good morning it is 8:00 a.m. at apple headquarters in cupertino, california it is 11:00 a.m. here on wall street and "squawk alley" is live ♪ ♪ happy summer friday! and welcome to "squawk alley." i'm morgan brennan here with brian sullivan at post nine, live from the floor of the new york stock exchange. carl and john both have the morning off. we'll begin with the markets, though i don't know about you, i can't believe it, we're already

halfway through 2019 it's the last trading day of the first half how has tech performed what about all of these recent ipos bob pisani has some of those answers and joins us on set. >> you know what i love? i love how wrong the consensus is humans are terrible at predicting the future and nobody is worse than wall street at it, so remember when we started in 2000, back in january, everybody said, the ipo market, oh, there's going to be 200 of them. everybody's going to go public no one will want all of this stuff. they'll price this stuff too high and the only thing anybody wants is uber and lyft >> are they sure they want those? >> everything was wrong. look at the numbers. we're at the first half of the year with. 62 in the second quarter, $25 billion. it was the most active quarter by deal count in four years. it was the most capital raised in five years. and look at the -- 30% the average return on ipo. that's twice what it historically has been. so the answer was, oh, it turns out there's people dying for most of this stuff and what they didn't want initially was uber and lyft. >> you're the most honest man on

television, so morgan, i'll ask you to see him and raise, if i had said to you six months ago, and i don't want to say nobody wants uber, but uber would not have done that great, but a meatless meat would have been up 500%, would you have said that would have happened? >> no, i wouldn't have and quite frankly, back to bob's point, i'm not sure anybody or most people would have, which is probably why there's an argument out there now that many of these ipos were priced too low >> that's a very interesting point. the people who bought this stuff looking at it were saying, you know what, bob, it turns out the prices were not completely out of whack and there was a lot more demand. so now we want to look at what's going to happen in the second half and the list is long and getting longer we've got people out there, we've got poshmark, that big peer-to-peer fashion site, casper, peloton, postmates, wework in the words of one, you will

need your head examined if you don't want to go public. >> any of those making money >> we're a little bit controversial, because it's really a real estate play. it's a real estate play. so that one's a little bit -- but posh jb mark is out there. their competitors go well. postmates, they do online food and goods delivery and casper is the online mattress firm. so they're all out there they're doing well >> i think what's notable is the fact that year-to-date, every sector in the s&p is higher. and quarter to date, everything else is higher as well it's not like we've necessarily seen great rotation out of what already exists in these new names. >> and what i mentioned the other day is the bigger companies are getting bigger and bigger we have $500 million more in market cap and if you look at what moved the s&p this quarter, five companies were 30% of the campaigns that we had in the s&p 500.

microsoft alone is, was more than 5% of the gains for the s&p 500. if microsoft moves, amazon muovs in a quarter, it's going to drag the whole s&p 500 up with you. if that doesn't impress you? >> no, it does you talk to ceos smaller companies ceo, they hate that market structure. because they're like, brian, i'm trying to run a good company, but if google goes up or down, my stock goes up or down and i have nothing to do with google >> it's true and here's the final stat. if the top 50 companies in the s&p go up 1% in the quarter and the bottom 50 go down, the bottom 450 go down, the s&p is flat that's how important and really it's the top 20 a small move, 1% up in the top 50 companies, the other 450 go down 1%, the s&p is flat that's how big the market's become >> okay. we're going into the second half of the year. dare i ask what the consensus is

for the markets more broadly >> i think the currently feeling is that the market is positioned so that it's going to be a modest global slowdown they're generally light on equities and surprisingly heavy on bonds i don't understand that, but they seem to think that's going to stay lower for a much longer period of time if you get a deal over the weekend, fine, you get maybe 5% upside if they say, we're going to put on new tariffs, then we're talking down 5% to 10% that seems to be the consensus >> this is "squawk alley." a tech focused show, right >> it is >> i got dialled into my aol county earlier this morning to read up on the world wide web, so -- >> good for you! >> i want to talk more about the macro markets, because this is what's insane. and i'm sure you've pointed it up our index is up. gold up, bitcoin is up, real estate is up the only thing that's down is oil and gas. every asset class in the world, every major average in the world is higher. is this all just central banks

