i and yes, the current nvidia -- and i'm sure the late nvidia agree. let's take some phone calls.ou doing? >> i'm doing fine, kevin, thanks for asking. how are you? >> caller: oh, we're doing well. i just had a quick question for you about my favorite chip company, amd. >> well, they gave a great presentation today at the -- at a goldman sachs conference, talked a lot about artificial intelligence and how well they're doing, and i tend to agree. what can i say? it's a great american company, now, the chart is just that nvidia still has the capacity to be a huge long-term winner. you might need to be willing to go through short-term turbulence to get there. fortitude, that's what you need. i think he's right. much more "mad money" with commerce secretary gina raimondo. the u.s. has a sense relationship with china, involving, yes, nvidia. where is the staff our two nations right now? i'm going to the source herself after a visit. then the market has battled around fed chair jay powell's ability to contain inflation for years, but should we give him the benefit of the doubt in his ap

we're not trying to compete with nvidia with respect. here is a company that brings in about $60 billion a year of revenues. nobody thinks about it. nobody cares about it. if they didn't. they wouldn't bring in $60 billion in revenue and there is straight up a valuation or a value people will pay and askib to and the share price is under undervalued. we're not saying, hey, they're going to be the next coming, they're going to make amazing chips and will eat nvidia's chips one day. they're not. they play an important role. my ipad, the podcaster, everything, my phone, probably the thing in my ear, has chips in it. we need everything they make. we need everything that nvidia makes. we need everything. intel is just a player in the market. they serve an important role. they sell a ton of chips. the stock is underappreciated. it's not a black and white thing. >> it seems the marketplace has decided it's a loser relative to an nvidia and amd and some of the other names we'll get to in a moment regardless of whether you want to view it in the

nvidia makes the chips. does the arm's success depend in any way on nvidia's success?at arm, arm shipped over 30 billion chips last year, so when you kind of think about it, they are a lot more than just nvidia. in fact, when you look at where they're mostly penetrated, it actually is in the smartphone market where nvidia actually doesn't participate. they have over 99% of the smartphone market. so that's really where arm's bread and butter is. but where everybody's really getting excited about the arm story and what's really catapulting the stock higher is their kind of penetration into the data the center, serverrer market where they are exposed to nvidia and where there is that a.i.-enabled play with arm. stuart: i've seen a couple of analysts looking for over $500 as a pice target for nvidia. what's your price target? >> yeah. as far as nvidia's concerned, it's one of our top a.i. infrastructure plays within the semiconductor or industry, we have a target price of $600 and, you know, assuming a veried modest kind of high 20 the type multiple based on our 2025 the e

so, we were selling to nvidia, but the deal was actually one-third cash, two-thirds was exchange of nvidiahares, a combined company of nvidia and arm. i believed in the future of nvidia back then, and it was right, and i believed in the combinations of the power of the two companies would be enormous. i believed in the future of a.i., and it's really now getting proved. and this is the beginning of big a.i. time, and arm is going to have a big role in that. >> we're going to share a lot more from that interview. obviously, including masa's belief in a.i. and talk about some of the missteps that have taken place as well. you know, jim, as you know, if that nvidia deal had gone through, they would have benefitted enormously, given the two-thirds that would have been the stock. >> oh. >> that said, he bought the stock, if you guys remember, back in '17 and then sold it not that long after. again, a real opportunity. i would point out one other thing, which is i believe when they bought arm in 2016 for $32 billion, they could have bought all of nvidia for $27 billion. well, that was the market

nvidia a little on the low side. we had a conversation about nvidia's valuation and some say it is extreme and overdone. we are coming off of a long weekend. we had the f1 filing and here are the numbers. on the low end $47 and on the high end 51 dollars. and raising proceeds and the early stages but much lower numbers than reported. let's bring in bloomberg's leanna baker. walk through the numbers. >> the numbers came in a little below what had earlier been reported. arm had been looking at eight or 10. we could still see it go up. there can be great demand for these shares and we could see them raise it. but softbank has scaled back the amount they want to sell. the ceo and founder of softbank is very lush on arm. they are only selling 10% in the ipo. that is one of the reasons they are not looking to raise as much as they thought. because there are not looking to raise as much, the valuation is lower. it will be valued at close to $55 billion, definitely first big elephant out of the gate to hit the -- get the ipo

they did not name nvidia in his statement. report by the agency on competition in the cloud computing department. nvidia declined to comment. the u.s. department is setting aside grants for smaller chip suppliers. it's open to projects that cost less than $300 million. it's also designed to be less burdensome as part of an effort to beef up domestic semiconductor construction. the uaw union is not the only one coming to blows under construction. workers on tsmc are also looking to negotiate. they say they keep an open channel of communication and that includes the unions. caroline: aside from a union focus let's get to the u.s. government. fast approaching another shot down unless they enact a temporary spending bill. a shut down could hold many assets of the ecosystem from services for passports, visas, economic reports, the labor department and could impact a sector of defense technology. that's where we will focus. please welcome jane lee and this senior advisor to the department on the budget. how could this affect innovat

