that bloomberg report looked at nvidia and one element of that was an analysis of nvidia's workforce,, or other races as a percentage of the total workforce, ranking them very low. nvidia this year, basically the computer behind everything that has happened. what do you make of that data analysis that bloomberg put together? >> that was a fast-moving story in something that is prevalent within the industry, especially in companies that are doing work in ai. google, microsoft, meta. all the big tech firms focusing on ai development. there's a complete epidemic of just the inability to really hire and retain black, latinx 10 minority talent, and that has big repercussions for the way that these things are developed. as the story that was mentioned earlier mentioned, there are huge problems and disparities on facial recognition technologies but also things like voice recognition technologies. how particular minorities are represented when you ask generative ai particular things. the text to image generation. they are really throughout the technology, so that lack of diversity in the work

nvidia is the leader; right? i mean, this is very similar to first discovering the internet, what's that internet thing; right? remember 25? it ex-ploided to the upside and changed the way everybody lives and shops and this is the next iteration and so substantial and will change every business on the face of the earth and it's just beginning. that's why nvidia will lead. there's other stocks we've got to find that will be the next secret ai stock and if you want to be stayy, stick with the leader in the space that's the strongest for the next 10-20 years. kelly: quick follow up on that, what's some of the others you're watching because some investors are looking at nvidia saying maybe i missed the band walleyen there. what's one or two others you're thinking? >> look at coin base, the exchange because they're going to be moving into that as bell. like arista networks and they do expansion technology and the others we'll watch developing over the next couple years and coming from places that are surprises and pla

nvidia is going to be powering this. this is a good company to own, and i just want to, you know, give an example -- we don't at deepwater, we do not own nvidia. we do have the deepwater frontier tech innovator ticker, we own tsmc. it trades at eight times, they're the picks and shovels of this whole revolution. nvidia trades at 22 times. that's, as i like to say, you get your cake and ice cream, too. you get the benefit of owning this transformative wave, but you get it at a better valuation, so, there's a lot of good things going on when it comes to a.i. >> just to put your bullishness in context, gene, i'm curious. where would you have put metaverse, back in the heyday of m metaverse, on that scale of innovative trends? would it have been bigger than the internet? >> 25. i would have said it would have been smaller than the smartphone. 3d tv at a five. autonomous cars at -- at 25 or 30, something there. i mean, this is -- i don't -- i don't want to get tripping over adjectives to hype things up, that's not what i do,

nvidia has the stronghold. amd is coming in with the second portion of that equation, learning how to provide answers to questions and queries, and that's because their memory capacity is a little higher than what nvidia's providing. so, yes, right now there is a market for both, but i'm a little skeptical in the, you know, three years from now, when all of these players are providing their own chips, especially when the hyperscalers do it in-house. that's the threat to amd and nvidia. and would question the crazy growth rate that we've seen in both companies. >> what's the point of updating your total addressable market by such a degree, kristina, if you are not going to update your own guidance? i don't know what that gets investors? it's this much more versus august, but the update, there's no update here on our own forecasts. >> so, i asked lisa su that, not only on camera here, but also in a press room, and i am confused about that, as well. a lot of analysts were expecting it. that probably would have hel

nvidia, given the magnitude and the dollars we see, nvidia is in the drivers seat. is a piece of this book is a thesis on amd that i have sympathy for that set the opportunity is so big that even as they get the dribs and drabs, it's enough. it's $100 billion and they get 5%. this may be some validity to that. but it also suggests there are other players in the ecosystem likely to get more than that. that's where amd is right now. >> lastly, broad, report tomorrow. what does this mean for it? >> on the a.i. side broad, do networking and amd had brought come on stage with them talking about ethernet and opening their infinity fabric and brought come will supported. brought come does hyper chips for google in particular and that's been a strong driver of revenue growth and also next year. i suspect people are nervous about the core business like cisco and others who do networking. the math suggests for the quarter they are about to report, broadcom is implicitly cutting for this quarter the a.i. non-wireless business, probably down double digits secretly already. a.i.

nvidia has a stronghold now and amd is coming in. for investors looking at which stock to buy, there is still an opportunity, especially when amd plied more in the infrensing world of the large model but in the future is where i get concerned. you have all of the competition from the hyperscalers coming in. >> they will play a significant role. they play the software stacks top to bottom. you can see microsoft was here and oracle was here talking about how they will be deploying. they are working on their own stuff for the reason you and i talked about. the market is so big. they are going to address everything from power consumption and cost requirements. people need different silicon for different work loads and a smart company will address all of those needs. >> thank you both so much on a big afternoon for amd. >> yes, indeed. and it will continue to get bigger. christina is coming back with amd's ceo lisa su on overtime. >> very good. >>> some of the biggest ceos in banking are testifying in the senate, trying to push back on ne