just pumping it up because i don't know where the money's coming from? >> yes, the answer is, the central bank is -- the fact that all the central banks in the world have turned dovish is the primary reason we're holding up reasonably well. but there's an enormous amount of excess capital slashing around the world >> it's not like people are selling this to buy that they're buying everything. everything's up. >> but the consensus still is the united states stock market is the best of any stock markets in the world and the market is reflecting that gold is up, there are people worried about their own economy, but by and large, it's the equity market and it's because of the global capital that's sloshing around. it's amazing how much money there is and it's a small number of people controlling that, you know, 10% of the households in the united states control most

of the stock, but that money is looking for a home to be safe and to grow and the u.s. stock market is still the best praise to do it >> and a lot of that money is sloshing around because we have low interest rates thanks to monetary policy, right bob pisani, thank you. >> can i point out one thing, uber, they passed $45. they passed their earlier price. they had never done that before. that was a major milestone more them, that uber took $46 today, and when they hit $45, had never passed that, the stock spiked up late yesterday so there's another positive note for the ipo market >> all right, bob pisani, thank you. >> bob just told you about ipos to come, but the ipo rush also continuing today over at the nasdaq and there's a lot of hope that there's real money to be made in used clothes the real real going public moments ago. leslie picker has more from the nasdaq in times square leslie >> hey, brian, there's certainly real money being made right now. this stock up 46%.

you could hear tons of cheering here at the nasdaq when that stock opened for trading i've been speaking with investors and people close to the process who say that they really didn't have any investors in the road show a very few one or two who said altogether they weren't investing in this company, which is quite rare. right now, we're looking at about $29 a share for this company. key drivers of investor interest here, 55% topline growth they are losing money. they're looking at about $100 million on a run rate basis for losses this year but as ceo julie wainwright said earlier, they have a path to profitability and ecommerce companies have been quite hot, especially those ipos, following

the revolve group ipo. so a lot of that excitement, a lot of that euphoria is really bringing investors to the table here and ecommerce historically hasn't been as popular as an ipo attraction for these investors, and somehow that has recently changed with regard to their ability to collect data on the consumer to show very specific unit economics and just overall momentum in this space, guys recommerce, leslie picker. thank you for bringing us the latest on this ipo we want to check shares on another company that just went public this week adaptive is up another 11% this morning after surging nearly 100% in its debut yesterday. you also have digital health start-up levongo getting ready for its own ipo. the rush to the public markets is not slowing down, it seems, which means we're going to stay very busy here at "squawk alley" and leslie picker, i suspect, will, as well. >> the real real, that's some real money being made. 46% jump, what do they think they are

beyond meat? beyond clothes, i guess. all right, on deck, are investors underestimating what johnny ives' departure means for apple stock? we'll get more on one of the big's exits for an executive in decades. and later, twitter's new rules while prominent politicians may have to change the way they tweet, especially one very prominent guy in the wtehi house. we'll be back after a quick break.

welcome back to "squawk alley. apple's longtime design leader,

johnny ive departing to create his own company. the stock lost on the news last night. it's lower again today josh lipton has the latest from san francisco. josh >> so morgan, his tidtle really said it all. chief design officer johnny ive was instrumental in the design of some of apple's most iconic products the ipad, the iwatch, and of course the iphone, the most popular consumer tech product of all time as well as apple's new campus in cupertino. his impact on the company was profound when steve jobs led his legendary comeback at apple, johnny ive was his right-hand man. they shared a common aesthetic walter isaacson details how at least when jobs was at healthy and at work, the two had lunch almost every day but now johnny ive is moving on. he will no longer be an apple

employee so who fills that role well, interestingly, apple did not name a new chief design officer. instead, it says two design veterans, evans henky and ian dye will stay on and report to coo jeff williams. that concerns some longtime apple watchers, like gruber, who argues that someone in his opinion needs to be in charge of design for apple to be apple but is that really true? others counter that apple is now simply a very different company. it's bigger, it's broader, with many more products and services and more on the way, so perhaps trying to have one all-powerful design head really no longer makes sense. with this new apple in 2015, something tim cook seems to have suggested to the "financial times" when he said that the company runs very much horizontally >> the business journal report says that apple will shift its mac pro production to china. let's bring in stephanie meta,

