amd trading lower, supermicro. so, the ripple effects in the initial reaction. >> there's only one nvidia, and we're going to get explanation on some of those blackwell issues described. >> that's right. meantime, nasdaq finished lower, so did the s&p and dow. that does it for us here at "overtime." >> "fast money" starts now. live from the nasdaq market site in times square this is "fast money." and here is what is on tap tonight. nvidia in focus. what else? shares of the chip giant solidly lower after its latest results. the impact that's having on the chip space and the broader market straight ahead, down 4%. and retail on sale? shares of abercrombie and foot locker sinking after their latest earnings, but is the recent drop in consumer stocks an opportunity to get into some of these names? we'll debate that and tell you which ones, if so. plus, a super slump for

supermicro. bitcoin breaks back below the key 60,000 mark. and berkshire hathaway hits a major milestone. we got all the details this hour. good evening, everybody, i'm tyler mathieson, in tonight for melissa lee, from studio b at the nasdaq market site. on the desk tonight, steve grasso, bonawyn eison, dan nathan, guy adami. we start with the most important earnings report of the quarter. it's not nsync, it's nvidia. as much as 8%, despite beating estimates. the chipmaker also off thorizing a $50 billion buy-back. not really all that big, i guess, in a trillion dollar plus company. the conference call kicked off at the top of the hour. our seema mody has all of the details and will be monitoring the call. >> hey, tyler. shares are falling here after nvidia's second quarter earnings beat estimates. some questions around the q-3 guide. i would point out that gross margins on a sequential basis

decreased, driven by what the company says inventory provisions for a higher mix of new products within data centers. in an effort to quiet concerns around blackwell's launch, nvidia's cfo says she expects to ship several billion dollars in blackwell revenue in the fourth quarter, with production expected to ramp in the fourth quarter and continue throughout into fiscal year 2026. we'll want more clarity from management, tyler, on how many chips are being shipped, total volume, and how that compares to the current gpu on the market, hopper. conference call just started. we'll get you more commentary from ceo jensen huang. ty? >> seema, thank you. let's trade it, until we hear back from seema on the conference call. guy? >> if you want volatility on the back of this, you're very disappointed. the market was expecting a 12% move and you see it here, not doing much of anything. i think there's something for everybody. people will point to the year over year revenue, which is staggering in terms of its growth and other people will point to the sequential sort of

flattening of margins, which i think is also pretty interesting. i've said it before, the magnitudes now, i think, of the raises in terms of revenue are getting smaller and smaller on just a percentage basis, and at some point, the market's going to take notice. it's not an indictment of the company. obviously the numbers are staggering. it's an indictment of the valuation. >> you can't keep adding revenue at that kind of rate, right, i mean, the rate they've been doing it, eventually, it's got to slow. >> yeah, i mean, although they've done it for the better part of the past two years. listen, i think guy makes a good point. clearly comps going forward are going to be a bit more challenging. but if you kind of look through some of the segments of the business, they really deliver. you talk about gaming, autonomous. they delivered on some areas that were areas of concern. we're talking about gross margins, but just to keep in mind, we're still talking about 76%, 77% gross margin. so, that is by no means a

negative there. and then i do think the, you know, the one thing i would point to that would be a marginal negative is perhaps the concern around the blackwell chip. they shipped samples and then kind of tweaking the design a bit and all those things speak to perhaps you might not be able to realize that revenue in the timeframe that one would think. but across the board, again, this is -- the bar was quite high and they still managed to deliver the beat and raise. >> dan, i want to get your overall thought but i want to pose it in the form of a question that i asked another guest earlier today about nvidia. we know it has a lead. does it have a moat? >> they do right now, and part of this is this software overlay. so, a lot of folks that are the buyers of the chips have gotten imbedded with the technology. it's going to work with blackwell. i'd just say this about blackwell. they're talking about q-4, you know, shipments, maybe a few billion dollars, it's kind of a rounding error, at $120 billion in expected revenue this year.