if you're bringing -- building chips, it is still nvidia. nvidia has things on the horizon. area aggressive product launch as we had into 24 and 25. their software ecosystem, cuda's superpower nvidia. caroline: moving away from the ships and then who was building the models is been all about microsoft. starting with alphabet, do we need to broaden our perspective there? how we see generative ai? nancy: i think there was a lot of criticism of gemini which was google's launch around latency issues. put that aside, it misses the point. what we saw with google was multimodal. it had inference, encoding, all at once. it gives you a future model. when you see that silly thing with the guitar and duck you need to think about the financial services, and health care, industrial sector. this is absolutely huge. may be 26, 27, 28 will look at the mouse, the keyboard? are those things? they might seem prehistoric because he'll be able to interact with the computer and a completely different way and the coding language will be english. a lot of interesting applications. ed: we are thorou

and settle the. >> i like letting the market tell me what to do what worries me nvidia the last twogreat earnings, hit $500 and can't get through that makes me think the market is worried about something, could be worried about competition. >> i'm glad you brought up competition, there is something that the market misses when it comes to nvidia this is more than just the maker of chips they created an entire a.i. ecosystem, software developers have been writing on top of their software code for the a.i. chips. i want to tell people i know the name. >> is very impressive they have been doing this for ten years they cannot take the stuff and move to any other competitive a.i. chip there is moved to room to run. >> i might think this is maybe overhyped, what is the other place maybe i want exposure to a.i. >> are reported take him in his package this week and barron's and identifies two other names one is supermicro they make the custom high-end a.i. servers that nvidia chips go into, the other is an virgo holdings they make cooling systems for a.i., interestingly a.i. servers run five

. >> nvidia has been the magnificent seven top performer in number one a.i.nvestment the stock is up over 200% since the start of this year but doesn't have room to run and what alternative ways to invest in a.i. the cover story this week and barron's deputy editor alex ewell joins the panel. >> certain people on the panel are not going to like what i'm about to say but this is not hyped enough. it looks pretty cheap 24 times earnings, that's because you twitter% growth for the stock and more than 20% earnings growth from the stock this year, you look at 70% next year, if you believe the earnings this stock is cheap. >> we are peeking through the as and for a.i. and nvidia trillion dollar company, i worry that any small could be a big hit to the stock. >> step in and settle the. >> i like letting the market tell me what to do what worries me nvidia the last two quarters have the great earnings, hit $500 and can't get through that makes me think the market is worried about something, could be worried about competition. >> i'm glad you brought up competition, t

[upbeat music] ♪ ♪ ♪ ♪ ♪ ♪ >> nvidia has been the magnificent seven top performer in number one a.i. since the start of this year but doesn't have room to run and what alternative ways to invest in a.i. the cover story this week and barron's deputy editor alex ewell joins the panel. >> certain people on the panel are not going to like what i'm about to say but this is not hyped enough. it looks pretty cheap 24 times earnings, that's because you twitter% growth for the stock and more than 20% earnings growth from the stock this year, you look at 70% next year, if you believe the earnings this stock is cheap. >> we are peeking through the as and for a.i. and nvidia trillion dollar company, i worry that any small could be a big hit to the stock. >> step in and settle the. >> i like letting the market tell me what to do what worries me nvidia the last two quarters have the great earnings, hit $500 and can't get through that makes me think the market is worried about something, could be worried about competition. >> i'm glad you brought up competition, there is something that the market m

let's take nvidia, apple, microsoft, forward earnings on these names roughly 24 times on nvidia, roughly 30 times on apple, roughly 32 times on microsoft. i'm sayin i ing to you you will these stocks down to high teen valuation. i just don't see that happening. however, could you see just a rotation that knocks these stocks down 10, 15, 20%? sure. i'm underweight the names. i could add to them there. there is outside of the magnificent seven that could be bought. >> you said 10, 15, 20%. that's a disaster in these stocks. >> it's happened in the last few months. where did apple go? what is that about 15%? >> and it was bought. that's why it's at 193. >> it's not a bad year and, by the way, at the same time that happened -- i'm so glad you pointed this out -- because at the same time that happened, what's rallied? small caps. equal weight s&p 500, i.e., the average stock. the scenario i'm portraying is a continuation of what the last couple of months has seen. >> i think what's happening now is trimming. the goldman note said out of the last 15 sessions the magnificent seven were sold. th

. >> nvidia has been the magnificent seven top performer in number one a.i. 200% since the start of this year but doesn't have room to run and what alternative ways to invest in a.i. the cover story this week and barron's deputy editor alex ewell joins the panel. >> certain people on the panel are not going to like what i'm about to say but this is not hyped enough. it looks pretty cheap 24 times earnings, that's because you twitter% growth for the stock and more than 20% earnings growth from the stock this year, you look at 70% next year, if you believe the earnings this stock is cheap. >> we are peeking through the as and for a.i. and nvidia trillion dollar company, i worry that any small could be a big hit to the stock. >> step in and settle the. >> i like letting the market tell me what to do what worries me nvidia the last two quarters have the great earnings, hit $500 and can't get through that makes me think the market is worried about something, could be worried about competition. >> i'm glad you brought up competition, there is something that the mar

nvidia is one ofthe has the details. nvidia is one of the world _ has the details.f the world 's _ has the details. nvidia is one of the world 's top _ of the world �*stop semiconductor manufacturers, it is a us keller new based company founded 30 years ago. and this man, jensen huang was one of the three founders, he is now the company ceo and has been on his first ever visit to the southeast asian country. and meetings with the vietnamese government has told them he regards vietnam as a home for nvidia, a place for attracting global talent. the company has invested a quarter of $1 billion there, on monday according to reuters he was expected to discuss deals with vietnamese tech companies and government authorities. the trade tensions between the us and china have made countries in the region other than china attractive destinations for chip design and manufacture. vietnam is hosted intel's biggest chip assembly factory, this visit could mark the beginning of a new relationship to do another big juicer into the country falls. to do another big 'uicer into the coun