editor in chief of fast company as well as casey newton of the verge. stephanie, i'll start with you the very question that josh just raised, does someone need to be in charge of design for apple to be apple >> i think that someone does need to be in charge of design for apple to be apple, but it doesn't necessarily need to be johnny ive i think we've seen johnny move a little bit away from the day-to-day operations at apple over the course of the last couple of years. and it's really -- it's clear that his interests lie elsewhere. his interests, as you see from the things that he wants to do at love from are designing things he wants to go back to the classics and as our senior writer for design, mark wilson pointed out to me in a conversation earlier today, the things that apple is moving into, augmented reality, self-driving car systems, this is the way that the world is going. this is the world -- the world needs this kind of design leadership and it's not clear that johnny ive was the person that was going to give the design world that kind of leadership. >> so casey, maybe it's not

clear that johnny ive is the person that's going to give the world that type of leadership. just the fact that apple is making this transition, services is obviously a big part of the narrative moving forward still, it all comes back to apple's hardware and its computing, right so how does this play out in terms of the design element within apple from a managerial standpoint in the future >> yeah, well, i think that apple still needs some kind of chief product officer, right tim cook, ceo, comes from the world of supply chain. and before steve jobs passed away, it was him working hand in hand with johnny they were the chief product officers at apple. that has gone missing. and the design story at apple hasn't been great over the past couple of years. look at how bad those laptop keyboards have gotten. i think it's time for fresh blood at apple they need someone with great taste at the top for apple to keep being apple >> stephanie, are we or is the market maybe undervaluing his

exit you know, when the news broke, we saw about an $8 billion slide in the stock it's pretty much come back but this is a man who arguably has added more value to not only apple, but maybe to the u.s. stock market, who was not a ceo than anyone out there. >> and it is interesting, i mean, i think that the $8 billion market decline, if anyone wonders what the value of design is to apple, that was certainly the market responding and saying, we do put a value on design we do think that that is part of the market capitalization of a company like apple it's really hard to say. i think that, again, you know, onjohnny ive was so important to apple at a certain period of time and i agree with casey, they need a chief product officer they can't -- and i groo moagreh morgan, they can't ignore the hardware but so much of the design story, in tech in general, it's really changing when i talk to our design team, we're not necessarily just talking about product, not just

talking about hardware or even user interface or software it's about design thinking it's about an entire mind-set shift. >> casey, before we move on in terms of topics, what do you think love from, which is the name of ive's new company is actually going to do what do you think that company is going to look like? >> i think it's going to be a little bit of everything if you look at some of the other companies that have worked with apple over the years, like frog design, they're these kind of consultancies that love dreaming up all sorts of consumer products i wouldn't be surprised to see him work on a very broad range of things. in an interview i read with him yesterday, he said that he was using the word "product" very lu loosely. so i think you'll see them tackle some an instruct products along with good old-fashioned products to pay the bills. >> it will be the hottest design shop in town i'm sure every designer will be sending their resume to johnny ive this afternoon >> and it's lovefrom, one word

>> yes, capital "f". >> let's move on to another big topic today, that's twitter, saying it would begin flagging tweets by prominent political figures that violate the platform's rules responding to recent criticism of the company's oversight in that area stephanie, this feels like a slippery slope or a can of worms being opened up very wide here >> i agree 100%. i do not want to be the person at twitter making decisions pant what constitutes content that they're going to mask from the public, what content they're going to make judgment calls on. i mean, this is hard stuff i mean, we're in the news business we have to make these judgments every day. i'll be the first to admit, we don't always get it right and we spend our whole careers trying to build up a muscle, trying to figure out what's factual, what's not factual so to put it in the hands of a technology company, presumably they'll be using some algorithms to figure out what they're going to screen for.

i don't envy the people who are going to figure this out >> and casey, it's a slippery slope, but it also goes to the question of what exactly is twitter. is twitter some kind of a public utility in a certain way, there's going to be some sort of laws that are subject to that. but if it's just a private platform, then people can say whatever they want, however groez gro gross or disgusting or offensive it might be, that's a different issue. where should twitter fall into the national speech debate >> obviously, it's a big public forum, but it's also a private company and they have the right and frankly the responsibility to moderate content on the platform because when they don't, people can get on there and incite platform so i think another can of worms that exists is legislate world leaders or others with massive followings incite violence against other people and i think twitter should have something to say about it. actually, to my mind, just putting up a light warning saying, hey, the tweet behind this screen is kind of bad, i think that's -- >> but casey, who defines -- who