so, we want to see if this gets pushed out a little bit. i'll just say this about the comps, very difficult, as we suggested, we'll talk about the sequential increases that they're seeing in revenue growth, like these guys said, it's getting smaller, but one thing that's really important, last year, in the q-2, they had 100% revenue growth year over year and it kept getting higher, up 200%, 265%. so, what's happening here is the opposite. q-1 this year was up 262. this quarter is up 122. and it's supposed to be 77 and 56. so, the comps are really important here. i don't think valuation is that important if you're looking at the out-year right now, so, a lot of folks who are bullish on this stock think they're going to continue to outperform. so, the thing i would just mention is that it just didn't hit the whisper numbers. on this quarter, and the guidance. and so, you could say that's a bit cautious, but they're not always solving to what the street expects. there is consensus, they want to beat that, but they're not going to get in front of what they think the street or investors

are certainly feeling about it. so, with the stock up 150%, we're looking at this thing down 4%, it's a round blg erreing er. >> dan says the company has a lead, a moat, guy says the revenue is coming down, and investors eventually are going to notice. what is it going to take to make them notice? >> i think they've been too good. that's the headwind. they've set the market too high. they set the bar too high for themselves. so, guy led off saying, if you would have went back and said, how does it look now from this -- through this prism, it would be a stellar quarter, maybe, right? but now, you look at it, and you say, what -- what have you done for me lately? and it's still knocking the cover off the ball. point of reference, relative to where it's been, you could poke some holes in it. i don't think you can poke a big hole in it. look what it's doing afterhours. we saw the push through, and it

just bounced up again. so, there are people who, a, want to trade it, there are people who want to own it, and people who want to take this to the grave. they still have 85% market share. >> yeah. >> that's -- that's basically your moat and your lead, to dan's point. so, until someone really knocks them off, the blackwell chip, they're going to have people that are going to take the hopper chip and fill in the blanks there. people have to wait for the premium, the premium name in the chip space is still nvidia, they still are on top of the hill, but things got a little bit ahead of themselves, as they always do with everything. >> 85% market share is not something that you can maintain. ultimately. >> theirs to lose. >> when you talk abo margins, they were talking about 77% gross margins a quarter ago. they came in at about 75%. that's what they're guiding to. so, it is theirs to lose. and you think about the smh, the etf that tracks the stocks, you have nvidia making up 22% of that, taiwan semi that also had 85% of the market share making these chips, right?

and so, you say to yourself, this gen a.i. trade is really imbedded in the two names. you have the hyperscalers, they are really underperforming since they reported earnings. so, if you don't see a really sequential increase in their capex, at some point, it is going to be decelerating. the whole sector is going to take a pause. so, i'll be clear, there's nothing wrong with the quarter or the guide. i wouldn't be buying it here. the stock traded down to 90 bucks in august 5th, and i think that's your kind of bogey. i don't mean tomorrow or anything. >> that's back down, still above the 200-day moving average, but when you look at the technicals, algorithms have a way of the finding these technicals inthe marketplace. we saw that today, researching where it wanted to go to. didn't get to the 100 day, got to the 50 and broke it. >> guy, what would you say? >> i think -- think about the move we've had since that august 5th low. i think it actually traded $90 and change that day, went from there, what did it rally, almost 45% over the course of the next few weeks, which is a staggering

number on the back of what was a pretty precipitous drop from june 20th. so, i think you're going to get it at a better entry point. especially -- you know, the broader market is showing some signs, the vix is picking up. if the broader market starts to roll a little bit, nvidia is not going to be shared. >> one little tidbit here. >> go. >> the buy-back, when they announced the buy-back a couple months ago, i didn't think it was a growthy stock to do. i didn't think something a growth stock should be going. look how long apple took. apple never had the valuation in balance that an nvidia has. i always thought that was sort of a top. i was a little bit ahead on that in thinking, because they blew out a couple of quarters right after it, but i'm also thinking it still sort of sticks out in my head as a red flag, why are you buying back stock? >> when you're growing and your stock is appreciating the way it's been appreciating. all right, let's move on with more on nvidia, and bring in susquehanna's chris roland.

