before because of the concentration we're seeing. bob was just talking about nvidia being 6% of the index, the same as whole sectors. so lots of volatility that can come. clients need to work their portfolios in a way that gives them confidence and ability to handle all that. >> victoria, thank you. coming up, cloud storage company box hitting an 18-month high after posting better than expected results, and raising full-year revenue guidance. the ceo and founder will join us to explain the shares having their best day in three years. but first, the ai boom is leading to a surge in demand for ai centers. the ceo will join us next with the trends he's seeing.

"the exchange" returns right after this. >> this is "the exchange" on cnbc. sure, i'm a paid actor, and this is not a real company, but there is no way to fake how upwork can help your business. search talent all over the world with over 10,000 skills you may not have in house. more than 30% of the fortune 500 use upwork because this is how we work now.

welcome back to "the exchange." we have a news alert on united airlines. phil lebeau has the story. phil? >> take a look at shares of united. a bit of a dip lower after the flight attendant's union at united airlines voted

overwhelmingly to authorize its leadership to call for a strike if the negotiations between the union and the airline continue to move on and the airline -- or the union ever gets to a point where it is clear to take a strike. let me be clear here, just because they have authorized a strike does not mean that the flight attendants at united are going on strike. right now, the union and the airlines are in active mediation. you would to come to the end of mediation, and the federal mediator would have to say there's an impasse here. even then there's a 30-day cooling off period. we're a long ways from that happening. yes, it's important they said we're not happy with the pace of negotiations, we authorize our leadership to call for a strike if that time comes. but that does not mean that the united flight attendants are going on strike right now. this is a headline that gets a lot of attention but rarely understood by the broader public. that's why you see some pressures on united.

it's not a huge development here. they remain in active mediation between the flight attendants and united airlines. john, back to you. >> very important distinction, that authorization is in their back pocket, not on the table. data center operators are a crucial component in building the infrastructure. for more on how they're keeping up with demand, i'm joined by andy power, ceo of digital realty. good to see you. any sign of a slowdown in either demand for nvidia's chips or availability of their latest? >> hi, john, thanks for having me on. so when i was can kelly about a month ago, i was saying how the ai trend was real for digital realty, and that seems to continue. we had a record the first half of the year, which was double the prior year.

>> what are some of the implications oh of that? we are seeing enormous pressure on super micro, there is a report out on them, and cooling has been a big part of super micro's story. you say there's no slowdown in demand for the ai equipment itself. what about all of the other changes that need to happen within a data center to manage that hot workload? >> so we've been in this business, john, for 20 years. we didn't start last night when ai came to bear. we have the technical and engineering expertise to meet the higher power densities and the cooling required, and we have been doing that for the last 18 months and even predating that for many customers. we also have expansive land

banks, three giga watts of capacity to support that expansive growth for customers as we look to deploy rapidly. we're essentially turning ai demand into recurring revenue sources with our customers around the world. >> help me understand how that total cost of ownership, when you look at buying an accelerator chip, factors in? there are a lot of nvidia competitors trying to say well, initially you can come in, pay less, and get more bang for your buck. but i guess part of nvidia's argument is, if you get our latest technology, you're going to get more efficiency for the amount of horsepower that you get. when you look at the decisions that your clients are making about what sorts of equipment to use to deploy, how does it tack for? ? >> so we're a physical infrastructure. the backup generation, the connectivity, the cooling for these servers and customers,

chips to lay within our four walls. we're also supporting our customer servers, new hampshire russ other chips -- numerous other chips. they're all moving to get the latest and greatest technology to build the training models and to move on toin inference. this is infrastructure relative to cpus, but what they're charting with a long-term growth in technology. we play this foundational infrastructural role for our customers. these chips are built for purpose that can evolve and have the flexibility to support where the power densities go. >> how quickly is demand outside of the u.s. ramping for ai and this newer infrastructure compared to what you saw in the u.s.? >> so historically, in the pre-ai area, the u.s. was the most mature, built-out market.

that's come full circle, and now north america has been the largest contributor for growth in recent quarters, but we are starting to see some of these ai applications start to land in our non-u.s. markets, be it in paris, france, frankfurt, germany, and around the world. i think like cloud globalized, i think you will see ai do the same. >> andy, thanks. an appropriate name for data center infrastructure. coming up, box benefiting from its early investments in ai with shares hitting its highest level in 18 months. we'll speak to the ceo about what's next, when "the exchange" returns. you'll find them in cities, towns and suburbs all across america. millions of americans who have medicare and medicaid but may be missing benefits they could really use. extra benefits they may be eligible to receive