and i don't think nvidia would be either, right? if the manufacturer of semiconductors, even though nvidia is a fabulous semiconductor company, probably doesn't jive with apple. i don't know what it's going to be, but they somehow have to better embrace that theme. that's probably your best opportunity for accelerated growth, and they badly need it. >> yeah, it sounds like they might not know, either. kim, quick comment? >> i disagree. i think this feels a lot like microsoft when everybody thought it should be broken up into operating system and other stuff, you know, to show the growth of the other stuff like office. and they really have demonstrated that was not the right thing to do. or bring in an outsider. that was also wall street's favorite idea. i think apple is an innovation company. it is not a favored stock, but i'm going to give it credit that they have innovators, and i want to see them innovate their way out of this problem and earn that multiple. >> this is going to be good having you two all hour. let's start with an

if you layer an nvidia over bitcoin, it continues to go up and to the right. a bubble atmosphere in ai? dan: there could be fakes from the real means. but what we saw with the godfather of ai, nvidia, as real numbers we are seeing. we have seen firsthand in asia and across europe with the spending trend looks like. now, over the next six to 12 to 18 months, i believe it is the start of a new market. right now, it is fundamentally about the execution stored. if companies don't execute, they fall by the wayside but now, ending will be there. jon: as an analyst covering these companies, and someone to your point who sees this as a wave of growth that we have not seen since the early days of the internet for the technology sector, if stocks have had a big run and expectations in the short term for orderly results are high, and there are near-term messy quarters, how do analysts react if you are seeing huge growth over longer term? dan: that is the conundrum for investors as well. because the longer term opportunity is there, then you cannot put it in the box and s

we've reduced the position in nvidia 80% from ten days ago. this is not a knock on nvidia. i wouldn't get short the stock. but it has a tremendous run. very high beta. and the question is, what is over the course of the next 06 days or so going to propel it higher? feels like you're taking excess essentially market risk before we get new news out of it. we have 300 plus percent year on year growth. spectacular. but i think some of these really high-flying names, you're probably taking more beta risk than you need to if you've already gotten good news out of them. adobe, we own that one. that's some of the better performers on the year. >> interesting. if charters charts play out. brian, what you are your thoughts on what we've seen from tech, that run in that group? >> carter makes a great point out of the igv. it scalps out of that component of the qqqs that is really nonartificial intelligence related, and so many of the software names in there have that a.i. play. that's what's drechiven the mar. when nasdaq turned and tech turned it's been an a.i. sales psych that's dre

nvidia down double digits. valuations are coming under pressure ahead of earnings that are out soon with the rise also in treasury yield. you can see today nvidia down 3%. to your point about broadcom, it was or is considered an a.i. darling for custom chips, but down about 12% on the month, down 2% today. what happened today? a report said that google was thinking of ditching broadcom as the chip supplier in the next three to four years o google since said they see no change in their engagement with broadcom. that could change. you saw shares come up off of the earlier lows. another bright spot that i to point out globalfoundries. that's up almost 4% on the month. positive. why? it announced it won a ten-year department of defense contract to build semiconductors. they could keep winning deals since the fabrication hub is on u.s. soil. >> yeah, that's a good sweep. thank you for that. kristina partsinevelos, of course. joe, back to you. broadcom, you own it. this headline out there, google says, well, not real

, i would probably do that with a put spread rather than outright sell nvidia.y not be in the same constraints for clients but if i had my own book to trade that's one area i would look to do. i want to stay very a.i. related here, i think there's more to go. we're in the very early stages of this, and if the market has bottomed out and the august selloff is now over and we're moving to the upside i'm going to buy put spreads so i don't get out and continue to participate, and igv, maybe couple that with a couple semiconductor names that play a.i., i would do that to play to the upside of the market because i think that's where the momentum is. >> okay. well, brian, i understand you're laying out a trade on a name that actually saw a huge surge today. what are you seeing? what are you looking at? what's the play? >> speaking of a.i., you look at dell and the one thing that came out of the earnings call was the words a.i. and their server integration with artificial intelligence and demand for those types of servers and that's where they really saw their growth.

google hitting 52-week highs and nvidia continuing its monster run, up 230% for the year. technological advances keep up the momentum. carter is kicking us off with a look at the moves. >> before we get to the charts it's so many ways to look at tech. the xlk is the actual tech sector mirroring the standard sector. if one looks at the q's, microsoft and apple have a different weighting versus what they have in the xlk. or if you look at software, there's igv, an expanded software tech etf. where there is no apple. and apple has underperformed for almost 11 months, the tech sector. which is an incredible thing. let's look at a few charts and tr try to figure it out together. a table to make the point. igv, the shares expanded tech software over the past four months up 23 plus percent. qqq and xlk meanfully behind, and that's a function of the weightings. the biggest weighting in ig is adobe. relative chart to start, to make this point, igv here is relative performance to qqq. so, underperforming because of apple and microsoft's dominance, and now because apple and microsoft