let me get your initial impressions of the numbers that we've seen, of the guidance that we've heard, of the discussion that you've just been listening to, and then i'll follow up with a question. >> yeah, i think the group nailed it. we have been used to big beats or, at least 1 1/2 to 2 billion on results and guide, and this was a little shy of that. so, that is the market reaction here. i think the blackwell delays were very well-known. i don't think there's nothing -- there's nothing there out of the ordinary, and -- >> not worrisome there? >> no. and, in fact, i look at this softer guide as perhaps a positive, because if blackwell was in the october quarter, they would have beat handily. >> why has the reaction been -- this is not the question i intended to ask, and i'll get back to it in a moment, why has the reaction been sort of moderate, as it has been?

because the options markets were looking at 10% plus possible moves. >> yeah, i was surprised by that options paradigm. we would have taken the under on vola volatility. >> you would have been right, right? >> yes, but this -- this report here is really all about that whisper being a tad shy. the gross margins are related to the blackwell delay. they're nothing more than that. if i were to nitpick maybe opex was high, but this is much a do about nothing. >> so much -- here is my question, and it's for you first, but then really for the table. nvidia has become a historic stock. i've been doing this 30, almost 40 years now. >> oh. >> yeah. yeah, i started in 1982. >> come on. >> yes, i did, indeed. i did indeed. anyhow, chris, let me come back to you.

is theral historical stock that you can remember to nvidia in terms of growth, market share, dominance, appreciation? is there one that comes to mind and what happened to it? >> i mean, you know, maybe amazon and e-commerce or google and search or facebook in social. but toll -- to this extent, on the hardware surrounding a.i., i mean, nvidia is almost all of it, so those others would probably pale in comparison. >> chris, free cash flow was a miss, but here's one that sticks out and just push back if i'm wrong. operating expenses are expected to grow mid to upper 40% range. prior was low 40%. is that the beginning of something? because we've heard other companies start to go down this road and the market has not liked that. >> this has been happening s since, i think, 2016 when i

first saw nvidia demonstrate a.i. labeling cat pictures. a.i. is an enormous opportunity, and they're investing in front of that opportunity and in front of products that are going to be coming out five years from now. so, i i wwould expect opex to m, you know, be worse for many, many quarters to come, in fact. >> rolland, ty just asked you about corollaries that we've seen. so, what i keep hearing is that it's different this time. when i started in the markets in 1997, the excitement around the internet and how it was going to change almost every single industry, this transformative technology, and that did happen, but there was obviously a bubble in the stock market, and when you think about the nasdaq sold off 80% from its highs, i'm not suggesting that's going to happen, but go back to 2021, when there was excitement about the metaverse, it was netflix, nvidia, you know, a couple of

other names -- oh, meta and, you know, a few others, that sold off 70 % from their high. now, they weren't $3 trillion market cap company, but when you think about nvidia just sold off 35% from its highs in june to its lows in early august. i just think the idea that that couldn't happen again is very curious to me. i want to ask you, like, what are your clients suggesting, who are less bullish on this thing? where could it go on smaller than expected beats, and the potential for a hiccup? we haven't seen a hiccup in this thing since 2021. >> the last time we upgraded nvidia, i think the stock was off 70%, 75%, something like that. some -- so these things happen all the time. this is incredibly volatile, and i'll leave it there. >> chris, thank you for your time tonight. we're going to let you get back on the call and i'm sure we'll have more time to discuss nvidia in the future. meanwhile, a buzz kill on supermicro, dropping nearly 20% after delaying its 10k filing

for fiscal 2024. shares had been down as much as 28%, and they are falling again afterhours. the a.i. darling says it needs more time to assess its internal financial reporting controls. this, a day after hindenburg disclosed a short position in the stock, alleging accounting manipulation and sanctions. this is serious stuff we're talking about, dan. >> yep, no doubt about it. guy and i were talking about it earlier. there's usually only one cockroach in the kitchen. so, when you think about what's going on here, this stock got caught up in the hype. we were talking about it yesterday, but we were talking about it a few weeks ago when they reported results. i mean, the decline that they had year over year in their gross margins from 17% to 11% and the competition that they have in dell that has 22% gross margins, you say to yourself, okay, if these guys have been cooking the books and they've

