that drives the gpu sales.essarily a point of weakness but a little weaker off the last little while. you've covered a lot of gaming companies. we could also pinpoint other names that could be beneficiaries like marvel, broad come, even amd has a chip that could be used, too we have to consider that if you're thinking 211.39 is too expensive to enter the stock now, there are some other names that have been more beaten down, too. >> kristina, great stuff >>> palo alto networks reporting next week. weiss, you just trimmed palo alto >> i did look, i got into the stock around 150-plus level. it's been a great move the market is binary in terms of how it treats earnings it could be down a lot it could be up a lot with my mark view, i take some off the table. i'm still there because i think it's relatively -- i hate to say this -- inexpensive given where the price is and what their earnings could be. you just have to be prudent when you can ring the cash register after such a substantial move. i think you have to do

well, the most interesting thing is that on february 20, 2016, investigators of the gpu, among whom aied out in bila tserkva, where slot machines, furniture and other things were seized at the location of an illegal real establishment of any speed , there are no search materials in the case within which investigative actions were conducted, and on october 30, 2016, in kyiv with the help of an unidentified person, sus sold slot machines, poker and roulette tables, bar stools, a metal statue of a woman for $10,000. is the statue correct and other things previously seized during searches in bila tserkva , mrs. tetyana well, that's for sure, some criminal group was involved in this, couldn't sus be the only one engage in the seizure and sale of all these things, why are the threads not drawn further or did he not share with the leadership of the general prosecutor's office ? what do you think? well, let me remind you that yuriy lutsenko then fired him after all, after all, yulia jesus and dmytro stus after these scandals in the law enforcement authorities, i did not prosecute this case, i

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and primarily nvidia gpus. so we are on the precipice of something very, very important here. >> chris we're seeing goldman hiking the price target to 275, had it in neutral, goes to outperform what do you think the long term earnings power is now? >> well, jenson talked about just ai, for example, being 300 billion of hardware sales and another 300 billion of software sales. so if you apply that, you know we're probably talking about hundreds of dollars of earnings at least for nvidia. so i think the answer to that question is really very open ended. >> chris, let me ask you a different question it can't be going better for nvidia and worse for intel let's not forget they cut their dividend this week and talk about whether nvidia should replace intel on the dow as we lay out the scenario, what does the company like intel do what do they do? >> they have some major problems, kelly. pat was put in a difficult spot continued with their own internal manufacturing instead of moving to tsm, and they are lagging. if

so, clearly they're still going to be spending on some of those ai, more gpu type initiatives. i imagine that's consistent across the board, especially as google has to figure out a solution to some of the chatgpt narrative. >> yeah. investors certainly prefer to hear ai over metaverse, that much is clear. that's probably the case on the alphabet call as well. let's finally touch on amazon. has the company lost its discipline over the last few years? i remember in 2014-2015 when it started achieving sustainable profitability. the street thought, okay, here's now a profitable amazon. this is kind of reverting back to the amazon where it poured money back into the business for new innovation, yes, but do they find that discipline again this year do you buy into that, that they're going to return huge profit, return to that this year >> i do. i think it's a when, not an if i don't know when that is. we certainly have gone through a challenged year where they overhired, they overbuilt, they overpaid, when there was no attrition to some of their higher paid talent they got hit with

models will run on gpus, nvidia in the middle of that.mall company, c 3 a.i. my subscribers are down two bucks right now. i was amazed about the amount of percentage putting in the r&d, 60% of r&d going into a.i. they will be a.i. player and bust. >> tom came back built a company called c 3. negative done a great job bidding that into applications. they are a small player invest a hot. application companies big data, large networks, the ability to process that. that is why some of the other companies in there, google, meta, microsoft are in that mix. charles: i have to hop. one distinctive winner you see right now or, is there room pour more than one winner? >> there is room for multiple winners. it is such a big business you have to billions of dollars of r&d in order to play. the seven a.i. tech stocks are ones to look at. charles: thank you so much. really appreciate you. folks, we'll be right back. a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? y

and very often that sort of gpu only comes from american tech companies. and case in point, in many cases it was nvidia. so nvidia was providing a ton of the chips that were processing that were used in the applications to process large amounts of video coming in to recognize these faces. so a lot of the face and image recognition was based on these chips and it wasn't just the high end stuff, like low end stuff, like hard disk drives, because you need huge amounts of storage space to store all that video and often the chinese police would call for video to be stored for 365 days. so a lot of these hard disk drives came from companies like seagate and western digital. so all in all, i mean, what we found was in the not we got less of supply chain, commercial or financial partnership. there was a ton of links between silicon valley and the chinese surveillance state. yeah. so what are you describing here is and i'm taking this some of some of the readers questions which i'm also seeing right now here. and so i'm trying to shape them onto a follow up for wha