nvidia and arm. and i believe the combination of the two companies will be enormous. i believe in the future of a.i. and it's really now getting proved. this is the beginning of big a.i. time. arm is going to have a big role in that. >> of course, the question can be for somebody who believes so strongly in the future of a.i., you know, does he have enough profits to show for it, mike. even if that nvidia deal had gone through, given the enormous increase in price there, it would have been as much as $100 billion just on the stock portion for softbank, not to mention, obviously, division fund and whether -- and what they decided to do or not do when it came to at least generative a.i., for example, which they've not been involved with. >> yeah. the struggle is -- when it comes to arm, it's interesting as a potential investor. very known quantitity, mature level, not a lot of growth at the moment but there are a category of stocks that are industry utilities or that provide some industry standard on a

i want to talk to you about nvidia.ou have a lot to say about that name and in particular, its association or relevance to tesla and a comparison between the two, what is your thesis? >> tesla in autonomy was where nvidia and tesla originally met. tesla used to use nvidia chips to build their autonomy systems in the model s back in the day and nvidia started designing their own ships because nvidia said we will not designed specifically for tesla. over the years, the two companies have not competed but continued to develop hardware and software for autonomy. with that, many of the nvidia chips were using crypto and no cloud and now ai. for the first time, we see a convergence of actual applications which is generative ai and chatgpt and autonomy of dish and autonomous driving and it has driven this massive investment for all of the major tech companies to upgrade their databases and their systems to being intelligent. they had to buy nvidia chips to do so. both companies represent the best of american innovation, techno

nvidia, the u.s.n india to become one of the world's biggest ai centers, the chipmaker said to collaborate with the indian technology firm emphasis to provide generative ai services. we now are joint by our guest from bangalore. tell us about what the ceo of nvidia's visit this month and what his plans are. >> the cofounder and billionaire ceo of nvidia was in india earlier this month for an entire week, so if time is money, this is a telling journey that he made to india, starting with meeting with prime minister modi in new delhi where he wore his trademark leather jacket and sweltering 90 plus degree heat to meet the prime minister at his residence. the prime minister tweeted that they come nvidia in india, will collaborate to tap india's rich ai potential but there are three things that make india really key and vital to nvidia. one is of course the fact that china has been banned by u.s. export controls to be a buyer of high end most sophisticated graphic processors that are key to ai development

besides nvidia. can't just be nvidia. >> but isn't it -- maybe it's a bit too early to do that?sn't it -- we talk about the products that are really going to come from generative a.i. and the revenues and/or the productivity, it just may be a while, jim. >> not for banks. because they have -- well, we called goldman. they had deadwood. you spoke with david solomon. he was more diplomatic through that. some firms will start trimming immediately. but they'll do it through attrition. they won't fire. they just won't hire people. in terms of making numbers move up, what i think is most daunting is what happened with oracle. and i wanted to buy -- oracle's got oracle world next week. i think they're going to lay out a pretty good a.i. strategy, but they didn't raise, and unless you raise, like nvidia, then it's disappointment, and david, that means there's a lot of disappointment ahead. it worries me, particularly in light of what we know about arm holdings and how that stock is going to come in way too hot now. >> you think it's going to come in way too hot? >> i was hoping for $50

apple and nvidia are still having some problems. how significant do you think that is. >> i believe obviously this is the big debate right now. clearly for me, when you look through the index, everybody is down. but the bulk of the damage is being done by apple which is -- as everybody knows by now, largely worries about china overblown or not. nvidia, the entire semi space is across the street. >> broadcom is down. semis down. your point is well taken about what's happening in chips. >> when you dig through the index, you note, like the cybersecurity names are still doing superwell. old tech, ibm, cisco, oracle is at a high. i'm not advocating for them fundamentally. but there are other names, the software space, adobe, there's pockets of strength that are off-setting some of the witness for these issues. >> are we in a buy the dip as i raise this question at the top? are we still in that environment which is the thing that has kept the market as resilient as it's been? there was some talk that that sort of -- the flavor of the mar

nvidia, being number one.nd then working on down from there, whether it's microsoft or alphabet or interestingly, jim, i'd love to get your take on the story about meta, which is now working on a very powerful a.i. that they say will exceed what chatgpt can do. >> if that's true, i mean, it would be important. it's not really what people are focused on. i think people are focused on something that makes it so that you can very prosaic stuff, make it so data is easier to be able to use on almost a business-to-business way. i don't know whether meta is going to get into business-to-business or make it so chat's more fun. chatgpt is really limited by where the last date was that it has the information. carl, i find that what's far more interesting, even though it is for numbers interesting but not interesting for people at home, is at dreamforce, which is billed as the world's largest a.i. festival, it's about how companies can use their data. it's not about how individuals can be more creative. >> yeah, it kind