defian defines "bad"? clearly, if it's like, go out and throw a rock at that -- i get that but maybe it's in the middle, or there's nuance or it's sarcastic, they brush it off as, oh, it's just a joke, when they actually mean it, but they try to walk it back like it was humor, that's kind of what i'm talking about. like stephanie referenced, these poor people at twitter that are going to have to decide this they're going to get bludgeoned. >> well, sure, and if there are more nuanced tweets, maybe those stay up. but i think there needs to be some mechanism for really bad actors on the platform who if they're elected officials, twitter has to be able to intervene in some way, when that tweet comes up that says, hey, go throw rocks at this person, twitter can take a step without completely removing the tweet from the platform. >> we had senator josh hawley on "squawk alley" yesterday he's proposed a couple of pieces of legislation in the last few days, but one is focused on

amending section 230 and specifically this idea of censorship and this idea of free speech and what should be allowed, what shouldn't be allowed and those regulations on the tech companies does that take us in the right direction versus the companies themselves self-regulating >> we've seen that self-regulation hasn't been very effective. in fact, the ceos themselves saying, please come and regulate us and i think it's indicative of the fact that that'ey've thrown their hands a little bit they've said, we don't know how to solve this, so we're going to kick the can to washington and ask you to help us regulate it i feel like self-regulation isn't working, but trying to get washington to codify this stuff is also going to be a challenge. >> well, nobody has to be on social media if you don't like it, just drop off, right, casey? only about 15 to 20% of americans are on twitter anyway. >> well, sure, but it plays a huge role in the daily public discourse. you know, the --

>> no, it doesn't. it plays a huge role in the daily discourse of the media and the other 15% that are on twitter. >> but we're driving a lot of the conversation the important thing to remember is that if josh hawley, his bill becomes law, platforms will have to treat nazis the same as they treat republicans and democrats and give everyone an equal platform i don't think that's the world we want to live in >> stephanie, casey, i'm sure we'll be debating about all of this so much more. thank you for joining us have a great weekend hard to believe, but it's the last trading day of the first half of the year six months already gone. as we head to break, here are some of the stocks that are making investors money today it is all about shoes, food, and hard drives. still more "squawk alley." we're back after this. woman: my reputation was trashed online. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you are under attack, i recommend calling reputation defender.

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it is not just the u.s. markets that are higher, it's mostly green on the screen for the major averages in europe, as

well they're about ready to close let's get down to seema mody for a breakdown of the day's actions. >> europe is on track to post marginal gains to end the week we do have new data that shows eurozone inflation is holding steady the stock of the day is merlin entertainments this is the british-based theme park operator that runs madam tussauds, soaring on news it's being acquired by the danish family behind lego and blackstone in a $7 billion deal. the stock is up nearly 14% then there's deutsche bank, also moving higher on reports that it's considering cutting 15 to 20,000 jobs, including half of its equity positions now, it is the last day of the second quarter and here are some of the best-performing stocks for europe 2019. we have ferrari up 63% adidas up 47%, and airbus. these are how these stocks are performing so far this year. in terms of european markets as a whole, there are some pockets of strength.

led by greece. russia, up 30% in part due to a rise in global oil prices, but also growing prices that the u.s. won't take further actions in response to election meddling and then there's germany, france, and italy all up between 15 to 17%. but overall, here's how european stocks stand in comparison to the s&p 500. you can see europe up nearly 18%, but still underperforming the s&p 500 the key factors to watch in the second half of the year, morgan and brian, will be the u.s./europe trade discussions and who will take over for ecb president mario draghi >> the other trade talks let's get over to contessa brewer now for a news update >> senior officials from iran and the remaining signatories to the 2015 nuclear deal gathered in vienna. at the heart of the meeting was iran's desire for european countries to deliver on promises of financial relief from u.s.

sanctions. the aclu, planned parenthood, and the center for reproductive rights filed a federal lawsuit, challenging a new georgia law that effectively bans abortions about six weeks into a pregnancy. the lawsuit asks a judge to prevent the law from taking effect and to declare it unconstitutional the supreme court will decide whether president trump can end an obama-era program, shielding young immigrants from deportation. it sets up high stakes legal arguments in the fall with a decision likely in june 2020 as trump seeks re-election. the president ordered an end to the program called daca in 2017. as world leaders meet at the g-20 summit, the spouses are enjoying a taste of japanese culture. prime minister abe and his wife planned and hosted the tour in kyoto, which included a visit to one of japan's oldest buddhist temples. that's our cnbc's news update for this hour. now back to "squawk alley," morgan >> looks cool. contessa brewer, thank you when we return, texifornia