. >> nvidia has been the magnificent seven top performer in number one a.i.ock is up over 200% since the start of this year but doesn't have room to run and what alternative ways to invest in a.i. the cover story this week and barron's deputy editor alex ewell joins the panel. >> certain people on the panel are not going to like what i'm about to say but this is not hyped enough. it looks pretty cheap 24 times earnings, that's because you twitter% growth for the stock and more than 20% earnings growth from the stock this year, you look at 70% next year, if you believe the earnings this stock is cheap. >> we are peeking through the as and for a.i. and nvidia trillion dollar company, i worry that any small could be a big hit to the stock. >> step in and settle the. >> i like letting the market tell me what to do what worries me nvidia the last two quarters have the great earnings, hit $500 and can't get through that makes me think the market is worried about something, could be worried about competition. >> i'm glad you brought up competition, there is somethin

nvidia epu, the hottest ticket in town. competition could be wrapping up. here in california. and i'll be interviewing the ceo at 3:30 p.m. eastern on wednesday. and then you also have intel with its own ai event, less the chip thing, but that'll happen on december 14th next week. there are going to be definitely more movement in the coming weeks. >> i was at a family dinner last night and my son was asking about nvidia, because he happens to own some of it, i said nvidia is the hot ticket right now, but don't think they're not going to have competition coming down the line. >> excellent point. even my 19-year-old cousin in vancouver was asking me about nvidia, whether he should be buying it. the reason it's the hottest ticket in town is because it provides the gpus in order for companies to train large language models. the second part of that equation is inferencing, spitting out the answers to your questions. that's where amd could play a role. their memory they're going to provide in their new chip also competes. and hyperscalers are creating their own c

that is dangerous to short a stock like nvidia. >> should we beware of nvidia and other mega caps where their multiples have expanded to? that's the larger question whether you should be tactically short the name. >> it takes you to the 200 day moving average. what is the fundamental catalyst? you might discover something that disappoints the trajectory. it's not going to alter very much my ownership of the stock. if people saw nvidia down would be more inclients to buy it there than to short it there. >> the year-to-date gains, we sort of make the blanket statements, apple is up 50%. microsoft, 56. alphabet, 60. amazon, 82. nvidia, 235. meta, 193. where are you going to get a nose bleed up there? >> i've been trimming meta. upward 193%. it's not expensive, though. it's reasonable. 24 times for 25% revenue growth which is accelerated throughout the year and should do that again next year. i feel like everybody is involved and i'm welcoming the broadening out. i think they're good 2024 stories because they have specific situations and cdw is up nice ly and i like the bottoming there. for

why is nvidia so cheap? it feeds into that question.ied that the numbers are getting so big so quickly, they worry about sustainability. i will make it up, the southside is at $20 an earning. i think though worry is 25 next year, maybe the year after that 15. there is a worry there is an air pocket out there. they did something that was smart. they latched onto this ai story. they got products that look reasonably credible, and have given guidance. there is room to go up. they said, they would do more than $2 billion in ai revenue next year. that number could be 3 or 4, a rounding error. if in nvidia the 70 next year, that is disappointed. amd has left themselves. people have been migrating to that stock as a way to play ai, with maybe less perceived air pocket risks. whether that is justified is a whole other question, very expensive. i understand why it has had the move it has had. >> so when you look at nvidia, they have, i think 80, 85% of the market. correct me if i am wrong on that market right there. they always say, it is theirs

i think nvidia is on the list.he companies they have been able to grow, market cap, solely based on excitement over where they will be going three, number for or five years down the road. and eventually, as investors make the shift to, what have you done for me today, i think nvidia starts to see that ground as well. >> what about apple. you heard the news today. not a big surprise but it seems to be taking shape. stocks just shy of 195. it looks like it is on track for $200 a share. i think dan ives yesterday or the day before said 250 is the right number as he reiterates. i mentioned the barron's cover earlier that will get a lot of people talking heading into next week. what is your thought? >> i read the barron's article. it felt like i wrote it myself. apple adding something like a trillion dollars of market value in a year where it is -- it has not actually done anything meaningful since 2016 when we get the air pods. we have not seen any major release of a hardware product since then. and apple has actually

to nvidia's less than 2% gain. kristina partsinevelos is in san jose ahead of this big amd announcement. kristina, what do you expect? >> reporter: well, move over nvidia. amd is ready to launch its own ai chip and that's why i'm here in san jose. the event hasn't started. it's really quite early right here, that's why it's quiet behind me. i'm in the demo room. when compared with nvidia's h100 chip, amd's version, the mi300x has more bandwidth. nvidia's chips need to operate on their own software. that's a difference between both. amd is betting big, promising that this chip will be the fastest product in its history to scale to $1 billion. that's how confident they are. the company also estimates that their ai data center offering will bring in about $400 million in q4, this present quarter and about $2 billion next year, which definitely sounds like a lot. but when you look at this chart on your screen, it pales in comparison with nvidia's data center revenue. you can see that exemplified by the yellow bar, and