been doing funku sy stuff, mayb dell -- i don't mean accounting issues, i mean, as far as what the sort of demand for their server are, because one of the accusations here is that they've been stuffing the channel to make their numbers. so, if you have a main competitor that is stuffing the channel, that means there's less demand than you might expect. so, to me, i just think that, you know, dell nearly round tripped that entire move over the last few months. we saw it in micron. that puts the memory into these servers. at the end of the day, talking about nvidia, if you have this deceleration and you don't have the beats that continue, and these hyperscalers, you know, pare back at some point, which they will, the whole ecosystem is going to have a hard time. >> bonawyn? >> any time you have any whispers of accounting fraud -- >> not a good thing. >> in this market, we're talking about super volatile stocks, this one most certainly fits the bill. i think of a situation where investors are going to sell, shoot first and ask questions later. i think there's an argument to be made that a lot of the issues

around the operating code there really aren't what drives the stock, and what drives investment in the stock. it's a ever willered ed lever bill coin play, essentially. if you are looking to play bitcoin, this is where you look. but aside from that, i really don't think it's a surprise at all that when you hear whispers of accounting fraud that the stock is off substantially, particularly a name that's known for volatile swings. >> usually when you heard accounting fraud in association with a stock, the stock doesn't like it. >> well, the stock hates it. >> the stock hates it. >> investors hate it. all right, we're going to take a quick break. coming up, shares of abercrombie spiraling after earnings. could this just be the beginning of big trouble for the consumer trade? we'll dive in with a top industry expert next. plus, crowdstrike higher after its first post-outage earnings report. the impact, the numbers, and more, right after this.

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lines. first report since that global outage back in july. steve kovach has the very latest. hi, steve. >> yeah, tyler, maybe this one not as bad as feared. we're seeing shares up, like you said, about 4%, following the beats on the top and bottom line. but the more important thing, we got new financial information on the i.t. outage in july. cr crowdstrike said it caused a 2 cent hit, and expects a $30 million hit over the next two quarters. as for the top and bottom line results, these comparisons do not include the outage impact. revenue, $964 million, street wanted $985 million. skrou crowdstrike is cutting guy dance. the ceo did reapologize for the outage and talked a little bit about how they plan to make good, but still more questions

that we expect from analysts, especially over the fight between delta and so many other customers, tyler. >> all right, steve, thank you very much. and let's go to the other steve, steve grasso, to trade it a little bit. what do you say? >> so, you know, this is usually not where i'm at with accountability on this type of an instance here, but mark me if i'm wrong, you follow this on a daily basis, i follow the stock, but has anyone gotten fired off of this? has there been any accountability? because this was a $15 billion global hit. >> yeah. >> and when you roll out something, usually do a little bit of a test pilot, when i was -- >> this was a buggy rollout. . >> when i was on the nyse, they would come in late, do the rollout, you don't do it with all the sectors, all the corporations that you're covers. i think it was such a buggy rollout that someone -- what's the accountability going forward? how are we going to change it going faorward? i know they have an eight-prong

effect of how it's going to change. if i'm a shareholder, i'm always worried about this now. i don't see what happened, how it happened, but to look at a 2 cent hit to earnings, a $15 billion global hit, i think it's a reputational hit, it's a monetary hit, and when you look at the stock, it really didn't fight back to that 50% mark from where it was to where it got, so you're struggling here, you're rounding off a little bit here, i'd still be a little hesitant. >> and they do seem to be saying that their future subscriptions are going to be impacted by this. >> they certainly are. let's make something clear. they are clearly best in class, they're clearly not practicing best practices, and the fact you're only talking about a 2 to 3-cent hit, i don't think investors are buying it, and there may be potential pain coming over. they do have that looming lawsuit, so, it's a company that i will be looking to get into lower, but i think there's more pain ahead. let's move onto an alert on salesforce. those shares popping on a top

and bottom line beat. let's bring in julia boorstin for the details. hey, julia. >> hey, tyler. in addition to that top and bottom line beat, salesforce raising full-year guidance to 8% to 9% year over year revenue growth, that is ahead of estimates. on the call just now, the ceo putting a.i. front and center, stressing the huge potential of a new initiative he's calling agent force. he says this will be the main focus at dream force, which he called the largest a.i. event in the world. he said they'll showcase their new autonomous agents and how they are reimagining soft pl w software, saying this will be trabs formational for their business and customers, as well. the company announcing that president and cfo amy weaver is stepping down from the role, but she will remain cfo until a successor is appointed, and then will be an adviser to the company. tyler? >> all right, julia, thank you. and for more on salesforce's latest quarter, catch the ceo sitting down with jim cramer on "mad money" at the top of the hour.