dreaming why our next guest says that america's future will be written by one of two states and as we head to break, listen to u.s. execs on their earnings calls this quarter talking about their concerns about trade and tariffs as the rhetoric heats up. >> it is clear that the trade conflict including the huawei export ban is creating political and economic uncertainty and reducing visibility for our global oem customers >> we always believe that at the end of the day, tariffs just cause costs to go up for customers. >> we have stressed before, tariffs are counterproductive to efforts that encourage business growth and expand global trade thankfully, however, we have a large and flexible global networks that allow us to adjust when trade issues present challenges in certain markets. >> the impact of fiscal 2020 could be in the range of double

digits of millions of dollars or more than that of the previous tariffs combined >> we are and we remain a brand of china and for china hiv controlling, joint replacing, and depression relieving company. from the day you're born we never stop taking care of you.

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welcome back well, if you have not read the cover story for the latest economy, i want you to run, don't walk go out and get it. it's called "texafornia" and compares arguably the two most important states in america. california and texas may embody

the future for different reasons. and let's embody why 1 million people have left california over the past decade, most of them to texas. joining us now is the author and somebody who has lived this, lived in both states, alexandria suites bass. as someone who grew up in california, lived there for the first 15 years of my life, my parents had job issues and cost issues and fled to virginia, this story resonated with me what was the most surprising thing from your article? for me, it was how even people -- even liberals out there say, california's creating a new type of feudalism. >> well, i think that you -- you just hit the nail on the head with what california's major issue is, for the next decade or two. and that's affordability california used to have a dream. it was a place that you as a middle class person could rise, you could rise to the middle class, if you were poor. it's become so unaffordable that we see people leaving. and you used the statistic

it's about a million more americans left california than arrived here in the last decade. most of those earned less than $50,000 a year so you see what joel cop kin describes as a new feudalism, where the middle class is really struggling the only people who can make it work in california are the tech elite. and you also see a stratification between people in the barrier who are able to make a fortune and the rest of california, which is not growing nearly as quickly. >> yeah, i like hopkins' quote i'm going to read it here so i can get it right for the perspective of a young upwardly mobile family, california is nearly impossible, unless you have rich parents, rob a bank, or get money from your firm going public there are people, alexandria, you've probably met them, i've met them, who literally live a hundred miles away each way from where they work, because they can't even afford to live in the same county as their company >> right and you also see, unfortunately,

rents and home prices rising hours away from san francisco, simply because people are forced to live there. so you see cities in the central valley, like stockton, for example, which does not have an industry, so it's the number one location for super commuters, where tens of thousands of people commute a couple of hours a day for work they're forced to gointo san francisco. but they're also seeing home prices rise, even there. so i think california is in a real bind. i would say that california is worth paying attention to. it's not just a cautionary tale, as a lot of people in texas like to see it. california has been very early to embrace the future and anticipate social trends that are coming it is the american hub for innovation historically and today. but there are issues that it has to address and affordability is the number one issue >> alexandra, i wonder if

there's a tipping point for california, you just mentioned the fact that it continues to be the innovation hub and certainly we've seen that be the case with silicon valley, with san francisco and now we have all of these start-ups that are going public right now but if you look at where an increasing number of venture capitalists are putting their money, it's not just in start-ups, it's not just in the tech community in california it's other parts of the country, as well. so i wonder how that could change those dynamics, too >> i think it's a really great question, morgan so i think the number one thing to look at is what the margins are of the companies that are able to succeed here and you see the huge companies, the huge tech companies really thriving in the barrier, raising the cost of doing business for everyone because it's inflated salaries and so what is going to happen, i think, is tech companies with lower margins are not able to thrive here, especially as we see more taxes and local taxes specifically on businesses in the last six elections,

californians have approved around 800 new taxes, local taxes on businesses and individuals. so we're seeing taxes rise at the exact same time that affordability and the cost of doing business in the barrier is -- and california, broadly, is becoming harder and so i think what we're going to see is companies expanding to other states so not necessarily relocating their headquarters, which we have seen with a few companies, like jamba juice moved their headquarters to texas. >> but there is, alexandra, as you talked about, and there is a downside to this, i guess, a downside if you are a texan, a longtime conservative, which is this the more people that are moving in from a california, the more perhaps socially liberal they may be, with the exception of the free state of austin, as they call it we could see parts of texas turn

democrat down the road, because of the influx, not just of california, people from new york and new jersey who are bringing their stuff, they're bringing their money, and they're bringing their politics with them >> yep, they're bringing their values with them and it is many texans' worst nightmare. you even hear the republican rallying cry, don't california my texas and you can buy t-shirts and bumper stickers with that on it. so that's, i think, the key question, which is, what will this migration and demographic change that's natural with the rise of hispanics, for example, in texas do to the politics of the state? there's evidence that we are already seeing an influx of young urban, more liberal voters going to the polls and we see that in cities, not just austin, but dallas and houston, as well and we saw that trump won by the lowest margin of any presidential candidate in recent street, won texas.