i want to show you the move in broadcom this ar, which doesn't get talked about as much as nvidia.-to-date. rob, it reports earnings late next week, so what do we expect here? >> you know, i think what we want to see is mid single digit revenue and earnings growth for the quarter. demand is growing at 20 plus percent, margins continuing to hold steady, and most importantly, we're looked at guidance for '24. let's remember that this is a great way outside of nvidia to play ai and data center demabdemabnddemand. it trades at a 30% discount, and, you know, it's a great company. >> that's how you hear people talk about this, shan, it's the cheaper way of playing a real player in ai if you just are uncomfortable with the valuation of let's just say nvidia. >> yeah. i mean, even with the valuation of nvidia, we certainly have seen that come down as they have grown the earnings. but i think there's going to be winners and losers in this ai trade. i think early on, you're seeing investors gravitate to those companies that are already monetizing that. i think as we go into '24, the second d

nvidia is cheap enough -- and i'm going to start with nvidia because it's at the center of the beginning. but ubs analysts argue the up precedented market concentration of the magnificent seven is an end cycle phenomenon and not the start of a new super group. they are bearic mega cap technology and would short nvidia where they see the risk oh of 20% to 30% correction in the first half of next year. switching to micron, a name that often comes up for ai systems. nvidia is actually prepaying micron to get its hands on memory chips for fear of shortage. that demand right there has analysts bullish on the name like jpmorgan, goldman sachs. and lastly, qualcomm, the stock is up 32% year-to-date. the company secured an apple contract and the smartphone market appears to be making a comeback. but morgan stanley points to huawei's return to the chinese market, a mayor headwind for qualcomm. so there's mixed sentiment for chips in general going into 2024. nvidia, yes. a lot of the notes are looking for these under the radar plays. broadcom is still up there. micron seems to be dominating, as we

and i think you do not have to chase nvidia instead of the latter.ne: always straight talking. we really appreciate it. great to have you here in new york. meanwhile? ed: we have a conversation about doc you sign and then we will get the outlook and -- the outlook with the ceo on the program. tsmc, up .4%. it is so weird. november data for sales is not good. october had been good. down the first 11 months of the year. we have no hard gauge of what is going on with this chip industry. if we but down in some areas we are sinking in others. caroline: time for talking tech. an indian conglomerate is planning to build one of the largest iphone assembly plants with about 20% -- 20 assembly lines and will employ 20,000 workers. tata would bolster efforts to increase production in india. tencent is betting on its know -- its new open world adventure game. the last sentinel was unveiled during the 2023 game awards. last sentinel was developed by the california based lightspeed studio. no word on the release date. plus broadcom says it expects the rapid expans

there's one rub against nvidia, which is that is are they over ordering? of course, this is a cyclical stock. where we are in the cycle for ai chips and other applications they have leads me to believe the top of the cycle is way out there. i am not worried about the valuation. i think it's cheap. i said that before. >> so gershnor said it last week. if you look at where they are protected to be next, and whether it's amazon at the top at 49 or alphabet at the bottom with 22. >> look, last week, estimates are it takes 20 times as much power to do an ai search as a google search. think of what that means, and also when you look at the computing power needed and the data that will be needed, that will be drive more growth in the cloud. all of those companies are extremely well positioned, and then you have the additional products that will be coming out, and then you have the ad models. there's no alternative at this point to advertising on google and meta. you know, amazon is getting to the business, and the business is growing in leaps and bounds. when you

the big winner is nvidia up more than 200%.veryone looking at what chips will power training models and chatgpt. nvidia has been the only game in town with product, but the stock that investors are loving. amd has done well this year. the mi-300x is the competitor to the nvidia chip. microsoft is among those committed to using the chips it is unclear how the performance translates into the real world this is the next big tip if this proves to be successful, it could put pressure on nvidia in the chip space for a.i. >> analysts put out a note saying they expect amd total market share is 10% on the back of the latest chip they produce. what amd was saying is it is not about stealing market share from nvidia, but because this market is growing rapidly, there is enough space for both of them is what they are saying >> there has been a shortage of nvidia chips because of the demand there is a lot of demand and not enough supply. amd will jump into the space and chips will be snapped up by those willing to train some of the artificia