guy, lead us off on salesforce. >> yeah, nice bounce since the spring. i think the quarter is fine, i think the guide is not particularly great. i think the valuation is probably a little bit stretched, not as expensive as it's been. however, if you think nvidia and those names could potentially go lower, salesforce and the software names are going to win to that, so, i think you have to look at it through, okay, i think nvidia might trade back down, maybe i should look to get into some of these software names. short of that, i don't think there's anything all that exciting about the quarter. >> i agree. slight beat on the current quarter. slight guide down on a couple metrics for -- when i say a guide down, really, really slight here. and going back to guy's point about late may when they reporreport ed, a huge gap. it made up some of that ground over the next month. filled in that gap. valuation's fine, it always trades at a premium to many of the other software names. we've talked about this on many occasions. i mean, enterprise software has really sat out this gen a.i.

rally. >> it has. >> and marc, who is a great ceo, he was talking up last summer, you know, the opportunities that they had in gen a.i., when they talk about this autonomous, whatever the heck, i don't know what it is, i'm sure it's going to be great. i don't know if it's going to be autonomous right out of the gate, you know what i mean? and what we've seen from a lot of the software at microsoft is using to power -- using openai to power come pilot. there's not a lot of uptick right now. so, if you are waiting for an autonomous a.i. thing-a-majig, don't hold your breath. >> it's a reflection of the company, if the economy is rolling over. bitcoin tumbling back below 60,000 today. inside this crypto conundrum, next. plus, a major milestone for berkshire hathaway, what it means for your investments, next. you're watching "fast money," live from the nasdaq market site. we're back after this short break. clem

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welcome back to "fast money," everybody. stocks down today, but well off their lows of the session. the dow pulling back from its record close, ending the day down about 160 points. it had been down more than 400

at the lows of the day. the s&p and the nasdaq also down. meantime, berkshire hathaway hitting a milestone today. the stock closing at a new record high, with the company's market cap briefly topping the $1 trillion mark. the first nontech company to do that. and we wanted to get another check on nvidia here, now down about 5.5%, but it's not the only stock on the move afterhours, of course not. pure storage sinking despite top and bottom line beats. affirm, victoria's secret and five below, meanwhile, all up after their reports. guy, you got some thoughts on berkshire? >> i do. if you look at their holdings, it makes sense. now that he's pearing down his bank, i think bank of america, it was one of his biggest holdings, apple right there, as well, but pearing down, and what we owns, if you think about how defensive, coca-cola, american express, it makes sense. but my biggest concern, and the guys were talking about this before, you know, why does he

have the type of cash hoard that he has? why does he have more treasury than the u.s. treasury? what is he preparing himself for? something called that buffett indicator that you used to talk a lot about on your shows, is at levels that we've never seen before in terms of the market being overvalued. if you believe him on the way up when he owns things, you have to take his word when he starts to move down, and seemingly prepare for a bit of a rainy day. >> dan, what do you think about affirm? >> um, you know, buy now, pay later, is it tech, is it banking? to me, they might see a lot more uptake, if they definitely, you know, if they see a slowing com economy for their products. but not particularly interesting business model to me. >> do you have a thought, does anybody have a thought on what buffett -- back to your point, on what, if anything, buffett is saying via his actions and the amount of cash he's holding? >> what you pointed out what mike santoli said makes a ton of sense. if he wants to free up the flexibility for that cash hooar

for whoever takes the torch when he steps aside. that would give them the flexibility to buy what they want to leave their fingerprint on the fund the companies that reflect future versus going back with that stellar performance that buffet had. they want to bput a new stamp sn it. that makes a lot of sense. >> and maybe not have such large positions in stocks like b of a or apple. all right, folks, coming up, we have dialed into the nvidia earnings call, and we're going to bring you the very latest numbers and the commentary, next. plus a new sign of cracks in the consumer, as abercrombie and fitch sounds the alarm. we will go inside the news with a retail veteran right after this. missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this.