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charges. the boat's captain was put under investigation for the same charges monday, but the investigation does not mean the crew members are guilty or that formal charges will follow. former owners of the pulse nightclub where 49 people died in a mass shooting in 2016 won't be charged. the police said there wasn't any probable cause against the owners, and they could not have "anticipated a terrorist incident taking place in their establishment." legos announced today it is on track to replace fossil fuels that are used to make its bricks and pieces and instead using renewable and recyclable plastic. they sell billions of the bricks last year, and tested hundreds of new environmentally responsible mixes.

box shares are jumping about 9% today after reporting a beat on the top and bottom lines. the cloud stourmg company boosted its revenue outlook and said its investments have expanded market opportunities. deidre bosa is here for today's "tech check." >> box shares are up more than 20% on the year, so a cloud company that is doing well in this able of ai. aaron, thank you for being with us today. i want to first touch on those latest earnings, and i wonder if you can quantify the impact of your ai offerings on revenue. for example, how much percentage of your billing comes from some of those products? >> yeah. i was hoping to spend more time comparing us to legos, but that's fine. we had a great q2. we're seeing a lot of demand for box ai. we made a strategic decision to really see ai as a core part of

our overall platform and this idea of offering intelligence content management to customers. so we have box ai included in our highest tier plan, and it is accelerating the upgrades we're seeing in that high-tier plan, so we saw great performance on the enterprise plus plan, so any customers coming in at above $100,000 or more, and that's been driven and cat rised by ai, which is already on top of the core differentiators we have around data security and limited storage and much more. >> your billings are up about 10% for the quarter year over year. can you say how much of that is due to the new gen ai offerings? >> well, because ai is included in our high-tier plan, that's baked into any customer that is upgraded to that plan level. but ai is the biggest, new addition to that plan that we have had in the past couple of years. so you can imagine a meaningful

portion of that acceleration and demand is driven by this idea that customers want to bring intelligence to their data and content. so being able to ask longer questions, better secure your information or classify it. these are all the use cases that you can now do with content plus ai. >> got it. so aaron, i'm sure you know that nvidia's reporting after the bell today, and you have a collaboration with the company. i just wonder if you could explain to our audience how this integration in your business model and its gpu technology impacts box's offerings and what you see from that going forward. >> yeah, we do use some of nvidia's software technology in our efforts, working with them on that. probably more significantly, nvidia's technology is really underpinning the core ai models that we leverage with box ai. so any time you ask a document a question or automate a work flow box using ai, somewhere in that,

we are most likely using and touching an nvidia gpu. so for us, the ability for nvidia to ship gpus as the lowest rate is one of the biggest drivers in bringing down ai pricing over time, and making ai much more ubiquitous and able to solve a broader set of use cases. almost by definition, the more gpus being sold, thus the more capacity being built out and more ai offerings we're able to supply to customers. i think that's true right now, where there's a tremendous demand for having software that's much more intelligence, and we're downstream on the nvidia and gpu capacity that is built out in the world. >> we have a strategy question for you in a way, when it comes to the technology. this morning, i was talking to the founder and ceo of abridge.

these are companies that are doing ai very content based for legal, for medical, all of this is really enterprise data that is specialized. what's box's play in those kinds of arenas like legal, like medical, perhaps even financial, where, by mining these huge stores of data, your customers can perhaps get a better product experience. >> yeah. so we have a little bit of a two-part strategy. on one hand, we want to plug into any ai software company that is doing interesting things with content. so if there's a legal work flow or a medical work flow or life signs in the work flow, we want our intelligent content platform to be plugged into those products. this is why we always support the broader system. at the same time, there's need of experiences within box where we can provide more tailored solutions that ai accelerating the ability to create. so imagine a future scenario

where, within the box environment, you might have ai agents that are doing work on your behalf that would take on a line of business. so having an agent review a contract and provide information about the risky clauses in that contract or have an invoice processing agent review an invoice and automate the work flow around that. so we are building the core capabilities within our ai platform, as well as the scaffolding functionality to support these use cases. we made an acquisition in august of a team in technology that focuses on processing documents with ai to extract the kind of key elements of those documents so you can automate a work flow. so you are going to see us entering into these line of business spaces, and we'll bring along a broad partner ecosystem to make that happen. >> is the more important, relatively speaking, investment now in those smaller, best of breed ai players and building out a go-to-market with them, or