. >> the sexy stocks like nvidia, are they going to hold up? >> so that's something we talk about with our clients all the time. >> people ask me. maybe 20 years ago, cmgi, there were these stocks that didn't do anything or make anything or make any money, certainly, but nvidia makes money. >> 20 years ago kcisco made a lt of money. nvidia is a great company. we own it, it's one of our largest positions. but it needs to grow 30% a year to sustain its valuation and that means no competition coming in. that means people are going to pay the same prices at the same margins and demand is going to increase and no competition comes in. you can own it, you just have to be careful of the size. sizing is important. >> the size of your holdings within your portfolio. >> because it's a very volatile stock. if you look back historically, a couple of years when nvidia has missed out, the stock doesn't crack 5% to 10%. it's 20% to 30%. you need to be prepared. it can do that on the upside. that's pretty much baked in. we're expecting 20% to 30% earnings grow

i want to talk about nvidia. it is the story of 2023.to use, 20% year to date. the smh chip etf is the best since 2003. will chips continue to have the run in 2024? >> nvidia had the year of the lifetime this year. it will be hard to repeat that no matter what. the bigger problem is people have to use those chips. it is amazing they have the capacity. the reality is a lot of these a.i. companies and companies that are spinning up a.i. lines of business are finding there is not a ton of demand. we are seeing that across the board. when there's not tons of demand, it means the chip demand is weaker. we have seen that with taiwan semiconductor. they are saying we are not getting the orders around the design of the chips that we would have usually seen. is nvidia going to have a bad year in the traditional sense? absolutely not. will it repeat this year? i highly doubt it. >> i think it would be difficult. 200% increase for another year? tough to repeat. if nvidia is not going to repeat, as you say is difficult, is there another stock in the

nvidia is a modest winner. everything else, whether it's apple or microsoft, amazon are all down pick mega caps will be an atm and some of that cash will go into these areas you are talking about. whether cash itself or money markets is going to just come in by itself into those other areas. i'm wondering what you think about that. tony pasquarello, who is influential and runs the goldman hedge fund client strategy over there suggests that money doesn't necessarily have to come out of the mega caps to go into these other areas. it can come out of money markets as yields come down. >> great note from tony today and he think he is spot on. mega tech cap does not have to fall apart. if you look at valuations adjusted for growth in earnings, they are not that stretched when you look at the forward pe to growth multiple. and if you do have a solid economic environment in the fed is pivoting, that's a fine environment for big tech stocks. i think money comes out of money markets which pay 5.5% roughly today but chanc

nvidia, some of the insiders sold stock in nvidia.y out of their minds not to snell who runs around with a stock like that, where you're getting stock all the time -- of course you'd sell, just for estate planning purposes. if i were mark zuckerberg, i would go buy munis. >> no. >> if i were handling his finances, i would say you've got a ga silian dollars in meta, maybe you buy some of the 30-year -- >> yeah. diversify a little bit. that would be what you would advise. >> i'm not going to tell him to go buy j&j. i used to do that. my boss would say, jim, did you really recommend to someone who is a billionaire to buy j&j. >> he said you only need to get rich once. think about what happens if it goes down. >> what about your friend jensen, would you advise him to diversify? >> no. i don't think there's anything wrong with jensen the way he's been selling. >> bezos has been doing a little bit of selling. >> there's a lot of guys who sell $7 million and buy a place in florida. it's always seven. what is that about? >> well, seven -- bez

preparing nvidia's own stock. it is the gpu of choice in the ai space right now. nvidia's h 100 is shipping in volume in the real world. it is supply constrained. amd is only -- has only started shipping the mi 300 x recently. they have something called hbm3, the latest generation of high been with memory, which reduces latency in the processing and data but also makes it more power efficient which on paper means it's a more cost-effective product. nvidia won't have that until the second quarter when they ship the h 200. even though amd is playing catch-up against a clear market incumbent, as it stands right now, they have a product in the marketplace albeit in low volumes that has a technological age. vonnie: the market likes what they are hearing,amd up when it percent. but what is the market looking for? -- amd up 8%. but what is the market looking for? >> in the space, there's so much chat around the underlying products and technology, the main question is, who are the customers? these gpu's are not just thing

they even used the midas touch of nvidia saying they are -- >> when in doubt, mention nvidia. >> you see the stock climb higher. they're in the final stages of qualifying their high bandwidth for the h200, a new chip coming out next year, which is a good sign, but even that won't be about 12 to 14 months to come to market. >> we mentioned the space has done well. you don't own this name. you do own others. what do you think here about what's been an incredible move for the chips? >> it's been an incredible move both in the size of the move but the breadth of it no longer just talking about nvidia and broadcom. >> exactly. >> in part predicated on the belief end markets outside of ai are picking up. the internet of things, pcs, mobile phones, automotive. now i heard, kristina, you throw in maybe healthy cold walter on that, hey, it's price not volume. you can't raise price unless there's actually end user demand, or let me rephrase this and ask you the question. i'm bullish both on ai but outside of ai, and at the very least mobile and pcs look like they've bottomed. would you agree?

nvidia's one of the world's top semiconductor manufacturers.ased company that was founded 30 years ago. and this man, jensen huang, was one of the three founders. he's now the company's ceo and he's been on his first ever visit to the southeast asian country. in meetings with the vietnamese government, he reportedly told them he regards vietnam as a home for nvidia, a place for attracting global talent. the company's already invested a quarter of a billion dollars there. on monday, according to reuters, mr huang was expected to discuss deals with vietnamese tech companies and government authorities. the trade tensions between the united states and china have made countries in the region other than china attractive destinations for chip design and manufacturing. vietnam's already host to intel's biggest chip assembly factory. this visit could mark the beginning of a new relationship to lure another big producer into the country. david milei there. —— david waddell there. let's take a look at what to come this week on our businesss calendar. on t