so there's this very important question of what will happen in 2020 with texas. my bet is that it will still go red, but the margin by which it will do so is declining. >> i'm getting text messages from some hedge fund managers in dallas who say that texas wins and to congratulate your baby on being a texan. alexandra, thank you >> thank you alexandra suich bass thank you. hit home having been a california kid for the first 15 years >> yeah. when we return, shiver me timbers. why bitcoin's recent surge is having an impact on chips, notably amd. we're going to discuss that after the break. dow's up4. 5

i'm scott wapner here's a look at what's coming up on the halftime report, we're sizing up the second half for stocks and debating which names will work best with trade and the fed front and center plus, a top staple stock gets a big upgrade at a time when some are questioning whether that sector's just overvalued we'll debate that with our committee. and what the top analyst thinks about johnny ive's from apple. we'll ask tommy sacconaghi at noon on the half >> bitcoin's recent resurgence fueling the recent rally in chip stocks led higher by the likes of amd

rbc's mitch steve joins us now for more mitch, thanks for joining us is this the -- the resurgence of bitcoin, is this what's causing the stock to move as aggressively as it has >> well, for bitcoin, that's not really related to the semiconductor space. so bitcoin's not using amd, they're used to mine something called etheoethereum but the bigger deal was the huawei news and the micron report essentially, you have huawei being able to purchase some of their micron chips which sent the whole space up and you have western digital having a huge power outage that stock is up another 3% or 5% now memory's coming off a bottom you have data center coming back, you have amd gaining share and nvidia coming out, a new product coming out in the second half so i think that the chip stocks in general, you want to be long synopsis and amd and long micr n micron those are the big three names of the second half. >> a lot of focus with the g-20 talks this weekend on huawei and

how that plays into discussions between the u.s. and china it seems to be, based on, i know kayla tausche, our own kayla tausche is reporting yesterday that huawei and the ban against them would need to be dropped, according to china's wish list on the flip side, though, you have quite a number of lawmakers here in the u.s., this is -- that there's bipartisan support for ongoing pressure against that company how does this play out for semis longer term? >> longer term, i've got the view that they'll get a deal done at the end of the day, we have a little bit of a wild president, but i think they want to get a deal done before the election begins i think that eventually gets solved but the way to play this, you want to be long amd and nvidia because they're the tech leaders and essentially you can't do any ai, any deep learning or anything long-term tech oriented without them and secondly, for a higher beta play, you want to be long memory that would be micron, because essentially if data center comes back, each one of these servers has over a terabyte worth of

memory in them and that's going to increase the demand significantly for memory, particularly in the first half of 20. i know there are a lot of people who are saying there's not going to be much in the first half of 20, but i think we're already standarding to come off a bottom and for the g-20 stuff, i don't have any predictions i'm not going to try to play hero and decide what trump's going to do, but at the end of the day, i think he's incentivized to get something done within the next 12 months or so. >> in terms of how we've got to a point of oversupply in the first half of this year, what caused that and what green shoots are triggering your comments right there that we could be moving through some of that supply? >> it's pretty much lining up what we said back in june of '18. essentially, you had a technology transition on the memory side. essentially, what was happening, all the chips being made had no issue with them. you mad a massive oversupply you had prices going up. facebook, google, amazon were buying tons and tons of servers, because they wanted to buy the server before the memory price

went too high. they bit up too much information and started taking that down now our call at facebook, google, amazon are going to start spending money in q3, start seeing those numbers, the nvidia data center you'll see that number in the amd data center commentary, as well so now you'll come off a bottom on the data center side. and finally, the last one, like i said, it just happened last night, basically, an entire plant went down for western digital. and that's going to help the nan prices probably improve sequentially nan prices might go up sequentially if that happens, all the memory stocks probably go up. >> lastly, i want to get your takes on this very long feature story in the "wall street journal" today, how a big u.s. chipmaker gave china the keys to the kingdom, talking about amd and this idea that it revived its fortunes through a deal in china, a complex deal, and is now sparking a national security battle how much of a risk is this for