arm is also a key partner with nvidia. night is the biggest winner in the ai era so far. they love arm to the point where they tried to purchase the entire company if you years ago. the arm ceo is actually inworld and the passage gpu, they combine them. here is the bottom line. there is a reason everyone is so excited about arm holdings. it is totally justifiable the stock was up nearly 25% on its first day of trading. it is still worth buying? stick around and i will tell you whether the price is right. mad money is back after the break. >> coming up, while today's hot stock cost an arm and mary? know your ipo continues next. >> before the break i told you why everybody is so excited about this ipo. if one of the most important semiconductor companies in the world. i have some issues like an overlying in the smartphone market. they are working to correct that, but it's going to take some time. as much as i like that in theory the stock have plenty of problems. it is much harder to make money with the stock all the way up

nvidia commands the market, and amd and microsoft are saying, well, move over, nvidia.icer at microsoft, kevin scott, said amd's a.i. chips might be in the card's for them. they did announce three months ago they're going to start sampling their clients their a.i. chip. why not with microsoft? they do have this long-term partnership. in the en, it's probably in everyone's best interest to have more chips from more vendors than just nvidia, and i don't even think that hurts nvidia because they have such a dominant market share. stiewmp stuart okay, blue apron, i know they're a meal kit service. they've had a rough go since 2017 but huge surge. lauren: more than doubled. stuart: what a'ses -- what's with that? >> they're being acquired for $103 million by wonder group, $13 a share, essentially where the stock is now, more than double yesterday's price. stuart: why would you do it? why would you pay more than double when you could just go on the open market and pick it up for a small premium? lauren: i don't know. but i do know that i -- what was the valuation in 2017 when

if your name is not nvidia and you don't do an nvidia-like quarter, it is not like this quarter was bad as you said, the non-a.i. related stuff and wireless networking. that wasn't bad. the guidance wasn't wow like nvidia the last two quarters. >> it makes you think from the investor standpoint, if you are looking for the hidden a.i. play, maybe that is not the route to go because you have the broa broadcom shows you the other parts of the business may be a drag and you may want to invest in the pure play. >> we had stacy on yesterday. he was making the point, the noted chip analyst, suggested this is a real way to play real revenue right now and people always cite valuation compared to nvidia being cheaper and a reason why you can't stomach the valuation of nvidia and this is your alternative play. be careful what you wish for because you pay up for nvidia for a reason. >> right. this is the discount for a reason. let's get more on this from the research analyst on the broadcom call yesterday. pierre pierre, great to have you with us. how does this stack up? does nvidia look like the b

you know, there's no denying the dominance that nvidia has in this market. >> you own tesla it is up 23% over one month. that blows all of the magnificent seven, the other names out of the water and not even close how do you view tesla here >> i think adam jen onas of morn stanley made a great point is the dojo which is driving fsd which is fully self-driving is going to be a gateway to all other things ai for tesla. whether it's humanoids and the robots and they get into automation or delivery or robo taxis and they need vision in order to operate so if tesla can figure out fsd, highly likely it throws open the gates to tans that are enormous. >> they a look at the stock as i said, 23.5% over month quickly on broader market before i expand the conversation. fed meets this week. what are you expecting and what has obviously been a historically challenged month for stocks after you get through quadruple witching and you have many weeks of a rocky market how do you see things settling out? >> so as for the fed, i think they just need to wait and watch and see how the economy unblossoms

there's a reason i'm buying nvidia. it's not just that i'm underweight tech or nvidia, the forward multiple, it's 26. this was a year and a half ago, two years ago, we were holding our nose at 60 times forward multiple. by margins that are extraordinary, that's why it's at a 26 times forward multiple. now to the other names that you were bringing up, scott, i'm not participating. that tells you what i think of them. regarding a bubble, the talk about ai sounds to me bubble like. it does not, however, sound like it's imminently going to pop. you talk to people about the in ai and they say things like we haven't even scratched the surface of the usage cases for ai and there's a breathlessness with which i hear them speaking about it which is off-putting, to me. >> isn't that kind of the truth in that, jenny, can you point to monetization of the stocks and others it's hype and hope of what we think, but we don't know when the when is. you know what i mean? >> we were having this conversation, did an investment committee me

i'll never argue with the ceo of nvidia. he was talking about how a.i. could allow businesses to save massive amounts of money but not trying to hook the consumer on anything. it's not like everyone can use a.i. reperiod from frank sl::tman. unless it's visible it may not be that available. a lot of companies have em-blaised it for so and if they can't deliver real return and the whole notion is a transformative business to consumer, it will fizzle, the stocks of companies that pushed that story will fizzle with it so need to closely listen to frank about how bullish it is. let's let snowflake tell us. maybe it's just unbelievable for the enterprise but we can't say how great it is at home. lots of company want to embrace it because it can save costs in the call center and coding process. if you use large language models where you ask a computer without coding you got a winner. you can quiz your own computer about cyberthreats and it'll tell you about it. a ceo from palo alto says the same thing. makes sense for cybersecurity. so i'm not saying a.i. isn'