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nate jones... steps up to the mirror... lines things up... towels off... checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... same page? -[ dog barks ] and he places the trade... before anyone hears him talking to himself. [ dog whines ] buy u.s. stocks and etfs for as little as $1, with no commissions. talk about easier investing. welcome back to "fast money," everybody. abercrombie and fitch plunging almost 17% today after cutting its full-year guidance. foot locker tumbling more than 10% despite posting comparable sales growth for the first time in six quarters. and even jm smucker, the name behind twinkies and milk bone

dog snacks, don't confuse the two, don't mix them up -- >> longer shelf life, twinkies. >> that's right. >> fair. >> almost 5%, as demand for human and animal snacks waned. how does an animal express a desire for a snack? jerry storch is a longtime retail ceo known for leading toys "r" us, hudson bay. he now runs storch advisers. jerry, welcome. as i look at the abercrombie and fitch report and to a lesser degree a couple of the others, i thought these weren't bad reports, but the stocks are getting pummeled. >> yeah, their results overall are mixed. i mean, the consumer has not gone away. but the gap between winners and losers has never been starker. consumers are very selective and looking for value in everything they buy. >> so, where are they finding it? and there you see chewy, the -- talking about pet snacks, abercrombie down 17%, did they deserve that based on what they said? i thought they raised some of

their forward guidance. >> they're up 89% year to date, abercrombie. and fred is one of the best merchants in the world. she says it's going to be tough in the second half of the year, you better believe it. >> jerry, when i look at the names that you cover and the names you can talk about, is it coming out of the pandemic, was it a supply chain issue, is it now what -- the difference between winners and losers, is it an inventory management system? how are we gauging who is best in breed, or is it just size now? >> you know, size is really important. it's not the only thing, but look at some of the winners and how much they've won. walmart is now worth over $600 billion. >> when we talk about each of these other companies, we're talking about a few billion dollars here or there. single digit market caps, walmart's were $600 billion, and they're up 45% year to date.

costco is way up. they're capturing massive market share and all these other companies we talk about, they're really rounding errors, when you look at the size of the retail market. tjmaxx, way the heck up. they're worth $135 billion. think about that, when target's worth $72 billion. that's where it's going. it's not that retail has disappeared, it's that there are huge winners that are gobbling up market share. >> so, it's the value i'llaislee walmart, the tjx. bonawyn? >> so, speaking of value what should we look for in terms of promotional activity? i read through your note, and it looks like some of these guys have been able to carry a much lighter than historical inventory preparing for this. so, what type of re-through should we look for in terms of activity going forward? >> that's a great question. and they have been very careful, because a lot of people got burned coming out of the pandemic when they had way excess inventories.

unfortunately, as sales have slowed down, some people with inventories have been growing faster than sales, and that's a warning sign that the fourth quarter could be quite promotional. and i think that's overhanging this markeeral, particularly in categories like apparel, where markdowns will just kill up. places where you can't get rid of the product very easily. >> i want to get to lulu in a moment. but guy? >> i understand we're still low in terms of the unemployment rate, but it's the rate of change. at what rate do you get concerned? because i'm one of these people that think, you know, we're going to see 4.8%, 5% unemployment by maybe the spring of next year. what are your thoughts on that? >> i think it's very important. and i would say -- i've been a little more negative than most people for quite awhile, and the reason is, those retail sales reports we all talk about are not inflation adjusted. when retail sales are up 2%, 3%, that's 100% of it just inflation, so, the consumer is spending more and getting less. as we -- as we round the corner here, if what we see is that

unemployment rises, and sales start to falter a little bit, look how many people reported negative sales today, whether they were up or down, that's just versus what was expected. someone league kohl's reporting a negative five same-store sales and say it's going to stay that way for the rest of the year. if it keeps going, we could see even more of a gap here between the winners and losers. again, i think the names i mentioned are really safe. walmart, costco, tjx, amazon, by the way. these are value players that just eat more market share if things get tougher, but i think the broad base of the market may be in for some hurt. >> talk to us about one that is really not in that value space and that is lulu that comes out tomorrow. >> again, just spectacular merchant. i love gbuying their stuff, the quality is very high. but it's very expensive. and the problem with that, it doesn't play very well in a value-based world. so, where they run into a little bit of trouble, the discordance between what the consumer is looking for and their fantastic product they have, but at a very