the larger hyper scalers who are, in some cases, being challenged by those smaller names? >> yeah. i mean, we kind of want to have our cake and eat it too, so we think about box as an open platform to work with the leading ai model providers, so openai, anthropic, google, ibm, at some future point meta and others where we bring in their technology, and we want to work with a broad ecosystem of startups or other software companies to combine their technology with box to make it more powerful in this new era of how we're going to work differently with ai. one great example, we made an updated partnership this summer with slack where you can talk to box ai, and that's combining forces with another software company to bring another form of intelligence to your data from wherever you're working. >> aaron, i want to talk ai safety regulation, because you've been quite vocal on this california bill.

you -- i believe you're in opposition of it, on the grounds that it could taper progress, and what is the right way to regulate ai, if at all? >> i should first think that folks leading the drive on the bill are well exceptioned and deep believers in the views they have around ai safety. i think it's super important as a topic and it's well researched and well funded. and even in some cases where we're debating the specific laws that should be enacted, there's a couple of challenges. having state by state legislation is probably a bad idea. we have seen other categories where we have solutions on regulatory compliance and it really slows down innovation, because depending on what state you're operating in, the rules are different and it's hard to have -- >> right, but are you optimistic? i think everyone would agree with me there, but are you optimistic that this could happen at a federal level?

that is one of senator weiner's concerns that the fed can't get their act together. >> i don't agree with some of the core elements of this bill. i don't think you should have a patch work solution. and second of all, it's a little bit -- to me, we're a little bit early in regulating the underlying model training and model developers at this stage. i think we're probably two orders of magnitude away of ai being able to deliver the promises that we want in the workplace or education or health care. and we should ensure that we can rapidly innovate ai to deliver those outcomes. my instinct is a little more on regulating the applications of ai. so you have issues on deep fakes in elections, or copyright violations, i think that's a very important area to look at ai. we already have many laws around safety of, you know, a variety of industries and applications.

self-driving cars, the fda with medical devices. so i would rather see more orientation how we regulate the use of ai in the application layer. i i do think there is a point where ai models themselves. i'm a little concerned that we're a little early in the cycle on that front. >> aaron, always great to get your views on these broader topics. thanks for being with us. >> thanks for having me. >> back to you, john. >> box back up near session highs, up almost 10%. coming up, it's not just nvidia on deck with results. we'll look how to position with affirm, crowdstrike and dollar general. that is next in "earnings exchange." back right after ts.hi (♪♪) car, this isn't the way home. that's right james, it isn't. car, where are we going?

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absorbine junior pro. nothing numbs pain more. welcome back to "the exchange." we are talking cyber, spending, and sales in today's earnings exchange with crowdstrike, affirm and dollar general set to report. joining me with the trades is gina sanchez, chief market

adviser. first up, crowdstrike, shares down more than 22% since that global outage in mid july. deutsche bank flagging the concessions to customers to make up for that out j as a potential head wind for revenue for this quarter and beyond, but also expecting crowdstrike customer churn to remain low given the company's deep embeddedness. so is this the pullback you can buy? >> this is the question. if you look across analysts, there's a general consensus this is a company you should be buying. here's one thing i'm going to add to that conversation, which is that the legal ramifications of what is happening -- or what has happened, have yet to be fully understood. the company has come out and said that they can -- they have the cash to be able to withstand the legal charges that could be leveled at them. the problem is, is that now you're starting to see a shareholder potential shareholder legal action against the company.

you obviously have delta. and then there are unknown legal actions that we don't know yet. this is going to take months, if not years to play out. and what that is causing, it's causing crowdstrike to have problems upping -- sort of upping the renewal rate, selling people -- selling their customers into other, you know, other use cases for crowdstrike. so up-selling. even it's slowing down their ability to bring on new customers. that's a challenge that has to be watched. >> okay. we'll watch whether rivals get a foothold. and crowdstrike's ceo will join jim cramer tomorrow on "mad money." affirm, shares up 7% since jay powell cemented a september rate cut, bank of america writing lower lates should help affirm. but you're not as positive as bank of america, and the stock is down 5% today.