nvidia down 6%, four trading days, in september.nt and a half, which means outside of the two stocks, the s&p slipped 1%. you have alphabet and amazon both up today. it is not as if the entire nasdaq is being swamped by what is happening in apple. i think aside from that, none of the other big mac rro asset mov, the dollar looking like it is stretched to the upside and maybe going to be a challenge, but yields are quiet. all that boiled together suggests that it is just a little bit, like you said more of the same, but to me more of the same means we're just kind of in this pullback where you have a lot of put buying the last couple of days and huge amount of corporate debt sold and we have kind of absorbed it. to me, i don't look at this tape and say, it is super fragile here. you have banks down 5%, you know, this week, and the vix is yawning at 14.5. >> losses have been bought and most of these occasions and we'll see what happens, if tech does pullback more, the buyers are probably, you would think, going to come right in and sn

on the other hand i would say something like an nvidia which, you know, i would own here. and so there are mix within megafmega cap, although valuations are smaller, i think it's going to be a tough group heading into an economic downturn. >> some people were like literally spitting out their afternoon espresso hearing you justify nvidia's multiple but not apple's. you want to expand on that? i had to go, but i want to hear your answer. >> sure, apple has currently zero growth and it actually has negative revenue growth, and i think their growth going forward will be fairly muted, and yet it's trading at 30 times earnings. nvidia is, as we know, is in this sweet spot for the buildout of the ai infrastructure, and i think they're going to have -- although there's tons of pull forward going on, you have a line of sight for the next two to three quarters at minimum that their fundamentals are going to be there, and that's the big -- that's the big diff differential. >> we'll leave it there. guys, thank you. we'll talk to you again soon, eric. >>> that brings us to our questio

we've seen the likes of nvidia. there were the faang stocks over the past month that they oosh been watching. how disruptive do you think it will be? >> it's really going to change things. one, you have the beneficiary of this. nvidia is one, microsoft is one. you have the large tech companies that are going to do well, at least many of them. then you have the rest of the market and, there, the people who really apply this technology and are the leaders in terms of how they are making their companies more efficient, they will just run away from the rest of the pack. this is really going to change the leadership in many different ways. >> and arjun caught up exclusively with qualcomm's ceo and asked him why the company has lagged behind rival chipmaker nvidia given its a.i. aspirations. we're doing something different. we're bringing a.i. to the deviet. one of the most popular demos we had was on this concept car how we show it become a natural language communication. in our toech summit, i think it will be around in

that is above nvidia.different companies and saying how is a.r.m. valued at this level when it is facing slowing growth in the core market of the smartphone chips and consumer electronics? a.r.m. is -- nvidia is projecting -- excuse me, massive growth in the next coming quarters. that is key for investors. key for a.r.m. is how does it execute? the company spoken about the fact it thinks it will be a big player in the a.i. space in new areas like cloud computing and data centers and automotive as well. how do they execute to show the company which saw revenues decline last fiscal year and return to growth? that is key here. they need to show the market here that they have a plan and they are able to execute it and that growth will be in the double digits for the next quarters, frank. >> big debut for a.r.m., but we are seeing 75% of ipos debuted in the last year were below the listing price. what is all this action tell us about the possible upcoming ipo for instacart? >> there seems to be a little bit of

and nvidia. >> is it an a.i. play? >> two different companies. nvidia designs gpus.hips going into data centers and servers that power and underpin the a.i. models like chatgpt. that is what nvidia does right now. that is a reality that is happening. a.r.m. is not in that part of the market. where the potential lies is on edge a.i. or a.i. applications on devices. right now, they happen in the cloud. we are getting that service from the cloud service right now. as a.r.m.'s architecture is designed. it is low power and high computing power. in the future, the idea is we will do more of the a.i. applications on the smartphone or tablet or car on tv or fridge. that is where the a.r.m. potential is. analysts said this is not something that will accrue to revenue in the next two years. this could be an a.i. play, but not something that is immediate as nvidia. >> and this is what the strategist from aberdeen was telling us on the show yesterday. this could potentially have a.i. up upside. the a.i. revenue is not there for a.r.m. yet. you are buying into the potential. >> t

nvidia keeps raising the bar again and again and again. at some point even the best athletes in the world have trouble getting over the highest bars. >> and you own broadcom? >> we did. we do. >> you like the m word. closing at the end of october. >> $55 earnings power. it's big. i just think today, okay, fine, sell off and give me the opportunity to make it even bigger. i did take profits when it was at its all-time high. buy it back. >> kristina partsinevelos, thank you for joining us. >>> we have some more committee moves to make sure to hit. steph, you bought amazon. why now? what do you like about it? >> i know i'm not early, and that's kind of rare for me, the stock is still down 25% from its highs. it trades to me at a more reasonable valuation. at 40 times. we talk about costco all the time and it's at 38 and consistently trades at that level. it's a compounder and that's the way i'm viewing amazon. they are getting their act together in aws. it has stabilized. they have easy camps going forward. margins are solid and strong and re