. >> when you take nvidia out, just nvidia. we've focused on the mag seven. the market is up like 16%. we wouldn't talk about touching the sun. oh, that's nice. the market was down 16% and 18%. one of the things i think is super important going into 2024 is to stop talking about the market and the s&p, and this goes into the small cap conversation, what rob was saying before, let's focus on what's been left behind. i've been calling them nonparticipants. when we think about next year, let's try to redirect the conversation a little bit away from just the s&p and think more broadly. i think what the winning play will be next year is breadth, breadth, breadth. the dividend stocks or value or small cap, take your pick. none of those areas are kissing the sun. >> let's continue to talk about the s&p. the rally's next big test will be fourth quarter earnings that will come out in a few weeks. sechan, coming over to you. what's at stake when the earnings come out? >> incredibly important. as i said earlier, it's all about earnings. this year was about multiple expa

>> nvidia. that's why.a frequent guest of our network, is saying that -- i love this line so much. it's strange to complain about nvidia's stock performance and then he come on and says it's been disappointing. the stock has been disappointing. he is saying since the last quarter it is. >> it has flat lined over the last few months i guess. even though they reported a historic quarter. >> right. it's mid-20s pe, even though it's probably the greatest stock of our era when it comes to ai. i think the stock should be higher. i recognize in terms of what we said with lennar, people are saying some stocks have moved too much. there's no radar gun on a stock. nvidia missed the quarter in the spring. >> right. >> he said to lisa, i had the biggest miss in history, but it was to the upsitde. that was a funny thing. >> was funny. not that funny. >> you didn't have to gloss over it. >> i just moved on. i did. i moved on. you've relayed funnier stories. >> i have. i was talking about amd catching a bid. people are al

take something like nvidia.y make the most powerful semi conductors on earth that we need for cutting edge applications like artificial intelligence. i have loved nvidia for the long haul. it has an insanely volatile stock let's say you want to own 100 shares of nvidia over time. to get 25 shares over a period of weeks or even months. if that is your core position as an investor. let's say you want to trade something that is hard to do cheaper then it has ever been. home gamers can fit in and fill it out. no stock commissions. i would recommend. trade something like nvidia. but this is a different story. let's go back to 100 shares of nvidia. sitting at $500. every time the stock jumps another 5%, you could sell 25 shares according to your position. you shave a little off to bring in some profit. so nvidia hits 5.5, we have seven shares. keep scaling on the way up. but never sell the final 25 because that is your core position. if something happens to knock the stock back down and nothing has changed with the un

us chipmaker nvidia plans to establish a base in vietnam to develop the country's semiconductor industry the vietnamese government. vietnam is already in the chip business with intel, it is trying to expand. our business reporter has the details. nvidia is one of the world �*stop semiconductor manufacturers, it is a us california based company founded 30 years ago. and this man, jensen huang was one of the three founders, he is now the company ceo and has been on his first ever visit to the southeast asian country. in meetings with the vietnamese government has told them he regards vietnam as a home for nvidia, a place for attracting global talent. the company has invested a quarter of $1 billion there, on monday, according to reuters, he was expected to discuss deals with vietnamese tech companies and government authorities. the trade tensions between the us and china have made countries in the region other than china attractive destinations for chip design and manufacture. vietnam has hosted intel's biggest chip assembly factory, this visit could mark the beginning of a new relationshi

you look at the likes of amd coming out with a competitor chip to nvidia.oing to face more competitors next year and there will be more large language models on the market from the likes of openai, deepmind. expect some new announcements from those. kriti: we will rely on you to bring all of that news to us. bloomberg's tom mackenzie bringing us what a crucial theme for 2023 has been. stick with us. this is bloomberg. ♪ ♪ kriti: welcome back to "bloomberg daybreak: europe." i am kriti gupta in london. i want to leave you with two charts that are catching my eye, especially the pce numbers, the fed's core gauge of inflation. the blue will be headline inflation, the white will be that core preferred gauge. core services to say where the economy is going. they've kind of been on par mostly throughout the rest of the year but take a look at this tiny divergence. that blue line starting to plateau a little bit, core inflation is coming down more significantly. here's what's significant about that dynamic, this idea you're starting to see the fed pick and choose

i think nvidia is still a winner. trading less than 20 times our calendar '25 estimate and so it's starting to be a would you rather nvidia under 20 or google under 20. you know, that -- there's a very similar valuations and you're like, what, what's going on? you know, i'll pick nvidia right now. >> second he derivative you would rather trade. i like what he did right there. >> how about apple and their foray into ai. will siri be something that's useful? they're kind of being left in the dust. apple's days of being the most important company of the world are over. how are you? >> you know, i think apple is perking up. i think that, in fact, that -- so they have the iphone kind of flatish, but the upgrade was solid. we all know that there's the china headwinds a little bit, but i think they're plugging along. when they come out of this quarter where they're entering a tough comp because there was an extra week a year ago they're going to be growing in the mid singles. if apple is growing in the mid-single digits the

to nvidia's. ai day yesterday, they unveiled as we said the mri 300 x. it ships early next year for its customers. microsoft, meta, open ai, and oracle. we don't know the price but i can tell you it competes with nvidia's h 100 and that cost per chip, $40,000. amd said there's cost less then that. if you look at the market for ai chips, amd is saying it is worth $400 million in the year 2027. they admit nvidia has most of this but we are fine with just taking a small but growing share of that $400 million, they have to take nvidia's customers by offering them something just as good at a cheaper price. stuart: i see microsoft just turned around, well done. the discounter dollar general reported before the bell. lauren: their sales fell, their sales fell. everyone is pinching pennies and worrying about the high price, how is the dollar store not doing well, we are prioritizing what we purchase, going into the dollar store and buying essentials over other things and that shift hurt the dollar stores,