anything that has to do with parallel processing, a gpu type of chip. i think intel's biggest problem is the fact that they were never able to go beyond pc's. nvidia has done that very well and they rebuild to find these new use cases. even the gaming section did better than accepted -- expected. i do not know if nvidia should be trading at five times intel's market cap. time will tell. caroline: no to bell -- note about -- notable bet intel had a slashing of the dividend today. >> gross margins is very important. this quarter, they went back to mak 60%. i am worried because as a sector, the chip sector does not command those high gross margins. over time, other players catch up and it is very hard for a chip company to sustain those kinds of margins without relying on software. caroline: we have breaking news coming from the call. the cfo saying nvidia saw orders pause as a timing issue. this has to do with cloud serving providers. >> the other risk is the customer concentration. a lot of that data center revenue is driven by customers, they're the one

their technology and therefore spending, high-end, anything related to ai processing where there is a gpu has to be done on the absolute leading edge of production. that gives these components greater capacity and makes it more efficient and gives him the ability to crunch more data. that's the area driving demand for the highest end machines and technology. jon: let's come back to the ai boom and you have seen a stock like nvidia this year getting so much attention, maybe stealing the spotlight from the broader chip industry. >> it's been crazy. the bottom line is, somebody has to move all of this and someone has to be making sense of the data. as far as investors concern, this is the company that is made its name in this area over the last few years and we are betting it will be leading the way as we have seen new features being understood into everyday life which depends on ai. >> we will be watching that closely and we will watch the earnings later today. applied materials is coming up later and coming up, the insurance giant painting a picture of the road ahead with its asian operati

they're the leader they're -- i mean, the gpu changed -- potentially changed history. >> the gpu is theounter to moore's law. pat gelsinger will say that moore's law will never be repealed, and pat's wrong on that i left out, though, what did i leave out the whole time >> i don't know. >> oh, yes, you do >> gelsinger >> is? >> a good man. >> thank you >> a nice man. >> thanks a lot. i'm playing "jeopardy!" with you. >> i'm good at that too. >> you know what i have to say about him? got nothing for you. does he have any idea who that is >>> when we come back today, a focus on china we got baidu's quarterly beat and a.i. bot plans to regulators in china sending a message not to use chatgpt >>> later on today, pepsi's ramon laguarta dude it was eight and a half minutes. i didn't even get to finish my burrito. technology lets you vacation in space, but to get work done on earth... you need more than technology. you need cdw. so with the cisco hybrid work environment, we can deliver the same network experience to all your offices. space spaghetti. no. securely connecting your team from anywh

they're behind the most exciting development received this year which is the chatgpt running on nvidia gput's a great example on how nvidia has been an outperformer. they've had strong growth and we did not see that coming down anytime soon we expect them to continue to outperform the market for the long-term future >> all right, and intel by the way, what would you do with it >> i would say it's a hold just because, you know, again, we think growth will continue to outperform the market this year. so that's why it's a hold, but due to the recent announcements we have, we wouldn't buy more. just hold what we have. >> sure, yeah, stock worse than the dow, again today, down almost 4%. thanks, good to sea e you. >>> a smartphone, smart move, china retailers ttcuing iphone prices to spur demand. we'll talk about that and more as we wrap up "power lunch." causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen h

risen,the nvidias of the world are going to do well >> when i think about nvidia, i think about those gpu chips and ai and artificial intelligence, nvidia is in a space where no others are >> it's crazy. >> with all due respect, scott, you asked the wrong question you said has it gone too far too fast it matters what the valuation is >> what's the valuation today? >> ridiculous. >> what was it before? >> at one point up to 120 times and dropped down to 55 times >> what's the right number then? >> i'm not filibustering >> 34 times. that's the right number. >> thank you i will agree with that >> double the market >> it's not 80 it's not 70, 60 or 50. i got up and talked to some ai people, all ai applications bail when you take a look at actually what ai is that's working, it's limited to a few companies actually of the talent to actually have ai work. you'll see them come and go and, by the way, a great ceo, lisa su, saying i will see that entire to nvidia that was the conversation yesterday. they are the only ones who can do that. >> why wouldn't you pay up for the leader >> i think you ar