only nvidia is down alongside of it. other companies like meta, like microsoft, like amazon, they are all higher. apple is right now technically . that is someone long apple. >> reiterated the neutral rating and said unlike years past the company may not be able to rely on strong iphone sales to drive its price higher. very interesting. we're sitting at 175. we're going to get over to julia boorstin with the market flash on netflix. what's going on? >>> netflix shares are sinking this morning now down about 4%. this happening while spence newman has been speaking at the bank of america media conference. he wrapped up his comments just a few minutes ago. he said the advertising business is still in the very early stages. he said that so far advertising is not material to the overall revenue of netflix, and this is something they're going to have to build over time. he said it's not easy to build an ad business from scratch. newman saying they're nowhere near peak margins and the positive impact from cracking down on passw

is that code for we like nvidia the best of all in a.i.? >> we like nvidia but not at these valuations. there's a couple ways to play. the hyper scale cloud vendors which we, obviously, own microsoft and amazon and google. there are strategic consultants like accenture. adobe that just went public with their firefly pricing and that's an interesting play for us as well. there are a couple ways we're playing the a.i. mega trend. >> want to go back to the comment that you made about nvidia, maybe too rich where it currently is. the valuation has come down over the last several months has the guidance have gone up and earnings have been good. it's an interesting perspective that you have that you still think it's over valued. i bring it up, ken griffin on citadel likes it too used the word frothy. the valuation has come down and you think it's too pricey? >> there's a part science. from a valuation standpoint, the price to earnings and other metrics that we're looking at is on the higher end when you compare it to the broader market or other f

i thought the nvidia acquisition was problematic.f your business model is built on serving 1,000 plus partners, biggest names in tech, apple and tesla and microsoft and so on, if you sold into one, all were concerned they would have to go further back in the queue. that is the complaint they made to the ftc and regulators. by that transaction not happening, you know, it has preserved a.r.m. to see if it can make that next growth jump. >> i'm in the sure you go into this in the book, but one concern is the exposure to a.r.m. china. it is a complicated relationship. they have exposure of 10%. 25% of the sales derived from china. how does that complicate the outlook? >> i think the shares have sold quite well today. we will see how they start when they start trading. maybe not the valuation the company wanted. it is pretty good. to get there, investors had to look past the china ownership which is messy. i think the thing to think of is a.r.m. needs to be in china, but china certainly needs a.r.m. so much of the work in china is built o

i'm trying to build my position in nvidia. that's something i'm more comfortable with the valuation than i am in arm. however, however, i'm paying -- >> that's not exactly cheap, my friend. >> actually it's not that crazy. you look forward one year, it's about a 28 times multiple. so it's actually growing into it. on arm this is very important and not just for the health of the ipo market. i like where it's trading now. the only reason it would go down is because of valuation concerns and that would spread, in my opinion, to other sectors of the market where valuation, even nvidia, is questionable. so really for many reasons besides the ipo market, i want this to do well regardless of whether i'm in it or not. >> jay? >> it's not a touch right now. i think to jimmy's point, it's very important for the capital markets. we need this to be a successful ipo. i think that's very important. i think there's concern for me just their exposure to china. 25% of revenue is in china and with the tensions there, that's concerning for me. t

nvidia has been volatile of late. which do you think right now is more torn, apple or nvidia, which is big enough in its own right. it's a trillion dollars. >> if you look at the s&p 500 returns in the last 12 months, though, the majority have an ai component. i do think from a trend perspective, we need to see ai acceleration, see beyond the frontline like nvidia to continue tech momentum. i don't think apple is enough. apple will trade now, i think, scott, on what's happening with the consumer. we saw the disappointing results from the likes of dollar general last week. if there starts to be consumer concern, that's what apple will trade on. that ai trade could be completely separate and bifurcated from what we experience in apple. i think from a tech perspective, from the stocks we've seen that have seen multiple expansion this year, ai is a more important theme as we go into the end of the year. >> it does come at an interesting time. jamie dimon speaking at a conference, to say the consumer is strong today, meani

i don't think nvidia will be any different.at becomes clearer and clearer is how weak the semis are under the surface. txn would be an example. broke down this week. making 52-week lows there. names like asml, taiwan semi, these are on 52-week low list, not the 52-week high list. speaks to the broader point of the internal detier owe ration we've seen in semis. there's 50 stocks in this index. the advance decline line'slows. i recognize the index is up, but the fact that you have the ad line speaks to just how weak this group is under the surface. they are short-term oversold. i can see them bouncing in the near term. fade those rallies. i think they've topped for the year. >> would you short nvidia again, dan? >> yeah, let's see if it gets a bounce. the story is going to be the deceleration of that growth, so, if there's any hiccups in the adoption of the products, anything geopolitical, whatever, it's great, it's been a fantastic story. i was very, very wrong. a moth to flame in this sort of thing. but the story dsh-- it's ab