>> it will make their gpus more scalable than nvidia. i think that it is eating into a little bit of the lunch on the software side of it. now amd could be number three and eating in there just a little bit. we own both and i think we have to have exposure in both of them. >> they're cousins. jensen huang and lisa su. they're from taiwan and distantly related. she's wearing leather jackets now. i like everything going on in the space. >> that was a big deal yesterday in the interview. that she had with kristina partsinevelos. bryn? >> first of all, it was reported this year both meta and microsoft purchased around 150,000 each h-100 and h-800 chips. microsoft is going to partner with amd. margins do mean revert. not surprising because lisa su and jensen huang are the two best operators that we have. there is for sure more than room for one. you will see more big companies like the microsofts, like the metas, wanting to diversify their supply lines not only with what they're creating but amd will be the winner. they have both said this is

i'm looking at nvidia at $499.85 because miller tabeck says $500 is a key level for nvidia. nvidia's gains came in the first time few months of the year. it's underperformed in the last few months. >> what i keep remarking on these companies is you think a 240% gain would result in a stupid multiple, nobody can do that, and yet the earnings expectations are so great that the multiples are not expanding that dramatically. in fact, most of the other major tech names, i talked about this yesterday, microsoft, nvidia, apple, even meta, their multiples are within the normal five-year historic range for them, so this is part of the great story here that the expectations are so high for the impact of headquarters that we're not dealing with stupid. this is not anywhere near 1999. th these companies' valuations are very reasonable. i want to see an expansion of the a.i. ecosphere next year. i want to see small ipos, like databricks, in the datacenter area that are going to benefit from the a.i. revolution come public next year. i'm hopeful we're going to end this two-year terrible i

nvidia is a big client.here are a lot of names that don't get a lot of love or mention, but they're huge winners. cadence designs, up 71%. >> this happened with the internet. once you had the big names, netscape went public in august, '95. i was here for that. don't laugh, please. it created that move. within a few years, knock-on effects, huge numbers of other internet companies came online. this is going to happen next year. the a.i. story is going to broaden out, other smaller companies, watch dan ives, he'll have his eye on all of those companies out there that you don't know much about right now that are microcap or small cap or going to go public in the next year around the a.i. story. a huge part of the ipo story is going to be a.i.-related stories going public. >> i do wonder if it extends to other sectors, places like financials, for instance, that are going to benefit from using generative a.i. to improve productivity and boost margins. i wonder when that story happens. >> look at the back office.

>> nvidia had the biggest blowout in the history of the western world. a lot that wasn't enough on the stocks are meandering. a lot will try to sell and say can reach a double top. i think nvidia is an amazing company. here in pennsylvania? >> hello, booya. i am a first-time caller. my question is about stock one year ago about $50 per share. now it is at 28. by sell or hold? pfizer? >> pfizer just don't have a good enough pipeline. i think the stock with the 6% yield is fine but if it's at 27 and went to 32 here is what i would tell you to do. >> sell, sell, sell, sell! i wish i could be more positive. all right amid the red scape of red in the market today, the wind streak for the nasdaq may be over. there is one name that has recently caught fire that might be worth buying into the week. and fedex is following with the rest of the market down 12 percent. what could it mean for the delivery giant going forward? i will take a closer look at first you know there's a monthly meeting for cnbc subscribers and we cannot get to your amazing questions so we de

so nvidia is my best of the best.ause i don't see a recession in this country, and i do think that digital advertising will remain robust, i do like alphabet, and i do like meta, and as my number two, after number one nvidia ai play, i like microsoft. it's come a long way, but it has a little bit more upside in my opinion. >> steve, micron on this list, as well. i did get a question from a viewer about intel, which is about doubled from this year, wondering if that's a name you can bet on for next year. what would you say about intel's prospects? >> i know the company very well. i think under pat gelsinger, the company is well managed. i do think that they will have a little bit of bounceback in the pc business next year, which still drives intel, because pcs should have a unit ramp next year after having a couple miserable years. right now, that stock is very expensive, based on what i see as its long-term growth, both top and bottom line of probably 5% to 10% best. so i would not buy it now. if i held it, maybe hold

i'm looking at nvidia 20 times 2024 numbers.of the normal range for their -- i see google, alphabet, 20 times 2024 numbers, that's a normal range there. apple 26. usually is 24 or 25. none of this like looks at -- i look at and say, oh, my god these are stupid valuations that are way above their historic norms. >> bob has seen everything over the decades -- >> he's really old. >> the story when it comes to what we've seen with bubbles, this is not a bubble. this is not hype. this is real. >> in '95 we were there. i watched it too. we reported on it every day. two or three years in, there was an awful lot of capital being invested in things that got no return, none. is that at risk here? >> it's a much more discipline wad you're seeing from a vc, private equity institution. maybe some of the discipline is how many sort of missed the ride going into this year. i still think it's a get out the popcorn moment. this is not open. this is starting a new tech bull market. >> the story of 2024 is finally we're going to get true personal