high price. so, i wouldn't want to pick what we're going to see tomorrow. they've been down sharply, and they've been raising prices, raising prices, and that's hurting people, even luxury brands, you know, have been hurt, someone like a burberry or something, where they raise their prices just too far and the market couldn't absorb it in this environment. >> and down 4.5% today. jerry, thank you. good to see you, sir. >> my pleasure. coming up, a massive new valuation for openai. just how much money the private tech darling is about to raise, and what it means for the red-hot a.i. trade. plus, a check-in on nvidia, and all the headlines from the conference call right after this. "fast money" is back in two.

welcome back to "fast money," everybody. openai in talks now for a new funding round that would lift the startup's valuation to more than $100 billion. let's get straight to kate rooney who has the details. hey, kate. >> hey, tyler. so, i'm told by a source that openai is, indeed, raising new capital and the venture firm thrive capital is going to lead this multibillion dollar funding round. this person tell ting me that thrive is putting in $1 billion.

but it is part of a multibillion dollar funding round that would propel openai's valuation to what i'm hearing is close to $100 billion. that's according to a source. this is a major step-up in openai's valuation. the startup founded by sam altman. it was valued at $80 billion, and that was up from $29 billion just a year earlier. openai, the maker of chatgpt. widely considered the market leader right now in a.i. "the wall street journal" first reporting this latest round. they also report that microsoft is expected to put more money in microsoft, last put $10 billion into openai, back in january of last year. that company also declined to come pent here, but stepping back, guys, it is part of what's becoming an arm's race in the valley here to build the premiere large language model openai, with chatgpt in pole position, but staying there is going to require a lot more cash to develop more products, better models and full circle under the cash that these startups are raising, it's going back to

nvidia. back to you. >> kate, thank you. reactions here on this capital raise, guy? >> well -- >> go ahead, dan. this is your world. >> no, it's your world. >> i'm just living it in, guy. >> openai, nice and interesting what's more interesting is microsoft. and you go back to july 5th when the stock made an all-time high, i think 469 or so, on what's been outside of august 5th a pretty decent tape. this stock is probably lower in the afterhours on the back of nvidia, so, i think -- you know, this is one -- again, i don't want to make a huge deal, but not so good in a decent market. >> can't see it, down half a percent or tlhereabouts. nvidia down 6%. seema mody has some details from the call. >> hey, tyler. ceo jensen huang reiterating that blackwell will ship in the fourth quarter. he's stepping back and saying that nvidia's driving the cost down of training large language

models with more high performing, cutting edge chips. he says next gen a.i. models will take 10, 20 times more compute. as to the role hyperscalers are playing in driving nvidia's service, the cfo said it was 45% of data center revenue, and the inventory crunch is easing for hopper. cfo says demand is strong and that shipments are expected to increase in the second half of fiscal 2025. that, tyler, is an encouraging sign. is it helping the stock? shares are still down here in afterhours. >> all right, dan, thoughts? >> um -- yeah, i mean, not too different than 45 minutes ago. >> okay. >> i just feel like -- >> nothing's really changed. >> if you're long, you're not selling on this, and if you want to buy it, you are probably going to wait to lower levels. there's no big problems here, but again, it's just the magnitude of the beats and the guys are disappointing. if there's any sort of pullback in expectations for blackwell

over the back half of this year, the stock's likely to go low. >> vulnerable. steve? >> the ceo has been selling stock in nvidia. there's a host of reasons why a ceo could want to sell the name. >> yeah. >> there's only one reason why they want to buy it. i wonder if that ever comes up in a conversation or interview, what were your better options in selling the stock, are you doing it just to, you know, diversify -- >> estate planning. >> his kids need braces, too. >> true. >> come on. >> so, you -- you wonder about it, but i really would say for people to look at the technicals, look at the 50-day, look at the 100-day and you're caught between that right now. you're about 110, let's call it, and 120. and probably going to be a lot of conversation on your desk tomorrow at work talking about the same thing we talk about tonight. all right, we're going to take a quick break. coming up, bitcoin feeling the squeeze, as investors dump out of the crypto-currency. what's next for the coin, as it falls back below $60,000?