we are still a long way away from when nvidia began to pick up.had a reasonable run before that. you can see further downside but not.10% alix: does this this is translate to u.s. versus european equities? you use the example of tech versus bad news priced in two europe. is it fair to extrapolate that to the overall index? bhanu: you can bet equities in general, the equity risk premium is a bigger factor in the u.s. where bonds are cheaper relative to equities in the u.s., not so much in europe and will because bonds are not dirt cheap in europe and equities are not expensive. the equity risk premium trade is -- in the u.s. than in europe. equities are both at high levels. the u.s. equity market given its valuations right now, 31 times cyclically adjusted te. it could only tactical horizon come off by more than europe but i would not expect europe to give positive returns. usually europe acts as a high meter market. from these levels of valuation, that is unlikely. japan and china are different. they could give positive returns. tom: that is posit

nvidia. second fan asking thoughts about puts on nvidia. brian, your take?easonal trader in me says we're in for choppiness in the partings. nvidia being a high flier is one to undergo that, so i would buy puts. so that i can stay in this stock, keep it long, use a put spread to protect it. there's been a lot of rumors around nvidia cooking the books, denying that. i don't know if it's true or not. i think we're in choppy waters. >> how does that chart look, carter? >> key is it made no forward progress since its earnings beat. it was a popular number, but there was no follow through in the price. at this point stall is the word that comes to mind, so i would take measures. >> it's not just consolidation. >> up down or sideways cover 100% of the odds sideways or down gets you about 98%. >> this is our last one. i had a lot of success with amazon put credit spreads but my brokerage holds on to the max amount. is there a way to avoid this with an options set up or collect interest? >> there isn't really. really you have to think about this, there's two things.

they're not the chips nvidia is making.here arm's strength lies is perhaps more in the future when a.i. processing stops happening as much in the cloud and happens actually on our devices, on our smartphones, on our laptops. that's going to require low powered consumption but high computing powerchips, the likes that arm is known for. the question is when does that materialize? this is not a one- or two-year play. it could be three, five years down the line. by then, what will the competitive landscape look like? >> you're reminding us patience is a virtue, arjun. thank you. be sure to catch the full coverage tomorrow on cnbc. >>> i a head on "worldwide exchange," lyft's new plan to enhance passengers' safety and a new flavor. and non-swifties need not apply. your top trending stories when we return. i was told my small business wouldn't qualify for an erc tax refund. you should get a second opinion from innovation refunds at no upfront cost. sometimes you need a second opinion. [coughs] good to go. yeah, i think i'll get a

look at nvidia. nvidia is trading at just 26 to 27 tim street's fiscal two earnings right now and they are clearly the best position for a.i. the a.i. chip is going from $30 billion in 2023 to $150 billion by 2027. that's a 50% cagr and between their cpus and gpus and dp us ad software, that company is going to capture such incredible value. we have bull market consolidation here. that happens from time to time especially when the stocks are up a lot. if we look out over the medium and long-term, which we're always trying to optimize in our strategy, 18 to 24 months, we feel still pretty good. >> i markets. we still feel really good about india. services continue to grow as a total percentage of the overall revenue and the stock is trading at 26 to 27 times the street's earnings. i think apple is going to be just fine. >> is there anything you don't feel pretty good about? everything i've asked you, you said you feel pretty good, whether it's a comedown in valuations, fundamental questions about orde

qualcomm, nvidia. companies that make their own chips like apple are using these design. -- designs. arm has been strong in the iphone -- smartphone market, it's not growing like it used to, they are trying to expand beyond that it's a key new areas, including artificial intelligence, cloud computing, servers, where they think there is more potential. the key for them is to be able to move into that territory and benefit from it and reap the profits that they hope they can in the future. >> what does it mean for softbank broadly? >> this was one of the big bets by softbank founder masayoshi son, where he hoped that arm would be his window into growth areas like artificial intelligence, the internet of things. it has not worked out quite like that. the company has not grown as much as he anticipated, it has not been that window. he tried to sell it to nvidia before. the ipo is a bit of a backup option. he has been very involved in the operations of the company and trying to help with this expansion beyo

there's been a lot of rumors around nvidia cooking the books, or other analysts denying that.k we're in choppy waters next few weeks. >> how does that chart look, carter? >> the key is it's made no forward progress since its earnings beat, it was a popular number but there was no follow-through on the price, and so at this point, stall is the word that comes to mind and i would take measures if i were long. >> so not just consolidation? >> it's -- let's say this, up down or sideways, cover 100% of the odds, sideways or down gets you about 98. >> last one, last fan asks i've had a lot of success with amazon put credit spreads at the 135 to 130 level. but my brokerage ties up funds. is there a way to avoid this with options setup or collect interest. mike, what do you say? >> there isn't really, you have to think about this, there's two things, you have the margin requirements, which are regulatory, and then of course what your broker is going to impose. the interest, of course, is going to vary from broker to broker as well and right now i'd be reluctant to sell 135/130 put spr