investors in this name >> so, i think it's actually good that people are considering it's such a huge number. at the end of the day, segun is only about 4% of the entire server market. within that, intel runs about 90% of the market. you're really talking about 0.4% for amd. if people are trying to short amd and 0.4% of the server market, i'm very establibullish them essentially, amd will win on the data side where the real players stand, it's going to be facebook, google, dell, hp you'll see amd gain more share on the high end. even if you gave the intel chip away for free, you're still better off buying the amd chip the amd chip consumes so much less power, you couldn't give the intel chip away for free if the stock is trading down 0.4% of one subsegment revenue, that's a good setup for th stock. >> mitch steves, great to get

your thoughts. and when you look at what has led the rally, it is those semistocks and tech more broadly. >> coming up after the break, speaking of chips and data it is the latest cloud and data play from soft bank's vision fund, leading a megafunding round, backing the latest ventures from founders of juniper networks he will join us next to explain why data is right for disruption we're the slowskys.

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it's softbank's latest claim. a new cloud-style chip founder joining us now is the company's co-founder and ceo thank you very much for joining us why is data ripe for disruption? without getting too much in the weeds, what exactly does your company do on the cloud? >> well, good morning. thank you for having me on the program. what fungible is set do is revolutionize the economic, reliability and performance of data centers at all scales and in all geographies the reason that it is time to do this is because of some of the really important trends that have been happening over the last 15 to 20 years. there's, of course, the

flattening of moore's law. there's the hyperconnectivity the internet has brought there's big data the confluence of these three things is going to bring us -- is bringing us to a data centric world. it's time continue to vent a new microprocessor this sex ais exactly what we are doing. we are inventing dpu to improve the economics, reliability of data centers. >> how will that change the infrastructure here and i guess, how will that contribute to the rise of applications that don't exist? >> that's a really good question many, if not most new applications are data centric in that the amount of data that they ingest and process is very, very large as a result of this change in applications, there's a new

workload that we call data centric. in fact, what will happen, the change will happen in the redefinition of what we call a server in five years, we expect 90% to have dpu inside. it will reflect in the way in which the networks are put together inside data center buildings. they will be flatter, faster, lower latency, more predictable latency. the dpu will enable that the global architecture of the way data centers are built will now include or in the future include edge data centers in addition to these massively scaleable data centers dt dpu is set to play an important role. >> the thing about disruption is that while you are disrupting, somebody else is being disrupted. as you win, who loses? is it sysco, is it data center

company snzpushing out by winning? >> this is an important point and an important question. it's not a zero sum game because of the emerge ence of ti new workload which has been building 30 years. there has been 600x increase this demands the invention of a new kind of microprocessor we don't have any direct head to head competition we will work in a manner which is completely complimentary to the existing two kind of microprocess microprocessors, which is intel and gpus built by invidia. >> quickly, you just closed another round of funding longer term plans, are you looking to take it public? >> we will see we are going to use the proceeds

of this $200 million round, we raised $307 million to date. we intend to build out our go to market we also are going to accelerate our r & d efforts. that's where the proceeds will go >> $200 million round, congrats. thanks for coming on cnbc. >> thank you for the opportunity. taking a look at major averages closing out the first half of 2019 in the green today. the dow is up 62 the s&p is up 9.5. the nasdaq is up 23 potsin we have more "squawk ally" after this break as someone in witness protection,

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i cannot believe it, but we are closing out the first half of 2019. for the month of june, strong numbers for all the major averages for the quarter, everything is higher for the year, for the first six months of the year, we are talking about double digit gains after that rough fourth quarter in 2018. what's led the charge has been tech companies and also consumer discretionary. >> see how much is fed led whether the market gets the rate

cut, not just one but biggi ibe for in july. arconic has done great amazing. >> it was great to have you here we will look to g20 and opec next week. that's going do it for us. we will send it over to judge. thank you very much. the final trading day of a great first half for stocks. what will the rest of the year hold for your money? it's 12:00 noon. this is "the halftime report." >> this is the eve of the second half of 2019 so far, tech leads the way up 25%. 20% gain for consumer discretionary and the industrials. will the laggards break through? new numbers came out showing a crack in the trump economy as the president prepares for a meeting with china's leader hours away