more "fast" in two minutes, we'll beig bk. rhtac

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steve has the details. steve? >> yeah, tyler. this came from comments on the earnings call from the ceo in response to a question about what really caused the i.t. o outage that we saw. because crowdstrike had that deep level access to windows that caused computers to go down. so, he was asked, what are you doing about that, are there going to be any changes with microsoft, and he gave kind of a meandering answer that sent shares back negative, basically sounded really defensive, saying there's a lot of misinformation out there about what kind of update this was that caused the outage, and so forth. didn't really give a lot of confidence about it, but i will note that crowdstrike is going to be meeting at microsoft's headquarters on september 10th with some other cybersecurity companies to go over a plan of action to keep this from happening again, but his answer, as you can see, send shares down. they were up 4% before he gave that answer there, tyler. >> steve, thank you. this comes back to the comments we were making 25, 30 minutes ago, bonawyn. >> yeah, and steve raised it as

well. it's really about ownership. just take ownership of it. again, they are best in class in terms of their product offering. their service offering. but in terms of best practices, it's very -- that's a simple solution. it's not as if you have to rejigger your offering. just say, we're going to realign the way that we're going to move forward in terms of disse disseminating updates, as opposed to being defensive or defending your current practices. that's an easy tweak. >> the ceo of that company will be on "mad money" tomorrow, by the way, so, check your calendars for that. all right, let's move onto crypto, under pressure today. bitcoin falling back below 60k and off by 6%. the token hitting its lowest level in more than a week. ethereum taking a hit, down more than 20% in august, on pace for its worst month since june of 2022. steve, thoughts? yeah, so, i have a lot of thoughts. i have a lot of headlines here

that were the negative headwind to crypto. first of all, gary agagensler w on a whole attack on them for enforcement, not regulation. so, anyone who loves crypto, invested in crypto, would not like to see gary there for much longer. >> yeah. >> number two, germany seized $3 billion in bitcoin, $3 billion in bitcoin, had to flood the market with that for sale. you had repayments. $9 billion in that. u.s., $2 billion in crypto related to the silk road seizures went to an unknown address. we don't know if that's at weight on the marketplace, too. and then, it's a risk tolerance to the overall market. s.e.c. has cracked down on the whole ethereum ecosystem. and it's definitely a headwind market for the crypto space for the last couple of months. >> under pressure. guy? >> should be trading better. if rate cuts are as foregone conclusion as the market seems to think, then bitcoin and

crypto in general should be trading a lot better than it has. if you look over the last six, seven months, when we've got north of 70,000, it's failed. it's telling you a story. i don't know what it is, but the story i keep coming back to is the fact that gold is performing in this environment, so, i think gold is actually separating itself from crypto for the first time in awhile. >> bonawyn? >> yeah, i mean, i think, you know, south of 50,000, you look to get back in. i don't think the story is over, but there's some overhang. and you expect the volatility and it's a supply/demand story. gold, guy mentioned, for awhile, they've underperformed. there was a pocket where both were selling off in tandem. >> much of the move early in the year was obviously the approval of these etfs. you saw money flow in that. that was a natural buyer here, so, i think a series of lower highs and lower lows just suggest it's in a period of digestion and there are headwinds from a regulatory standpoint. we're going to take a break

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because we can't help ourselves, one last check on nvidia afterhours. the stock now near afterhours lows, as you see right there, it is down about 8%. i think tipped over into the below 8% about an hour or so ago. it is time now for the final trade. let's go around the horn. steve? >> excellent job outside of you tonight? jerry storch -- >> yes. >> he pointed out walmart. i've been long walmart and when i think about smelling it, i smack myself in the face. walmart. >> all right. bonawyn? >> i love myself, and, so, there will be no smacking here.

the dollar's had a long, strong run. i think there's a little pocket of weakness. dxy, be a better seller. >> dan? >> lulu into the print. >> and guy? >> we've enjoyed having you, ty. viking therapeutics. >> all right, everybody, thank you for watching "fast money." you know what's next. my mission is simple. to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i am cramer. welcome to "mad money". just trying to make a little money. call me, 1-800-743-cnbc. it was a lot easier to own stock in nvidia when