that's why graphics processing units, gpus, are the answer and nvidia has been working on this for decades that's why i've been able to hold on to the stock through the whole down cycle and the whole way back up and, frankly, i wish there were five other stocks i could look at and dhchoose between. this is the one for me >> when you look at how some of these stocks have rebounded like nvidia has, i can't help but think of tesla tesla went from 100 to 200 in, i don't know, three weeks? you're a tesla shareholder i use it as an example what's gone on in the market. is all of this justified legit? >> josh is on fire today he just nailed what's going on at nvidia and the differentiator there. and going back to what bryn said earlier, you know, there is going to be dispersion in this market a lot of pretenders are getting pulled up in the wash here there are very few, like a handful of companies, that are nvidias and metas. less than ten. so if you have a portfolio that's owning all of the junk that's up a lot, good luck but i certainly wouldn't want to be hanging out there because i think reve

gpu is the special winner in this, they're the ones powering the a.i. revolution.d is it the next big thing? >> it is. it's growing about 3%, and that's why we think it's going to be a trillion dollars by 2032. stuart: does it scare you a bit? >> yes. a.i. ethics are very important. stuart: great having you in new york, thanks for being here. all right, trading has begun on this tuesday morning. right from the opening bell we've seen some selling here. as of now we're, what, 12 the seconds in, the dow is down 3300 as expected. there's a couple -- 300. there's a couple of win winners, amgen and coca-cola, the rest are on the downside. home depot especially. as for the s&p 500, also lore to the sign of -- to the tune of close to 1%, and 1.25% down on the nasdaq. let's have a look at big tech. any winners there at all? yes. meta platforms is up just a fraction, apple's down, microsoft is down 1.5%. alphabet's down and amazon dropping 2% to $95. a couple of big retailers reported before the bell this morning. susan's with us. start with walmart, please. susan: the seco

next generation cutting edge technologies seem to revolve around nonlinear computing, in other words, gpuse. so this stock does from time to time get caught up in excitement you have to decide i'm a trader in nvidia and i'm going to fade it when it gets out of control to the upside and then try to capitalize when it gets crushed, or you have to decide, you know what, i think this is a long-term compounder i think they will be dominant over end markets for years if not decades to come, and i'm willing to grin and bear the ups and downs, not get too excited when it rallies, not get too despondent when it sells off the latter is what i've chosen to do. that's where i still am with this i get that a lot of excitement is already priced in but people need to understand they said that about tesla before it ran up to almost a trillion dollar market cap, that it was too overvalued. stocks will defy your opinion of what they should be trading based on fundamentals. it's why this game is so hard. so you have to, like, balance those two opposing ideas in your head at the same time or choose not to pla

i expect forward guidance looking well because gpus are required for the a.i.arles: that is the best way to play it. picks an shovels, right? that is what they did, picks and shovels angle in a.i. jessica, thanks so much. >> thank you. charles: like i said we love hearing from you, anything about the show, we got a ton of tweets. i want to share a few. bob asked the question, some of market is, some isn't, listen to the markets right. too many experts think the market has to do what they want it to do. they don't make money doing that. coming up how much would you pay to skip the line, say at starbucks to get a better seat at amc? maybe get on the plane first. tweet me. i can't wait to hear you say they're coming in fast and furious. we'll share as many as we can. right after this. ♪ you'll always remember buying your first car. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. at t. rowe price, our strategic investing approach can help you build the future you imagine. your record label

space, go with nvidia, the backbone providing gpus, the computing power to the a.i. tools.harles: that is the old picks and shovels approach right? you don't have to worry about who will win, this company is providing picks and shovels for everybody in the game. love that idea. your firm thematic investor in entrepreneurial, innovative companies, that is how you got on the map, what fills the bill these days? i have saw oracle but that feels like an older name. >> exactly, we inin entrepreneurial companies, innovative. our research goes back 5 years. we're the only ones with research tied to the biggest entrepreneurial school, babson. we have publicized research compared to other funds that have come up in the recent years. so our research is that innovative companies and entrepreneurial tend to outperform in the long, in the long term. now oracle is entrepreneurial company where the founder is still there and innovative throughout the years however it is more of a safe bet. so when it comes to risk, it has way more, less risk than the other entrepreneurial companies. now t

cool, for a great britain sale gpu team regina and we will be here. ah, this is a popular iraqi dish called him as gold fish grieved on an open wood fire for decades. fish markets to thrive to across the country. but these days the industry is floundering. farmers say they need more government subsidized vaccines. weighing just 20 grams. this finger link needs to be and q weighted for about 6 months before it's big enough. roughly this size. we asked the agricultural ministry, what authorities were doing to protect the industry. the water crisis is hitting many regions across the work, not only iraq to increase productivity. scientists suggest introducing more robust strains to build up the fishes resistance to disease. until then, the survival of this beloved tradition of dish remains in dow, it rushes more immune crane has dominated. well, he's for the past 12 months. devastating for those in the line of fire or directly impact. and it has strength and global alliances, and deepened divisions with far reaching effects on the lives of billions of peo