. >>> plus, amd takes aim at nvidia. unveiling a new chip set today designed specifically for what else? artificial intelligence. >>> and then later on, bitcoin's bounce continues in a very big way. it is wednesday, december 6th, 2023. you are watching "worldwide exchange" right here on cnbc. >>> good morning. welcome to "worldwide exchange." i'm dominic chu in fur frank holland. yesterday saw the dow and the s&p post back-to-back losses. right now we're seeing some modest gains implied at the "opening bell," the s&p higher by 10 to 11 points, the dow jones up and the nasdaq. the bond market, we continue to watch a sharp drop-off in treasury yields now shitting their lowest level since august. the 2-year note at 6.1 and the 30-year long bond, 4.31%. >>> attention is squarely focused on shares of the biggest one out there, apple, closing with a $3 trillion market cap for the first time since august. this morning the apple shares are just about flat on the session, just a tad higher. $193.55. it's up about 49% just in 2023

. >> we have a deeper partnership with nvidia.the new chips have come out on our aws ec two instances first, and at the same time we are building their own trips for trading and inference for people that want to push the envelope on price-performance. so, that bottom layer, you have a lot of companies will build those large language models on those chips. and that middle layer is really where companies that don't want to invest all of the people and the dollars in building their own models, they want to take an existing large language model, customize it with their own data, and then be able to run it as a managed service. that is why we built a service called redrock which takes not only our own models which we call titan, but leading third- party models like anthropic instability and, two. let them take those models, customize it , and then have the same security and access control and features they have in aws that they can use in that service. all three layers of that stack really matter. companies are trying to figure out whe

nvidia is one of the top semiconductor manufacturers.lifornia based company that was founded 30 years ago. this man was one of the three founders. it is now the company ceo and has been in his first ever visit to the southeast asian country. in meetings with the vietnamese government he told them he regards vietnam as a home for nvidia, a place for attracting global talent. the company is orally invested $250 million there. on monday was expected to discuss deals with vietnamese tech companies and government authorities. the trade tensions between the united states and china have made other countries attractive destinations for chip design and manufacture. yet now is orally hosted the biggest ship assembly factory. this is a good mark the beginning of any relationship to laura another big producer into the country. let's take a look at what is coming up this week. on tuesday, the us is scheduled to release inflation numbers for november. the cost of living showed signs of easing in october about data in the past month shows americans are

here is where i feel about nvidia and arm. i talked about this when it went public i really wanted allocation i didn't get it. i thought it was fairly priced. i thought nvidia was a little peakky. we have to remember the semiconductor sector is cyclical. if you go into the names, be in a bumpy ride, don't plan on trading it, buckle up. charles: deal with wild gyrations? >> 100%. dell came out with weaker numbers than expected. you heard the steak on auto. those are big users of semis. if it is softening it will be softening for a while. smarter chips are needed. it will take a beat. charles: they are giving me the time cue, i have want to let the audience know you've been buying adobe and salesforce.com. >> i have. for the long haul. charles: for the long haul. >> expanding march begins. pricing subscriptions for a adobe, the figure meant deal may die which is expensive. we can talk about another time. charles: sales force two earnings reports the ceo was on the hot seat. now he is looking pretty good. >> getting their act tog

your customers, nvidia and walmart and a number of other customers. tell you about the needs for data centers in 2024 and outlook for a.i.? >> what we're seeing and have been seeing for a number of years is a broad trend on dug tall t digital transformation. that continues and, in fact, we see a.i. as fuel on the fire for that demand. right now, really solid pipeline for a.i. as an opportunity and how people are thinking about that and i think that's fuelling, as you said, significant demand for the underlining data sender centers support that. >> you raised your dividend by 25% a few weeks ago. give us a sense. what gave you the confidence to raise your dividend? >> it is a reflection of the cash flow profile of the business. i think the strength that we have as a market leader as a growing space. that was us assessing the continued have as a reit. i think it is a really good outcome. >> on the last earnings call, another topic you were talking about was private a.i. give us a sense, what is private a.i. and what entities are using private a.i.? >> a

especially because of how popular nvidia has been as a trade. it also seems like these one-day options, they become a way for people to play the economic uncertainty that we've seen this year. four out of the top five trading days for one day options were around days like cpi, the labor market data, gdp data. so, watch out for that in trading tomorrow and wednesday when we see cpi, ppi, that's been a way for people to play these huge moves in stocks and bonds through things like tlt. >> these options didn't exist a year ago. what is on the horizon? is there a slice in the options world that is even shorter-dated than what we have now? >> if there is, i think exchanges and brokerages are going to try to create it out of thin air, because this is a cash cow for etf providers, for retail brokerages, let's not forget options make up -- they are much more lucrative for retail brokerages than stocks are, because of payment for order flow. that's one of the biggest sources of revenue. and i think people are going to try to, you know, capture this golde