nvidia is trading on massive multiples. alex: bloomberg sources are saying government agencies and owned firms will not be allowed to use iphones. that is sending a shudder through apple today. interesting estimate from dan ives saying that his 500,000 of the 45 million units. guy: i read that as well i my first reaction was, yes, but if i am a consumer looking to buy a new iphone in china, i am thinking, the government has got quite a history of banning things broadly. alex: there is a lot of government bans on tiktok in the u.s. that has not stopped tiktok being popular. two different systems of government. but investors are skittish about apple. there was concern broadly in the tech space that these stocks might be overvalued. it could be some kind of warning shot. if something more serious were to happen to apple, then the market takes a dip. alix: ed, is tech in trouble? or is it an apple ripple effect when it comes to the huawei phone? ed: both. it is math and psychology. apple is the biggest constituent of most indic

you need nvidia. you need the h100. artificial intelligence, not even regular intelligence. >> as far as raimundo's visit, there's disney talk, boeing talk, travel and trade talk. >> in that trip at the boeing hangar, she's very well accepted. when i speak to her i'll be deeply focused on the notion that, is there a carrot and a stick going here. she's very adamant and very tough, both sides of the aisle behind her, that they better change their ways. i want to find out what happens if they don't? what happens if they don't. >> that's the key interview that jim's got tonight. there's the opening bell at the cnbc realtime exchange. semiconductor company st micro, provider of trial-based web development services. churning here above 4,500 the last couple days. the end of august wasn't terrible. >> i was surprised. i felt when salesforce exploded higher, that would be enterprise. when mongodb had an amazing quarter, i thought that would help us. >> splunk and snow -- >> it meant nothing. this is the area where everybody ha

nvidia, which is closest comparable, trades at 109 times earnings.re these valuations actually sustainable? if they're not, what does it mean for the rest of the tech sector? >> the valuation you are referring to are backward looking. they are taking place compared to last year's earnings. the point in particular with nvidia is that the forward earnings are far higher than the earnings to the previous period. if you look at nvidia on the forward multiple of earnings, it is by the recent record is trading in the 40s over the last few years. not because the stock price has gone down, but earnings or expectations of earnings have been going up so fast. that would not be the case for a.r.m. i don't think it would have explosive growth that nvidia is seeing at the moment. you have to look at forward multiples. i thought a better comparable is synopsis. >> william, how far outdo do we have to go in the a.r.m. valuation to look more palat palatable? >> i suspect a little way. at the moment, it is not a bad time to buy a.r.m. all is not going perfect. the sm

partnership with chip giant nvidia.hile we're at it, let's check the stocks of those tech titans talking a.i. on capitol hill. tesla up 1%, meta up by three-quarters of a percent, microsoft if up just under 1%. alpa that bet google up half a percent. stay tuned. big tech and growth stocks have been driving most of the gains today, but now we've got the s&p down 5 points, joining the dow in the red. nasdaq holding on to just 4 points of gains. we're coming right back. ♪ new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. what do we always say, son? liberty mutual customizes your car insurance... so you only pay for what you need. that's my boy. ♪ stay off the freeways! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ ♪ is it possible to fall in love with your home... ...before you even step in

nvidia was the fourth.lease don't take that away from us we were there first and anyone who listened to us has made a lot of money. >> that was cathie wood speaking. >>> maros sevcovic says europe is working to expand trade with china. then they say they were stopping trade of evs that's interesting >> big announcement on this investigation. potentially china giving subsidies to carmakers over there, but from the conversation i had with the vice president, it seems the european union is not anywhere close to imposing tariffs on china's evs they're going forward with an investigation. we'll see how far they go. i have to point out at the moment, there's already an import tariff on cars that is at 10%. potentially what we're talking about here is we could see the eu raising that specifically for chinese evs. but let's take a look at some of the conversation i had with the vice president of the european commission. >> it's free but fair at the same time. before because we receive d several pieces of informatio

with nvidia's blistering rally this year. the difference is this is not an nvidia. this is a different prospect. it makes money from the architecture that underlines 99% of the world's smartphone chips. this is an area that is stagnating. this is area where growth is slowing and prospects are not looking so great. the question is how does a.r.m. find growth? architecture for chips for data center? that is the area they are looking into or is it in the automotive space? another area of promise. the valuation is an indication of the caution. it has not hit the high end that softbank has hoped for. it is recognizing all of the challenges, but the potential opportunities in the new areas, seema. >> we will see how it trades. arjun, thank you. cnbc will have complete coverage of the a.r.m. trading debut and the conversations with the a.r.m. ceo rene haas and founder masayoshi son. >>> let's get a check of the other top corporate stories with silvana henao. silvana. >> seema, good morning. it is coming down to the wire. united auto workers union making a final preparation

everybody knows about nvidia.think the old economy, large-cap dividend stocks continued to be undervalued and there was that rotation. the dow was outperforming today. we think the trend will continue. the stocks are lower beta and it is a good way to balance out your portfolio if you are overweight technology. haidi: jay hatfield from infrastructure capital management, good to have you in the studio. terminal subscribers, go to dayb . you can customize your settings so you only get the news on the industry and assets you care about. this is bloomberg. ♪ (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ haidi: let's get to the latest stories. the biden administration has announced 100 sanctions on russian elites. while most of those targeted were rushing companies and people, the new round also hit say finland-based network -- hits a finland based network. hunter b