what do you say? >> this is a tough one. it's sort of like a fish growing up in a shrinking pond for the time being. they're growing revenue, making the right partnerships. they have struck a deal with apple pay that puts them in the right direction and moving towards profitability, up questionably. and they beat five out of the last five earnings. so they're on the right track, but there is going to be a headwind to what they can do. this is a buy now, pay later type of company in an environment where consumption is falling. so if you're enthusiastic about this, you have to be prepared for a slow period that could come in the first half of 2025, until rate cuts really start to take hold. because that's just the reality of being in a consumer play that requires consumption volume. >> all right. affirm's ceo max levchin joins "mad money" tonight 6:00 p.m.

eastern. last up, dollar general shares up 4% since that disappointing july jobs report. but wells flagging a weakening consumer as a headwind and warns that competition from walmart and changes to the department of labor's overtime rule will prove tougher for dollar general. you see opportunities ahead? >> this is one we own. we like dollar general. when the market gets tough, when consumers pull back, they go cheap. and dollar general has changed their strategy to back to basics. that's stuff that people will buy. they are seeing more foot traffic. they are seeing less dollars per head being sold but expectations for earnings next year is a 9% growth. that's pretty healthy. >> gina sanchez, thank you. coming up, sticking with retail earnings, chewy, the top performer in the xrt etf today, up more than 14% on an earnings

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stocks are hovering near session lows as the street awaits ya earnings. but shares of realty outperformed over the past few months. we'll get a view of the consumer and dig into the he health-commercial real estate, next.

welcome back to the exchange concerns about commercial real estate persist, but my next guest made $185 million the in acquisitions. the portfolio boasts 46 million square feet across every state in the continental u.s. joining us is the ce of of realty. you have walmart, home deoat poe, target, those names in there. i imagine the day too day or even quarter to quarter of the consumer doesn't affect you that much.

how does the macrofactor into what you decide to buy and dispose of. we're focused on nondiscretionary, core durable consumer goods and services like you mentioned. the biggest retailers in the country, nondiscretionary uses will work through any macroeconomic cycle. work through a pandemic when we collected 99%. >> you do look at where people are choosing to live in what sorts of homes, because you want to be in places where home depot or walmart or target is going to want to locket for a long period of time. what has shifted in the post pandemic years? >> the e-commerce for the omnichannel playbook. we have seen a consumer spending

that's starting to wean off and wane off now. interest rates were at zero. $7 trillion pumped into the economy. now we're seeing consumers normalize more to a pre-pandemic era today. so you layer on kind of the post pandemic spending and where consumers are putting dollars today. plus the overall concerns about the overall economic health and interest rates. what we see is consumers going to the biggest and best retailers that invested in their platforms. those pulling through and they can invest in labor, price, and ful fulfill. ment today. >> one of the biggest trends has been buy online and pick up at store. i wonder what degree that influences the way you look at a site, how big it needs to be, what types of capables it needs to have to make sure that it's a atrackive to that tenant. >> it's 100% why we're focused on net lease retail. free standing boxes, whether we're at 200,000 square foot or 2,000 mcdonald's, have

circulation around 360 degrees around the store. the tenant the controls the premise. they can add spots that everybody got familiar with during the pandemic. drive-thru capabilities, pickup capabilities, all of these multichannel capabilities today fulfill that omnichannel future. if you say we're in the fourth quarter of it, now it's what is that next quarter or even overtime. that's 5 to 10 years here of where fulfillment really takes place. you can see in walmart's earnings, it continues to drive earnings and traffic to the store. at the same time, their delivery within an hour continues to drive. >> what is the line blurred between industrial space and retail space, the conductivity you want, particularly private wireless to be able to enable that. >> it's the microfulfillment debate. the largest tenant, we have over 50 walmarts in the portfolio.

they are focused on microfulfillment. they have a facility at their store 100. when you see kroger really focused on macrofulfillment. we're still finding what that calibration is in today's omnichannel world. the macrofulfillment, there's a lot of assumptions built in. we never assumed pandemic. we never assumed rising labor costs. and then, we thought everything was going online. >> with ai, it kind of is. now we tied it all back to nvidia once again. thank you. that's going to do it for the exchange. stocks overall at session lows. i will be back for overtime at 4:00 p.m. in case you haven't heard, a little company called nvidia is reporting after the bell. "fpower lunch" is next.

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you get comfortable being uncomfortable. ♪♪ the enemy is always adapting... deepfake: hey handsome. ♪♪ [inner monologue] ...always iterating. ♪♪ good afternoon, everybody. welcome to "power lunch." it's nvidia day. the second biggest company by market value after apple ahead of microsoft for now reports results after the bell. the stock has been the ai darling of 750% since the be beginning of last year. but the question, as always, can it possibly keep it up. >> and check out