retail investors >> well, i don't follow it formally but all these models are trained on nvidia's chips, gpu chips they have a whole bunch of features on them that make it ideal for training these ai models there's a company equinex which is basically a neutral data center that almost all of this ai traffic is going to flow through their data centers and that's a way we've been playing cloud forever a very long period of time. but you know, i'd focus on those two. >> very interesting. >> kate, i wonder too about investors who similarly feel they've kind of been burned chasing one thing and another. but again, each company's a slightly different take on this and slightly different offering for the marketplace. >> yeah, there is this muscle memory of people that chase the hype around some of these crypto and blockchain and momentum stocks and i think there is an absolute buyer beware, investor beware when it comes to these names and realizing even the big tech companies talk about this as a long-term play vs. something that's going to pay off in the very near term. so i think it's important to

get to it driving up names like nvidia, ubs pointing out microsoft chatgpt used about 10,000 nvidia gpusmodel and nvidia stock up 5% year to date begging the question, is that stock growth justified or is it just people jumping in to the topic de jour. bank of america says they could lead the a.i. race, something cisco's ceo said today, jpmorgan calls out broadcom and marvel as beneficiaries because google needs to ramp up its processes regardless if they didn't do a good job, it's chat bot a $1 billion broadband customer where marvel sells cloudships for a.i. taiwan semi benefits given its revenue comes from the sale of super advanced chips none of this will happen overnight. these chip names still have to deal with cyclical trends. weaker demand, take out auto for a moment, supply gluts, capital expenditure cuts from meta and the list continues, aren't buying as many chips, while trying to figure out how much inventory to have on hand so we avoid a shortage we saw during the pandemic in other words, a.i. is not an overnight phenomenon, but it will take time to ramp up and putting into

seven, there's a matrix that talks about how much nvidia makes if you get -- this is all through h-100 gpuet a hundred million queries a day and if you get a billion kwqueries a day on chatgpt. on a billion queries a day, which i think it could definitely have, because it's so widespread in its use, they would make 10 to $20 billion i mean, now. and i think that all of us who speak with younger people, particularly chatgpt, everybody runs everything through chatgpt just to be sure it sounds better, looks better real threat to adobe, by the way, because when it comes to what jensen huang, the ceo, talked about is copyrighting and the way ads look you don't do them anymore. you don't use adobe, and i know that it's really possible that if he doesn't get this acquisition, it could fall behind because of chatgpt, but this chatgpt graph shows you that nvidia's not only the biggest winner, but nvidia's going to be the -- arguably, it could become the biggest company. >> biggest company >> biggest company because you can't do anything, any of these really -- chat is just one of them, on what's co

nvidia, you say, is the most important player in ai they're selling gpus that will enable ai to happenompanies like microsoft and alphabet, which have gotten a lot of attention in recent weeks, do you think about them as an ai company? is ai a reason why you were investing in these two companies? it just seems way too early and it seems very, i don't know, you don't know how it is going to impact their businesses, if it will in fact be a positive thing and by how much when it comes to earnings >> i think it gives you an indication of what is possible microsoft did an investor call on the day they announced the new chatgpt group and they talked about how every 1% of search the company is able to gain would yield $2 billion in revenue. you see why alphabet and microsoft are fighting so hard for this search space. like i said this is on one use case for ai. it is going to change the way users use technology it is going to change advertising, but it is going to take time. the idea this is all of a sudden going to change everything, we have seen a number of indications there is some problem

there is a reason for the gpu stocks have done well as well. don't count it out i think what we learned from meta is it takes time to transition it is not an immediate boost >> what multiple are you willing to pay for tech? 18 times that is what a lot of the multiples look like right now. is that rich or cheap? that is the question anastasia, we have to go thank you. >> great to see you. thank you. >>> joe? >> coming up, two big guests we hear from minneapolis fed president neel kashkari. that is minutes away >>> then house financial services chair patrick mchenry will join me in washington on what he expects to hear from president biden tonight and what he expects to accomplish and if the republicans can accomplish much they will try. the state of the union is dr address is forthcoming >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most. science proves quality sleep is vital to your mental, emotional, and physical health. and we know 80% of couples sleep too hot or too cold. introducing the